<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
[PHOTO of As the six-month period covered by this report
Charles T. Bauer, was closing, the U.S. economy continued to move
Chairman of the ahead at a brisk pace. During the final quarter
LETTER Board of The Fund of 1998, the economy grew at its fastest rate
TO OUR APPEARS HERE] in two and a half years. Total gross domestic
SHAREHOLDERS product (GDP) growth for 1998 was 3.9%.
There was a different story overseas. Throughout the second half
of 1998, the global economy continued to experience economic
turmoil, financial instability and increased credit concerns.
Certain regions, particularly Asia, Russia and Latin America,
remained in a severe downturn.
As a result of this global meltdown, the U.S. Federal Open
Market Committee of the Federal Reserve Board (the Fed) reduced
the federal funds rate from 5.5% to 4.75% in three steps between
September and November. The discount rate was also reduced from 5%
to 4.5%. Interest rates were lowered, not to stimulate an already
strong U.S. economy, but to minimize the impact of the
international economic crises upon the U.S. economy and to
decrease volatility and calm the financial markets. In the United
States and Europe, financial markets were very volatile, but the
underlying economies continued surprisingly strong growth.
The yield on the one-year Treasury bill, which was as high as
5.32% in early July, dropped to 4.37% in early December as an
increase in the one-year Treasury bill's price caused its yield to
decline. The price increase was a result of investors' demand for
Treasuries in a "flight to quality" environment resulting from the
international crises and credit concerns.
YOUR INVESTMENT PORTFOLIO
As of February 28, 1999, performance of the Institutional Class of
the Portfolio compared very favorably with performance reported
for comparative indexes, as shown in Table 1.
As of the close of the reporting period, the Institutional Class
of the Portfolio maintained its high ranking in its peer group of
funds, as shown in Table 2. The Institutional Class also received
a Lipper Performance Achievement Certificate recognizing it as the
number-one fund in its peer group for the 15-year period ended
December 31, 1998.
The excellent record can be attributed to the Portfolio's
disciplined approach of maintaining a laddered 60-day maximum
maturity schedule. This structure allows the Portfolio to respond
to higher interest rate levels more quickly than funds with longer
maturity structures and is also an attractive style to take
advantage of higher yields over quarter ends and other special
situations that arise during market turbulence.
The Portfolio's weighted average maturity (WAM) was maintained
in the 15- to 25-day range during the six-month reporting period.
At the close of the reporting period, the WAM stood at 22 days.
The Prime Portfolio seeks to maximize current income to the
extent
Table 1: Yields as of 2/28/99
<TABLE>
<CAPTION>
Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Prime Portfolio
Institutional Class 4.85% 4.85%
IBC Money Fund Averages(TM) -
First-Tier Institutions Only 4.66% 4.65%
IBC Money Fund Averages(TM) -
Total Institutions Only 4.53% 4.55%
</TABLE>
Table 2: Lipper Rankings as of 2/28/99
<TABLE>
<CAPTION>
Prime Portfolio # of Funds in
Institutional Class Institutional Money Percentile
Period Rank Market Category Rank
<S> <C> <C> <C>
1 Year 9 195 5%
3 Years 5 153 3%
5 Years 4 111 4%
10 Years 6 45 13%
15 Years 1 17 6%
</TABLE>
Fund percentage rankings are based on total returns and are vs. all
institutional money market funds tracked by Lipper Inc., excluding sales charges
and including fees and expenses. Lipper Inc. is an independent mutual fund
performance monitor. Past performance cannot guarantee comparable future
results.
(continued)
<PAGE>
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 repurchase agreement securities. An investment in a money
market fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although a
money market fund seeks to preserve the value of your investment
at $1.00 per share, it is possible to lose money investing in the
fund.
The Portfolio holds the highest credit-quality ratings given by
three widely known credit-rating agencies. It continues to be
rated AAAm by Standard & Poor's Corporation and Aaa by Moody's
Investors Service, Inc. In addition, shortly after the reporting
period closed, the Portfolio received the highest rating, AAA,
granted by Fitch IBCA. These ratings are historical and are based
on an analysis of the Portfolio's credit quality, composition,
management and weekly portfolio reviews. With the addition of the
AAA Fitch rating, AIM became the only multi-fund complex to have
all of its institutional money market portfolios given the highest
rating by three different rating agencies.
Net assets of the Institutional Class stood at $6.75 billion as
of February 28, 1999, up from $5.84 billion six months earlier.
OUTLOOK FOR THE FUTURE
Statistics released shortly after the close of the reporting
period showed that employment gains have exceeded expectations and
wage inflation has been virtually non-existent. This caused
interest rates to drop, another indication the U.S. economy
continues to benefit from the unusual combination of strong growth
and low inflation.
As 1998 ended, there was speculation the Fed might decrease
interest rates even more. However, this view changed abruptly with
the release of stronger-than-expected adjusted December and
January economic numbers during the first quarter of 1999. These
numbers and other factors led many to speculate about the Fed
changing course and raising short-term rates again. We believe it
is unlikely such a move would be made soon because inflation
remains negligible despite robust economic growth. For the 12
months ended February 1999, producer prices were up just 0.5%, and
prices for intermediate goods actually fell during February 1999.
Retail sales growth and other economic indicators led to estimated
annualized GDP growth of 4.6% for the first quarter of 1999.
We are pleased to send you this report on your investment. AIM
is committed to the primary goals of safety, liquidity and yield
in institutional fund management. We are also committed to
customer service and are ready to respond to your comments about
this report. If you have any questions, please contact one of our
representatives at 800-659-1005. We are happy to be of service.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
2
<PAGE>
Average Monthly Yield Comparison
6 months ended 2/28/99 (Yields are average monthly yields for the month-ends
shown.)
Yield
<TABLE>
<CAPTION>
Short-Term Investments Co. IBC Money Fund
Prime Portfolio Averages(TM)- IBC Money Fund Averages(TM)-
Institutional Class First-Tier Institutions Only Total Institutions Only
<S> <C> <C> <C>
9/98 5.54 5.25 5.15
10/98 5.29 5.06 4.88
11/98 5.12 4.93 4.75
12/98 5.1 4.87 4.69
1/99 5.01 4.78 4.61
2/99 4.85 4.66 4.53
</TABLE>
Weighted Average Maturity Comparison
6 months ended 2/28/99 (as of the month-ends shown)
Days
<TABLE>
<CAPTION>
Short-Term Investments Co. IBC Money Fund
Prime Portfolio Averages(TM)- IBC Money Fund Averages(TM)-
Institutional Class First-Tier Institutions Only Total Institutions Only
<S> <C> <C> <C>
9/98 20 52 47
10/98 21 55 50
11/98 22 52 51
12/98 15 46 46
1/99 21 50 48
2/99 22 58 56
</TABLE>
Source: IBC Financial Data, Inc. IBC Money Fund Report--Registered Trademark--
for weighted average maturities;
IBC Money Fund Insight--Registered Trademark-- for average monthly yields.
3
<PAGE>
SCHEDULE OF INVESTMENTS
February 28, 1999
(Unaudited)
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER - 89.31%(a)
BASIC INDUSTRIES - 2.59%
CHEMICALS - 2.22%
Du Pont (E.I.) de Nemours and Co.
4.81% 03/08/99 $ 25,000 $ 24,976,618
- --------------------------------------------------------------------------
4.76% 03/24/99 30,000 29,908,766
- --------------------------------------------------------------------------
4.77% 03/24/99 50,000 49,847,625
- --------------------------------------------------------------------------
4.78% 04/07/99 35,000 34,828,053
- --------------------------------------------------------------------------
4.81% 04/19/99 30,000 29,803,592
- --------------------------------------------------------------------------
Henkel Corp.
4.82% 03/09/99 37,000 36,960,369
- --------------------------------------------------------------------------
206,325,023
- --------------------------------------------------------------------------
METAL MINING - 0.37%
Rio Tinto America, Inc.
4.80% 03/29/99 24,000 23,910,400
- --------------------------------------------------------------------------
U.S. Borax, Inc.
4.80% 04/01/99 10,500 10,456,600
- --------------------------------------------------------------------------
34,367,000
- --------------------------------------------------------------------------
Total Basic Industries 240,692,023
- --------------------------------------------------------------------------
CAPITAL GOODS - 4.96%
COMPUTERS & OFFICE EQUIPMENT - 0.37%
IBM Corp.
4.81% 04/07/99 35,000 34,826,974
- --------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.87%
Hitachi America, Ltd.
4.87% 03/05/99 35,000 34,981,061
- --------------------------------------------------------------------------
Seimens Capital Corp.
4.74% 03/23/99 50,000 49,855,167
- --------------------------------------------------------------------------
4.73% 03/29/99 40,000 39,852,845
- --------------------------------------------------------------------------
4.75% 03/30/99 50,000 49,808,680
- --------------------------------------------------------------------------
174,497,753
- --------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
CAPITAL GOODS - (continued)
MACHINERY - 2.36%
Deere & Co.
4.83% 03/03/99 $ 50,000 $ 49,986,583
- ---------------------------------------------------------------------------
4.77% 03/16/99 50,000 49,900,625
- ---------------------------------------------------------------------------
4.81% 04/01/99 40,000 39,834,322
- ---------------------------------------------------------------------------
4.83% 04/23/99 35,000 34,751,121
- ---------------------------------------------------------------------------
Deere (John) Capital Corp.
4.80% 03/03/99 30,000 29,992,000
- ---------------------------------------------------------------------------
4.81% 04/05/99 15,000 14,929,854
- ---------------------------------------------------------------------------
219,394,505
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT - 0.36%
Motorola, Inc.
4.75% 03/30/99 34,000 33,869,903
- ---------------------------------------------------------------------------
Total Capital Goods 462,589,135
- ---------------------------------------------------------------------------
CONSUMER DURABLES - 9.78%
AUTOMOBILE - 9.78%
Daimler-Chrysler North America Holding
Corp.
4.78% 04/01/99 65,000 64,732,453
- ---------------------------------------------------------------------------
4.81% 04/08/99 50,000 49,746,139
- ---------------------------------------------------------------------------
Ford Motor Credit Co.
4.87% 03/01/99 90,000 90,000,000
- ---------------------------------------------------------------------------
4.77% 03/18/99 40,000 39,909,900
- ---------------------------------------------------------------------------
4.79% 03/31/99 50,000 49,800,416
- ---------------------------------------------------------------------------
4.81% 04/05/99 50,000 49,766,181
- ---------------------------------------------------------------------------
4.81% 04/06/99 90,000 89,567,100
- ---------------------------------------------------------------------------
4.81% 04/08/99 40,000 39,796,911
- ---------------------------------------------------------------------------
4.86% 04/16/99 50,000 49,689,500
- ---------------------------------------------------------------------------
4.83% 04/20/99 40,000 39,731,667
- ---------------------------------------------------------------------------
4.83% 04/23/99 40,000 39,715,566
- ---------------------------------------------------------------------------
General Motors Acceptance Corp.
4.84% 03/01/99 50,000 50,000,000
- ---------------------------------------------------------------------------
4.78% 03/30/99 40,000 39,845,978
- ---------------------------------------------------------------------------
4.78% 03/31/99 40,000 39,840,667
- ---------------------------------------------------------------------------
4.83% 04/01/99 50,000 49,792,042
- ---------------------------------------------------------------------------
4.81% 04/06/99 40,000 39,807,600
- ---------------------------------------------------------------------------
4.87% 04/22/99 40,000 39,718,622
- ---------------------------------------------------------------------------
Toyota Motor Credit Corp.
4.75% 03/29/99 50,000 49,815,278
- ---------------------------------------------------------------------------
Total Consumer Durables 911,276,020
- ---------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
CONSUMER NONDURABLES - 2.95%
BEVERAGES - 1.07%
Coca-Cola Co. (The)
4.75% 03/22/99 $ 50,000 $ 49,861,458
- ---------------------------------------------------------------------------
4.76% 03/25/99 50,000 49,841,333
- ---------------------------------------------------------------------------
99,702,791
- ---------------------------------------------------------------------------
FOOD PROCESSING - 1.45%
Heinz (H.J.) Co.
4.80% 03/03/99 57,000 56,984,800
- ---------------------------------------------------------------------------
4.77% 03/22/99 43,800 43,678,127
- ---------------------------------------------------------------------------
4.80% 04/05/99 35,000 34,836,666
- ---------------------------------------------------------------------------
135,499,593
- ---------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.43%
Procter & Gamble Co.
4.79% 04/23/99 40,000 39,717,922
- ---------------------------------------------------------------------------
Total Consumer Nondurables 274,920,306
- ---------------------------------------------------------------------------
ENERGY - 1.26%
OIL & GAS - 1.26%
Exxon Imperial U.S., Inc.
4.76% 03/23/99 35,000 34,898,189
- ---------------------------------------------------------------------------
Koch Industries, Inc.
4.76% 03/31/99 50,000 49,801,667
- ---------------------------------------------------------------------------
Mobil Australia Finance Company, Inc.
4.80% 03/31/99 32,565 32,434,740
- ---------------------------------------------------------------------------
Total Energy 117,134,596
- ---------------------------------------------------------------------------
FINANCIAL - 63.61%
ASSET-BACKED SECURITIES - 41.39%
Asset Securitization Cooperative Corp.
4.83% 03/01/99 60,000 60,000,000
- ---------------------------------------------------------------------------
4.82% 03/04/99 50,000 49,979,917
- ---------------------------------------------------------------------------
4.85% 03/08/99 50,000 49,952,847
- ---------------------------------------------------------------------------
4.82% 03/09/99 50,000 49,946,444
- ---------------------------------------------------------------------------
4.82% 03/18/99 50,000 49,886,194
- ---------------------------------------------------------------------------
4.81% 03/23/99 50,000 49,853,028
- ---------------------------------------------------------------------------
4.84% 03/29/99 40,000 39,849,422
- ---------------------------------------------------------------------------
4.85% 04/14/99 38,000 37,774,744
- ---------------------------------------------------------------------------
Centric Capital Corp.
4.93% 03/05/99 45,000 44,975,350
- ---------------------------------------------------------------------------
4.85% 04/09/99 40,000 39,789,833
- ---------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
FINANCIAL - (continued)
ASSET-BACKED SECURITIES - (CONTINUED)
Ciesco, L.P.
4.88% 03/02/99 $ 50,000 $ 49,993,229
- ---------------------------------------------------------------------------
4.88% 03/04/99 52,500 52,478,672
- ---------------------------------------------------------------------------
4.80% 03/19/99 50,000 49,880,000
- ---------------------------------------------------------------------------
Clipper Receivables Corp.
4.90% 03/11/99 50,000 49,931,945
- ---------------------------------------------------------------------------
4.88% 03/12/99 50,000 49,925,445
- ---------------------------------------------------------------------------
4.85% 03/19/99 50,000 49,878,750
- ---------------------------------------------------------------------------
4.85% 03/22/99 50,000 49,858,542
- ---------------------------------------------------------------------------
Corporate Asset Funding Co., Inc.
4.88% 03/01/99 50,000 50,000,000
- ---------------------------------------------------------------------------
4.82% 03/17/99 50,000 49,892,889
- ---------------------------------------------------------------------------
4.81% 03/24/99 25,000 24,923,174
- ---------------------------------------------------------------------------
4.82% 03/24/99 40,000 39,876,822
- ---------------------------------------------------------------------------
4.83% 04/06/99 40,000 39,806,800
- ---------------------------------------------------------------------------
4.84% 04/14/99 50,000 49,704,222
- ---------------------------------------------------------------------------
4.84% 04/15/99 40,000 39,758,000
- ---------------------------------------------------------------------------
4.87% 04/15/99 40,000 39,756,500
- ---------------------------------------------------------------------------
Delaware Funding Corp.
4.86% 03/12/99 50,000 49,925,750
- ---------------------------------------------------------------------------
4.87% 04/06/99 36,128 35,952,057
- ---------------------------------------------------------------------------
Edison Asset Securitization, L.L.C.
4.85% 03/03/99 50,000 49,986,528
- ---------------------------------------------------------------------------
4.85% 03/11/99 36,737 36,687,507
- ---------------------------------------------------------------------------
4.85% 03/12/99 50,000 49,925,903
- ---------------------------------------------------------------------------
4.83% 03/30/99 50,000 49,805,458
- ---------------------------------------------------------------------------
Falcon Asset Securitization Corp.
4.85% 03/11/99 40,000 39,946,111
- ---------------------------------------------------------------------------
4.83% 03/17/99 59,060 58,933,218
- ---------------------------------------------------------------------------
4.85% 03/18/99 50,000 49,885,486
- ---------------------------------------------------------------------------
4.84% 03/24/99 40,000 39,876,311
- ---------------------------------------------------------------------------
4.83% 03/25/99 35,000 34,887,300
- ---------------------------------------------------------------------------
4.84% 03/25/99 50,000 49,838,667
- ---------------------------------------------------------------------------
4.84% 04/09/99 50,000 49,737,833
- ---------------------------------------------------------------------------
4.85% 04/12/99 35,000 34,801,958
- ---------------------------------------------------------------------------
4.85% 04/19/99 34,015 33,790,454
- ---------------------------------------------------------------------------
4.85% 04/20/99 40,000 39,730,556
- ---------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
FINANCIAL - (continued)
ASSET-BACKED SECURITIES - (CONTINUED)
Fleet Funding Corp.
4.82% 03/15/99 $ 40,224 $ 40,148,602
- ---------------------------------------------------------------------------
Mont Blanc Capital Corp.
4.89% 03/11/99 38,000 37,948,383
- ---------------------------------------------------------------------------
4.88% 03/15/99 50,000 49,905,111
- ---------------------------------------------------------------------------
4.85% 03/19/99 50,000 49,878,750
- ---------------------------------------------------------------------------
4.84% 03/26/99 74,140 73,890,807
- ---------------------------------------------------------------------------
4.87% 04/12/99 40,000 39,772,733
- ---------------------------------------------------------------------------
Monte Rosa Capital Corp.
4.91% 03/02/99 27,000 26,996,318
- ---------------------------------------------------------------------------
4.92% 03/02/99 54,000 53,992,620
- ---------------------------------------------------------------------------
4.88% 03/09/99 50,000 49,945,778
- ---------------------------------------------------------------------------
4.85% 03/10/99 50,000 49,939,375
- ---------------------------------------------------------------------------
4.86% 03/12/99 35,001 34,949,024
- ---------------------------------------------------------------------------
4.89% 03/12/99 50,000 49,925,292
- ---------------------------------------------------------------------------
4.84% 03/15/99 28,000 27,947,298
- ---------------------------------------------------------------------------
4.85% 03/17/99 51,000 50,890,067
- ---------------------------------------------------------------------------
4.85% 03/23/99 49,383 49,236,634
- ---------------------------------------------------------------------------
4.86% 04/12/99 35,000 34,801,550
- ---------------------------------------------------------------------------
4.87% 04/13/99 40,000 39,767,322
- ---------------------------------------------------------------------------
Preferred Receivables Funding Corp.
4.85% 03/11/99 28,210 28,171,995
- ---------------------------------------------------------------------------
4.85% 04/05/99 50,000 49,764,236
- ---------------------------------------------------------------------------
4.86% 04/13/99 25,000 24,854,875
- ---------------------------------------------------------------------------
Quincy Capital Corp.
4.90% 03/05/99 25,000 24,986,389
- ---------------------------------------------------------------------------
4.83% 03/09/99 60,126 60,061,464
- ---------------------------------------------------------------------------
4.83% 03/18/99 50,000 49,885,958
- ---------------------------------------------------------------------------
4.83% 04/05/99 20,512 20,415,679
- ---------------------------------------------------------------------------
4.86% 04/20/99 45,130 44,825,373
- ---------------------------------------------------------------------------
Receivables Capital Corp.
4.83% 03/10/99 44,877 44,822,811
- ---------------------------------------------------------------------------
4.84% 03/16/99 50,000 49,899,166
- ---------------------------------------------------------------------------
4.83% 03/19/99 60,000 59,855,100
- ---------------------------------------------------------------------------
4.85% 04/13/99 40,000 39,768,278
- ---------------------------------------------------------------------------
4.85% 04/14/99 33,820 33,619,523
- ---------------------------------------------------------------------------
Riverwoods Funding Corp.
4.84% 03/30/99 50,000 49,805,056
- ---------------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
FINANCIAL - (continued)
ASSET-BACKED SECURITIES - (CONTINUED)
Sheffield Receivables Corp.
4.87% 03/01/99 $ 40,000 $ 40,000,000
- ---------------------------------------------------------------------------
4.90% 03/15/99 60,000 59,885,666
- ---------------------------------------------------------------------------
4.86% 03/16/99 40,000 39,919,000
- ---------------------------------------------------------------------------
4.85% 03/17/99 40,000 39,913,778
- ---------------------------------------------------------------------------
4.85% 03/22/99 82,000 81,768,007
- ---------------------------------------------------------------------------
4.85% 04/12/99 42,000 41,762,350
- ---------------------------------------------------------------------------
4.86% 04/13/99 100,000 99,419,500
- ---------------------------------------------------------------------------
4.86% 04/15/99 30,900 30,712,283
- ---------------------------------------------------------------------------
4.87% 04/15/99 20,700 20,573,989
- ---------------------------------------------------------------------------
Variable Funding Capital
4.93% 03/05/99 50,000 49,972,611
- ---------------------------------------------------------------------------
4.82% 03/11/99 50,000 49,933,055
- ---------------------------------------------------------------------------
4.85% 03/18/99 50,000 49,885,486
- ---------------------------------------------------------------------------
4.83% 04/09/99 50,000 49,738,375
- ---------------------------------------------------------------------------
3,855,539,533
- ---------------------------------------------------------------------------
BANKING - 5.76%
Commerze Bank U.S. Finance, Inc.
4.85% 03/04/99 50,000 49,979,792
- ---------------------------------------------------------------------------
4.84% 03/05/99 50,000 49,973,111
- ---------------------------------------------------------------------------
4.83% 03/08/99 50,000 49,953,042
- ---------------------------------------------------------------------------
Dresdner U.S. Finance, Inc.
4.82% 03/08/99 50,000 49,953,139
- ---------------------------------------------------------------------------
4.83% 03/08/99 50,000 49,953,042
- ---------------------------------------------------------------------------
First Chicago Financial Corp.
4.83% 03/09/99 50,000 49,946,333
- ---------------------------------------------------------------------------
4.87% 03/10/99 37,000 36,954,952
- ---------------------------------------------------------------------------
4.79% 03/22/99 25,000 24,930,146
- ---------------------------------------------------------------------------
4.79% 03/23/99 50,000 49,853,639
- ---------------------------------------------------------------------------
4.81% 04/02/99 35,000 34,850,356
- ---------------------------------------------------------------------------
4.82% 04/05/99 50,000 49,765,694
- ---------------------------------------------------------------------------
4.83% 04/09/99 40,000 39,790,700
- ---------------------------------------------------------------------------
535,903,946
- ---------------------------------------------------------------------------
BROKERAGE/INVESTMENTS - 4.86%
Bear, Stearns & Co. Inc.
4.88% 04/27/99 50,000 49,613,667
- ---------------------------------------------------------------------------
Credit Suisse First Boston Corp.
4.84% 03/04/99 40,000 39,983,867
- ---------------------------------------------------------------------------
4.86% 03/10/99 50,000 49,939,250
- ---------------------------------------------------------------------------
4.83% 04/05/99 50,000 49,765,208
- ---------------------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
FINANCIAL - (continued)
BROKERAGE/INVESTMENTS - (CONTINUED)
Goldman Sachs Group, L.P.
4.90% 03/05/99 $ 40,000 $ 39,978,222
- --------------------------------------------------------------------------
Morgan (J.P.) Securities, Inc.
4.76% 03/26/99 50,000 49,834,722
- --------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.
4.82% 04/01/99 50,000 49,792,472
- --------------------------------------------------------------------------
4.83% 04/07/99 40,000 39,801,434
- --------------------------------------------------------------------------
4.86% 04/16/99 35,000 34,782,650
- --------------------------------------------------------------------------
4.85% 04/23/99 50,000 49,642,986
- --------------------------------------------------------------------------
453,134,478
- --------------------------------------------------------------------------
BUSINESS CREDIT - 0.75%
National Rural Utilities Cooperative
Finance Corp.
4.78% 03/29/99 50,000 49,814,111
- --------------------------------------------------------------------------
4.80% 04/09/99 20,000 19,896,000
- --------------------------------------------------------------------------
69,710,111
- --------------------------------------------------------------------------
CONSUMER FINANCE - 1.50%
IBM Credit Corp.
4.80% 04/08/99 50,000 49,746,667
- --------------------------------------------------------------------------
4.83% 04/16/99 40,000 39,753,133
- --------------------------------------------------------------------------
Xerox Credit Corp.
4.78% 04/01/99 50,000 49,794,195
- --------------------------------------------------------------------------
139,293,995
- --------------------------------------------------------------------------
INSURANCE (LIFE) - 1.82%
Metlife Funding, Inc.
4.81% 03/01/99 30,000 30,000,000
- --------------------------------------------------------------------------
Prudential Funding Corp.
4.77% 03/25/99 40,000 39,872,800
- --------------------------------------------------------------------------
4.82% 04/07/99 100,000 99,504,610
- --------------------------------------------------------------------------
169,377,410
- --------------------------------------------------------------------------
PERSONAL CREDIT - 1.92%
American Express Credit Corp.
4.78% 03/24/99 50,000 49,847,306
- --------------------------------------------------------------------------
4.78% 03/25/99 40,000 39,872,533
- --------------------------------------------------------------------------
4.79% 03/31/99 50,000 49,800,417
- --------------------------------------------------------------------------
Household Finance Corp.
4.86% 04/15/99 40,000 39,757,000
- --------------------------------------------------------------------------
179,277,256
- --------------------------------------------------------------------------
MISCELLANEOUS - 0.53%
AIG Funding, Inc.
4.78% 03/30/99 50,000 49,807,472
- --------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
FINANCIAL - (continued)
MULTIPLE INDUSTRY - 5.08%
American Express Co.
4.78% 03/16/99 $ 50,000 $ 49,900,417
- -----------------------------------------------------------------------------
American General Corp.
4.80% 04/08/99 25,000 24,873,333
- -----------------------------------------------------------------------------
4.83% 04/08/99 50,000 49,745,083
- -----------------------------------------------------------------------------
4.86% 04/19/99 25,000 24,834,625
- -----------------------------------------------------------------------------
Citigroup, Inc.
4.79% 03/16/99 50,000 49,900,208
- -----------------------------------------------------------------------------
4.80% 03/17/99 40,000 39,914,666
- -----------------------------------------------------------------------------
4.86% 04/14/99 50,000 49,703,000
- -----------------------------------------------------------------------------
4.85% 04/16/99 40,000 39,752,111
- -----------------------------------------------------------------------------
General Electric Capital Corp.
4.88% 03/01/99 50,000 50,000,000
- -----------------------------------------------------------------------------
4.85% 03/05/99 44,669 44,644,929
- -----------------------------------------------------------------------------
4.84% 04/19/99 50,000 49,670,611
- -----------------------------------------------------------------------------
472,938,983
- -----------------------------------------------------------------------------
Total Financial 5,924,983,184
- -----------------------------------------------------------------------------
UTILITIES - 4.16%
TELEPHONE - 4.16%
American Telephone and Telegraph Co.
4.83% 03/26/99 80,000 79,731,667
- -----------------------------------------------------------------------------
Ameritech Corp.
4.78% 03/02/99 50,000 49,993,361
- -----------------------------------------------------------------------------
4.75% 03/03/99 50,000 49,986,805
- -----------------------------------------------------------------------------
4.78% 03/25/99 50,000 49,840,667
- -----------------------------------------------------------------------------
4.76% 03/26/99 50,000 49,834,722
- -----------------------------------------------------------------------------
BellSouth Funding Corp.
4.75% 03/10/99 40,000 39,952,500
- -----------------------------------------------------------------------------
4.75% 03/23/99 50,000 49,854,861
- -----------------------------------------------------------------------------
4.80% 04/06/99 18,620 18,530,625
- -----------------------------------------------------------------------------
Total Utilities 387,725,208
- -----------------------------------------------------------------------------
Total Commercial Paper (Cost -
$8,319,320,472) 8,319,320,472
- -----------------------------------------------------------------------------
MASTER NOTE AGREEMENTS - 5.72%
Merrill Lynch Mortgage Capital, Inc.
5.075%(b) -- 170,000 170,000,000
- -----------------------------------------------------------------------------
5.155%(c) 08/16/99 311,500 311,500,000
- -----------------------------------------------------------------------------
Morgan (J.P.) Securities, Inc.
4.945%(d) 05/03/99 51,000 51,000,000
- -----------------------------------------------------------------------------
Total Master Note Agreements (Cost -
$532,500,000) 532,500,000
- -----------------------------------------------------------------------------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 5.36%(e)
BT Alex-Brown, Inc.
4.78%(f) 03/01/99 $ 90,000 $ 90,000,000
- --------------------------------------------------------------------------------
Salomon Smith Barney, Inc.
4.85%(g) -- 403,500 403,500,000
- --------------------------------------------------------------------------------
SG Cowen Securities Corp.
4.75%(h) 03/01/99 5,494 5,494,477
- --------------------------------------------------------------------------------
Total Repurchase Agreements (Cost -
$498,994,477) 498,994,477
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.39% 9,350,814,949(i)
- --------------------------------------------------------------------------------
OTHER LIABILITIES LESS ASSETS - (0.39%) (36,225,186)
- --------------------------------------------------------------------------------
NET ASSETS - 100.00% $9,314,589,763
================================================================================
</TABLE>
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) Master Note Purchase Agreement may be terminated by either party upon one
business day prior written notice, at which time all amounts outstanding
under the notes purchased under the Master Note Agreement will become
payable. Interest rates on master notes are redetermined periodically. Rate
shown is the rate in effect on 02/28/99.
(c) The Portfolio may demand prepayment of notes purchased under the Master
Note Purchase Agreement upon one business day notice. Interest rates on
master notes are redetermined periodically. Rate shown is the rate in
effect on 02/28/99.
(d) The Portfolio may demand prepayment of notes purchased under the Master
Note Purchase Agreement upon seven business days' notice. Interest rates on
master notes are redetermined periodically. Rate shown is the rate in
effect on 02/28/99.
(e) Collateral on repurchase agreements, including the Portfolio's pro-rata
interest in joint repurchase agreements, is taken into possession by the
Portfolio upon entering into the repurchase agreement. The collateral is
marked to market daily to ensure its market value is at least 102% of the
sales price of the repurchase agreement. The investments in some repurchase
agreements are through participation in joint accounts with other mutual
funds, private accounts and certain non-registered investment companies
managed by the investment advisor or its affiliates.
(f) Joint repurchase agreement entered into 02/28/99 with a maturing value of
$250,099,583. Collateralized by $263,100,000 U.S. Government obligations,
0% due 08/15/99 to 02/15/00 with an aggregate market value at 02/28/99 of
$254,885,090.
(g) Open joint repurchase agreement. Either party may terminate the agreement
upon demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $746,798,000 U.S. Government obligations, 0% to 6.875%
due 03/31/99 to 07/15/45 with an aggregate market value at 02/28/99 of
$678,300,630.
(h) Joint repurchase agreement entered into 02/28/99 with a maturing value of
$600,237,500. Collateralized by $547,514,000 U.S. Government obligations,
5.25% to 15.75% due 03/31/99 to 11/15/27 with an aggregate market value at
02/28/99 of $612,193,164.
(i) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
12
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at value (amortized cost) $9,350,814,949
- ------------------------------------------------------------------------
Interest receivable 2,388,757
- ------------------------------------------------------------------------
Investment for deferred compensation plan 121,886
- ------------------------------------------------------------------------
Other assets 517,571
- ------------------------------------------------------------------------
Total assets 9,353,843,163
- ------------------------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 37,586,308
- ------------------------------------------------------------------------
Deferred compensation 121,886
- ------------------------------------------------------------------------
Accrued administrative services fees 14,567
- ------------------------------------------------------------------------
Accrued advisory fees 433,987
- ------------------------------------------------------------------------
Accrued distribution fees 345,492
- ------------------------------------------------------------------------
Accrued transfer agent fees 122,318
- ------------------------------------------------------------------------
Accrued operating expenses 628,842
- ------------------------------------------------------------------------
Total liabilities 39,253,400
- ------------------------------------------------------------------------
NET ASSETS $9,314,589,763
========================================================================
NET ASSETS:
Institutional Class $6,745,295,981
========================================================================
Private Investment Class $ 403,879,183
========================================================================
Personal Investment Class $ 187,218,312
========================================================================
Cash Management Class $1,385,004,012
========================================================================
Reserve Class $ 15,516
========================================================================
Resource Class $ 593,176,759
========================================================================
CAPITAL STOCK, $.001 PAR VALUE PER SHARE:
Institutional Class 6,745,301,530
========================================================================
Private Investment Class 403,879,538
========================================================================
Personal Investment Class 187,218,422
========================================================================
Cash Management Class 1,385,004,315
========================================================================
Reserve Class 15,516
========================================================================
Resource Class 593,176,780
========================================================================
NET ASSET VALUE PER SHARE:
Net asset value, offering and redemption price per share $1.00
========================================================================
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
(Unaudited)
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $249,884,542
- -------------------------------------------------------------------
EXPENSES:
Advisory fees 2,606,650
- -------------------------------------------------------------------
Custodian fees 241,978
- -------------------------------------------------------------------
Administrative services fees 89,761
- -------------------------------------------------------------------
Directors' fees and expenses 20,015
- -------------------------------------------------------------------
Transfer agent fees 492,718
- -------------------------------------------------------------------
Distribution fees (Note 2) 2,533,262
- -------------------------------------------------------------------
Other 594,281
- -------------------------------------------------------------------
Total expenses 6,578,665
- -------------------------------------------------------------------
Less: Fee waivers (760,929)
- -------------------------------------------------------------------
Net expenses 5,817,736
- -------------------------------------------------------------------
Net investment income 244,066,806
- -------------------------------------------------------------------
Net increase in net assets resulting from operations $244,066,806
===================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the six months ended February 28, 1999 and year ended August 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
FEBRUARY 28, AUGUST 31,
1999 1998
-------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 244,066,806 $ 423,578,403
- ----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 244,066,806 423,578,403
- ----------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Class (191,388,586) (334,784,531)
- ----------------------------------------------------------------------------
Private Investment Class (8,219,630) (14,188,012)
- ----------------------------------------------------------------------------
Personal Investment Class (3,926,199) (5,889,522)
- ----------------------------------------------------------------------------
Cash Management Class (28,448,566) (49,287,200)
- ----------------------------------------------------------------------------
Reserve Class (136) --
- ----------------------------------------------------------------------------
Resource Class (12,083,689) (19,429,138)
- ----------------------------------------------------------------------------
Capital stock transactions-net (See Note 4) 1,475,291,920 984,587,209
- ----------------------------------------------------------------------------
Net increase in net assets 1,475,291,920 984,587,209
- ----------------------------------------------------------------------------
NET ASSETS:
Beginning of period 7,839,297,843 6,854,710,634
- ----------------------------------------------------------------------------
End of period $9,314,589,763 $7,839,297,843
============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $9,314,596,101 $7,839,304,181
- ----------------------------------------------------------------------------
Undistributed net realized gain (loss) on
sales of investments (6,338) (6,338)
- ----------------------------------------------------------------------------
$9,314,589,763 $7,839,297,843
============================================================================
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1999
(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"), with the assets, liabilities and operations of each portfolio
accounted for separately. The Portfolio currently offers six different classes
of shares: the Institutional Class, the Private Investment Class, the Personal
Investment Class, the Cash Management Class, the Reserve Class and the Resource
Class. Matters affecting each class are voted on exclusively by the
shareholders of each class. The Portfolio is a money market fund whose
objective is the maximization of current income to the extent consistent with
the preservation of capital and the maintenance of liquidity.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. The
following is a summary of the significant accounting policies followed by the
Portfolio in the preparation of its financial statements.
A. Security Valuations - The Portfolio's securities are valued on the basis of
amortized cost which approximates market value. This method values a
security at its cost on the date of purchase and thereafter assumes a
constant amortization to maturity of any discount or premium.
B. Securities Transactions, Investment Income and Distributions - Securities
transactions are accounted for on a trade date basis. Realized gains or
losses are computed on the basis of specific identification of the
securities sold. Interest income, adjusted for amortization of premiums and
discounts on investments, is accrued daily. Dividends to shareholders are
declared daily and are paid on the first business day of the following
month.
C. Federal Income Taxes - The Portfolio intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
D. Expenses - Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
NOTE 2-ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into a master investment advisory agreement with A I M
Advisors, Inc. ("AIM"). Under the terms of the master investment advisory
agreement, AIM receives a monthly fee with respect to the Portfolio calculated
by applying a monthly rate, based upon the following annual rates, to the
average daily net assets of the Portfolio:
<TABLE>
<CAPTION>
Net Assets RATE
- ----------------------------------------
<S> <C>
First $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>
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,
1999, the Portfolio reimbursed AIM $89,761 for such services.
The Portfolio, pursuant to a transfer agency and service agreement, has agreed
to pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agent and
shareholder services to the Portfolio. During the six months ended February 28,
1999, the Portfolio paid AFS $429,262 for such services.
16
<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, the
Reserve Class, and the Resource Class of the Portfolio. The Plan provides that
the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class, and the Resource Class pay up to a 0.50%,
0.75%, 0.10%, 1.00%, and 0.20%, respectively, maximum annual rate of the
average daily net assets attributable to such class. Of this amount, the Fund
may pay an asset-based sales charge to FMC and the Fund may pay a service fee
of (a) 0.25% of the average daily net assets of each of the Private Investment
Class, Personal Investment Class, and the Reserve Class, (b) 0.10% of the
average daily net assets of the Cash Management Class and (c) 0.20% of the
average daily net assets of the Resource Class, to selected banks, broker-
dealers and other financial institutions who offer continuing personal
shareholder services to their customers who purchase and own shares of the
Private Investment Class, the Personal Investment Class, the Cash Management
Class, the Reserve Class, or the Resource Class. Any amounts not paid as a
service fee under such Plan would constitute an asset-based sales charge. The
Plan also imposes a cap on the total amount of sales charges, including asset-
based sales charges, that may be paid by the Portfolio with respect to each
class. During the six months ended February 28, 1999, the Private Investment
Class, the Personal Investment Class, the Cash Management Class, the Reserve
Class, and the Resource Class paid $508,942, $423,148, $450,740, $27, and
$389,476, respectively, as compensation under the Plan. FMC waived fees of
$760,929 for the same period. Certain officers and directors of the Fund are
officers of AIM, FMC and AFS.
During the six months ended February 28, 1999, the Portfolio paid legal fees
of $6,536 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as
counsel to the Board of Directors. A member of that firm is a director of the
Fund.
NOTE 3-DIRECTORS' FEES
Directors' fees represent remuneration paid or accrued to each director who is
not an "interested person" of AIM. The Fund may invest 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, 1999 and
the year ended August 31, 1998 were as follows.
<TABLE>
<CAPTION>
FEBRUARY 28, 1999 AUGUST 31, 1998
-------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 63,200,847,471 $63,200,847,471 70,953,094,776 $ 70,953,094,776
- -------------------------------------------------------------------------------------------
Private Investment
Class 1,433,093,262 1,433,093,262 2,265,361,261 2,265,361,261
- -------------------------------------------------------------------------------------------
Personal Investment
Class 1,028,267,791 1,028,267,791 1,442,106,992 1,442,106,992
- -------------------------------------------------------------------------------------------
Cash Management Class 6,291,798,666 6,291,798,666 10,266,695,255 10,266,695,255
- -------------------------------------------------------------------------------------------
Reserve Class* 33,379 33,379 -- --
- -------------------------------------------------------------------------------------------
Resource Class 2,199,860,758 2,199,860,758 5,571,480,416 5,571,480,416
- -------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 14,846,765 $ 14,846,765 25,834,568 25,834,568
- -------------------------------------------------------------------------------------------
Private Investment
Class 4,301,348 4,301,348 6,616,509 6,616,509
- -------------------------------------------------------------------------------------------
Personal Investment
Class 3,882,974 3,882,974 5,817,504 5,817,504
- -------------------------------------------------------------------------------------------
Cash Management Class 19,995,819 19,995,819 27,781,043 27,781,043
- -------------------------------------------------------------------------------------------
Reserve Class* 137 137 -- --
- -------------------------------------------------------------------------------------------
Resource Class 10,266,599 10,266,599 16,446,253 16,446,253
- -------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (62,314,210,905) (62,314,210,905) (70,728,159,503) (70,728,159,503)
- -------------------------------------------------------------------------------------------
Private Investment
Class (1,328,326,339) (1,328,326,339) (2,212,613,562) (2,212,613,562)
- -------------------------------------------------------------------------------------------
Personal Investment
Class (985,019,185) (985,019,185) (1,405,052,971) (1,405,052,971)
- -------------------------------------------------------------------------------------------
Cash Management Class (5,788,997,918) (5,788,997,918) (10,199,573,686) (10,199,573,686)
- -------------------------------------------------------------------------------------------
Reserve Class* (18,000) (18,000) -- --
- -------------------------------------------------------------------------------------------
Resource Class (2,315,330,702) (2,315,330,702) (5,051,247,646) (5,051,247,646)
- -------------------------------------------------------------------------------------------
Net increase 1,475,291,920 $1,475,291,920 984,587,209 $ 984,587,209
===========================================================================================
</TABLE>
* The Reserve Class commenced sales on January 1, 1999.
17
<PAGE>
NOTE 5-FINANCIAL HIGHLIGHTS
Shown below are the financial highlights for a share of Institutional Class
capital stock outstanding during the six months ended February 28, 1999 and
each of the years in the five-year period ended August 31, 1998.
<TABLE>
<CAPTION>
AUGUST 31,
FEBRUARY 28, ----------------------------------------------------------
1999 1998 1997 1996 1995 1994
------------ ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------- ---------- ---------- ---------- ---------- ---------- ----------
Income from investment
operations:
Net investment income 0.03 0.06 0.05 0.05 0.06 0.04
- ----------------------- ---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net
investment income (0.03) (0.06) (0.05) (0.05) (0.06) (0.04)
- ----------------------- ---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================= ========== ========== ========== ========== ========== ==========
Total return 2.58% 5.71% 5.54% 5.64% 5.80% 3.64%
======================= ========== ========== ========== ========== ========== ==========
Ratios/supplemental
data:
Net assets, end of
period (000s omitted) $6,745,293 $5,843,813 $5,593,043 $5,264,601 $3,752,693 $4,080,753
======================= ========== ========== ========== ========== ========== ==========
Ratio of expenses to
average net assets 0.08%(a) 0.09% 0.09% 0.09% 0.09% 0.08%
======================= ========== ========== ========== ========== ========== ==========
Ratio of net investment
income to
average net assets 5.12%(a) 5.56% 5.40% 5.48% 5.64% 3.58%
======================= ========== ========== ========== ========== ========== ==========
</TABLE>
(a) Ratios are annualized and based on average net assets of $7,533,164,096.
18
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
19
<PAGE>
<TABLE>
<CAPTION>
DIRECTORS
<S> <C>
Charles T. Bauer Carl Frischling
Bruce L. Crockett Robert H. Graham Short-Term
Owen Daly II Prema Mathai-Davis Investments Co.
Edward K. Dunn, Jr. Lewis F. Pennock (STIC)
Jack M. Fields Louis S. Sklar
OFFICERS
Charles T. Bauer Chairman
Robert H. Graham President
John J. Arthur Sr. Vice President & Treasurer
Gary T. Crum Sr. Vice President
Carol F. Relihan Sr. Vice President & Secretary
Dana R. Sutton Vice President & Assistant Treasurer
Melville B. Cox Vice President Prime Portfolio
Karen Dunn Kelley Vice President ----------------------------------------
J. Abbott Sprague Vice President Institutional SEMI-
Mary J. Benson Assistant Vice President & Assistant Treasurer Class ANNUAL
Sheri Morris Assistant Vice President & Assistant Treasurer REPORT
Renee A. Friedli Assistant Secretary
P. Michelle Grace Assistant Secretary
Jeffrey H. Kupor Assistant Secretary
Nancy L. Martin Assistant Secretary
Ofelia M. Mayo Assistant Secretary FEBRUARY 28, 1999
Lisa A. Moss Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
Samuel D. Sirko Assistant Secretary
Stephen I. Winer Assistant Secretary
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
(800) 347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
(800) 659-1005
CUSTODIAN
The Bank of New York
90 Washington Street, 11th Floor
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO DIRECTORS
Kramer, Levin, Naftalis & Frankel LLP
919 Third Avenue
New York, NY 10022
TRANSFER AGENT
A I M Fund Services, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
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>
PRM-SAR-1
