<PAGE>
[AIM LOGO APPEARS HERE] Dear Shareholder:
--Registered Trademark--
[PHOTO of As the end of the fiscal year arrived, the
Charles T. Bauer, U.S. economy continued to move ahead at a
Chairman of the lively pace. The robust domestic economy
LETTER Board of The Fund (coupled with inflationary tendencies in
TO OUR APPEARS HERE] certain commodity prices) compelled the
SHAREHOLDERS Federal Reserve Board (the Fed) to increase
the federal funds rate four times during the
fiscal year, resulting in a current federal funds rate of
6.50%. On August 22, at its last meeting before the end of the
reporting period, the Fed remained on hold, leaving the rate
unchanged. However, concern about inflation remains due to
trepidation about crude-oil prices. The energy sector poses the
highest risk of inflation; the price of crude oil has escalated
from $25 per barrel to more than $33 during the fiscal year.
Recent monthly economic data releases reflect a moderate growth
trend for the economy, a bit slower than when 2000 began. Gross
domestic product for the second quarter of 2000 was 5.6%, and
the estimate for the third quarter is between 3.5% and 4.0%.
YOUR INVESTMENT PORTFOLIO
As of August 31, 2000, the performance of the portfolio's
Institutional Class topped that of its comparative indexes, as
shown in the table. This 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 other funds with longer maturity schedules and is
also an attractive structure that allows the investor to take
advantage of higher yields through quarter-ends and other
volatile market movements. The portfolio's weighted average
maturity (WAM) was maintained in the 13- to 26-day range during
the fiscal year. On August 31, 2000, the WAM stood at 21 days.
Net assets of the Institutional Class stood at $11.87 billion
at the close of the fiscal year.
<TABLE>
<CAPTION>
YIELDS AS OF 8/31/00 Average Seven-Day
Monthly Yield Yield
<S> <C> <C>
Prime Portfolio
Institutional Class 6.56% 6.58%
IBC Money Fund Averages(TM) -
First-Tier Institutions Only 6.26% 6.26%
IBC Money Fund Averages(TM) -
Total Institutions Only 6.14% 6.16%
</TABLE>
The portfolio continues to hold the highest credit-quality
ratings given by three widely known credit-rating agencies:
AAAm from Standard & Poor's, Aaa from Moody's and AAA from
Fitch IBCA. These historical ratings are based on an analysis
of the portfolio's credit quality, composition, management and
weekly portfolio reviews. AIM is the largest multi-fund complex
to have all its institutional money market portfolios given the
highest rating by three nationally recognized ratings agencies,
according to IBC Financial Data, Inc.
The 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 fewer, including U.S.
government obligations, bank obligations, commercial paper and
selected repurchase-
(continued)
<PAGE>
agreement securities. An investment in a money market fund is
neither insured nor guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although a money
market fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money investing in the
fund.
OUTLOOK FOR THE FUTURE
August saw a decline in the Consumer Price Index and the
Producer Price Index and flat retail sales, which led to a
widespread consensus among financial markets that the Fed will
not increase short-term rates for the rest of the year. Jobless
claims are the highest they have been since mid-1998. With a
presidential election in the near future, the Fed is expected
to remain on hold, and the economy will experience the gradual
effect of the fiscal year's aggregate 125-basis-point short-
term rate increase. Considering the short weighted average
maturity the portfolio maintains, the inversion of the Treasury
yield curve has allowed it to maintain outstanding performance,
along with the flexibility to adjust its maturity schedule in
the event of sudden rate changes or curve corrections.
We are pleased to send you this annual report on your
investment. AIM is committed to the primary goals of safety,
liquidity and yield in institutional fund management. We are
also dedicated to customer service, and we are ready to respond
to your comments about this report. If you have any questions,
please contact one of our representatives at 800-659-1005 if we
may help.
Respectfully submitted,
/s/ CHARLES T. BAUER
Charles T. Bauer
Chairman
<PAGE>
<TABLE>
<CAPTION>
AVERAGE MONTHLY YIELD COMPARISON
Year ended 8/31/00 (Yields are average monthly yields for the month-ends shown.)
Short-Term Investments Co. IBC Money Fund IBC Money Fund Averages(TM)
Prime Portfolio Averages(TM) Total Institutions Only
Institutional Class First-Tier Institutions Only
<S> <C> <C> <C>
9/99 5.28% 4.97% 4.85%
10/99 5.30% 5.08% 4.91%
11/99 5.46% 5.22% 5.06%
12/99 5.58% 5.41% 5.20%
1/00 5.64% 5.45% 5.24%
2/00 5.77% 5.50% 5.37%
3/00 5.87% 5.58% 5.48%
4/00 6.00% 5.72% 5.62%
5/00 6.19% 5.91% 5.77%
6/00 6.53% 6.17% 6.03%
7/00 6.60% 6.25% 6.11%
8/00 6.56% 6.26% 6.14%
</TABLE>
<TABLE>
<CAPTION>
WEIGHTED AVERAGE MATURITY COMPARISON
Year ended 8/31/00
Short-Term Investments Co. IBC Money Fund IBC Money Fund Averages(TM)
Prime Portfolio Averages(TM) Total Institutions Only
Institutional Class First-Tier Institutions Only
<S> <C> <C> <C>
9/99 21 53 50
10/99 18 50 49
11/99 17 48 47
12/99 9 41 41
1/00 22 41 41
2/00 23 45 44
3/00 18 47 45
4/00 22 46 44
5/00 19 47 45
6/00 17 50 47
7/00 23 48 45
8/00 21 49 46
</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.
<PAGE>
SCHEDULE OF INVESTMENTS
August 31, 2000
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
COMMERCIAL PAPER - 80.32%(a)
BASIC INDUSTRIES - 1.84%
METAL MINING - 1.84%
Rio Tinto America, Inc.
6.51% 09/18/00 $ 70,000 $ 69,784,809
------------------------------------------------------------------------------
6.50% 10/11/00 50,000 49,638,889
------------------------------------------------------------------------------
6.50% 10/13/00 50,000 49,620,833
------------------------------------------------------------------------------
6.51% 10/16/00 95,542 94,764,527
------------------------------------------------------------------------------
Total Basic Industries 263,809,058
------------------------------------------------------------------------------
CONSUMER DURABLES - 10.72%
AUTOMOBILE - 5.41%
Daimler-Chrysler North America Holding Corp.
6.50% 09/22/00 125,000 124,526,041
------------------------------------------------------------------------------
6.50% 09/25/00 150,000 149,350,000
------------------------------------------------------------------------------
6.48% 10/10/00 100,000 99,298,000
------------------------------------------------------------------------------
6.47% 10/18/00 100,000 99,155,306
------------------------------------------------------------------------------
Volkswagen of America
6.51% 09/06/00 94,400 94,314,647
------------------------------------------------------------------------------
6.51% 09/07/00 30,000 29,967,450
------------------------------------------------------------------------------
6.51% 09/18/00 29,500 29,409,312
------------------------------------------------------------------------------
6.50% 10/03/00 50,000 49,711,111
------------------------------------------------------------------------------
6.49% 10/05/00 50,000 49,693,528
------------------------------------------------------------------------------
6.48% 10/10/00 50,000 49,649,000
------------------------------------------------------------------------------
775,074,395
------------------------------------------------------------------------------
PUBLISHING (NEWSPAPERS) - 5.31%
Gannett Co., Inc.
6.50% 09/27/00 130,000 129,389,722
------------------------------------------------------------------------------
6.50% 10/02/00 100,000 99,440,278
------------------------------------------------------------------------------
6.49% 10/10/00 100,000 99,296,917
------------------------------------------------------------------------------
6.49% 10/11/00 72,135 71,614,826
------------------------------------------------------------------------------
6.48% 10/19/00 100,000 99,136,000
------------------------------------------------------------------------------
6.49% 10/19/00 115,000 114,004,867
------------------------------------------------------------------------------
6.49% 10/24/00 50,000 49,522,264
------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
PUBLISHING (NEWSPAPERS) - (CONTINUED)
Gannett Co., Inc.
6.50% 10/03/00 $100,000 $ 99,422,222
--------------------------------------------------------------------------
761,827,096
--------------------------------------------------------------------------
Total Consumer Durables 1,536,901,491
--------------------------------------------------------------------------
CONSUMER NONDURABLES - 0.25%
FOODS - 0.25%
H.J. Heinz Co.
6.50% 09/27/00 35,500 35,333,347
--------------------------------------------------------------------------
FINANCIAL - 66.47%
ASSET-BACKED SECURITIES - COMMERCIAL LOANS/LEASES - 2.44%
Atlantis One Funding Corp.
6.50% 10/20/00 100,000 99,115,278
--------------------------------------------------------------------------
Centric Capital Corp.
6.52% 09/26/00 51,300 51,067,725
--------------------------------------------------------------------------
6.51% 10/16/00 50,000 49,593,125
--------------------------------------------------------------------------
Fleet Funding Corp.
6.51% 10/18/00 151,702 150,412,659
--------------------------------------------------------------------------
350,188,787
--------------------------------------------------------------------------
ASSET-BACKED SECURITIES - CONSUMER RECEIVABLES - 2.26%
Old Line Funding Corp.
6.53% 09/05/00 97,000 96,929,621
--------------------------------------------------------------------------
6.53% 09/06/00 98,854 98,764,345
--------------------------------------------------------------------------
6.50% 10/06/00 41,707 41,443,435
--------------------------------------------------------------------------
Thunder Bay Funding, Inc.
6.53% 09/14/00 87,783 87,576,003
--------------------------------------------------------------------------
324,713,404
--------------------------------------------------------------------------
ASSET-BACKED SECURITIES - FULLY BACKED - 9.07%
Aspen Funding Corp.
6.51% 10/04/00 120,000 119,283,900
--------------------------------------------------------------------------
6.52% 10/06/00 100,000 99,366,111
--------------------------------------------------------------------------
Blue Ridge Asset Funding Corp.
6.56% 09/01/00 50,000 50,000,000
--------------------------------------------------------------------------
6.54% 09/07/00 70,000 69,923,700
--------------------------------------------------------------------------
6.54% 09/22/00 5,000 4,980,925
--------------------------------------------------------------------------
Enterprise Funding Corp.
6.52% 09/26/00 36,534 36,368,581
--------------------------------------------------------------------------
Forrestal Funding Master Trust
6.54% 09/07/00 25,222 25,194,508
--------------------------------------------------------------------------
6.51% 10/06/00 45,482 45,194,137
--------------------------------------------------------------------------
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
ASSET-BACKED SECURITIES - FULLY BACKED - (CONTINUED)
Kitty Hawk Funding Corp.
6.53% 09/18/00 $69,246 $ 69,032,472
-------------------------------------------------------------------------
Newport Funding Corp.
6.53% 09/13/00 80,000 79,825,867
-------------------------------------------------------------------------
6.52% 09/28/00 55,333 55,062,422
-------------------------------------------------------------------------
6.51% 10/05/00 75,000 74,538,875
-------------------------------------------------------------------------
Triple-A One Funding Corp.
6.53% 09/14/00 24,268 24,210,775
-------------------------------------------------------------------------
Variable Funding Capital Corp.
6.53% 09/07/00 100,000 99,891,167
-------------------------------------------------------------------------
6.52% 09/19/00 100,000 99,674,000
-------------------------------------------------------------------------
6.51% 09/20/00 100,000 99,656,417
-------------------------------------------------------------------------
6.50% 10/11/00 150,000 148,916,667
-------------------------------------------------------------------------
6.50% 10/23/00 100,000 99,061,111
-------------------------------------------------------------------------
1,300,181,635
-------------------------------------------------------------------------
ASSET-BACKED SECURITIES - MULTI-PURPOSE - 20.45%
Barton Capital Corp.
6.53% 09/06/00 114,211 114,107,417
-------------------------------------------------------------------------
6.53% 09/08/00 37,747 37,699,072
-------------------------------------------------------------------------
6.52% 09/11/00 128,503 128,270,267
-------------------------------------------------------------------------
6.53% 09/13/00 218,321 217,845,788
-------------------------------------------------------------------------
6.50% 10/04/00 48,602 48,312,413
-------------------------------------------------------------------------
6.50% 10/10/00 58,508 58,096,006
-------------------------------------------------------------------------
6.51% 10/13/00 121,366 120,444,225
-------------------------------------------------------------------------
Clipper Receivables Corp.
6.56% 09/01/00 100,000 100,000,000
-------------------------------------------------------------------------
6.52% 09/07/00 50,000 49,945,667
-------------------------------------------------------------------------
6.52% 09/11/00 100,000 99,818,889
-------------------------------------------------------------------------
6.52% 09/12/00 50,000 49,900,389
-------------------------------------------------------------------------
6.53% 09/15/00 100,000 99,746,056
-------------------------------------------------------------------------
Corporate Receivables Corp.
6.53% 09/05/00 100,000 99,927,444
-------------------------------------------------------------------------
6.52% 09/08/00 100,000 99,873,222
-------------------------------------------------------------------------
6.52% 09/11/00 100,000 99,818,889
-------------------------------------------------------------------------
6.52% 09/12/00 100,000 99,800,778
-------------------------------------------------------------------------
6.53% 09/14/00 100,000 99,764,194
-------------------------------------------------------------------------
6.50% 10/03/00 100,000 99,422,222
-------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
ASSET-BACKED SECURITIES - MULTI-PURPOSE - (CONTINUED)
Edison Asset Securitization, L.L.C.
6.52% 09/07/00 $107,862 $ 107,744,790
------------------------------------------------------------------------------
6.52% 09/12/00 100,000 99,800,778
------------------------------------------------------------------------------
6.52% 09/21/00 100,000 99,637,778
------------------------------------------------------------------------------
6.50% 10/13/00 100,000 99,241,667
------------------------------------------------------------------------------
6.51% 10/17/00 150,000 148,752,250
------------------------------------------------------------------------------
Falcon Asset Securitization Corp.
6.52% 09/07/00 55,019 54,959,213
------------------------------------------------------------------------------
Monte Rosa Capital Corp.
6.53% 09/15/00 40,000 39,898,422
------------------------------------------------------------------------------
Preferred Receivables Funding Corp.
6.52% 09/19/00 42,000 41,863,080
------------------------------------------------------------------------------
6.52% 09/26/00 75,000 74,660,417
------------------------------------------------------------------------------
6.50% 10/02/00 49,990 49,710,194
------------------------------------------------------------------------------
6.50% 10/20/00 47,530 47,109,492
------------------------------------------------------------------------------
Receivables Capital Corp.
6.55% 09/01/00 112,526 112,526,000
------------------------------------------------------------------------------
Sheffield Receivables Corp.
6.58% 09/01/00 33,800 33,800,000
------------------------------------------------------------------------------
6.52% 10/10/00 101,000 100,286,603
------------------------------------------------------------------------------
6.53% 09/15/00 99,600 99,347,071
------------------------------------------------------------------------------
2,932,130,693
------------------------------------------------------------------------------
ASSET-BACKED SECURITIES - TRADE RECEIVABLES - 5.74%
Asset Securitization Cooperative Corp.
6.53% 09/13/00 140,000 139,695,267
------------------------------------------------------------------------------
Corporate Asset Funding Co.
6.52% 09/05/00 50,000 49,963,778
------------------------------------------------------------------------------
6.53% 09/14/00 100,000 99,764,194
------------------------------------------------------------------------------
6.52% 09/22/00 75,000 74,714,750
------------------------------------------------------------------------------
6.52% 09/26/00 75,000 74,660,417
------------------------------------------------------------------------------
6.53% 09/27/00 75,000 74,646,292
------------------------------------------------------------------------------
6.49% 10/04/00 75,000 74,553,812
------------------------------------------------------------------------------
6.50% 10/04/00 50,000 49,702,082
------------------------------------------------------------------------------
6.51% 10/12/00 75,000 74,443,938
------------------------------------------------------------------------------
Delaware Funding Corp.
6.50% 10/19/00 112,929 111,318,803
------------------------------------------------------------------------------
823,463,333
------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
BANKING - 4.33%
Chase Manhattan Corp.
6.49% 10/03/00 $100,000 $99,423,111
------------------------------------------------------------------
Citicorp
6.52% 10/02/00 100,000 99,438,556
------------------------------------------------------------------
6.50% 10/12/00 50,000 49,629,861
------------------------------------------------------------------
6.49% 10/19/00 100,000 99,134,667
------------------------------------------------------------------
Wells Fargo & Co.
6.51% 09/08/00 100,000 99,873,417
------------------------------------------------------------------
6.50% 09/28/00 125,000 124,390,625
------------------------------------------------------------------
6.49% 10/12/00 50,000 49,630,430
------------------------------------------------------------------
621,520,667
------------------------------------------------------------------
BROKERAGE/INVESTMENTS - 3.82%
Credit Suisse First Boston, Inc.
6.51% 10/02/00 50,000 49,719,708
------------------------------------------------------------------
6.48% 10/12/00 100,000 99,262,000
------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.
6.53% 09/18/00 200,000 199,383,278
------------------------------------------------------------------
6.51% 09/29/00 50,000 49,746,833
------------------------------------------------------------------
6.50% 10/05/00 100,000 99,386,111
------------------------------------------------------------------
6.50% 10/20/00 50,000 49,557,639
------------------------------------------------------------------
547,055,569
------------------------------------------------------------------
CONSUMER FINANCE - 4.61%
American Express Credit Corp.
6.50% 09/20/00 100,000 99,656,944
------------------------------------------------------------------
Banc One Financial Corp.
6.57% 09/01/00 58,000 58,000,000
------------------------------------------------------------------
Ford Motor Credit Co.
6.50% 09/25/00 50,000 49,783,333
------------------------------------------------------------------
6.48% 10/13/00 56,000 55,576,640
------------------------------------------------------------------
6.48% 10/18/00 100,000 99,154,000
------------------------------------------------------------------
General Motors Acceptance Corp.
6.50% 09/19/00 50,000 49,837,500
------------------------------------------------------------------
6.48% 10/06/00 100,000 99,370,000
------------------------------------------------------------------
Household Finance Corp.
6.52% 09/15/00 150,000 149,619,667
------------------------------------------------------------------
660,998,084
------------------------------------------------------------------
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
<S> <C> <C> <C>
FINANCIAL (DIVERSIFIED) - 12.36%
Associates First Capital Corp.
6.52% 09/08/00 $100,000 $ 99,873,222
-----------------------------------------------------------------
6.52% 09/12/00 100,000 99,800,778
-----------------------------------------------------------------
6.50% 09/19/00 100,000 99,675,000
-----------------------------------------------------------------
6.51% 09/21/00 100,000 99,638,333
-----------------------------------------------------------------
6.52% 09/29/00 100,000 99,492,889
-----------------------------------------------------------------
6.49% 10/16/00 50,000 49,594,375
-----------------------------------------------------------------
6.49% 10/17/00 50,000 49,585,361
-----------------------------------------------------------------
CIT Group Inc.
6.51% 09/05/00 100,000 99,927,667
-----------------------------------------------------------------
6.50% 09/21/00 50,000 49,819,444
-----------------------------------------------------------------
6.50% 09/22/00 125,000 124,526,042
-----------------------------------------------------------------
6.50% 09/25/00 100,000 99,566,667
-----------------------------------------------------------------
Deutsche Bank Financial Inc.
6.50% 09/20/00 100,000 99,656,944
-----------------------------------------------------------------
General Electric Capital Corp.
6.50% 09/21/00 50,000 49,819,444
-----------------------------------------------------------------
6.50% 09/22/00 50,000 49,810,417
-----------------------------------------------------------------
6.48% 10/24/00 100,000 99,046,000
-----------------------------------------------------------------
Siemens Capital Corp.
6.46% 09/28/00 70,000 69,660,850
-----------------------------------------------------------------
ZCM Matched Funds Corp.
6.53% 09/28/00 36,000 35,823,690
-----------------------------------------------------------------
6.51% 10/05/00 75,000 74,538,875
-----------------------------------------------------------------
6.50% 10/12/00 50,000 49,629,861
-----------------------------------------------------------------
6.51% 10/16/00 89,800 89,069,253
-----------------------------------------------------------------
6.50% 10/17/00 50,000 49,584,722
-----------------------------------------------------------------
6.50% 10/20/00 135,000 133,805,625
-----------------------------------------------------------------
1,771,945,459
-----------------------------------------------------------------
INSURANCE (LIFE) - 1.39%
Prudential Funding Corp.
6.50% 09/26/00 100,000 99,548,611
-----------------------------------------------------------------
6.50% 09/29/00 100,000 99,494,444
-----------------------------------------------------------------
199,043,055
-----------------------------------------------------------------
Total Financial 9,531,240,686
-----------------------------------------------------------------
</TABLE>
9
<PAGE>
<TABLE>
<S> <C> <C> <C>
PAR
MATURITY (000) VALUE
UTILITIES - 1.04%
TELEPHONE - 1.04%
American Telephone and Telegraph Co.
6.51% 09/27/00 $150,000 $ 149,294,750
----------------------------------------------------------------------------
Total Commercial Paper (Cost -
$11,516,579,332) 11,516,579,332
----------------------------------------------------------------------------
MASTER NOTE AGREEMENT - 2.17%
Merrill Lynch Mortgage Capital, Inc.
6.88%(b) (Cost - $311,200,000) 08/20/01 311,200 311,200,000
----------------------------------------------------------------------------
Total Investments (excluding Repurchase
Agreements) 11,827,779,332
----------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 18.10%(C)
Banc of America Securities L.L.C.
6.68%(d) 09/01/00 300,000 300,000,000
----------------------------------------------------------------------------
Banc One Capital Markets, Inc.
6.67%(e) 09/01/00 203,000 203,000,000
----------------------------------------------------------------------------
Bear, Stearns & Co., Inc.
6.67%(f) -- 500,000 500,000,000
----------------------------------------------------------------------------
Chase Securities, Inc.
6.67%(g) 09/01/00 246,700 246,700,000
----------------------------------------------------------------------------
Dean Witter Reynolds, Inc.
6.67%(h) 09/01/00 103,000 103,000,000
----------------------------------------------------------------------------
Deutsche Bank Securities Inc.
6.66%(i) 09/01/00 153,000 153,000,000
----------------------------------------------------------------------------
First Union Capital Markets Corp.
6.67%(j) 09/01/00 646,700 646,700,000
----------------------------------------------------------------------------
6.67%(k) 09/01/00 153,000 153,000,000
----------------------------------------------------------------------------
Salomon Smith Barney Inc.
6.67%(l) -- 31,000 31,000,000
----------------------------------------------------------------------------
SG Cowen Securities Corp.
6.68%(m) 09/01/00 231,463 231,462,700
----------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale
6.67%(n) 09/01/00 28,000 28,000,000
----------------------------------------------------------------------------
Total Repurchase Agreements (Cost -
$2,595,862,700) 2,595,862,700
----------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.59% (COST -
$14,423,642,032)(O) 14,423,642,032
----------------------------------------------------------------------------
LIABILITIES LESS OTHER ASSETS - (0.59%) (84,723,745)
----------------------------------------------------------------------------
NET ASSETS - 100.00% $14,338,918,287
============================================================================
</TABLE>
10
<PAGE>
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Some commercial paper is traded on a discount basis. In such cases the
interest rate shown represents the rate of discount paid or received at the
time of purchase by the Portfolio.
(b) The fund may demand prepayment of notes purchased under the Master Note
Purchase Agreement upon one business day prior written notice. Interest
rates on master notes are redetermined periodically. Rate shown is the rate
in effect on 8/31/00.
(c) Collateral on repurchase agreements, including the Portfolio's pro-rata
interest in joint repurchase agreements, is taken into possession by the
Portfolio upon entering into the repurchase agreement. The collateral is
marked to market daily to ensure its market value is at least 102% of the
sales price of the repurchase agreement. The investments in some repurchase
agreements are through participation in joint accounts with other mutual
funds, private accounts and certain non-registered investment companies
managed by the investment advisor or its affiliates.
(d) Repurchase agreement entered into 08/31/00 with a maturing value of
$300,055,667. Collateralized by $378,028,727 U.S. Government obligations,
5.50% to 6.236% due 12/01/13 to 02/01/29 with an aggregate market value at
08/31/00 of $306,000,000.
(e) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$250,046,319. Collateralized by $261,934,000 U.S. Government obligations,
0% due 10/06/00 to 03/01/01 with an aggregate market value at 08/31/00 of
$255,003,949.
(f) Open repurchase agreement. Either party may terminate the agreement upon
demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $538,295,000 U.S Government obligations, 0% to 7.14% due
10/19/00 to 01/25/10 with an aggregate market value at 08/31/00 of
$510,526,444.
(g) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$300,055,583. Collateralized by $596,930,723 U.S. Government obligations,
0% to 9.50% due 01/01/01 to 01/01/35 with an aggregate market value at
08/31/00 of $306,001,564.
(h) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$150,027,792. Collateralized by $154,491,000 U.S. Government obligations,
0% to 7.75% due 09/01/00 to 05/23/11 with an aggregate market value at
08/31/00 of $153,000,708.
(i) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$200,037,000. Collateralized by $203,361,000 U.S. Government obligations,
0% to 7.25% due 11/09/00 to 01/15/10 with an aggregate market value at
08/31/00 of $204,000,357.
(j) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$700,129,694. Collateralized by $1,595,285,443 U.S. Government obligations,
5.00% to 12.50% due 10/01/00 to 08/01/30 with an aggregate market value at
08/31/00 of $714,000,001.
(k) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$200,037,056. Collateralized by $204,839,000 U.S. Government obligations,
0% to 8.25% due 10/02/00 to 04/01/36 with an aggregate market value at
08/31/00 of $204,000,606.
(l) Open joint repurchase agreement. Either party may terminate the agreement
upon demand. Interest rates, par and collateral are redetermined daily.
Collateralized by $1,014,955,000 U.S Government obligations, 0% to 9.375%
due 09/01/00 to 05/15/30 with an aggregate market value at 08/31/00 of
$935,151,358.
(m) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$500,092,778. Collateralized by $1,027,389,613 U.S. Government obligations,
6.328% to 7.557% due 11/01/23 to 10/01/38 with an aggregate market value at
08/31/00 of $511,836,078.
(n) Joint repurchase agreement entered into 08/31/00 with a maturing value of
$75,013,896. Collateralized by $77,459,000 U.S. Government obligations,
5.13% to 7.63% due 03/15/02 to 10/15/08 with an aggregate market value at
08/31/00 of $76,500,286.
(o) Also represents cost for federal income tax purposes.
See Notes to Financial Statements.
11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000
<TABLE>
<S> <C>
ASSETS:
Investments, excluding repurchase agreements, at value
(amortized cost) $11,827,779,332
-----------------------------------------------------------------------------
Repurchase agreements 2,595,862,700
-----------------------------------------------------------------------------
Interest receivable 1,349,074
-----------------------------------------------------------------------------
Investment for deferred compensation plan 176,468
-----------------------------------------------------------------------------
Other assets 131,459
-----------------------------------------------------------------------------
Total assets 14,425,299,033
-----------------------------------------------------------------------------
LIABILITIES:
Payables for:
Dividends 83,713,584
-----------------------------------------------------------------------------
Deferred compensation plan 176,468
-----------------------------------------------------------------------------
Accrued advisory fees 682,359
-----------------------------------------------------------------------------
Accrued administrative services fees 52,609
-----------------------------------------------------------------------------
Accrued distribution fees 415,670
-----------------------------------------------------------------------------
Accrued directors' fees 7,449
-----------------------------------------------------------------------------
Accrued transfer agent fees 358,398
-----------------------------------------------------------------------------
Accrued operating expenses 974,209
-----------------------------------------------------------------------------
Total liabilities 86,380,746
-----------------------------------------------------------------------------
Net assets applicable to shares outstanding $14,338,918,287
-----------------------------------------------------------------------------
NET ASSETS:
Institutional Class $11,874,103,427
=============================================================================
Private Investment Class $ 470,368,099
=============================================================================
Personal Investment Class $ 142,234,958
=============================================================================
Cash Management Class $ 1,157,411,524
=============================================================================
Reserve Class $ 131,369,702
=============================================================================
Resource Class $ 563,430,577
=============================================================================
CAPITAL STOCK, $0.001 PAR VALUE PER SHARE:
Institutional Class 11,874,103,722
=============================================================================
Private Investment Class 470,368,214
=============================================================================
Personal Investment Class 142,234,982
=============================================================================
Cash Management Class 1,157,411,309
=============================================================================
Reserve Class 131,369,705
=============================================================================
Resource Class 563,436,693
=============================================================================
Net asset value, offering and redemption price per share for
all classes $ 1.00
=============================================================================
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
STATEMENT OF OPERATIONS
For the year ended August 31, 2000
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest income $826,614,866
-------------------------------------------------------------------
EXPENSES:
Advisory fees 7,271,297
-------------------------------------------------------------------
Administrative services fees 546,078
-------------------------------------------------------------------
Custodian fees 583,562
-------------------------------------------------------------------
Distribution fees:
Private Investment Class 2,136,523
-------------------------------------------------------------------
Personal Investment Class 876,597
-------------------------------------------------------------------
Cash Management Class 1,084,713
-------------------------------------------------------------------
Reserve Class 1,129,042
-------------------------------------------------------------------
Resource Class 1,425,124
-------------------------------------------------------------------
Transfer agent fees 2,339,738
-------------------------------------------------------------------
Director's fees 55,022
-------------------------------------------------------------------
Other 1,666,116
-------------------------------------------------------------------
Total expenses 19,113,812
-------------------------------------------------------------------
Less:Fees waived (1,874,584)
-------------------------------------------------------------------
Net expenses 17,239,228
-------------------------------------------------------------------
Net investment income 809,375,638
-------------------------------------------------------------------
Net increase in net assets resulting from operations $809,375,638
===================================================================
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the years ended August 31, 2000 and 1999
<TABLE>
<CAPTION>
2000 1999
--------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 809,375,638 $ 476,740,526
-----------------------------------------------------------------------------
Net increase in net assets resulting from
operations 809,375,638 476,740,526
-----------------------------------------------------------------------------
Distributions to shareholders from net
investment income:
Institutional Class (669,086,502) (364,347,968)
-----------------------------------------------------------------------------
Private Investment Class (24,137,563) (18,159,703)
-----------------------------------------------------------------------------
Personal Investment Class (6,433,350) (6,869,222)
-----------------------------------------------------------------------------
Cash Management Class (63,157,587) (57,786,622)
-----------------------------------------------------------------------------
Reserve Class (5,783,224) (1,195,139)
-----------------------------------------------------------------------------
Resource Class (40,777,412) (28,381,872)
-----------------------------------------------------------------------------
Share transactions - net:
Institutional Class 5,664,041,019 366,244,504
-----------------------------------------------------------------------------
Private Investment Class 85,473,986 90,082,961
-----------------------------------------------------------------------------
Personal Investment Class 54,481,402 (52,333,262)
-----------------------------------------------------------------------------
Cash Management Class (96,387,700) 391,591,261
-----------------------------------------------------------------------------
Reserve Class 9,586,981 121,782,724
-----------------------------------------------------------------------------
Resource Class (102,502,092) (32,441,340)
-----------------------------------------------------------------------------
Net increase in net assets 5,614,693,596 884,926,848
-----------------------------------------------------------------------------
NET ASSETS:
Beginning of year 8,724,224,691 7,839,297,843
-----------------------------------------------------------------------------
End of year $14,338,918,287 $8,724,224,691
=============================================================================
NET ASSETS CONSIST OF:
Capital (par value and additional paid-in) $14,338,924,625 $8,724,231,029
-----------------------------------------------------------------------------
Undistributed net realized gain (loss) from
investment securities (6,338) (6,338)
-----------------------------------------------------------------------------
$14,338,918,287 $8,724,224,691
=============================================================================
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
August 31, 2000
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 portfolios, each of which offers separate series of shares: the Prime
Portfolio and the Liquid Assets Portfolio. The assets, liabilities and
operations of each portfolio are accounted for separately. Information
presented in these financial statements pertains only to the Prime Portfolio
(the "Portfolio"). The Portfolio currently offers six separate classes of
shares: the Institutional Class, the Private Investment Class, the Personal
Investment Class, the Cash Management Class, the Reserve Class and the Resource
Class. Matters affecting each class are voted on exclusively by the
shareholders of each class. The Portfolio is a money market fund whose
investment objective is to maximize current income consistent with the
preservation of capital and the maintenance of liquidity.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Portfolio in the preparation of
its financial statements.
A. Security Valuations - The Portfolio's securities are valued on the basis of
amortized cost which approximates market value as permitted under Rule 2a-7
of the 1940 Act. This method values a security at its cost on the date of
purchase and thereafter assumes a constant amortization to maturity of any
discount or premium.
B. Securities Transactions and Investment Income - Securities transactions are
accounted for on a trade date basis. Realized gains or losses are computed
on the basis of specific identification of the securities sold. Interest
income, adjusted for amortization of premiums and discounts on investments,
is recorded on the accrual basis from settlement date.
C. Distributions - It is the policy of the Portfolio to declare dividends from
net investment income daily and pay on the first business day of the
following month.
D. Federal Income Taxes - The Portfolio intends to comply with the requirements
of the Internal Revenue Code necessary to qualify as a regulated investment
company and, as such, will not be subject to federal income taxes on
otherwise taxable income (including net realized capital gains) which is
distributed to shareholders. Therefore, no provision for federal income
taxes is recorded in the financial statements.
E. Expenses - Distribution expenses directly attributable to a class of shares
are charged to that class' operations. All other expenses which are
attributable to more than one class are allocated among the classes.
NOTE 2 - 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 Fund, pursuant to a master administrative services agreement with AIM, has
agreed to pay AIM for certain administrative costs incurred in providing
accounting services to the Fund. For the year ended August 31, 2000, AIM was
paid $546,078 for such services.
15
<PAGE>
The Fund, pursuant to a transfer agency and service agreement, has agreed to
pay A I M Fund Services, Inc. ("AFS") a fee for providing transfer agency and
shareholder services to the Fund. For the year ended August 31, 2000, AFS was
paid $1,743,585 for such services.
Under the terms of a master distribution agreement between Fund Management
Company ("FMC") and the Fund, FMC acts as the exclusive distributor of the
Fund's shares. The Fund has adopted a master distribution plan ("the Plan")
pursuant to Rule 12b-1 under the 1940 Act with respect to the Private
Investment Class, the Personal Investment Class, the Cash Management Class, the
Reserve Class and the Resource Class of the Portfolio. The Plan provides that
the Private Investment Class, the Personal Investment Class, the Cash
Management Class, the Reserve Class and the Resource Class pay up to the
maximum annual rate of 0.50%, 0.75%, 0.10%, 1.00% and 0.20%, respectively, of
the average daily net assets attributable to such class. Of this amount, the
Fund may pay a service fee of (a) 0.25% of the average daily net assets of each
of the Private Investment Class, the Personal Investment Class and the Reserve
Class, (b) 0.10% of the average daily net assets of the Cash Management Class
and (c) 0.20% of the average daily net assets of the Resource Class, to
selected banks, broker-dealers and other financial institutions who offer
continuing personal shareholder services to their customers who purchase and
own shares of the Private Investment Class, the Personal Investment Class, the
Cash Management Class, the Reserve Class or the Resource Class. Any amounts not
paid as a service fee under such Plan would constitute an asset-based sales
charge. The Plan also imposes a cap on the total amount of sales charges,
including asset-based sales charges, that may be paid by the Portfolio with
respect to each class. Currently, FMC has elected to waive a portion of its
compensation payable by the Fund such that compensation paid pursuant to the
Plan with respect to the Private Investment Class, the Personal Investment
Class, the Cash Management Class, the Reserve Class and the Resource Class
equals the maximum annual rate of 0.30%, 0.50%, 0.08%, 0.80% and 0.16%,
respectively, of the average daily net assets attributable to such class.
During the year ended August 31, 2000, the Private Investment Class, the
Personal Investment Class, the Cash Management Class, the Reserve Class and the
Resource Class paid $1,281,914, $584,398, $867,770, $903,234 and $1,140,099,
respectively, as compensation under the Plan and FMC waived fees of $1,874,584.
Certain officers and directors of the Fund are officers of AIM, FMC, and AFS.
During the year ended August 31, 2000, the Portfolio paid legal fees of
$21,900 for services rendered by Kramer, Levin, Naftalis & Frankel 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 to directors who are 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.
16
<PAGE>
NOTE 4 - CAPITAL STOCK
Changes in capital stock during the years ended August 31, 2000 and 1999 were
as follows:
<TABLE>
<CAPTION>
2000 1999
---------------------------------- ----------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Sold:
Institutional Class 126,557,387,921 $126,557,387,921 109,937,908,800 $109,937,908,800
-----------------------------------------------------------------------------------------------
Private Investment
Class 3,155,899,237 3,155,899,237 3,170,645,036 3,170,645,036
-----------------------------------------------------------------------------------------------
Personal Investment
Class 1,482,091,696 1,482,091,696 1,878,724,152 1,878,724,152
-----------------------------------------------------------------------------------------------
Cash Management Class 11,105,818,675 11,105,818,675 12,368,423,760 12,368,423,760
-----------------------------------------------------------------------------------------------
Reserve Class 1,117,885,856 1,117,885,856 427,972,822 427,972,822
-----------------------------------------------------------------------------------------------
Resource Class 5,686,265,808 5,686,265,808 4,803,364,271 4,803,364,271
-----------------------------------------------------------------------------------------------
Issued as reinvestment
of dividends:
Institutional Class 48,964,918 48,964,918 27,367,341 27,367,341
-----------------------------------------------------------------------------------------------
Private Investment
Class 12,904,182 12,904,182 9,729,854 9,729,854
-----------------------------------------------------------------------------------------------
Personal Investment
Class 5,560,192 5,560,192 7,060,491 7,060,491
-----------------------------------------------------------------------------------------------
Cash Management Class 42,164,280 42,164,280 43,017,293 43,017,293
-----------------------------------------------------------------------------------------------
Reserve Class 5,577,266 5,577,266 763,247 763,247
-----------------------------------------------------------------------------------------------
Resource Class 38,640,858 38,640,858 24,478,821 24,478,821
-----------------------------------------------------------------------------------------------
Reacquired:
Institutional Class (120,942,311,820) (120,942,311,820) (109,599,031,637) (109,599,031,637)
-----------------------------------------------------------------------------------------------
Private Investment
Class (3,083,329,433) (3,083,329,433) (3,090,291,929) (3,090,291,929)
-----------------------------------------------------------------------------------------------
Personal Investment
Class (1,433,170,486) (1,433,170,486) (1,938,117,905) (1,938,117,905)
-----------------------------------------------------------------------------------------------
Cash Management Class (11,244,370,655) (11,244,370,655) (12,019,849,792) (12,019,849,792)
-----------------------------------------------------------------------------------------------
Reserve Class (1,113,876,141) (1,113,876,141) (306,953,345) (306,953,345)
-----------------------------------------------------------------------------------------------
Resource Class (5,827,408,758) (5,827,408,758) (4,860,284,432) (4,860,284,432)
-----------------------------------------------------------------------------------------------
5,614,693,596 $ 5,614,693,596 884,926,848 $ 884,926,848
===============================================================================================
</TABLE>
NOTE 5 - FINANCIAL HIGHLIGHTS
The following schedule presents financial highlights for a share of the
Institutional Class outstanding throughout the periods indicated.
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
--------------------------------------------------------------
YEAR ENDED AUGUST 31,
--------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------------------------
Income from investment
operations:
Net investment income 0.06 0.05 0.06 0.05 0.05
----------------------------------------------------------------------------------------
Less distributions from
net investment income (0.06) (0.05) (0.06) (0.05) (0.05)
----------------------------------------------------------------------------------------
Net asset value, end of
period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========================================================================================
Total return 6.08% 5.15% 5.71% 5.54% 5.64%
========================================================================================
Ratios/supplemental
data:
Net assets, end of year
(000s omitted) $11,874,103 $6,210,056 $5,843,813 $5,593,043 $5,264,601
========================================================================================
Ratio of expenses to
average net assets 0.09%(a) 0.09% 0.09% 0.09% 0.09%
========================================================================================
Ratio of net investment
income to average net
assets 5.94%(a) 5.02% 5.56% 5.40% 5.48%
========================================================================================
</TABLE>
(a)Ratios are based on average net assets of $11,248,231,782.
17
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders
Short-Term Investments Co.:
We have audited the accompanying statement of assets and liabilities of Prime
Portfolio (a series portfolio of Short-Term Investments Co.), including the
schedule of investments, as of August 31, 2000, and the related statement of
operations for the year then ended, the statements of changes in net assets
for each of the years in the two-year period then ended, and the financial
highlights for each of the years or periods in the five-year period then
ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of August 31, 2000 by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Prime Portfolio as of August 31, 2000, the results of its operations for the
year then ended, the changes in its net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
or periods in the five-year period then ended, in conformity with accounting
principles generally accepted in the United States of America.
[KPMG SIGNATURE APPEARS HERE]
October 6, 2000
Houston, Texas
18
<PAGE>
PROXY RESULTS (UNAUDITED)
A Special Meeting of Shareholders of Prime Portfolio (the "Fund"), a portfolio
of Short-Term Investments Co., a Maryland corporation (the "Company"), was held
on May 3, 2000. The meeting was held for the following purposes:
(1) To elect the following Directors: Charles T. Bauer, Bruce L. Crockett, Owen
Daly II, Edward K. Dunn, Jr., Jack M. Fields, Carl Frischling, Robert H.
Graham, Prema Mathai-Davis, Lewis F. Pennock and Louis S. Sklar.
(2) To approve a new Master Investment Advisory Agreement with A I M Advisors,
Inc.
(3) To approve changing the fundamental investment restrictions of the Fund.
(4) To approve changing the investment objective of the Fund so that it is non-
fundamental.
(5) To ratify the selection of KPMG LLP as independent accountants of the Fund
for the fiscal year ending in 2000.
The results of the voting on the above matters were as follows:
<TABLE>
<CAPTION>
WITHHELD/
DIRECTORS/MATTER VOTES FOR ABSTENTIONS
---------------- -------------- -------------
<C> <S> <C> <C> <C>
(1)* Charles T. Bauer......... 15,215,156,622 543,452,516
Bruce L. Crockett........ 15,215,156,622 543,452,516
Owen Daly II............. 15,215,156,622 543,452,516
Edward K. Dunn, Jr. ..... 15,215,156,622 543,452,516
Jack M. Fields........... 15,215,156,622 543,452,516
Carl Frischling.......... 14,947,430,004 811,179,134
Robert H. Graham......... 15,215,156,622 543,452,516
Prema Mathai-Davis....... 15,215,156,622 543,452,516
Lewis F. Pennock......... 15,215,156,622 543,452,516
Louis S. Sklar........... 15,215,156,622 543,452,516
<CAPTION>
VOTES WITHHELD/
DIRECTORS/MATTER VOTES FOR AGAINST ABSTENTIONS
---------------- -------------- ----------- -------------
<C> <S> <C> <C> <C>
(2) Approval of a new
Investment Advisory
Agreement................ 6,412,647,123 19,374,176 1,155,364,256**
(3) (a) Approval of changing the
Fundamental Restriction
on Issuer
Diversification.......... 5,997,948,299 428,711,702 1,160,725,554**
(3) (b) Approval of changing the
Fundamental Restriction
on Borrowing Money and
Issuing Senior
Securities............... 5,997,989,191 428,670,810 1,160,725,554**
(3) (c) Approval of changing the
Fundamental Restriction
on Underwriting
Securities............... 5,997,855,020 428,805,862 1,160,724,673**
(3) (d) Approval of changing the
Fundamental Restriction
on Industry
Concentration............ 6,405,379,615 21,376,565 1,160,629,375**
(3) (e) Approval of changing the
Fundamental Restriction
on Purchasing or Selling
Real Estate.............. 6,424,322,527 2,497,310 1,160,565,718**
(3) (f) Approval of changing the
Fundamental Restriction
on Purchasing or Selling
Commodities and
Elimination of
Fundamental Restrictions
on Margin Transactions,
on Purchasing Securities
on Margin, Short Sales of
Securities and Investing
in Put or Call Options... 5,979,213,711 448,687,003 1,159,484,841**
(3) (g) Approval of changing the
Fundamental Restriction
on Making Loans.......... 6,404,597,940 22,220,937 1,160,566,678**
(3) (h) Approval of a new
Fundamental Investment
Restriction on Investing
all of the Fund's Assets
in an Open-End Fund...... 6,405,153,127 21,571,334 1,160,661,094**
(3) (i) Elimination of the
Fundamental Restriction
on Mortgaging or Pledging
Assets................... 5,988,483,116 438,543,657 1,160,358,782**
(3) (j) Elimination of
Fundamental Restriction
on Investing in
Obligations not Payable
in United States
Currency................. 5,988,447,692 438,087,997 1,160,849,866**
(4) Approval of changing the
Investment Objective so
that it is Non-
Fundamental.............. 5,861,238,800 565,382,368 1,160,764,387**
(5) Ratification of the
selection of KPMG LLP as
Independent Accountants
of the Fund.............. 6,679,546,126 5,954,800 901,884,629
</TABLE>
------
* Proposal 1 required approval by a combined vote of all of the portfolios of
Short-Term Investments Co.
** Includes Broker Non-Votes
<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
Gary T. Crum Sr. Vice President
Carol F. Relihan Sr. Vice President & Secretary
Dana R. Sutton Vice President & Treasurer
Melville B. Cox Vice President Prime
Karen Dunn Kelley Vice President Portfolio
J. Abbott Sprague Vice President -------------------------------------------------
Mary J. Benson Assistant Vice President & Assistant Treasurer Institutional ANNUAL
Sheri Morris Assistant Vice President & Assistant Treasurer Class REPORT
Renee A. Friedli Assistant Secretary
P. Michelle Grace Assistant Secretary
Nancy L. Martin Assistant Secretary
Ofelia M. Mayo Assistant Secretary AUGUST 31, 2000
Lisa A. Moss Assistant Secretary
Kathleen J. Pflueger Assistant Secretary
INVESTMENT ADVISOR
A I M Advisors, Inc.
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-347-1919
DISTRIBUTOR
Fund Management Company
11 Greenway Plaza, Suite 100
Houston, TX 77046-1173
800-659-1005
CUSTODIAN
The Bank of New York
90 Washington Street, 11th Floor
New York, NY 10286
LEGAL COUNSEL TO FUND
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street, 51st Floor
Philadelphia, PA 19103-7599
LEGAL COUNSEL TO 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
AUDITORS
KPMG LLP
700 Louisiana
Houston, TX 77002
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-AR-1
