<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
--Registered Trademark--
[PHOTO of As the end of the fiscal year arrived, the
Charles T. Bauer, U.S. 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
Institutional Class topped that of its comparative indexes, as
shown in the table. Although the Treasury-bill yield curve
remained somewhat expensive for the portfolio's rate target for
most of the year, the portfolio held to its consistent
investment discipline, maintaining a relatively short, laddered
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
weighted average maturity (WAM) was held between 18 and 33 days
during the fiscal year. At the close of the period, the
weighted average maturity was 21 days. Net assets of the
Institutional Class stood at $3.01 billion at the close of the
fiscal year.
<TABLE>
<CAPTION>
YIELDS AS OF 8/31/00
Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Treasury Portfolio
Institutional Class 6.36% 6.41%
IBC Money Fund Averages(TM)
U.S. Treasury/Repurchase Agreements 5.72% 5.74%
IBC Money Fund Averages(TM)
Government Only/Institutions Only 6.04% 6.06%
</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 Treasury 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 repurchase agreements secured by Treasuries.
Securities purchased for the portfolio will have maturities of
397 days or less. Government securities, such as U.S. Treasury
bills and notes, offer a high degree of safety and guarantee
the timely payment of principal and
(continued)
<PAGE>
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
2
<PAGE>
<TABLE>
<CAPTION>
AVERAGE MONTHLY YIELD COMPARISON
Year ended 8/31/00 (Yields are average monthly yields for the month-ends shown.)
Short-Term Investments Trust IBC Money Fund Averages(TM) IBC Money Fund Averages(TM)
Treasury Portfolio U.S. Treasury/Repurchase Government Only/Institutions Only
Institutional Class Agreements
<S> <C> <C> <C>
9/99 5.07% 4.45% 4.74%
10/99 5.06% 4.44% 4.77%
11/99 5.23% 4.59% 4.92%
12/99 5.20% 4.61% 5.01%
1/00 5.25% 4.64% 5.06%
2/00 5.57% 4.93% 5.26%
3/00 5.69% 5.06% 5.39%
4/00 5.88% 5.19% 5.53%
5/00 5.97% 5.30% 5.65%
6/00 6.32% 5.64% 5.90%
7/00 6.37% 5.68% 5.98%
8/00 6.36% 5.72% 6.04%
</TABLE>
<TABLE>
<CAPTION>
WEIGHTED AVERAGE MATURITY COMPARISON
Year ended 8/31/00
Short-Term Investments Trust IBC Money Fund Averages(TM) IBC Money Fund Averages(TM)
Treasury Portfolio U.S. Treasury/Repurchase Government Only/Institutions Only
Institutional Class Agreements
<S> <C> <C> <C>
9/99 19 44 44
10/99 22 45 46
11/99 22 44 45
12/99 23 44 39
1/00 18 42 39
2/00 31 40 43
3/00 33 36 41
4/00 31 35 35
5/00 25 40 35
6/00 19 32 41
7/00 25 32 39
8/00 21 27 38
</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
August 31, 2000
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
U.S. TREASURY SECURITIES - 16.20%
U.S. TREASURY BILLS(a) - 5.51%
6.35% 09/21/00 $ 40,000 $ 39,858,889
-----------------------------------------------------------------------
5.95% 12/14/00 50,000 49,140,195
-----------------------------------------------------------------------
5.95% 01/04/01 100,000 97,942,361
-----------------------------------------------------------------------
5.95% 01/11/01 50,000 48,909,167
-----------------------------------------------------------------------
5.80% 05/31/01 25,000 23,904,444
-----------------------------------------------------------------------
5.87% 08/30/01 25,000 23,520,271
=======================================================================
283,275,327
=======================================================================
U.S. TREASURY NOTES - 10.30%
6.13% 09/30/00 50,000 50,003,811
-----------------------------------------------------------------------
4.50% 09/30/00 50,000 49,933,799
-----------------------------------------------------------------------
4.00% 10/31/00 125,000 124,551,123
-----------------------------------------------------------------------
5.75% 11/15/00 100,000 99,885,455
-----------------------------------------------------------------------
4.63% 11/30/00 75,000 74,709,685
-----------------------------------------------------------------------
4.63% 12/31/00 25,000 24,823,480
-----------------------------------------------------------------------
5.50% 12/31/00 30,000 29,873,407
-----------------------------------------------------------------------
6.25% 04/30/01 75,000 74,910,815
=======================================================================
528,691,575
=======================================================================
U.S. TREASURY STRIPS - 0.39%(b)
6.42% 02/15/01 20,572 19,991,937
=======================================================================
TOTAL U.S. TREASURY SECURITIES (COST
$831,958,839) 831,958,839
=======================================================================
TOTAL INVESTMENTS (EXCLUDING REPURCHASE
AGREEMENTS) 831,958,839
=======================================================================
REPURCHASE AGREEMENTS(c) - 83.93%
ABN-Amro Bank N.V.(d)
6.61% 09/01/00 200,000 200,000,000
-----------------------------------------------------------------------
Barclays Capital Inc.(e)
6.62% 09/01/00 650,000 650,000,000
-----------------------------------------------------------------------
Bear, Stearns & Co. Inc.(f)
6.62% -- 150,000 150,000,000
-----------------------------------------------------------------------
CIBC Oppenheimer Corp.(g)
6.62% 09/01/00 240,000 240,000,000
-----------------------------------------------------------------------
Credit Suisse First Boston Corp.(h)
6.62% 09/01/00 150,000 150,000,000
-----------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS(c) - (CONTINUED)
Deutsche Bank Securities Inc.(i)
6.62% -- $700,000 $ 700,000,000
-------------------------------------------------------------------------------
First Union Capital Markets Corp.(j)
6.61% 09/01/00 150,000 150,000,000
-------------------------------------------------------------------------------
Goldman, Sachs & Co.(k)
6.48% 09/29/00 225,000 225,000,000
-------------------------------------------------------------------------------
Merrill Lynch Government Securities, Inc.(l)
6.62% 09/01/00 240,000 240,000,000
-------------------------------------------------------------------------------
Morgan Stanley & Co. Inc.(m)
6.52% 10/26/00 225,000 225,000,000
-------------------------------------------------------------------------------
Salomon Smith Barney Inc.(n)
6.62% 09/01/00 240,000 240,000,000
-------------------------------------------------------------------------------
State Street Bank and Trust Co.(o)
6.44% 10/26/00 150,000 150,000,000
-------------------------------------------------------------------------------
UBS Warburg
6.45%(p) 09/01/00 250,000 250,000,000
-------------------------------------------------------------------------------
6.61%(q) 09/01/00 539,330 539,329,185
-------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale(r)
6.62% 09/01/00 200,000 200,000,000
===============================================================================
Total Repurchase Agreements (Cost
$4,309,329,185) 4,309,329,185
===============================================================================
TOTAL INVESTMENTS-100.13% (COST
$5,141,293,902)(s) 5,141,288,024
===============================================================================
LIABILITIES LESS OTHER ASSETS - (0.13)% (6,723,392)
_______________________________________________________________________________
===============================================================================
NET ASSETS - 100.00% $5,134,564,632
_______________________________________________________________________________
===============================================================================
</TABLE>
5
<PAGE>
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) STRIPS 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.
(c) 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.
(d) Repurchase agreement entered into 08/31/00 with a maturing value of
$200,036,722. Collateralized by $187,282,000 U.S. Treasury obligations,
5.50% to 7.13% due 02/15/08 to 05/15/30 with an aggregate market value at
08/31/00 of $204,000,026.
(e) Repurchase agreement entered into 08/31/00 with a maturing value of
$650,119,528. Collateralized by $625,661,000 U.S. Treasury obligations, 0%
to 11.13% due 10/05/00 to 04/15/28 with an aggregate market value at
08/31/00 of $663,000,149.
(f) Open repurchase agreement. Either party may terminate the agreement upon
demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $488,073,000 U.S. Treasury obligations, 0% to 9.50% due
02/15/05 to 05/15/27 with an aggregate market value at 08/31/00 of
$155,509,323.
(g) Repurchase agreement entered into 08/31/00 with a maturing value of
$240,044,133. Collateralized by $228,521,000 U.S. Treasury obligations,
5.25% to 14.25% due 12/31/00 to 02/15/29 with an aggregate market value at
08/31/00 of $244,801,296.
(h) Repurchase agreement entered into 08/31/00 with a maturing value of
$150,027,583. Collateralized by $345,488,909 U.S. Treasury obligations, 0%
to 11.25% due 02/15/11 to 08/15/17 with an aggregate market value at
08/31/00 of $155,736,075.
(i) Open repurchase agreement. Either party may terminate the agreement upon
demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $708,391,000 U.S. Treasury obligations, 6.00% due
02/15/26 with a market value at 08/31/00 of $714,000,533.
(j) Repurchase agreement entered into 08/31/00 with a maturing value of
$150,027,542. Collateralized by $152,555,000 U.S. Treasury obligations,
5.50% to 7.75% due 02/15/01 to 01/31/03 with an aggregate market value at
08/31/00 of $153,000,164.
(k) Term repurchase agreement entered into 06/15/00; either party may terminate
the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $187,912,000 U.S. Treasury
obligations, 0% to 12.75% due 12/07/00 to 03/15/31 with an aggregate market
value at 08/31/00 of $229,500,956.
(l) Repurchase agreement entered into 08/31/00 with a maturing value of
$240,044,133. Collateralized by $413,775,000 U.S. Treasury obligations, 0%
to 9.00% due 02/15/04 to 11/15/18 with an aggregate market value at
08/31/00 of $244,801,799.
(m) Term repurchase agreement entered into 06/15/00; either party may terminate
the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $234,860,000 U.S. Treasury
obligations, 5.25% to 5.50% due 08/15/03 to 05/15/09 with an aggregate
market value at 08/31/00 of $229,526,309.
(n) Repurchase agreement entered into 08/31/00 with a maturing value of
$240,044,133. Collateralized by $492,300,000 U.S. Treasury obligations, 0%
due 11/15/00 to 02/15/22 with an aggregate market value at 08/31/00 of
$245,111,378.
(o) Term repurchase agreement entered into 07/27/00; either party may terminate
the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $150,370,000 U.S. Treasury
obligations, 5.50% due 10/26/00 with a market value at 08/31/00 of
$154,830,000.
(p) Term repurchase agreement entered into 06/12/00; either party may terminate
the agreement upon demand. Interest rates, par and collateral are
redetermined daily. Collateralized by $244,655,000 U.S. Treasury
obligations, 3.625% due 01/15/08 with an aggregate market value at 08/31/00
of $255,002,095.
(q) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$600,110,167. Collateralized by $1,484,465,000 U.S. Treasury obligations,
0% to 6.50% due 02/15/11 to 11/15/26 with an aggregate market value at
08/31/00 of $612,002,098.
(r) Repurchase agreement entered into 08/31/00 with a maturing value of
$200,036,778. Collateralized by $194,176,000 U.S. Treasury obligations,
5.75% to 8.75% due 06/30/01 to 11/15/27 with an aggregate market value at
08/31/00 of $204,000,694.
(s) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements at value
(amortized cost) $ 831,958,839
----------------------------------------------------------------------------
Repurchase agreements (amortized cost) 4,309,329,185
----------------------------------------------------------------------------
Interest receivable 19,949,831
----------------------------------------------------------------------------
Investment for deferred compensation plan 124,894
----------------------------------------------------------------------------
Other assets 191,765
============================================================================
Total assets 5,161,554,514
============================================================================
LIABILITIES:
Payables for:
Dividends 25,939,067
----------------------------------------------------------------------------
Deferred compensation plan 124,894
----------------------------------------------------------------------------
Accrued advisory fees 234,754
----------------------------------------------------------------------------
Accrued administrative services fees 24,280
----------------------------------------------------------------------------
Accrued distribution fees 460,099
----------------------------------------------------------------------------
Accrued trustees' fees 4,865
----------------------------------------------------------------------------
Accrued transfer agent fees 46,266
----------------------------------------------------------------------------
Accrued operating expenses 155,657
============================================================================
Total liabilities 26,989,882
============================================================================
Net assets applicable to shares outstanding $5,134,564,632
____________________________________________________________________________
============================================================================
NET ASSETS:
Institutional Class $3,005,442,161
____________________________________________________________________________
============================================================================
Private Investment Class $ 616,987,945
____________________________________________________________________________
============================================================================
Personal Investment Class $ 285,687,914
____________________________________________________________________________
============================================================================
Cash Management Class $ 780,424,630
____________________________________________________________________________
============================================================================
Reserve Class $ 140,885,602
____________________________________________________________________________
============================================================================
Resource Class $ 305,136,380
____________________________________________________________________________
============================================================================
SHARES OUTSTANDING, $0.01 PAR VALUE PER SHARE:
Institutional Class 3,005,167,024
____________________________________________________________________________
============================================================================
Private Investment Class 616,957,355
____________________________________________________________________________
============================================================================
Personal Investment Class 285,656,855
____________________________________________________________________________
============================================================================
Cash Management Class 780,343,615
____________________________________________________________________________
============================================================================
Reserve Class 140,879,867
____________________________________________________________________________
============================================================================
Resource Class 305,100,374
____________________________________________________________________________
============================================================================
Net asset value, offering and redemption price per share for
all classes $1.00
____________________________________________________________________________
============================================================================
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
STATEMENT OF OPERATIONS
For the year ended August 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest $296,763,367
===================================================================
EXPENSES:
Advisory fees 2,997,421
-------------------------------------------------------------------
Administrative services fees 289,645
-------------------------------------------------------------------
Custodian fees 264,473
-------------------------------------------------------------------
Distribution Fees:
Private Investment Class 2,960,397
-------------------------------------------------------------------
Personal Investment Class 2,106,232
-------------------------------------------------------------------
Cash Management Class 871,251
-------------------------------------------------------------------
Reserve Class 1,352,906
-------------------------------------------------------------------
Resource Class 608,596
-------------------------------------------------------------------
Transfer agent fees 895,494
-------------------------------------------------------------------
Trustees' fees 27,336
-------------------------------------------------------------------
Other 640,011
===================================================================
Total expenses 13,013,762
===================================================================
Less: Fees waived (2,452,787)
===================================================================
Net expenses 10,560,975
===================================================================
Net investment income 286,202,392
===================================================================
Net realized gain from investment securities 103,423
===================================================================
Net increase in net assets resulting from operations $286,305,815
___________________________________________________________________
===================================================================
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
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 $ 286,202,392 $ 252,566,461
------------------------------------------------------------------------------
Net realized gain from investments
securities 103,423 233,481
==============================================================================
Net increase in net assets resulting from
operations 286,305,815 252,799,942
==============================================================================
Distributions to shareholders from net
investment income:
Institutional Class (168,250,201) (154,878,876)
------------------------------------------------------------------------------
Private Investment Class (31,619,432) (16,111,371)
------------------------------------------------------------------------------
Personal Investment Class (14,529,364) (16,331,172)
------------------------------------------------------------------------------
Cash Management Class (48,379,385) (46,789,257)
------------------------------------------------------------------------------
Reserve Class (6,635,851) (1,139,360)
------------------------------------------------------------------------------
Resource Class (16,788,159) (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:
Institutional Class (158,816,289) 176,115,895
------------------------------------------------------------------------------
Private Investment Class 201,791,567 54,904,969
------------------------------------------------------------------------------
Personal Investment Class 749,971 (120,836,036)
------------------------------------------------------------------------------
Cash Management Class (79,947,027) (73,350,853)
------------------------------------------------------------------------------
Reserve Class 20,906,537 (96,827,871)
------------------------------------------------------------------------------
Resource Class (53,970,656) 119,973,330
==============================================================================
Net increase (decrease) in net assets (69,182,474) 59,512,942
==============================================================================
NET ASSETS:
Beginning of year 5,203,747,106 5,144,234,164
==============================================================================
End of year $ 5,134,564,632 $5,203,747,106
______________________________________________________________________________
==============================================================================
NET ASSETS CONSIST OF:
Shares of beneficial interest $ 5,134,105,090 $5,203,390,987
------------------------------------------------------------------------------
Undistributed net realized gain from
investment securities 459,542 356,119
==============================================================================
$ 5,134,564,632 $5,203,747,106
______________________________________________________________________________
==============================================================================
</TABLE>
See Notes to Financial Statements.
9
<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 Treasury 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. 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 - INVESTMENT 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>
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 $289,645 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 $649,484 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
10
<PAGE>
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 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 0.30%, 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 Personal Investment Class,
the Cash Management Class, the Reserve Class and the Resource Class paid
$1,776,238, $1,404,154, $697,001, $1,082,325 and $486,877, respectively, as
compensation under the Plan and FMC waived fees of $2,452,787.
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
$10,563 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.
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 13,259,879,098 $13,259,879,098 18,697,189,201 $18,697,189,201
-------------------------------------------------------------------------------------------
Private Investment
Class 4,452,716,202 4,452,716,202 1,543,792,773 1,543,792,773
-------------------------------------------------------------------------------------------
Personal Investment
Class 2,802,718,615 2,802,718,615 3,783,262,789 3,783,262,789
-------------------------------------------------------------------------------------------
Cash Management Class 3,936,809,001 3,936,809,001 6,593,996,488 6,593,996,488
-------------------------------------------------------------------------------------------
Reserve Shares 1,043,878,989 1,043,878,989 339,249,182 339,249,182
-------------------------------------------------------------------------------------------
Resource Class 3,019,552,372 3,019,552,372 2,625,595,247 2,625,595,247
-------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 31,333,569 31,333,569 35,404,120 35,404,120
-------------------------------------------------------------------------------------------
Private Investment
Class 6,230,329 6,230,329 5,531,007 5,531,007
-------------------------------------------------------------------------------------------
Personal Investment
Class 11,719,987 11,719,987 14,908,717 14,908,717
-------------------------------------------------------------------------------------------
Cash Management Class 15,673,083 15,673,083 18,450,756 18,450,756
-------------------------------------------------------------------------------------------
Reserve Shares 6,352,088 6,352,088 740,689 740,689
-------------------------------------------------------------------------------------------
Resource Class 13,456,848 13,456,848 16,749,204 16,749,204
-------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (13,450,028,956) (13,450,028,956) (18,556,477,426) (18,556,477,426)
-------------------------------------------------------------------------------------------
Private Investment
Class (4,257,154,964) (4,257,154,964) (1,494,418,811) (1,494,418,811)
-------------------------------------------------------------------------------------------
Personal Investment
Class (2,813,688,631) (2,813,688,631) (3,919,007,542) (3,919,007,542)
-------------------------------------------------------------------------------------------
Cash Management Class (4,032,429,111) (4,032,429,111) (6,685,798,097) (6,685,798,097)
-------------------------------------------------------------------------------------------
Reserve Shares (1,029,324,540) (1,029,324,540) (220,016,541) (220,016,541)
-------------------------------------------------------------------------------------------
Resource Class (3,086,979,876) (3,086,979,876) (2,739,172,322) (2,739,172,322)
===========================================================================================
(69,285,897) $ (69,285,897) 59,979,434 $ 59,979,434
___________________________________________________________________________________________
===========================================================================================
</TABLE>
11
<PAGE>
NOTE 5 - FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the
Institutional Class outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income 0.06 0.05 0.05 0.05 0.05
---------------------------------------------------------------------------------------
Less distributions:
Dividends from net
investment income (0.06) (0.05) (0.05) (0.05) (0.05)
=======================================================================================
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______________________________________________________________________________________
=======================================================================================
Total return 5.83% 4.97% 5.64% 5.47% 5.57%
_______________________________________________________________________________________
=======================================================================================
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $3,005,442 $3,164,199 $2,988,375 $3,408,010 $2,335,441
_______________________________________________________________________________________
=======================================================================================
Ratio of expenses to
average net assets 0.10%(a) 0.09% 0.08% 0.09% 0.09%
_______________________________________________________________________________________
=======================================================================================
Ratio of net investment
income to average net
assets 5.66%(a) 4.85% 5.50% 5.35% 5.43%
_______________________________________________________________________________________
=======================================================================================
</TABLE>
(a)Ratios are based on average net assets of $2,971,091,052.
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.
12
<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 & Agency 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 financial statements and financial
highlights for the period ended August 31, 1999 were audited by other auditors
whose report dated October 6, 1999 expressed 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 & Agency Portfolio as of August 31, 2000, the results of its
operations, 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
13
<PAGE>
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Treasury Portfolio (the "Fund"), 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.......... 1,521,703,096 130,010,696 428,771,434**
(3) (a) Adjournment of approval of
changing or adding the
Fundamental Restriction on
Issuer Diversification...... 1,378,741,701 269,118,684 432,624,841**
(3) (b) Adjournment of approval of
changing the Fundamental
Restriction on Borrowing
Money and Issuing Senior
Securities.................. 1,378,449,294 269,745,554 432,290,378**
(3) (c) Adjournment of approval of
changing the Fundamental
Restriction on Underwriting
Securities.................. 1,454,541,264 193,653,584 432,290,378**
(3) (d) Adjournment of approval of
changing the Fundamental
Restriction on Industry
Concentration............... 1,438,777,311 209,417,537 432,290,378**
(3) (e) Adjournment of approval of
changing the Fundamental
Restriction on Purchasing or
Selling Real Estate......... 1,515,006,564 133,114,284 432,364,378**
(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............... 1,377,919,651 270,162,337 432,403,238**
(3) (g) Adjournment of approval of
changing the Fundamental
Restriction on Making Loans. 1,438,788,734 209,411,754 432,284,738**
(3) (h) Adjournment of approval of a
new Fundamental Investment
Restriction on Investing all
of the Fund's Assets in an
Open-End Fund............... 1,438,611,945 209,588,543 432,284,738**
(3) (i) Adjournment of approval of
the Elimination of
Fundamental Restriction on
Mortgaging or Pledging
Assets...................... 1,377,980,975 270,213,872 432,290,379**
(3) (j) Adjournment of approval of
the Elimination of
Fundamental Restriction on
Investing in Obligations not
Payable in United States
Currency.................... 1,133,334,115 514,792,372 432,358,739**
(4) Adjournment of approval of
changing the Investment
Objective of the Fund so
that it is Non-Fundamental.. 1,108,131,059 540,001,604 432,352,563**
(5) Ratification of the
selection of KPMG LLP as
Independent Accountants of
the Fund.................... 1,713,061,951 0 367,423,275
</TABLE>
14
<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 Investment
Advisory Agreement.......... 2,590,468,323 130,724,035 531,254,153**
(3) (a) Approval of changing or
adding the Fundamental
Restriction on Issuer
Diversification............. 2,447,885,510 269,453,440 535,107,561**
(3) (b) Approval of changing the
Fundamental Restriction on
Borrowing Money and Issuing
Senior Securities........... 2,447,593,103 270,080,310 534,773,098**
(3) (c) Approval of changing the
Fundamental Restriction on
Underwriting Securities..... 2,523,685,073 193,988,340 534,773,098**
(3) (d) Approval of changing the
Fundamental Restriction on
Industry Concentration...... 2,505,702,410 209,752,293 536,991,808**
(3) (e) Approval of changing the
Fundamental Restriction on
Purchasing or Selling Real
Estate...................... 2,584,150,373 133,449,040 534,847,098**
(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............... 2,446,350,121 271,210,432 534,885,958**
(3) (g) Approval of changing the
Fundamental Restriction on
Making Loans ............... 2,507,932,543 209,746,510 534,767,458**
(3) (h) Approval of a new
Fundamental Investment
Restriction on Investing all
of the Fund's Assets in an
Open-End Fund............... 2,506,696,387 210,946,187 534,803,937**
(3) (i) Elimination of Fundamental
Restriction on Mortgaging or
Pledging Assets............. 2,444,084,789 273,588,624 534,773,098**
(3) (j) Elimination of Fundamental
Restriction on Investing in
Obligations not Payable in
United States Currency...... 2,199,915,457 517,689,596 534,841,458**
(4) Approval of changing the
Investment Objectives of the
Fund so that it is Non-
Fundamental................. 2,169,592,564 545,557,819 537,296,128**
</TABLE>
------
* Proposal 1 required approval by a combined vote of all of the portfolios of
Short-Term Investments Trust
** Includes Broker Non-Votes
15
<PAGE>
<TABLE>
<CAPTION>
TRUSTEES
<S> <C>
Charles T. Bauer Carl Frischling
Bruce L. Crockett Robert H. Graham Short-Term
Owen Daly II Prema Mathai-Davis Investments Trust
Edward K. Dunn, Jr. Lewis F. Pennock (STIT)
Jack M. Fields Louis S. Sklar
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
Gary T. Crum Sr. Vice President
Carol F. Relihan Sr. Vice President & Secretary
Dana R. Sutton Vice President & Treasurer
Melville B. Cox Vice President Treasury
Karen Dunn Kelley Vice President Portfolio
J. Abbott Sprague Vice President -------------------------------------------------
Mary J. Benson Assistant Vice President & Assistant Treasurer Institutional 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>
TRE-AR-1
