<PAGE>
[AIM LOGO APPERAS HERE]
--Registered Trademark-- Dear Shareholder:
[PHOTO of As the end of the fiscal year arrived, the U.S.
Charles T. Bauer, economy continued to move ahead at a lively
Chairman of the pace. The robust domestic economy (coupled with
Letter Board of The Fund inflationary tendencies in certain commodity
to Our APPEARS HERE] prices) compelled the Federal Reserve Board (the
Shareholders Fed) to increase the federal funds rate four
times during the fiscal year, resulting in a current federal
funds rate of 6.50%. On August 22, at its last meeting before
the end of the reporting period, the Fed remained on hold,
leaving the rate unchanged. However, concern about inflation
remains due to trepidation about crude-oil prices. The energy
sector poses the highest risk of inflation; the price of crude
oil has escalated from $25 per barrel to more than $33 during
the fiscal year. Recent monthly economic data releases reflect
a moderate growth trend for the economy, a bit slower than when
2000 began. Gross domestic product for the second quarter of
2000 was 5.6%, and the estimate for the third quarter is
between 3.5% and 4.0%.
YOUR INVESTMENT PORTFOLIO
As of August 31, 2000, the performance of the portfolio's
Resource Class topped that of its comparative index, as shown
in the table. (Had the advisor not waived fees and expenses
during the reporting period, returns would have been lower.)
Although the Treasury-bill yield curve remained somewhat
expensive for the portfolio's rate target for most of the
fiscal year, the portfolio held to its consistent investment
discipline, maintaining a relatively short, laddered portfolio
structure. This structure is used to help ensure that the
portfolio's yield is not unduly influenced by reinvestment
rates on any particular maturity date. As Treasury-bill rates
plunged, portfolio managers looked to take advantage of the
relatively cheaper coupon securities to help add value. The
portfolio's weighted average maturity (WAM) was between 17 and
43 days during the fiscal year. At the close of the period, the
weighted average maturity was 25 days. Net assets of the
Resource Class stood at $764,669 at the close of the fiscal
year.
<TABLE>
<CAPTION>
YIELDS AS OF 8/31/00
Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Government TaxAdvantage Portfolio 6.21% 6.27%
Resource Class
IBC Money Fund Averages(TM) 6.04% 6.06%
Government Only/Institutions Only
</TABLE>
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 TaxAdvantage Portfolio seeks to maximize
current income to the extent consistent with preservation of
capital and maintenance of liquidity. It purchases only direct
obligations of the U.S. Treasury and securities issued or
guaranteed as to principal and interest by the U.S. government
or its agencies or instrumentalities. Government securities,
such as U.S.
(continued)
<PAGE>
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.
OUTLOOK FOR THE FUTURE
August saw a decline in the Consumer Price Index and the
Producer Price Index and flat retail sales, which led to a
widespread consensus among financial markets that the Fed will
not increase short-term rates for the rest of the year. Jobless
claims are the highest they have been since mid-1998. With a
presidential election in the near future, the Fed is expected
to remain on hold, and the economy will experience the gradual
effect of the fiscal year's aggregate 125-basis-point short-
term rate increase. Considering the short weighted average
maturity the portfolio maintains, the inversion of the Treasury
yield curve has allowed it to maintain outstanding performance,
along with the flexibility to adjust its maturity schedule in
the event of sudden rate changes or curve corrections.
We are pleased to send you this annual report on your
investment. AIM is committed to the primary goals of safety,
liquidity and yield in institutional fund management. We are
also 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
--------------------------------------------------
Effective June 1, 2000, Short-Term Investments
Trust Treasury TaxAdvantage Portfolio was renamed
Short-Term Investments Trust Government
TaxAdvantage Portfolio. Formerly a 100% Treasury
portfolio, the fund's investment policy was
amended to allow the purchase of U.S. government
securities.
--------------------------------------------------
2
<PAGE>
SCHEDULE OF INVESTMENTS
August 31, 2000
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY DISCOUNT NOTES(a) - 85.79%
FEDERAL HOME LOAN BANK - 82.18%
6.51% 09/01/00 $81,730 $ 81,730,000
------------------------------------------------------------
6.38% 09/12/00 8,553 8,536,326
------------------------------------------------------------
6.38% 09/13/00 15,000 14,968,100
------------------------------------------------------------
6.38% 09/20/00 5,950 5,929,965
------------------------------------------------------------
6.41% 10/11/00 10,000 9,928,833
------------------------------------------------------------
6.42% 10/13/00 10,000 9,925,100
------------------------------------------------------------
6.44% 10/18/00 5,000 4,957,961
------------------------------------------------------------
6.43% 11/01/00 10,000 9,891,047
------------------------------------------------------------
6.46% 01/03/01 5,000 4,888,745
------------------------------------------------------------
6.40% 01/10/01 5,000 4,883,556
============================================================
155,639,633
============================================================
FEDERAL FARM CREDIT BANK - 3.61%
6.40% 01/02/01 6,985 6,832,381
============================================================
Total U.S. Government Agency
Discount Notes (Cost
$162,472,014) 162,472,014
============================================================
U.S. TREASURY BILLS(a) - 14.72%
5.60% 09/07/00 7,950 7,942,580
------------------------------------------------------------
6.35% 09/21/00 20,000 19,929,444
============================================================
Total U.S. Treasury Bills
(Cost $27,872,024) 27,872,024
============================================================
TOTAL INVESTMENTS - 100.51%
(Cost $190,344,038)(b) 190,344,038
------------------------------------------------------------
LIABILITIES LESS OTHER
ASSETS - (0.51)% (966,206)
============================================================
NET ASSETS - 100.00% $189,377,832
____________________________________________________________
============================================================
</TABLE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) 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) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
3
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, at value (amortized cost) $190,344,038
------------------------------------------------------------------------------
Cash 2,200
------------------------------------------------------------------------------
Investment for deferred compensation plan 37,620
==============================================================================
Total assets 190,383,858
==============================================================================
LIABILITIES:
Payables for:
Dividends 893,347
------------------------------------------------------------------------------
Deferred compensation plan 37,620
------------------------------------------------------------------------------
Accrued administrative services fees 4,235
------------------------------------------------------------------------------
Accrued distribution fees 26,648
------------------------------------------------------------------------------
Accrued trustees' fees 1,275
------------------------------------------------------------------------------
Accrued transfer agent fees 10,378
------------------------------------------------------------------------------
Accrued operating expenses 32,523
==============================================================================
Total liabilities 1,006,026
==============================================================================
Net assets applicable to shares outstanding $189,377,832
______________________________________________________________________________
==============================================================================
NET ASSETS:
Institutional Class $ 60,824,720
______________________________________________________________________________
==============================================================================
Private Investment Class $ 77,755,408
______________________________________________________________________________
==============================================================================
Cash Management Class $ 50,033,035
______________________________________________________________________________
==============================================================================
Resource Class $ 764,669
______________________________________________________________________________
==============================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Institutional Class 60,813,231
______________________________________________________________________________
==============================================================================
Private Investment Class 77,746,007
______________________________________________________________________________
==============================================================================
Cash Management Class 50,032,980
______________________________________________________________________________
==============================================================================
Resource Class 763,927
______________________________________________________________________________
==============================================================================
Net asset value, offering and redemption price per share for all
classes $1.00
______________________________________________________________________________
==============================================================================
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
STATEMENT OF OPERATIONS
For the year ended August 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $7,556,679
=================================================================
EXPENSES:
Advisory fees 277,625
-----------------------------------------------------------------
Administrative services fee 50,000
-----------------------------------------------------------------
Custodian fees 8,283
-----------------------------------------------------------------
Distribution fees:
Private Investment Class 320,962
-----------------------------------------------------------------
Cash Management Class 250
-----------------------------------------------------------------
Resource Class 6,303
-----------------------------------------------------------------
Transfer agent fees 34,148
-----------------------------------------------------------------
Trustees' fees 7,817
-----------------------------------------------------------------
Other 126,278
=================================================================
Total expenses 831,666
=================================================================
Less: Fee waiver and expense reimbursement (510,081)
=================================================================
Net expenses 321,585
=================================================================
Net investment income 7,235,094
=================================================================
Net realized gain (loss) from investment securities (10,344)
=================================================================
Net increase in net assets resulting from operations $7,224,750
_________________________________________________________________
=================================================================
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 7,235,094 $ 6,402,815
------------------------------------------------------------------------------
Net realized gain (loss) from investment
securities (10,344) (10,840)
------------------------------------------------------------------------------
Net increase in net assets resulting from opera-
tions 7,224,750 6,391,975
=============================================================================
Distributions to shareholders from net investment
income:
Institutional Class (3,721,612) (4,317,947)
------------------------------------------------------------------------------
Private Investment Class (3,314,960) (2,084,868)
------------------------------------------------------------------------------
Cash Management Class (13,963) --
------------------------------------------------------------------------------
Resource Class (184,559) --
------------------------------------------------------------------------------
Share transactions - net:
Institutional Class (27,682,360) (24,555,101)
------------------------------------------------------------------------------
Private Investment Class 32,380,339 14,232,029
------------------------------------------------------------------------------
Cash Management Class 50,032,980 --
------------------------------------------------------------------------------
Resource Class 763,927 --
=============================================================================
Net increase (decrease) in net assets 55,484,542 (10,333,912)
=============================================================================
NET ASSETS:
Beginning of year 133,893,290 144,227,202
=============================================================================
End of year $189,377,832 $133,893,290
______________________________________________________________________________
==============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $189,356,145 $133,861,259
=============================================================================
Undistributed net realized gain from investment
securities 21,687 32,031
=============================================================================
$189,377,832 $133,893,290
______________________________________________________________________________
==============================================================================
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
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 portfolios, each of which offers separate series of shares:
the Treasury Portfolio, the Government & Agency Portfolio and the Government
TaxAdvantage Portfolio (formerly the Treasury TaxAdvantage Portfolio). The
assets, liabilities and operations of each portfolio are accounted for
separately. Information presented in these financial statements pertains only
to the Government TaxAdvantage Portfolio (the "Portfolio"). The Portfolio
consists of six separate 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. As of August 31, 2000, the
Personal Investment Class and the Reserve Class had no assets. 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 to
maximize current income consistent with the preservation of capital and the
maintenance of liquidity.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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 as permitted under Rule 2a-7
of the 1940 Act. 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 and Investment Income - 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 recorded on the accrual basis from settlement date.
C. Distributions - It is the policy of the Portfolio to declare dividends from
net investment income daily and pay on the first business day of the
following month.
D. 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.
E. Expenses - Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class 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 $250 million 0.20%
Over $250 million to $500 million 0.15%
Over $500 0.10%
----------------------------------------
</TABLE>
During the year ended August 31, 2000, AIM waived advisory fees of $277,625 and
reimbursed fees of $70,665.
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. For the year ended August 31, 2000, AIM was
paid $50,000 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 agency and
shareholder services to the Fund. For the year ended August 31, 2000, AFS was
paid $16,733 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
6
<PAGE>
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 the maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00% and 0.20%,
respectively, 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 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 the maximum annual rate of 0.25%, 0.50%, 0.08%, 0.80% and 0.16%,
respectively, of the average daily net assets attributable to such class.
During the year ended August 31, 2000, the Private Investment Class, the Cash
Management Class and the Resource Class paid $160,481, $200 and $5,043,
respectively, as compensation under the Plan and FMC waived fees of $161,791.
Certain officers and trustees of the Fund are officers of AIM, FMC, and AFS.
During the year ended August 31, 2000, the Portfolio paid legal fees of $3,480
for services rendered by Kramer, Levin, Naftalis & Frankel 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.
NOTE 4 - SHARE INFORMATION
Changes in shares outstanding during the years ended August 31, 2000 and 1999
were as follows:
<TABLE>
<CAPTION>
2000 1999
-------------------------------- ----------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 731,844,478 $ 731,844,478 606,748,092 $ 606,748,092
----------------------------------------------------------------------------------------
Private Investment
Class 1,258,692,258 1,258,692,258 605,044,466 605,044,466
----------------------------------------------------------------------------------------
Cash Management Class* 60,397,453 60,397,453 -- --
----------------------------------------------------------------------------------------
Resource Class* 96,799,319 96,799,319 -- --
----------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 140,852 140,852 477,705 477,705
----------------------------------------------------------------------------------------
Private Investment
Class 1,195,830 1,195,830 1,198,839 1,198,839
----------------------------------------------------------------------------------------
Cash Management Class* 4,671 4,671 -- --
----------------------------------------------------------------------------------------
Resource Class* 39,389 39,389 -- --
----------------------------------------------------------------------------------------
Reacquired:
Institutional Class (759,667,690) (759,667,690) (631,780,898) (631,780,898)
----------------------------------------------------------------------------------------
Private Investment
Class (1,227,507,749) (1,227,507,749) (592,011,276) (592,011,276)
----------------------------------------------------------------------------------------
Cash Management Class* (10,369,144) (10,369,144) -- --
----------------------------------------------------------------------------------------
Resource Class* (96,074,781) (96,074,781) -- --
========================================================================================
55,494,886 $ 55,494,886 (10,323,072) $ (10,323,072)
________________________________________________________________________________________
========================================================================================
</TABLE>
* The Cash Management Class and Resource Class commenced sales on December 31,
1999 and December 30, 1999, respectively.
7
<PAGE>
NOTE 5 - FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the
Resource Class outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
RESOURCE
CLASS
------------
DECEMBER 30,
1999
(DATE SALES
COMMENCED)
TO
AUGUST 31,
2000(a)
------------
<S> <C>
Net asset value, beginning of period $1.00
------------------------------------------------------------------
Income from investment operations:
Net investment income 0.04
==================================================================
Less distributions:
Dividends from net investment income (0.04)
==================================================================
Net asset value, end of period $1.00
==================================================================
Total return(b) 3.66%
__________________________________________________________________
==================================================================
Ratios/supplemental data:
Net assets, end of period (000s omitted) $ 765
__________________________________________________________________
==================================================================
Ratio of expenses to average net assets:
With fee waivers 0.27%(c)
------------------------------------------------------------------
Without fee waivers 0.56%(c)
__________________________________________________________________
==================================================================
Ratio of net investment income to average net assets 5.17%(c)
__________________________________________________________________
==================================================================
</TABLE>
(a) Calculated using average shares outstanding.
(b) Not annualized for periods less than one year.
(c) Ratios are annualized and based on average net assets of $4,688,961.
NOTE 6 - CHANGE IN INDEPENDENT PUBLIC ACCOUNTANTS
KPMG LLP was previously the independent public accountants for the Portfolio.
Due to an investment in another portfolio of the Fund, which KPMG LLP
represented to the Fund was inadvertent, and new SEC rules regarding auditor
independence, KPMG LLP resigned as of December 28, 2000. The Board of Trustees
of the Fund, upon recommendation of its Audit Committee, accepted the
resignation of KPMG LLP and appointed Tait, Weller & Baker as independent
public accountants to audit the financial statements of the Portfolio. KPMG LLP
had served as independent public accountants for each of the two years in the
period ended August 31, 1999. The audit reports of KPMG LLP on the financial
statements of the Portfolio for each of the two years in the period ended
August 31, 1999 did not contain any adverse opinion or disclaimer of opinion,
nor were they qualified or modified as to uncertainty, audit scope, or
accounting principles. In connection with the audits of each of the two years
in the period ended August 31, 1999, and the subsequent period through December
28, 2000, there were no disagreements with KPMG LLP on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedures, which disagreements if not resolved to their satisfaction would
have caused them to make reference in connection with their opinion to the
subject matter of the disagreement.
Neither the Portfolio nor anyone on its behalf consulted with Tait, Weller &
Baker at any time prior to their engagement with respect to the application of
accounting principles to a specified transaction, either completed or proposed
or the type of audit opinion that might be rendered on the Portfolio's
financial statements.
8
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees and Shareholders
Short-Term Investments Trust:
We have audited the accompanying statement of assets and liabilities of
Government TaxAdvantage Portfolio (a series portfolio of Short-Term Investments
Trust), including the schedule of investments, as of August 31, 2000, and the
related statement of operations, the statement of changes in net assets, and
the financial highlights for the year then ended. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit. The statement of changes in net assets
for the year ended August 31, 1999 and the financial highlights for each of the
years or periods in the four-year period then ended have been audited by other
auditors, whose report dated October 6, 1999 expresses an unqualified opinion
on such financial statements and financial highlights.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 2000, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Government TaxAdvantage Portfolio as of August 31, 2000, the results of its
operations for the year then ended, the changes in its net assets, and the
financial highlights for the year then ended, in conformity with generally
accepted accounting principles.
TAIT, WELLER & BAKER
December 29, 2000
Philadelphia, Pennsylvania
9
<PAGE>
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Treasury TaxAdvantage Portfolio (the
"Fund"), now known as Government TaxAdvantage Portfolio, a portfolio of Short-
Term Investments Trust, a Delaware business trust (the "Trust"), was held on
May 3, 2000. The meeting was held for the following purposes:
(1)* To elect ten Trustees as follows: Charles T. Bauer, Bruce L. Crockett,
Owen Daly II, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling,
Robert H. Graham, Prema Mathai-Davis, Lewis F. Pennock and Louis S.
Sklar.
(2) To approve a new Master Investment Advisory Agreement with A I M Advisors,
Inc.
(3) To approve changing the fundamental investment restrictions of the Fund.
(4) To approve changing the investment objective of the Fund so that it is non-
fundamental.
(5) To ratify the selection of KPMG LLP as independent accountants of the Fund
for the fiscal year ending in 2000.
The results of the proxy solicitation on the above matters were as follows:
<TABLE>
<CAPTION>
WITHHELD/
DIRECTORS/MATTER VOTES FOR ABSTENTIONS
---------------- ------------- -----------
<C> <S> <C> <C> <C>
(1)* Charles T. Bauer.............. 2,273,936,836 196,328,854
Bruce L. Crockett............. 2,428,834,336 41,431,354
Owen Daly II.................. 2,428,834,336 41,431,354
Edward K. Dunn, Jr............ 2,428,834,336 41,431,354
Jack M. Fields................ 2,428,834,336 41,431,354
Carl Frischling............... 2,411,783,586 58,482,104
Robert H. Graham.............. 2,428,834,336 41,431,354
Prema Mathai-Davis............ 2,428,834,336 41,431,354
Lewis F. Pennock.............. 2,273,936,836 196,328,854
Louis S. Sklar................ 2,428,834,336 41,431,354
<CAPTION>
VOTES WITHHELD/
DIRECTORS/MATTER VOTES FOR AGAINST ABSTENTIONS
---------------- ------------- --------- -----------
<C> <S> <C> <C> <C>
(2) Adjournment of approval of a
new Master Investment Advisory
Agreement..................... 43,969,436 0 955**
(3) (a) Adjournment of approval of
changing to or adding the
Fundamental Restriction on
Issuer Diversification........ 42,666,696 1,302,740 955**
(3) (b) Adjournment of approval of
changing the Fundamental
Restriction on Borrowing Money
and Issuing Senior
Securities.................... 42,666,696 1,302,740 955**
(3) (c) Adjournment of approval of
changing the Fundamental
Restriction on Underwriting
Securities.................... 42,666,696 1,302,740 955**
(3) (d) Adjournment of approval of
changing the Fundamental
Restriction on Industry
Concentration................. 43,969,436 0 955**
(3) (f) Adjournment of approval of
changing the Fundamental
Restriction on Purchasing or
Selling Commodities, Margin
Transactions, Short Sales of
Securities and Investing in
Puts or Calls................. 42,666,696 1,302,740 955**
(3) (g) Adjournment of approval of
changing the Fundamental
Restriction on Making Loans... 43,969,436 0 955**
(3) (h) Adjournment of approval of a
new Fundamental Investment
Restriction on Investing all
of the Fund's Assets in an
Open-End Fund................. 43,969,436 0 955**
(3) (i) Adjournment of approval of the
Elimination of Fundamental
Restriction on Mortgaging or
Pledging Assets............... 42,662,731 1,302,740 4,920**
(3) (j) Adjournment of approval of the
Elimination of Fundamental
Restriction on Investing in
Obligations not Payable in
United States Currency........ 42,666,696 1,302,740 955**
(4) Adjournment of approval of
changing the Investment
Objective of the Fund so that
it is Non-Fundamental......... 42,662,731 1,302,740 4,920**
(5) Ratification of the selection
of KPMG LLP as Independent
Accountants of the Fund....... 43,970,391 0 N/A
</TABLE>
10
<PAGE>
The Special Meeting of Shareholders of the Trust was reconvened on May 31,
2000. The following matters were then considered:
<TABLE>
<CAPTION>
VOTES WITHHELD/
DIRECTORS/MATTER VOTES FOR AGAINST ABSTENTIONS
---------------- ---------- ---------- -----------
<C> <S> <C> <C> <C>
(2) Approval of a new Master Investment
Advisory Agreement................. 66,012,341 0 956**
(3) (a) Approval of changing or adding the
Fundamental Restriction on Issuer
Diversification.................... 64,709,601 1,302,740 956**
(3) (b) Approval of changing the
Fundamental Restriction on
Borrowing Money and Issuing Senior
Securities......................... 64,709,601 1,302,740 956**
(3) (c) Approval of changing the
Fundamental Restriction on
Underwriting Securities............ 64,709,601 1,302,740 956**
(3) (d) Approval of changing the
Fundamental Restriction on Industry
Concentration...................... 66,012,341 0 956**
(3) (e) Approval of changing the
Fundamental Restriction on
Purchasing or Selling Real Estate.. 66,012,341 0 956**
(3) (f) Approval of changing the
Fundamental Restriction on
Purchasing or Selling Commodities,
Margin Transactions, Short Sales of
Securities and Investing in Puts or
Calls.............................. 47,065,001 18,947,340 956**
(3) (g) Approval of changing the
Fundamental Restriction on Making
Loans.............................. 66,012,341 0 956**
(3) (h) Approval of a new Fundamental
Investment Restriction on Investing
all of the Fund's Assets in an
Open-End Fund...................... 66,012,341 0 956**
(3) (i) Elimination of Fundamental
Restriction on Mortgaging or
Pledging Assets.................... 63,888,721 2,119,655 4,921**
(3) (j) Elimination of Fundamental
Restriction on Investing in
Obligations not Payable in United
States Currency.................... 63,892,686 2,119,655 956**
(4) Approval of changing the Investment
Objective of the Fund so that it is
Non-Fundamental.................... 62,646,726 3,361,650 4,921**
</TABLE>
------
* Proposal 1 required approval by a combined vote of all of the portfolios of
Short-Term Investments Trust
** Includes Broker Non-Votes
11
<PAGE>
<TABLE>
<CAPTION>
TRUSTEES
<S> <C>
Charles T. Bauer Carl Frischling
Bruce L. Crockett Robert H. Graham Short-Term
Owen Daly II Prema Mathai-Davis Investments Trust
Edward K. Dunn, Jr. Lewis F. Pennock (STIT)
Jack M. Fields Louis S. Sklar
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
Gary T. Crum Sr. Vice President
Carol F. Relihan Sr. Vice President & Secretary
Dana R. Sutton Vice President & Treasurer Government
Melville B. Cox Vice President TaxAdvantage
Karen Dunn Kelley Vice President Portfolio
J. Abbott Sprague Vice President -------------------------------------------------
Mary J. Benson Assistant Vice President & Assistant Treasurer Resource ANNUAL
Sheri Morris Assistant Vice President & Assistant Treasurer Class REPORT
Renee A. Friedli Assistant Secretary
P. Michelle Grace Assistant Secretary
Nancy L. Martin Assistant Secretary
Ofelia M. Mayo Assistant Secretary AUGUST 31, 2000
Lisa A. Moss Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
90 Washington Street, 11th Floor
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO TRUSTEES
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
A I M Fund Services, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
AUDITORS
Tait, Weller & Baker
8 Penn Center Plaza, Suite 800
Philadelphia, PA 19103
This report may be distributed only to current shareholders or [LOGO APPEARS HERE]
to persons who have received a current prospectus. Fund Management Company
</TABLE>
TAP-AR-4
