<PAGE>
[LOGO OF AIM APPEARS HERE]
Letter
to Our
Shareholders
March 6, 1995
Dear Shareholder:
Volatility persisted in short-term fixed-income securities
markets over the six months ended February 28, 1995, as interest
rates continued to climb. The Federal Reserve Board maintained
its restrictive monetary policy by raising short-term interest
rates in November and again in February, which positioned the
[PHOTO federal funds rate at approximately 6 percent, and the discount
Charles T. rate at 5.25 percent.
Bauer, With the last interest rate increase, financial markets
Chairman of strengthened as economic indicators, though mixed, suggested a
the Board of slower rate of growth in the economy. Such evidence prompted
the Fund Federal Reserve Chairman Alan Greenspan to provide encouraging
APPEARS HERE] testimony before Congress in late February that the current
condition of the economy-moderate, constructive growth with low
unemployment and low inflation-was healthier than it had been in
years. In addition, the Chairman told Congress that the central
bank would be ready to loosen credit at the first sign of
recession.
Greenspan's remarks triggered a rally in stocks that drove equity markets to
record highs. Bonds also rallied, but the dollar fell. The dollar's persistent
weakness led some analysts to speculate that inflation remains a near-term
possibility, prompting renewed concerns that interest rates would have to rise
again in the coming months.
YOUR INVESTMENT PORTFOLIO
The Short-Term Investments Co. (STIC) Prime Portfolio consistently maintained
its strict investment discipline and its superior credit quality rating of AAAm,
the highest given by Standard & Poor's Corporation, a widely known credit rating
agency. The AAAm rating is historical and is based on an annual analysis of the
Portfolio's credit quality and composition, management management, and weekly
portfolio review.
Prime Portfolio took advantage of the rising interest rate environment.
Weighted average maturity was 17 days to capture attractive yields available in
taxable money market instruments with maturities of 60 days or less. As a
result, the yield on the Cash Management Class of Prime Portfolio was able to
increase with short-term interest rates and outperform similar funds tracked by
IBC/Donoghue's Money Fund Averages(TM).
As of February 28, 1995, the 30-day average yield of the Cash Management Class
of Prime Portfolio was 5.93 percent, compared to 5.77 percent for the similar
First-Tier institutional funds reported in IBC/Donoghue's Money Fund
Averages(TM). The seven-day yield for the Cash Management Class of Prime
Portfolio as of February 28, 1995, was 5.95 percent, and net assets were $5.48
million.
OUTLOOK FOR THE FUTURE
Leading economic indicators continue to suggest healthy economic conditions and
low inflation, and the economy is widely expected to slow in the second half of
1995. As a result, fixed-income securities have begun to exhibit more stability
across most maturity levels. The direction of the dollar remains a significant
uncertainty that could precipitate renewed inflation concerns and higher short-
term interest rates.
AIM remains committed to the primary objectives of safety, liquidity, and
yield in institutional money fund management. As always, we are ready to respond
to your comments about this report and any questions you may have about your
Fund. Please call us at (800) 659-1005.
Respectfully submitted,
/S/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE>
SCHEDULE OF INVESTMENTS
February 28, 1995
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER - 71.11%(a)
BASIC INDUSTRIES - 1.54%
DRUGS - 0.54%
Warner-Lambert Co.
6.03% 03/28/95 $ 24,350 $ 24,239,877
- - -----------------------------------------------------------------------
PAPER & FOREST PRODUCTS - 0.34%
Weyerhaeuser Co.
6.05% 03/23/95 15,250 15,193,617
- - -----------------------------------------------------------------------
MULTIPLE INDUSTRY - 0.66%
Philip Morris Companies, Inc.
6.02% 04/18/95 30,000 29,759,200
- - -----------------------------------------------------------------------
Total Basic Industries 69,192,694
- - -----------------------------------------------------------------------
CAPITAL GOODS - 6.57%
COMPUTERS & OFFICE EQUIPMENT - 4.00%
Xerox Corp.
6.04% 04/12/95 39,227 38,950,580
- - -----------------------------------------------------------------------
6.01% 04/27/95 65,800 65,173,859
- - -----------------------------------------------------------------------
Xerox Credit Corp.
6.05% 04/11/95 50,000 49,655,486
- - -----------------------------------------------------------------------
6.00% 04/21/95 15,000 14,872,500
- - -----------------------------------------------------------------------
6.01% 04/25/95 11,950 11,840,276
- - -----------------------------------------------------------------------
180,492,701
- - -----------------------------------------------------------------------
MACHINERY - 2.57%
Dover Corp.
6.02% 03/14/95 45,250 45,151,632
- - -----------------------------------------------------------------------
6.02% 03/15/95 11,985 11,956,942
- - -----------------------------------------------------------------------
5.97% 03/21/95 19,000 18,936,983
- - -----------------------------------------------------------------------
6.00% 03/22/95 18,000 17,937,000
- - -----------------------------------------------------------------------
5.97% 03/24/95 10,000 9,961,858
- - -----------------------------------------------------------------------
6.00% 03/28/95 12,000 11,946,000
- - -----------------------------------------------------------------------
115,890,415
- - -----------------------------------------------------------------------
Total Capital Goods 296,383,116
- - -----------------------------------------------------------------------
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
CONSUMER DURABLES - 4.20%
AUTOMOBILE - 4.20%
Ford Motor Credit Co.
6.00% 03/16/95 $ 48,500 $ 48,378,750
- - -------------------------------------------------------------------
6.09% 03/31/95 25,000 24,873,125
- - -------------------------------------------------------------------
6.10% 04/03/95 50,000 49,720,417
- - -------------------------------------------------------------------
6.02% 04/17/95 50,000 49,607,028
- - -------------------------------------------------------------------
6.02% 04/21/95 17,000 16,855,018
- - -------------------------------------------------------------------
Total Consumer Durables 189,434,338
- - -------------------------------------------------------------------
CONSUMER NONDURABLES - 1.17%
BEVERAGES - 1.17%
Seagram (Joseph E.) & Sons, Inc.
6.07% 04/14/95 52,972 52,579,007
- - -------------------------------------------------------------------
Total Consumer Nondurables 52,579,007
- - -------------------------------------------------------------------
ENERGY - 4.21%
NATURAL GAS - 1.03%
Colonial Pipeline Co.
6.00% 03/08/95 26,500 26,469,084
- - -------------------------------------------------------------------
5.97% 03/16/95 20,000 19,950,250
- - -------------------------------------------------------------------
46,419,334
- - -------------------------------------------------------------------
OIL & GAS - 3.18%
ARCO Coal Australia Inc.
6.03% 03/06/95 24,887 24,866,157
- - -------------------------------------------------------------------
6.00% 03/08/95 12,118 12,103,862
- - -------------------------------------------------------------------
6.00% 03/20/95 10,253 10,220,532
- - -------------------------------------------------------------------
6.00% 03/21/95 18,199 18,138,337
- - -------------------------------------------------------------------
6.00% 03/23/95 23,760 23,672,880
- - -------------------------------------------------------------------
6.02% 03/27/95 45,468 45,270,316
- - -------------------------------------------------------------------
6.05% 03/28/95 9,144 9,102,509
- - -------------------------------------------------------------------
143,374,593
- - -------------------------------------------------------------------
Total Energy 189,793,927
- - -------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
FINANCIAL - 48.71%
ASSET-BACKED SECURITIES - 21.56%
Asset Securitization Cooperative Corp.
6.00% 03/07/95 $ 70,000 $ 69,930,000
- - -------------------------------------------------------------------------
6.00% 03/08/95 13,000 12,984,834
- - -------------------------------------------------------------------------
6.00% 03/13/95 30,000 29,940,000
- - -------------------------------------------------------------------------
6.00% 03/22/95 50,000 49,825,000
- - -------------------------------------------------------------------------
6.00% 03/23/95 36,500 36,366,166
- - -------------------------------------------------------------------------
Ciesco, L.P.
6.00% 03/21/95 19,000 18,936,667
- - -------------------------------------------------------------------------
6.00% 04/20/95 15,000 14,875,000
- - -------------------------------------------------------------------------
Clipper Receivables Corp.
6.03% 03/06/95 45,000 44,962,313
- - -------------------------------------------------------------------------
6.00% 03/09/95 18,303 18,278,596
- - -------------------------------------------------------------------------
6.00% 03/20/95 44,530 44,388,988
- - -------------------------------------------------------------------------
6.02% 03/27/95 20,000 19,913,044
- - -------------------------------------------------------------------------
6.03% 04/21/95 38,829 38,497,303
- - -------------------------------------------------------------------------
Corporate Asset Funding Co. Inc.
6.05% 03/02/95 35,000 34,994,118
- - -------------------------------------------------------------------------
6.05% 03/03/95 30,000 29,989,917
- - -------------------------------------------------------------------------
6.02% 03/06/95 45,000 44,962,374
- - -------------------------------------------------------------------------
6.00% 03/20/95 50,000 49,841,667
- - -------------------------------------------------------------------------
6.02% 03/27/95 40,000 39,826,089
- - -------------------------------------------------------------------------
Delaware Funding Corp.
6.00% 03/10/95 44,073 44,006,891
- - -------------------------------------------------------------------------
Falcon Asset Securitization Corp.
5.93% 03/01/95 43,050 43,050,000
- - -------------------------------------------------------------------------
6.03% 03/02/95 25,300 25,295,762
- - -------------------------------------------------------------------------
6.03% 03/07/95 18,100 18,081,810
- - -------------------------------------------------------------------------
6.00% 03/09/95 13,900 13,881,467
- - -------------------------------------------------------------------------
6.00% 03/10/95 14,950 14,927,575
- - -------------------------------------------------------------------------
6.03% 04/19/95 11,650 11,554,383
- - -------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
Preferred Receivables Funding Corp.
6.05% 03/03/95 $ 15,850 $ 15,844,673
- - ----------------------------------------------------------------------
6.03% 03/06/95 15,025 15,012,417
- - ----------------------------------------------------------------------
5.97% 03/17/95 18,775 18,725,184
- - ----------------------------------------------------------------------
6.00% 03/20/95 44,050 43,910,508
- - ----------------------------------------------------------------------
6.03% 04/12/95 14,850 14,745,530
- - ----------------------------------------------------------------------
6.08% 04/13/95 60,300 59,862,088
- - ----------------------------------------------------------------------
6.02% 04/20/95 11,490 11,393,931
- - ----------------------------------------------------------------------
Sheffield Receivables Corp.
6.07% 03/01/95 10,000 10,000,000
- - ----------------------------------------------------------------------
6.05% 03/02/95 12,650 12,647,873
- - ----------------------------------------------------------------------
971,452,168
- - ----------------------------------------------------------------------
BUSINESS CREDIT - 4.20%
CIT Group Holdings, Inc.
6.02% 03/09/95 89,500 89,380,268
- - ----------------------------------------------------------------------
5.90% 03/16/95 50,000 49,877,083
- - ----------------------------------------------------------------------
5.90% 03/17/95 50,000 49,868,889
- - ----------------------------------------------------------------------
189,126,240
- - ----------------------------------------------------------------------
INSURANCE (LIFE) - 0.89%
MetLife Funding, Inc.
6.02% 03/27/95 30,309 30,177,223
- - ----------------------------------------------------------------------
6.03% 03/28/95 10,103 10,057,309
- - ----------------------------------------------------------------------
40,234,532
- - ----------------------------------------------------------------------
PERSONAL CREDIT - 10.59%
Associates Corp. of North America
6.00% 03/10/95 50,000 49,925,000
- - ----------------------------------------------------------------------
6.00% 03/20/95 50,000 49,841,667
- - ----------------------------------------------------------------------
6.05% 03/31/95 50,000 49,747,917
- - ----------------------------------------------------------------------
6.05% 04/14/95 35,500 35,237,496
- - ----------------------------------------------------------------------
AVCO Financial Services, Inc.
6.00% 03/23/95 30,000 29,890,000
- - ----------------------------------------------------------------------
6.00% 03/24/95 30,000 29,885,000
- - ----------------------------------------------------------------------
6.09% 04/03/95 31,000 30,826,943
- - ----------------------------------------------------------------------
6.05% 04/14/95 50,000 49,630,278
- - ----------------------------------------------------------------------
Household Finance Corp.
6.02% 03/21/95 77,500 77,240,806
- - ----------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
Transamerica Finance Corp.
6.05% 03/02/95 $ 20,000 $ 19,996,639
- - --------------------------------------------------------------------
6.05% 03/03/95 55,000 54,981,513
- - --------------------------------------------------------------------
477,203,259
- - --------------------------------------------------------------------
MISCELLANEOUS - 8.24%
Hertz Corp. (The)
6.01% 03/23/95 22,000 21,919,199
- - --------------------------------------------------------------------
6.00% 03/24/95 60,000 59,770,000
- - --------------------------------------------------------------------
6.02% 03/24/95 30,000 29,884,617
- - --------------------------------------------------------------------
6.04% 04/17/95 50,000 49,605,722
- - --------------------------------------------------------------------
6.03% 04/21/95 31,000 30,735,183
- - --------------------------------------------------------------------
International Lease Finance Corp.
6.00% 03/10/95 20,000 19,970,000
- - --------------------------------------------------------------------
6.00% 03/22/95 34,700 34,578,550
- - --------------------------------------------------------------------
6.00% 03/24/95 45,000 44,827,500
- - --------------------------------------------------------------------
6.02% 04/17/95 18,605 18,458,775
- - --------------------------------------------------------------------
6.00% 04/21/95 30,000 29,745,000
- - --------------------------------------------------------------------
USAA Capital Corp.
6.03% 03/01/95 32,000 32,000,000
- - --------------------------------------------------------------------
371,494,546
- - --------------------------------------------------------------------
MULTIPLE INDUSTRY - 3.23%
General Electric Capital Corp.
6.07% 03/03/95 80,000 79,973,022
- - --------------------------------------------------------------------
6.00% 03/10/95 50,000 49,925,000
- - --------------------------------------------------------------------
6.00% 03/17/95 16,000 15,957,332
- - --------------------------------------------------------------------
145,855,354
- - --------------------------------------------------------------------
Total Financial 2,195,366,099
- - --------------------------------------------------------------------
OTHER - 4.71%
DIVERSIFIED - 4.71%
BTR Dunlop Finance Inc.
6.03% 03/01/95 50,783 50,783,000
- - --------------------------------------------------------------------
6.00% 03/07/95 18,267 18,248,733
- - --------------------------------------------------------------------
5.97% 03/16/95 40,385 40,284,542
- - --------------------------------------------------------------------
5.85% 03/17/95 50,000 49,870,000
- - --------------------------------------------------------------------
6.02% 03/23/95 40,396 40,247,387
- - --------------------------------------------------------------------
6.02% 03/27/95 12,727 12,671,666
- - --------------------------------------------------------------------
Total Other 212,105,328
- - --------------------------------------------------------------------
Total Commercial Paper 3,204,854,509
- - --------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
MASTER NOTE AGREEMENTS - 9.29%
Coca-Cola Co. (The)
5.847%(b) 07/06/95 $100,000 $ 100,000,000
- - --------------------------------------------------------------------------------
Morgan (J.P.) Securities, Inc.
6.35%(c) 06/27/95 84,900 84,900,000
- - --------------------------------------------------------------------------------
6.30%(c) 10/16/95 99,200 99,200,000
- - --------------------------------------------------------------------------------
Morgan Stanley Group Inc.
6.275%(d) 08/01/95 134,900 134,900,000
- - --------------------------------------------------------------------------------
Total Master Note Agreements 419,000,000
- - --------------------------------------------------------------------------------
PROMISSORY NOTE AGREEMENT - 3.33%
Goldman, Sachs & Co.(e)
6.31% 07/31/95 150,000 150,000,000
- - --------------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 3,773,854,509
- - --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS(f) - 16.64%
BT Securities Corp.(g)
6.10% -- 4,000 4,000,000
- - --------------------------------------------------------------------------------
Deutsche Bank Government Securities,
Inc.(h)
6.10% -- 267,000 267,000,000
- - --------------------------------------------------------------------------------
Goldman, Sachs & Co.(i)
6.10% 03/01/95 810 810,079
- - --------------------------------------------------------------------------------
Prudential Securities Inc.(j)
5.95% -- 76,000 76,000,000
- - --------------------------------------------------------------------------------
SBC Government Securities, Inc.(k)
6.10% -- 300,000 300,000,000
- - --------------------------------------------------------------------------------
Sanwa - BGK Securities Co., L.P.(l)
6.13% 03/01/95 76,000 76,000,000
- - --------------------------------------------------------------------------------
Smith Barney, Inc.(m)
6.12% -- 26,000 26,000,000
- - --------------------------------------------------------------------------------
Total Repurchase Agreements 749,810,079
- - --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.37% 4,523,664,588(n)
- - --------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - (0.37%) (16,841,914)
- - --------------------------------------------------------------------------------
NET ASSETS - 100.00% $ 4,506,822,674
================================================================================
</TABLE>
7
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Some commercial paper is 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) The Portfolio may demand prepayment of the entire principal amount
outstanding under notes purchased under the Master Note Purchase Agreement
upon seven calendar days' notice. Interest rates on master notes are
redetermined periodically. Rate shown is the rate in effect on February 28,
1995.
(c) The Portfolio may demand prepayment of notes under the Master Note Purchase
Agreement upon seven calendar days' notice. Interest rates on master notes
are redetermined periodically. Rate shown is the rate in effect on February
28, 1995.
(d) Master Note Purchase Agreement may be terminated by either party as of any
business day upon not less than three business days' notice, at which time
all amounts outstanding under the notes purchased under the Master Note
Purchase Agreement will become payable. Interest rates on master notes are
redetermined periodically. Rate shown is the rate in effect on February 28,
1995.
(e) Promissory Note Agreement may be terminated by the Portfolio upon seven
calendar days' oral notice. Interest rates on promissory notes are
redetermined periodically. Rate shown is the rate in effect on February 28,
1995.
(f) 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 as being 102% of the
sales price of the repurchase agreement. The investments in some repurchase
agreements are through participation in joint accounts with other funds
managed by the investment advisor.
(g) Open joint repurchase agreement entered into 02/27/95; however, either
party may terminate the agreement upon demand. Interest rates are
redetermined daily. Collateralized by $88,155,000 U.S. Treasury
obligations, 0% due 05/15/97 to 05/15/06.
(h) Open joint repurchase agreement entered into 12/09/94; however, either
party may terminate the agreement upon demand. Interest rates are
redetermined daily. Collateralized by $404,388,000 U.S. Treasury
obligations, 0% to 11.875% due 04/15/95 to 02/15/25.
(i) Joint repurchase agreement entered into 02/28/95 with a maturing value of
$206,787,131. Collateralized by $204,407,000 U.S. Treasury obligations, 0%
to 8.875% due 08/15/95 to 11/15/98.
(j) Open joint repurchase agreement entered into 01/23/95; however, either
party may terminate the agreement upon demand. Interest rates are
redetermined daily. Collateralized by $130,390,000 U.S. Government Agency
obligations, 0% to 9.95% due 03/01/95 to 04/15/30 and $222,763,000 U.S.
Treasury obligations, 0% to 7.875% due 09/30/98 to 05/15/17.
(k) Open joint repurchase agreement entered into 12/14/94; however, either
party may terminate the agreement upon demand. Interest rates are
redetermined daily. Collateralized by $112,820,000 U.S. Government Agency
obligations, 0% to 8.25% due 04/04/95 to 09/19/01 and $448,547,000 U.S.
Treasury obligations, 0% to 11.625% due 05/15/95 to 08/15/23.
(l) Joint repurchase agreement entered into 02/28/95 with a maturing value of
$150,025,542. Collateralized by $153,857,000 U.S. Government Agency
obligations, 0% due 04/03/95.
(m) Open joint repurchase agreement entered into 02/16/95; however, either
party may terminate the agreement upon demand. Interest rates are
redetermined daily. Collateralized by $252,438,000 U.S. Government Agency
obligations, 0% to 8.65% due 03/30/95 to 07/15/28.
(n) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
8
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1995
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $3,773,854,509
- - ------------------------------------------------------------------------
Repurchase agreements 749,810,079
- - ------------------------------------------------------------------------
Interest receivable 3,161,198
- - ------------------------------------------------------------------------
Investment for deferred compensation plan 22,453
- - ------------------------------------------------------------------------
Other assets 1,452,415
- - ------------------------------------------------------------------------
Total assets 4,528,300,654
- - ------------------------------------------------------------------------
LIABILITIES:
Dividends payable 21,120,342
- - ------------------------------------------------------------------------
Deferred compensation payable 22,453
- - ------------------------------------------------------------------------
Accrued advisory fees 208,458
- - ------------------------------------------------------------------------
Accrued distribution fees 62,010
- - ------------------------------------------------------------------------
Accrued transfer agent fees 371
- - ------------------------------------------------------------------------
Accrued operating expenses 64,346
- - ------------------------------------------------------------------------
Total liabilities 21,477,980
- - ------------------------------------------------------------------------
NET ASSETS $4,506,822,674
========================================================================
Net assets:
- - ------------------------------------------------------------------------
Institutional Class $4,252,977,824
- - ------------------------------------------------------------------------
Private Investment Class $ 158,195,306
- - ------------------------------------------------------------------------
Personal Investment Class $ 90,172,213
- - ------------------------------------------------------------------------
Cash Management Class $ 5,477,331
- - ------------------------------------------------------------------------
NET ASSET VALUE PER SHARE:
Capital stock, $0.001 par value per share:
- - ------------------------------------------------------------------------
Institutional Class 4,252,990,317
- - ------------------------------------------------------------------------
Private Investment Class 158,195,653
- - ------------------------------------------------------------------------
Personal Investment Class 90,171,410
- - ------------------------------------------------------------------------
Cash Management Class 5,477,347
========================================================================
Net asset value, offering and redemption price per share $1.00
========================================================================
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
STATEMENT OF OPERATIONS
For the six months ended February 28, 1995
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $119,188,141
- - -------------------------------------------------------------------
EXPENSES:
Advisory fees 1,303,597
- - -------------------------------------------------------------------
Custodian fees 168,184
- - -------------------------------------------------------------------
Administrative service fees 114,012
- - -------------------------------------------------------------------
Directors' fees and expenses 19,633
- - -------------------------------------------------------------------
Transfer agent fees 22,971
- - -------------------------------------------------------------------
Distribution fees (Note 2) 307,186
- - -------------------------------------------------------------------
Other 355,406
- - -------------------------------------------------------------------
Total expenses 2,290,989
- - -------------------------------------------------------------------
Less expenses assumed by advisor (38,700)
- - -------------------------------------------------------------------
Net expenses 2,252,289
- - -------------------------------------------------------------------
Net investment income 116,935,852
- - -------------------------------------------------------------------
Net increase in net assets resulting from operations $116,935,852
===================================================================
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended February 28, 1995 and the year ended August 31, 1994
(Unaudited)
<TABLE>
<S> <C> <C>
1995 1994
- - ----------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 116,935,852 $ 155,832,059
- - ----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 116,935,852 155,832,059
- - ----------------------------------------------------------------------------
Distributions to shareholders from net
investment income (116,935,852) (155,832,059)
- - ----------------------------------------------------------------------------
Share transactions -- net 391,809,323 (253,692,887)
- - ----------------------------------------------------------------------------
Net increase (decrease) in net assets 391,809,323 (253,692,887)
- - ----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 4,115,013,351 4,368,706,238
- - ----------------------------------------------------------------------------
End of period $4,506,822,674 $4,115,013,351
============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $4,506,834,727 $4,115,025,404
- - ----------------------------------------------------------------------------
Undistributed net realized gain (loss) on
sales of investments (12,053) (12,053)
- - ----------------------------------------------------------------------------
$4,506,822,674 $4,115,013,351
============================================================================
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1995
(Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Short-Term Investments Co. (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 Maryland corporation consisting
of two different portfolios, the Prime Portfolio which offers separate classes
of shares and the Liquid Assets Portfolio. Information presented in these
financial statements pertains only to the Prime Portfolio (the "Portfolio").
The assets, liabilities and operations of each Portfolio are accounted for
separately. The Portfolio consists of four different classes of shares: the
Institutional Class, the Private Investment Class, the Personal Investment
Class, and the Cash Management Class.
The following is a summary of the significant accounting policies followed by
the Portfolio in the preparation of its financial statements.
A. Security Valuations - The Portfolio invests only in securities which have
maturities of sixty days or less. The 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 - Operating expenses directly attributable to a class of shares are
charged to that class' operations. Expenses which are applicable to more
than one class, e.g., advisory fees, are allocated among them.
12
<PAGE>
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 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 $100 million 0.20%
- - ----------------------------------------
Over $100 million to $200 million 0.15%
- - ----------------------------------------
Over $200 million to $300 million 0.10%
- - ----------------------------------------
Over $300 million to $1.5 billion 0.06%
- - ----------------------------------------
Over $1.5 billion 0.05%
- - ----------------------------------------
</TABLE>
AIM will, if necessary, reduce its fee for any fiscal year to the extent
required so that the amount of ordinary expenses of the Portfolio (excluding
interest, taxes, brokerage commissions and extraordinary expenses) paid or
incurred by the Portfolio for such fiscal year does not exceed the applicable
expense limitations imposed by the state securities regulations in any state in
which the Portfolio's shares are qualified for sale. AIM voluntarily reimbursed
expenses of $12,000 on the Prime Portfolio-Private Investment Class, $11,100 on
the Prime Portfolio-Personal Investment Class and $15,600 on the Prime
Portfolio-Cash Management Class during the six months ended February 28, 1995.
The Portfolio, pursuant to a master administrative services agreement with
AIM, has agreed to reimburse AIM for certain costs incurred in providing
accounting and shareholder services to the Portfolio. During the six months
ended February 28, 1995, the Portfolio reimbursed AIM $114,012 for such
services. Effective September 16, 1994, A I M Institutional Fund Services
("AIFS") became a transfer agent to the Fund.
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, Personal Investment Class and the Cash Management Class of
the Portfolio. The Plan provides that the Portfolio's Private Investment Class,
Personal Investment Class and the Cash Management Class may pay up to a 0.50%,
0.75% and 0.10%, 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 and the
Personal Investment Class and (b) 0.10% of the average daily net assets of the
Cash Management 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 or the Cash Management Class. Any amounts not paid as
a service fee under such Plan would constitute an asset-based sales charge.
During the six months ended February 28, 1995, the Prime Portfolio-Private
Investment Class, the Prime Portfolio-Personal Investment Class and Prime
Portfolio-Cash Management Class accrued for compensation to FMC of $126,331,
$179,502 and $1,353, respectively, under the Plan. Certain officers and
directors of the Fund are officers of AIM, FMC and AIFS.
The Portfolio paid legal fees of $3,247 for services rendered by Reid & Priest
as counsel to the Board of Directors. In September 1994, Kramer, Levin,
Naftalis, Nessen, Kamin & Frankel was appointed as counsel to the Board of
Directors. The Portfolio paid legal fees of $2,845 for services rendered by
that firm as counsel. A director of the Fund is a member of Kramer, Levin,
Naftalis, Nessen, Kamin & Frankel and was a member of the firm of Reid & Priest
prior to September 1994.
13
<PAGE>
NOTE 3 - DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of the Fund. The Fund invests directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
NOTE 4 - SHARE INFORMATION
Changes in shares outstanding during the six months ended February 28, 1995
and the year ended August 31, 1994 were as follows:
<TABLE>
<CAPTION>
FEBRUARY 28, 1995 AUGUST 31, 1994
--------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
PRIME PORTFOLIO:
Sold:
Institutional Class 18,965,435,968 $ 18,965,435,968 33,826,759,958 $ 33,826,759,958
- - ----------------------------------------------------------------------------------------------
Private Investment
Class 565,653,545 565,653,545 120,927,192 120,927,192
- - ----------------------------------------------------------------------------------------------
Personal Investment
Class 434,495,218 434,495,218 15,823,134 15,823,134
- - ----------------------------------------------------------------------------------------------
Cash Management Class* 69,558,097 69,558,097 25,113,434 25,113,434
- - ----------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 1,479,804 1,479,804 527,557 527,557
- - ----------------------------------------------------------------------------------------------
Private Investment
Class 1,642,137 1,642,137 3,982 3,982
- - ----------------------------------------------------------------------------------------------
Personal Investment
Class 1,756,766 1,756,766 39,701 39,701
- - ----------------------------------------------------------------------------------------------
Cash Management Class* 88,722 88,722 5,586 5,586
- - ----------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (18,794,679,916) (18,794,679,916) (34,096,489,905) (34,096,489,905)
- - ----------------------------------------------------------------------------------------------
Private Investment
Class (439,933,815) (439,933,815) (107,954,443) (107,954,443)
- - ----------------------------------------------------------------------------------------------
Personal Investment
Class (349,145,707) (349,145,707) (13,702,087) (13,702,087)
- - ----------------------------------------------------------------------------------------------
Cash Management Class* (64,541,496) (64,541,496) (24,746,996) (24,746,996)
- - ----------------------------------------------------------------------------------------------
Net increase (decrease) 391,809,323 $ 391,809,323 (253,692,887) $ (253,692,887)
==============================================================================================
</TABLE>
* The Prime Portfolio-Cash Management Class commenced operations on June 30,
1994.
14
<PAGE>
NOTE 5 - FINANCIAL HIGHLIGHTS
Shown below are the condensed financial highlights for a share outstanding of
the Prime Portfolio-Cash Management Class during the six months ended February
28, 1995 and the period June 30, 1994 (date operations commenced) through
August 31, 1994.
<TABLE>
<CAPTION>
FEBRUARY 28, AUGUST 31,
1995 1994
------------ ----------
<S> <C> <C>
Net asset value,
beginning of period $1.00 $1.00
- - ------------------------ ------ ------
Income from investment
operations:
Net investment income 0.03 0.007
- - ------------------------ ------ ------
Total from investment
operations 0.03 0.007
- - ------------------------ ------ ------
Less distributions:
Dividends from net
investment income (0.03) (0.007)
- - ------------------------ ------ ------
Net asset value, end of
period $1.00 $1.00
======================== ====== ======
Total return(a) 5.31% 4.34%
======================== ====== ======
Ratios/supplemental data
Net assets, end of
period (000s omitted) $5,477 $372
======================== ====== ======
Ratio of expenses to
average net assets 0.17%(b) 0.14%(c)
======================== ====== ======
Ratio of net investment
income to average net
assets 5.25%(b) 4.26%(c)
======================== ====== ======
</TABLE>
(a) Total returns for periods less than one year are annualized.
(b) Ratios are annualized and based on average net assets of $3,409,166. Had
there been no expense reimbursements, the ratios of expenses and net
investment income to average net assets would have been 1.09% and 4.32%,
respectively.
(c) Ratios are annualized. Had there been no expense reimbursements, the ratios
of expenses and net investment income to average net assets would have been
0.65% and 3.75%, respectively.
15
<PAGE>
DIRECTORS
Charles T. Bauer John F. Kroeger
Bruce L. Crockett Lewis F. Pennock
Owen Daly II Ian W. Robinson
Carl Frischling Louis S. Sklar
Robert H. Graham
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
John J. Arthur Sr. Vice President & Treasurer
William H. Kleh Sr. Vice President
Gary T. Crum Sr. Vice President
Polly A. Ahrendts Vice President
Melville B. Cox Vice President
Karen Dunn Kelley Vice President
J. Abbott Sprague Vice President
Carol F. Relihan Vice President & Secretary
Dana R. Sutton Vice President & Assistant Treasurer
Joseph A. Dichiara Assistant Vice President
Dineen Hughes Assistant Vice President
Nancy L. Martin Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
Samuel D. Sirko Assistant Secretary
Stephen I. Winer Assistant Secretary
Mary J. Benson Assistant Treasurer
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
(800) 347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 1919
Houston, TX 77046
(800) 659-1005
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis, Nessen, Kamin & Frankel
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
State Street Bank & Trust Co.
225 Franklin Street
Boston, MA 02110
and
A I M Institutional Fund Services, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
This report may be distributed only to current shareholders or to persons who
have received a current prospectus.
Short-Term
Investments Co.
(STIC)
Prime Portfolio
Cash
Management
Class
Semi-
Annual
Report
February 28, 1995
[LOGO OF FUND MANAGEMENT
COMPANY APPEARS HERE]
