<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
[PHOTO of For the most part, the six-month period covered
Charles T. Bauer, by this report on the Prime Portfolio of Short-
Chairman of the Term Investments Co. was marked by relative
LETTER Board of The Fund stability in short-term financial markets. The
TO OUR APPEARS HERE] markets expected that Federal Reserve Board
SHAREHOLDERS policy would be unchanged because of prevailing
evidence of an economy growing at a sustainable, noninflationary
rate.
Only during the last week of February 1997 did short-term rates
move significantly, rising as markets began to anticipate higher
short-term interest rates. That change in market sentiment
occurred primarily in response to statements by Fed Chairman Alan
Greenspan. In his semiannual testimony before Congress, Greenspan
spoke of the Open Market Committee's being on "heightened" alert
to the possibility of future inflation. Greenspan's concern
focused on the continued dramatic rise in equity markets and on
evidence that a strong job market could ignite inflationary wage
pressures.
YOUR INVESTMENT PORTFOLIO
Because of its relatively short average maturity, Prime Portfolio
was able to take advantage of these higher rates to improve the
Fund's performance. The Fund's maximum 60-day laddered maturity
structure enables it to respond more quickly to market signals
than funds with longer average maturity structures. At the close
of the reporting period, the weighted average maturity of the
portfolio was 21 days.
As shown in the table, performance of the Cash Management Class
of the Portfolio as of February 28, 1997, compared favorably with
performance reported for comparative indexes.
<TABLE>
<S> <C> <C>
Yields as of 2/28/97
Average Seven-Day
Monthly Yield Yield
Prime Portfolio
Cash Management Class 5.20% 5.21%
IBC Money Fund Averages(TM) -
Total Institutions Only 5.01% 5.04%
IBC Money Fund Averages(TM) -
First-Tier Institutions Only 5.10% 5.11%
</TABLE>
Net assets of the Cash Management Class stood at $593.3 million
as of February 28, 1997, up from $507.2 million as of August 31,
1996.
The Portfolio continues to hold the highest credit quality
ratings given by two widely known credit-rating agencies: AAAm
from Standard & Poor's Corporation and Aaa from Moody's Investors
Service, Inc. The ratings are historical and are based on an
analysis of the Portfolio's credit quality, composition,
management, and weekly portfolio reviews.
The Prime Portfolio seeks to maximize current income to the
extent consistent with preservation of capital and maintenance of
liquidity. It invests in high-grade taxable money market
instruments with maturities of 60 days or less, including U.S.
government obligations, bank obligations, commercial paper, and
selected
(continued)
<PAGE>
repurchase agreement securities. As with any money market fund,
an investment in Prime Portfolio is neither insured nor
guaranteed by the U.S. government, the FDIC or a bank, and there
can be no assurance that the Portfolio will be able to maintain a
stable net asset value of $1.00 per share.
OUTLOOK FOR THE FUTURE
As the reporting period drew to a close, there was uncertainty
concerning the movement of interest rates. As mentioned above,
Fed Chairman Greenspan had told Congress the central bank was
vigilant about "potentially inflationary expansion." On the other
hand, information and data prepared in advance of the Open Market
Committee's March meeting reported temperate price pressures in
both the retail and manufacturing sectors, and described the
economy as expanding at "a relatively moderate pace."
While this made an imminent interest rate hike seem unlikely,
it left markets alert to the possibility of a Fed tightening in
the near term. Prime Portfolio management will remain cautionary
and will continue to manage the portfolio to provide the maximum
flexibility possible to respond to changes in the short-term
interest rate environment.
The prudence of that cautionary stance became evident on March
25, 1997, after the close of the reporting period. The Federal
Reserve Board's Open Market Committee raised the target federal
funds rate 25 basis points, a step that, by then, had become
widely anticipated.
AIM/INVESCO MERGER FINALIZED
We are pleased to announce that the merger of A I M Management
Group Inc. and INVESCO plc was concluded on February 28, 1997.
AIM is now part of one of the world's largest independent
investment management groups with approximately $160 billion in
assets under management.
The merger creates a company with the financial strength
necessary to meet your needs in an increasingly competitive
financial services environment, both in the United States and
worldwide. Though now under one holding company, AIM and INVESCO
will continue to operate as separate entities. Therefore, this
merger will not change the portfolio management, investment
style, or name of any of the AIM funds you own. The merger's
completion begins a new and promising era for AIM, one we believe
will yield exciting opportunities.
We are pleased to send you this report concerning your
investment. AIM is committed to customer service and to the
primary goals of safety, liquidity and yield in institutional
fund management. We are ready to respond to your comments about
this report and to any questions you may have. Please contact one
of our representatives at 800-659-1005 if we may be of service.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
The annual shareholder meeting of Short-Term
Investments Co. and the Prime Portfolio was
held on February 7, 1997. For details of the
business transacted at that meeting, please see
Note 2 to the Financial Statements in this report.
2
<PAGE>
SCHEDULE OF INVESTMENTS
February 28, 1997
(Unaudited)
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER - 86.59%(a)
BASIC INDUSTRY - 1.68%
CHEMICALS - 1.68%
Du Pont (E.I.) de Nemours & Co.
5.27% 03/06/97 $ 25,000 $ 24,981,702
- ------------------------------------------------------------------------
5.27% 03/18/97 21,890 21,835,524
- ------------------------------------------------------------------------
5.26% 03/20/97 25,000 24,930,597
- ------------------------------------------------------------------------
5.27% 03/20/97 25,000 24,930,465
- ------------------------------------------------------------------------
5.26% 03/21/97 25,000 24,926,945
- ------------------------------------------------------------------------
Total Basic Industry 121,605,233
- ------------------------------------------------------------------------
CAPITAL GOODS - 4.46%
COMPUTERS & OFFICE EQUIPMENT - 0.66%
Electronic Data Systems Corp.
5.30% 04/03/97 33,000 32,839,675
- ------------------------------------------------------------------------
International Business Machines Corp.
5.28% 03/19/97 15,100 15,060,136
- ------------------------------------------------------------------------
47,899,811
- ------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.10%
Siemens Capital Corp.
5.30% 03/05/97 20,000 19,988,222
- ------------------------------------------------------------------------
5.32% 03/13/97 20,000 19,964,533
- ------------------------------------------------------------------------
5.24% 04/07/97 20,000 19,892,289
- ------------------------------------------------------------------------
5.24% 04/09/97 20,000 19,886,467
- ------------------------------------------------------------------------
79,731,511
- ------------------------------------------------------------------------
MACHINERY - 2.26%
Caterpillar Financial Services Corp.
5.31% 03/24/97 18,000 17,938,935
- ------------------------------------------------------------------------
Dover Corp.
5.30% 03/05/97 27,000 26,984,100
- ------------------------------------------------------------------------
5.25% 04/02/97 50,000 49,766,667
- ------------------------------------------------------------------------
5.26% 04/02/97 28,000 27,869,084
- ------------------------------------------------------------------------
5.25% 04/03/97 40,700 40,504,131
- ------------------------------------------------------------------------
163,062,917
- ------------------------------------------------------------------------
TRANSPORTATION - 0.44%
Paccar Financial Corp.
5.28% 03/04/97 17,000 16,992,520
- ------------------------------------------------------------------------
5.28% 03/06/97 15,000 14,989,000
- ------------------------------------------------------------------------
31,981,520
- ------------------------------------------------------------------------
Total Capital Goods 322,675,759
- ------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
CONSUMER DURABLES - 5.48%
AUTOMOBILE - 5.20%
Ford Motor Credit Co.
5.32% 03/10/97 $ 22,322 $ 22,292,312
- -------------------------------------------------------------------
5.31% 03/12/97 50,000 49,918,875
- -------------------------------------------------------------------
5.31% 03/14/97 50,000 49,904,125
- -------------------------------------------------------------------
5.30% 03/19/97 25,000 24,933,750
- -------------------------------------------------------------------
5.30% 04/09/97 50,000 49,712,917
- -------------------------------------------------------------------
5.30% 04/11/97 50,000 49,698,194
- -------------------------------------------------------------------
5.28% 04/22/97 50,000 49,618,667
- -------------------------------------------------------------------
Toyota Motor Credit Corp.
5.31% 03/21/97 25,000 24,926,250
- -------------------------------------------------------------------
5.28% 04/16/97 25,000 24,831,333
- -------------------------------------------------------------------
5.28% 04/17/97 30,000 29,793,200
- -------------------------------------------------------------------
375,629,623
- -------------------------------------------------------------------
RESIDENTIAL CONSTRUCTION - 0.28%
Weyerhaeuser Real Estate Co.
5.30% 03/19/97 20,000 19,947,000
- -------------------------------------------------------------------
Total Consumer Durables 395,576,623
- -------------------------------------------------------------------
CONSUMER NONDURABLES - 6.31%
BEVERAGES - 0.69%
Coca-Cola Co. (The)
5.25% 03/19/97 50,000 49,868,750
- -------------------------------------------------------------------
DRUGS - 1.77%
Eli Lilly & Co.
5.28% 03/28/97 35,000 34,861,400
- -------------------------------------------------------------------
Merck & Co. Inc.
5.27% 03/06/97 50,000 49,963,403
- -------------------------------------------------------------------
Pfizer Inc.
5.28% 03/05/97 43,457 43,431,505
- -------------------------------------------------------------------
128,256,308
- -------------------------------------------------------------------
FOOD PROCESSING - 2.22%
Campbell Soup Co.
5.275% 03/13/97 25,000 24,956,042
- -------------------------------------------------------------------
5.275% 03/17/97 25,000 24,941,389
- -------------------------------------------------------------------
Heinz (H.J.) Co.
5.29% 03/10/97 22,000 21,970,905
- -------------------------------------------------------------------
5.33% 03/12/97 29,000 28,952,770
- -------------------------------------------------------------------
5.28% 03/13/97 17,000 16,970,080
- -------------------------------------------------------------------
5.31% 03/18/97 43,000 42,892,177
- -------------------------------------------------------------------
160,683,363
- -------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
CONSUMER NONDURABLES - (continued)
HOUSEHOLD PRODUCTS - 0.25%
Kimberly-Clark Corp.
5.27% 03/04/97 $ 18,200 $ 18,192,007
- -------------------------------------------------------------------------
PUBLISHING (NEWSPAPERS) - 1.38%
Gannett Co., Inc.
5.25% 04/03/97 50,000 49,759,375
- -------------------------------------------------------------------------
5.27% 04/10/97 50,000 49,707,222
- -------------------------------------------------------------------------
99,466,597
- -------------------------------------------------------------------------
Total Consumer Nondurables 456,467,025
- -------------------------------------------------------------------------
ENERGY - 1.87%
OIL & GAS - 1.87%
Exxon Imperial U.S., Inc.
5.27% 03/25/97 19,565 19,496,262
- -------------------------------------------------------------------------
Mobil Australia Finance Co., Inc.
5.24% 03/27/97 40,000 39,848,622
- -------------------------------------------------------------------------
5.30% 03/27/97 51,077 50,881,489
- -------------------------------------------------------------------------
Petrofina Delaware, Inc.
5.32% 03/03/97 15,000 14,995,567
- -------------------------------------------------------------------------
5.32% 03/04/97 10,000 9,995,567
- -------------------------------------------------------------------------
Total Energy 135,217,507
- -------------------------------------------------------------------------
FINANCIAL - 60.68%
ASSET-BACKED SECURITIES - 29.13%
Asset Securitization Cooperative Corp.
5.30% 04/04/97 25,000 24,874,861
- -------------------------------------------------------------------------
5.28% 04/10/97 38,000 37,777,067
- -------------------------------------------------------------------------
5.30% 04/11/97 50,000 49,698,194
- -------------------------------------------------------------------------
5.27% 04/14/97 45,000 44,710,150
- -------------------------------------------------------------------------
Ciesco, L.P.
5.27% 04/07/97 40,000 39,783,345
- -------------------------------------------------------------------------
Clipper Receivables Corp.
5.31% 03/14/97 40,000 39,923,300
- -------------------------------------------------------------------------
5.30% 03/17/97 50,000 49,882,222
- -------------------------------------------------------------------------
5.29% 03/31/97 44,000 43,806,033
- -------------------------------------------------------------------------
5.27% 04/01/97 48,974 48,751,753
- -------------------------------------------------------------------------
Corporate Asset Funding Co., Inc.
5.30% 03/10/97 35,000 34,953,625
- -------------------------------------------------------------------------
5.31% 04/01/97 25,000 24,885,688
- -------------------------------------------------------------------------
5.28% 04/22/97 30,000 29,771,200
- -------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
FINANCIAL--(continued)
ASSET-BACKED SECURITIES - (CONTINUED)
Delaware Funding Corp.
5.32% 03/07/97 $ 17,928 $ 17,912,104
- ------------------------------------------------------------------------
5.31% 03/14/97 32,043 31,981,557
- ------------------------------------------------------------------------
5.34% 03/25/97 25,929 25,836,693
- ------------------------------------------------------------------------
5.28% 04/10/97 34,519 34,316,489
- ------------------------------------------------------------------------
5.28% 04/15/97 23,460 23,305,164
- ------------------------------------------------------------------------
5.27% 04/21/97 20,179 20,028,347
- ------------------------------------------------------------------------
Eiger Capital Corp.
5.30% 03/18/97 49,841 49,716,259
- ------------------------------------------------------------------------
5.30% 03/27/97 65,056 64,806,980
- ------------------------------------------------------------------------
5.25% 04/03/97 25,000 24,879,688
- ------------------------------------------------------------------------
5.27% 04/08/97 50,000 49,721,861
- ------------------------------------------------------------------------
Falcon Asset Securitization Corp.
5.32% 03/04/97 25,000 24,988,917
- ------------------------------------------------------------------------
5.31% 03/13/97 32,700 32,642,121
- ------------------------------------------------------------------------
5.30% 03/17/97 21,265 21,214,909
- ------------------------------------------------------------------------
5.27% 04/07/97 20,125 20,015,995
- ------------------------------------------------------------------------
5.27% 04/08/97 43,350 43,108,854
- ------------------------------------------------------------------------
5.27% 04/21/97 34,175 33,919,855
- ------------------------------------------------------------------------
Matterhorn Capital Corp.
5.27% 03/21/97 14,000 13,959,011
- ------------------------------------------------------------------------
5.25% 04/03/97 10,000 9,951,875
- ------------------------------------------------------------------------
5.25% 04/22/97 25,000 24,810,417
- ------------------------------------------------------------------------
5.25% 04/24/97 25,000 24,803,125
- ------------------------------------------------------------------------
Monte Rosa Capital Corp.
5.33% 03/03/97 22,029 22,022,477
- ------------------------------------------------------------------------
5.24% 03/18/97 40,000 39,901,022
- ------------------------------------------------------------------------
5.30% 03/19/97 35,159 35,065,829
- ------------------------------------------------------------------------
5.30% 03/20/97 50,000 49,860,139
- ------------------------------------------------------------------------
5.27% 03/25/97 25,000 24,912,167
- ------------------------------------------------------------------------
5.27% 03/26/97 50,000 49,817,014
- ------------------------------------------------------------------------
Preferred Receivables Funding Corp.
5.33% 03/10/97 50,260 50,193,028
- ------------------------------------------------------------------------
5.32% 03/12/97 39,050 38,986,522
- ------------------------------------------------------------------------
5.32% 03/13/97 30,300 30,246,268
- ------------------------------------------------------------------------
5.31% 03/17/97 20,100 20,052,564
- ------------------------------------------------------------------------
5.27% 03/25/97 20,000 19,929,733
- ------------------------------------------------------------------------
5.30% 04/02/97 37,775 37,597,038
- ------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
FINANCIAL - (continued)
ASSET-BACKED SECURITIES - (CONTINUED)
Receivables Capital Corp.
5.37% 03/11/97 $ 20,725 $ 20,694,085
- ------------------------------------------------------------------------
5.30% 03/18/97 10,516 10,489,681
- ------------------------------------------------------------------------
5.33% 03/24/97 35,000 34,880,815
- ------------------------------------------------------------------------
5.29% 03/26/97 15,097 15,041,539
- ------------------------------------------------------------------------
5.31% 04/02/97 50,000 49,764,000
- ------------------------------------------------------------------------
5.275% 04/04/97 100,495 99,994,339
- ------------------------------------------------------------------------
5.27% 04/07/97 50,000 49,729,181
- ------------------------------------------------------------------------
5.29% 04/15/97 50,000 49,669,375
- ------------------------------------------------------------------------
Sheffield Receivables Corp.
5.33% 03/03/97 30,150 30,141,072
- ------------------------------------------------------------------------
5.33% 03/05/97 43,100 43,074,475
- ------------------------------------------------------------------------
5.32% 03/07/97 25,000 24,977,833
- ------------------------------------------------------------------------
5.34% 03/07/97 22,750 22,729,752
- ------------------------------------------------------------------------
5.32% 03/10/97 22,050 22,020,673
- ------------------------------------------------------------------------
5.33% 03/11/97 24,500 24,463,726
- ------------------------------------------------------------------------
5.28% 03/24/97 30,000 29,898,800
- ------------------------------------------------------------------------
5.33% 03/24/97 15,200 15,148,240
- ------------------------------------------------------------------------
5.28% 03/25/97 13,500 13,452,480
- ------------------------------------------------------------------------
5.33% 03/25/97 20,200 20,128,223
- ------------------------------------------------------------------------
5.30% 04/11/97 34,300 34,092,961
- ------------------------------------------------------------------------
5.28% 04/18/97 17,000 16,880,320
- ------------------------------------------------------------------------
2,106,593,030
- ------------------------------------------------------------------------
BANKING - 0.55%
Bank of America
5.31% 04/29/97 40,000 39,651,900
- ------------------------------------------------------------------------
BROKERAGE/INVESTMENTS - 13.49%
Bear, Stearns & Co. Inc.
5.29% 03/27/97 25,000 24,904,486
- ------------------------------------------------------------------------
5.33% 03/31/97 25,000 24,888,958
- ------------------------------------------------------------------------
5.26% 04/09/97 50,000 49,715,083
- ------------------------------------------------------------------------
5.28% 04/25/97 50,000 49,596,667
- ------------------------------------------------------------------------
CS First Boston Corp.
5.32% 03/14/97 35,000 34,932,761
- ------------------------------------------------------------------------
Goldman, Sachs & Co.
5.30% 03/20/97 50,000 49,860,139
- ------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
FINANCIAL - (continued)
BROKERAGE/INVESTMENTS - (CONTINUED)
Merrill Lynch & Co. Inc.
5.35% 03/07/97 $ 44,000 $ 43,960,767
- -------------------------------------------------------------------------------
5.30% 03/11/97 30,000 29,955,833
- -------------------------------------------------------------------------------
5.32% 03/21/97 50,000 49,852,222
- -------------------------------------------------------------------------------
5.33% 03/24/97 50,000 49,829,736
- -------------------------------------------------------------------------------
5.31% 03/25/97 50,000 49,823,000
- -------------------------------------------------------------------------------
5.33% 03/25/97 50,000 49,822,333
- -------------------------------------------------------------------------------
5.28% 03/26/97 50,000 49,816,667
- -------------------------------------------------------------------------------
5.27% 04/14/97 50,000 49,677,944
- -------------------------------------------------------------------------------
5.27% 04/15/97 40,000 39,736,500
- -------------------------------------------------------------------------------
Morgan (J.P.) Securities Group, Inc.
5.28% 03/12/97 50,000 49,919,334
- -------------------------------------------------------------------------------
Smith Barney Inc.
5.32% 03/03/97 75,000 74,977,833
- -------------------------------------------------------------------------------
5.32% 03/05/97 30,000 29,982,267
- -------------------------------------------------------------------------------
5.32% 03/07/97 50,000 49,955,667
- -------------------------------------------------------------------------------
5.26% 04/01/97 50,000 49,773,528
- -------------------------------------------------------------------------------
5.30% 04/01/97 25,000 24,885,903
- -------------------------------------------------------------------------------
5.26% 04/09/97 50,000 49,715,083
- -------------------------------------------------------------------------------
975,582,711
- -------------------------------------------------------------------------------
BUSINESS CREDIT - 4.09%
CIT Group Holdings, Inc.
5.42% 03/03/97 110,000 109,966,878
- -------------------------------------------------------------------------------
5.26% 04/14/97 50,000 49,678,556
- -------------------------------------------------------------------------------
National Rural Utilities Cooperative Finance
Corp.
5.30% 03/10/97 50,000 49,933,750
- -------------------------------------------------------------------------------
5.30% 03/13/97 30,000 29,947,000
- -------------------------------------------------------------------------------
5.29% 03/21/97 56,485 56,318,997
- -------------------------------------------------------------------------------
295,845,181
- -------------------------------------------------------------------------------
INSURANCE - 1.95%
Metlife Funding, Inc.
5.30% 03/06/97 16,299 16,287,002
- -------------------------------------------------------------------------------
5.27% 04/23/97 35,106 34,833,626
- -------------------------------------------------------------------------------
5.27% 04/24/97 40,334 40,015,160
- -------------------------------------------------------------------------------
Prudential Funding Corp.
5.30% 03/11/97 50,000 49,926,389
- -------------------------------------------------------------------------------
141,062,177
- -------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
FINANCIAL - (continued)
PERSONAL CREDIT - 4.83%
American Express Credit Corp.
5.30% 04/23/97 $100,000 $ 99,219,722
- --------------------------------------------------------------------
Associates Corp. of North America
5.27% 04/18/97 80,000 79,437,867
- --------------------------------------------------------------------
Household Finance Corp.
5.29% 03/24/97 50,000 49,831,014
- --------------------------------------------------------------------
Student Loan Corp.
5.29% 03/13/97 50,000 49,911,833
- --------------------------------------------------------------------
Transamerica Finance Corp.
5.31% 03/27/97 24,000 23,907,960
- --------------------------------------------------------------------
5.31% 03/28/97 22,000 21,912,385
- --------------------------------------------------------------------
5.25% 04/16/97 25,000 24,832,292
- --------------------------------------------------------------------
349,053,073
- --------------------------------------------------------------------
MISCELLANEOUS - 2.30%
International Lease Finance Corp.
5.32% 03/26/97 35,000 34,870,694
- --------------------------------------------------------------------
5.25% 04/22/97 20,000 19,848,334
- --------------------------------------------------------------------
USAA Capital Corp.
5.29% 03/07/97 25,000 24,977,958
- --------------------------------------------------------------------
5.28% 04/28/97 53,787 53,329,451
- --------------------------------------------------------------------
5.31% 04/28/97 33,382 33,096,417
- --------------------------------------------------------------------
166,122,854
- --------------------------------------------------------------------
MULTIPLE INDUSTRY - 4.34%
General Electric Capital Corp.
5.35% 03/04/97 50,000 49,977,709
- --------------------------------------------------------------------
5.31% 03/17/97 25,000 24,941,000
- --------------------------------------------------------------------
5.31% 03/26/97 50,000 49,815,625
- --------------------------------------------------------------------
5.31% 03/28/97 50,000 49,800,875
- --------------------------------------------------------------------
5.31% 03/31/97 100,000 99,557,500
- --------------------------------------------------------------------
5.30% 04/28/97 40,000 39,658,445
- --------------------------------------------------------------------
313,751,154
- --------------------------------------------------------------------
Total Financial 4,387,662,080
- --------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
RETAIL - 3.98%
DEPARTMENT STORES - 3.98%
Penney (J.C.) Funding Corp.
5.30% 03/11/97 $ 67,119 $ 67,020,185
- -----------------------------------------------------------------------------
5.30% 03/12/97 25,600 25,558,542
- -----------------------------------------------------------------------------
5.30% 03/17/97 46,000 45,891,645
- -----------------------------------------------------------------------------
5.30% 03/19/97 25,000 24,933,750
- -----------------------------------------------------------------------------
5.30% 04/08/97 50,000 49,720,278
- -----------------------------------------------------------------------------
5.30% 04/10/97 50,000 49,705,556
- -----------------------------------------------------------------------------
5.27% 04/11/97 25,000 24,849,951
- -----------------------------------------------------------------------------
Total Retail 287,679,907
- -----------------------------------------------------------------------------
UTILITIES - 0.33%
TELEPHONE - 0.33%
MCI Communications Corp.
5.32% 03/20/97 24,000 23,932,613
- -----------------------------------------------------------------------------
Total Utilities 23,932,613
- -----------------------------------------------------------------------------
OTHER - 1.80%
DIVERSIFIED - 1.80%
BTR Dunlop Finance Inc.
5.35% 03/04/97 55,000 54,975,480
- -----------------------------------------------------------------------------
5.34% 03/05/97 25,000 24,985,166
- -----------------------------------------------------------------------------
Cargill Inc.
5.31% 03/06/97 50,000 49,963,125
- -----------------------------------------------------------------------------
Total Other 129,923,771
- -----------------------------------------------------------------------------
Total Commercial Paper 6,260,740,518
- -----------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 0.69%
American Express Centurion Bank
5.29% 03/24/97 50,000 50,000,000
- -----------------------------------------------------------------------------
MASTER NOTE AGREEMENTS - 1.41%
Goldman, Sachs & Co.(b)
5.568% 04/23/97 75,000 75,000,000
- -----------------------------------------------------------------------------
Morgan (J.P.) Securities, Inc.(c)
5.438% 04/07/97 27,000 27,000,000
- -----------------------------------------------------------------------------
Total Master Note Agreements 102,000,000
- -----------------------------------------------------------------------------
MEDIUM TERM NOTES - 0.37%
Merrill Lynch & Co. Inc.
5.473% 04/04/97 27,000 27,001,045
- -----------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 6,439,741,563
- -----------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
MATURITY PAR (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 11.41%(d)
CIBC-Wood Gundy Securities Corp.(e)
5.39% 03/03/97 $ 18,474 $ 18,474,012
- -------------------------------------------------------------------------------
Goldman, Sachs & Co.(f)
5.38% 03/03/97 68,657 68,657,232
- -------------------------------------------------------------------------------
Greenwich Capital Markets, Inc.(g)
5.41% 03/03/97 190,000 190,000,000
- -------------------------------------------------------------------------------
Merrill Lynch & Co. Inc.(h)
5.23% -- 200,000 200,000,000
- -------------------------------------------------------------------------------
Nomura Securities International, Inc.(i)
5.40% -- 177,000 177,000,000
- -------------------------------------------------------------------------------
Smith Barney Inc.(j)
5.41% 03/03/97 81,007 81,007,012
- -------------------------------------------------------------------------------
UBS Securities LLC(k)
5.41% 03/03/97 90,000 90,000,000
- -------------------------------------------------------------------------------
Total Repurchase Agreements 825,138,256
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.47% 7,264,879,819 (l)
- -------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES - (0.47%) (33,855,289)
- -------------------------------------------------------------------------------
NET ASSETS - 100.00% $7,231,024,530
===============================================================================
</TABLE>
(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 Fund may demand prepayment of note upon seven business days' notice.
Interest rates on master notes are redetermined periodically. Rate shown is
the rate in effect on February 28, 1997.
(c) The Fund may demand prepayment of note upon seven calendar days' notice.
Interest rates on master notes are redetermined periodically. Rate shown is
the rate in effect on February 28, 1997.
(d) Collateral on repurchase agreements, including the Portfolio's pro-rata
interest in joint repurchase agreements, is taken into possession by the
Fund 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 mutual funds,
private accounts and certain non-registered investment companies managed by
the investment advisor or its affiliates.
(e) Joint repurchase agreement entered into 02/28/97 with a maturing value of
$100,044,917. Collateralized by U.S. Government obligations, 5.29% to 9.55%
due 06/02/97 to 11/12/03 with an aggregate market value at February 28,
1997 of $102,000,212.
(f) Joint repurchase agreement entered into 02/28/97 with a maturing value of
$760,340,733. Collateralized by U.S. Government obligations, 5.50% to
12.75% due 11/15/97 to 02/15/97 with an aggregate market value at February
28, 1997 of $775,939,358.
(g) Joint repurchase agreement entered into 02/28/97 with a maturing value of
$400,180,333. Collateralized by U.S. Government obligations, 5.00% to
10.00% due 03/01/97 to 03/01/26 with an aggregate market value at February
28, 1997 of $408,001,076.
(h) Open repurchase agreement entered into 02/26/97; however, either party may
terminate the agreement upon demand. Interest rates, par and collateral,
are redetermined daily. Collateralized by U.S. Government obligations, 0%
due 01/15/00 to 04/15/23 with an aggregate market value at February 28,
1997 of $204,000,677.
(i) Open joint repurchase agreement entered into 07/16/96; however, either
party may terminate the agreement upon demand. Interest rates, par and
collateral, are redetermined daily. Collateralized by U.S. Government
obligations, 0% to 8.60% due 03/20/97 to 04/30/26 with an aggregate market
value at February 28, 1997 of $336,600,720.
(j) Joint repurchase agreement entered into 02/28/97 with a maturing value of
$200,090,167. Collateralized by U.S. Government obligations, 0% to 9.50%
due 01/22/99 to 08/01/33 with an aggregate market value at February 28,
1997 of $204,000,000.
(k) Joint repurchase agreement entered into 02/28/97 with a maturing value of
$250,112,708. Collateralized by U.S. Government obligations, 0% to 8.00%
due 10/17/97 to 08/01/25 with an aggregate market value at February 28,
1997 of $255,003,416.
(l) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1997
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $6,439,741,563
- ------------------------------------------------------------------------
Repurchase agreements 825,138,256
- ------------------------------------------------------------------------
Interest receivable 811,599
- ------------------------------------------------------------------------
Investment for deferred compensation plan 67,889
- ------------------------------------------------------------------------
Other assets 1,213,751
- ------------------------------------------------------------------------
Total assets 7,266,973,058
- ------------------------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 35,212,169
- ------------------------------------------------------------------------
Deferred compensation 67,889
- ------------------------------------------------------------------------
Accrued advisory fees 268,997
- ------------------------------------------------------------------------
Accrued distribution fees 98,784
- ------------------------------------------------------------------------
Accrued transfer agent fees 44,166
- ------------------------------------------------------------------------
Accrued operating expenses 256,523
- ------------------------------------------------------------------------
Total liabilities 35,948,528
- ------------------------------------------------------------------------
NET ASSETS $7,231,024,530
========================================================================
NET ASSETS:
Institutional Class $6,210,004,092
========================================================================
Private Investment Class $ 228,069,249
========================================================================
Personal Investment Class $ 92,846,924
========================================================================
Cash Management Class $ 593,317,503
========================================================================
Resource Class $ 106,786,762
========================================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Institutional Class 6,210,009,535
========================================================================
Private Investment Class 228,069,449
========================================================================
Personal Investment Class 92,847,006
========================================================================
Cash Management Class 593,318,023
========================================================================
Resource Class 106,786,855
========================================================================
NET ASSET VALUE PER SHARE:
Net asset value, offering and redemption price per share $1.00
========================================================================
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
STATEMENT OF OPERATIONS
For the six months ended February 28, 1997
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $187,562,098
- -------------------------------------------------------------------
EXPENSES:
Advisory fees 1,946,438
- -------------------------------------------------------------------
Custodian fees 104,590
- -------------------------------------------------------------------
Administrative services fees 44,854
- -------------------------------------------------------------------
Directors' fees and expenses 16,429
- -------------------------------------------------------------------
Transfer agent fees 312,870
- -------------------------------------------------------------------
Filing fees 223,826
- -------------------------------------------------------------------
Distribution fees (Note 2) 1,293,950
- -------------------------------------------------------------------
Other 238,961
- -------------------------------------------------------------------
Total expenses 4,181,918
- -------------------------------------------------------------------
Less: fee waivers and expense reimbursements (427,908)
- -------------------------------------------------------------------
Net expenses 3,754,010
- -------------------------------------------------------------------
Net investment income 183,808,088
- -------------------------------------------------------------------
Net realized gain on sales of investments 2,155
- -------------------------------------------------------------------
Net increase in net assets resulting from operations $183,810,243
===================================================================
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended February 28, 1997 and the year ended August 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
FEBRUARY 28, AUGUST 31,
1997 1996
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 183,808,088 $ 281,830,371
- ----------------------------------------------------------------------------
Net realized gain on sales of investments 2,155 3,560
- ----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 183,810,243 281,833,931
- ----------------------------------------------------------------------------
Distributions to shareholders from net
investment income (183,808,088) (281,830,371)
- ----------------------------------------------------------------------------
Capital stock transactions-net 1,079,074,020 1,950,864,683
- ----------------------------------------------------------------------------
Net increase in net assets 1,079,076,175 1,950,868,243
- ----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 6,151,948,355 4,201,080,112
- ----------------------------------------------------------------------------
End of period $7,231,024,530 $6,151,948,355
============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $7,231,030,868 $6,151,956,848
- ----------------------------------------------------------------------------
Undistributed net realized gain (loss) on
sales of investments (6,338) (8,493)
- ----------------------------------------------------------------------------
$7,231,024,530 $6,151,948,355
============================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1997
(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, each of which offers separate series of shares:
the Prime Portfolio 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 five different classes of
shares: the Institutional Class, the Private Investment Class, the Personal
Investment Class, the Cash Management Class and the Resource Class. Matters
affecting each class are voted on exclusively by the shareholders of each
class. The Portfolio's objective is the maximization of current income to the
extent consistent with the preservation of capital and the maintenance of
liquidity.
The following is a summary of the significant accounting policies followed by
the Portfolio in the preparation of its financial statements. The preparation
of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
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 - Distribution and transfer agency expenses directly attributable
to a class of shares are charged to that class' operations. All other
expenses are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master 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 voluntarily reimbursed expenses of $4,400 during the six months ended
February 28, 1997.
The Portfolio, pursuant to a master administrative services agreement with
AIM, has agreed to reimburse AIM for certain costs incurred in providing
accounting services to the Portfolio. During the six months ended February 28,
1997, the Portfolio reimbursed AIM $44,854 for such services. During the six
months ended February 28, 1997, the Fund paid A I M Institutional Fund
Services, Inc. ("AIFS") $312,870 pursuant to a shareholder and transfer agency
services agreement.
15
<PAGE>
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 and
the Resource Class of the Portfolio. The Plan provides that the Private
Investment Class, the Personal Investment Class, the Cash Management Class and
the Resource Class may pay FMC up to a maximum annual rate of 0.50%, 0.75%,
0.10% 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 and the
Personal Investment 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 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. During the six months ended February 28, 1997, the
Private Investment Class, the Personal Investment Class, the Cash Management
Class and the Resource Class accrued $342,925, $252,051, $187,181 and $88,285,
respectively, as compensation to FMC under the Plan. FMC waived fees of
$423,508 for the same period. Certain officers and directors of the Fund are
officers of AIM, FMC and AIFS.
During the six months ended February 28, 1997, the Portfolio paid legal fees
of $12,405 for services rendered by Kramer, Levin, Naftalis & Frankel as
counsel to the Fund's directors. A member of that firm is a director of the
Fund.
Shareholders' Meeting
An annual meeting of shareholders of the Fund was held on February 7, 1997 (the
"Meeting"). The following four items were approved by the 7,946,370,712 shares
of the Fund represented at the Meeting, with the following vote totals cast
with respect to each item:
(1) ELECTION OF DIRECTORS. At the Meeting, Messrs. Charles T. Bauer, Bruce L.
Crockett, Owen Daly II, Carl Frischling, Robert H. Graham, John F. Kroeger,
Lewis F. Pennock, Ian W. Robinson, and Louis S. Sklar were reelected to the
Board of Directors of the Fund. 7,945,747,161 shares of the Fund voted for
each of the directors, respectively, and 623,551 shares of the Fund
withheld authority, respectively.
(2) RATIFICATION OF INDEPENDENT ACCOUNTANTS. 7,944,484,460 shares of the Fund
voted for the ratification of the appointment of KPMG Peat Marwick LLP as
independent accountants for the Fund for the Fund's fiscal year ending
August 31, 1997. 691,022 shares of the Fund voted against ratification of
the accountants and 1,195,229 shares of the Fund abstained.
(3) APPROVAL OF THE NEW MASTER INVESTMENT ADVISORY AGREEMENT. At the Meeting,
shareholders of the Portfolio were asked to approve a new Master Investment
Advisory Agreement (the "Agreement") between the Fund and AIM.
6,351,840,396 shares of the Portfolio voted to approve the Agreement.
2,167,538 shares of the Portfolio voted against the approval of the
Agreement and 1,614,393 shares of the Portfolio abstained.
(4) ELIMINATION OF THE FUNDAMENTAL INVESTMENT POLICY PROHIBITING OR RESTRICTING
INVESTMENTS IN OTHER INVESTMENT COMPANIES. 6,245,360,455 shares of the
Portfolio voted for the elimination of the fundamental investment policy,
69,900,356 shares of the Portfolio voted against the elimination of the
fundamental investment policy and 11,288,044 shares of the Portfolio
abstained.
NOTE 3-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Fund invests directors' fees, if so
elected by a director, in mutual fund shares in accordance with a deferred
compensation plan.
16
<PAGE>
NOTE 4-CAPITAL STOCK
Changes in capital stock during the six months ended February 28, 1997 and the
year ended August 31, 1996 were as follows:
<TABLE>
<CAPTION>
FEBRUARY 28, 1997 AUGUST 31, 1996
-------------------------------- --------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 45,132,846,868 $45,132,846,868 47,809,368,885 $47,809,368,885
- ------------------------------------------------------------------------------------------
Private Investment
Class 1,060,331,011 1,060,331,011 1,712,695,255 1,712,695,255
- ------------------------------------------------------------------------------------------
Personal Investment
Class 827,657,361 827,657,361 976,763,335 976,763,335
- ------------------------------------------------------------------------------------------
Cash Management Class 2,739,882,069 2,739,882,069 2,572,268,560 2,572,268,560
- ------------------------------------------------------------------------------------------
Resource Class* 1,709,780,272 1,709,780,272 1,501,999,293 1,501,999,293
- ------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 10,376,145 10,376,145 8,231,944 8,231,944
- ------------------------------------------------------------------------------------------
Private Investment
Class 3,788,175 3,788,175 6,300,025 6,300,025
- ------------------------------------------------------------------------------------------
Personal Investment
Class 2,396,798 2,396,798 5,517,924 5,517,924
- ------------------------------------------------------------------------------------------
Cash Management Class 9,455,483 9,455,483 12,713,851 12,713,851
- ------------------------------------------------------------------------------------------
Resource Class* 1,249,832 1,249,832 892,705 892,705
- ------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (44,197,821,493) (44,197,821,493) (46,305,697,661) (46,305,697,661)
- ------------------------------------------------------------------------------------------
Private Investment
Class (1,045,495,089) (1,045,495,089) (1,663,828,112) (1,663,828,112)
- ------------------------------------------------------------------------------------------
Personal Investment
Class (849,851,168) (849,851,168) (969,266,851) (969,266,851)
- ------------------------------------------------------------------------------------------
Cash Management Class (2,663,266,888) (2,663,266,888) (2,272,214,579) (2,272,214,579)
- ------------------------------------------------------------------------------------------
Resource Class* (1,662,255,356) (1,662,255,356) (1,444,879,891) (1,444,879,891)
- ------------------------------------------------------------------------------------------
Net increase 1,079,074,020 $ 1,079,074,020 1,950,864,683 $ 1,950,864,683
==========================================================================================
</TABLE>
* The Resource Class commenced operations on January 16, 1996.
17
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of capital stock
outstanding of the Cash Management Class during the six months ended February
28, 1997, each of years in the two-year period ended August 31, 1996 and the
period June 30, 1994 (date operations commenced) through August 31, 1994.
<TABLE>
<CAPTION>
AUGUST 31,
FEBRUARY 28, -------------------------
1997 1996 1995 1994
------------ -------- -------- -----
<S> <C> <C> <C> <C>
Net asset value, beginning of
period $ 1.00 $ 1.00 $ 1.00 $1.00
- --------------------------------- -------- -------- -------- -----
Income from investment
operations:
Net investment income 0.03 0.05 0.06 0.01
- --------------------------------- -------- -------- -------- -----
Less distributions:
Dividends from net investment
income (0.03) (0.05) (0.06) (0.01)
- --------------------------------- -------- -------- -------- -----
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $1.00
================================= ======== ======== ======== =====
Total return 5.29%(a) 5.55% 5.71% 4.34%(a)
================================= ======== ======== ======== =====
Ratios/supplemental data:
Net assets, end of period (000s
omitted) $593,318 $507,247 $194,479 $372
================================= ======== ======== ======== =====
Ratio of expenses to average net
assets(b) 0.16%(c) 0.17% 0.17% 0.14%
================================= ======== ======== ======== =====
Ratio of net investment income to
average net assets(d) 5.24%(c) 5.38% 5.69% 4.26%
================================= ======== ======== ======== =====
</TABLE>
(a) Annualized.
(b) After waiver of distribution fees and/or expense reimbursements. Ratios of
expenses to average net assets prior to waiver of distribution fees and/or
expense reimbursements were 0.18%, 0.19%, 0.32%, and 0.67% for the periods
1997-1994, respectively. Ratios are annualized for periods less than one
year.
(c) Ratios are annualized and based on average net assets of $471,831,214.
(d) After waiver of distribution fees and/or expense reimbursements. Ratios of
net investment income to average net assets prior to waiver of distribution
fees and/or expense reimbursements were 5.22%, 5.36%, 5.54%, and 3.73% for
the periods 1997-1994, respectively. Ratios are annualized for periods less
than one year.
18
<PAGE>
<TABLE>
<S> <C>
DIRECTORS
Charles T. Bauer John F. Kroeger Short-Term
Bruce L. Crockett Lewis F. Pennock Investments Co.
Owen Daly II Ian W. Robinson (STIC)
Carl Frischling Louis S. Sklar
Robert H. Graham
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
John J. Arthur Sr. Vice President & Treasurer
Gary T. Crum Sr. Vice President Prime Portfolio
Carol F. Relihan Sr. Vice President & Secretary ----------------------------------------
Dana R. Sutton Vice President & Assistant Treasurer Cash Management SEMI-
Melville B. Cox Vice President Class ANNUAL
Karen Dunn Kelley Vice President REPORT
J. Abbott Sprague Vice President
P. Michelle Grace Assistant Secretary
David L. Kite Assistant Secretary FEBRUARY 28,1997
Nancy L. Martin Assistant Secretary
Ofelia M. Mayo 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 100
Houston, TX 77046
(800) 347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046
(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
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis & Frankel
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
A I M Institutional Fund Services, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
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>
