HomeMy WebLinkAbout991640.tiff RESOLUTION
RE: DESIGNATE AIM SHORT-TERM INVESTMENTS TRUST TREASURY PORTFOLIO
AS DEPOSITORY FOR WELD COUNTY FUNDS AND AUTHORIZE WELD COUNTY
TREASURER TO INVEST WELD COUNTY FUNDS IN SAID MONEY MARKET FUND
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, pursuant to Section 24-75-601.1(1)(k), C.R.S., Weld County may invest any
moneys in its treasury, which are not immediately required to be disbursed, in money market
funds as long as such funds are registered as investment companies under the Federal
"Investment Company Act of 1940, as amended, and comply with all of the remaining
requirements set forth in Section 24-75-601.1(1)(k), C.R.S., and
WHEREAS, pursuant to Part 7 of Article 75 of Title 24, C.R.S., Weld County may pool
any moneys in its treasury, which are not immediately required to be disbursed, with the same
such moneys in the treasury of other Colorado political subdivisions in order to take advantage
of short-term investments and maximize net interest earnings, and
WHEREAS, the Board now deems it in the best interest of Weld County to designate
the AIM Short-Term Investments Trust Treasury Portfolio ("the Portfolio"), as an authorized
depository for funds of Weld County, and
WHEREAS, Arthur Willis, Weld County Treasurer, advises the Board that the Portfolio,
is registered as investment companies under the Federal "Investment Company Act of 1940",
as amended, and comply with all of the remaining requirements set forth in
Section 24-75-601.1(1)(k), C.R.S., and
WHEREAS, the Board also deems it in the best interest of Weld County to authorize the
Weld County Treasurer to invest funds of Weld County in the Portfolio.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
Weld County, Colorado, that the AIM Short-Term Investments Trust Treasury Portfolio be, and
hereby is, designated as an authorized depository for the funds of Weld County and that the
Weld County Treasurer be, and hereby is, authorized to invest such county funds as are not
immediately required to be disbursed in said Portfolio.
991640
TR0018
RE: DESIGNATE AIM SHORT-TERM INVESTMENTS TRUST TREASURY PORTFOLIO AS
DEPOSITORY AND AUTHORIZE WELD COUNTY TREASURER TO INVEST WELD
COUNTY FUNDS
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 21st day of July, A.D., 1999.
BOARD OF COUNTY COMMISSIONERS
tkir /
COUNTY CO O
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/Barbar J. Kirkmeyer, Pr Tem U
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/RO p/AS TO FORM:
J. eile iii7my Attorney Ci, \
Glenn Vaad ___
991640
TR0018
r
� TO: Board of County Commissioners
FROM: Bruce T. Barker, County Attorney
WI ID( DATE: June 30, 1999
'
Authorization to Weld County Treasurer to Invest Weld
COLORADO County Funds in Additional Money Market Fund
Art Willis, Weld County Treasurer, desires to have the Board of County Commissioners make a
change to the Board's previous authorizations of his investments of Weld County's funds. On
January 20, 1997, the Board of County Commissioners approved a resolution designating various
banks, savings banks,public asset pools, and money market funds as depositories for Weld County's
funds. That list has been amended several times by resolutions of the Board to add additional money
market funds. Now, Art would like to have the authorization to invest Weld County's funds in the
AIM Short-Term Investments Trust Treasury Portfolio. A copy of the December 18, 1998,
Prospectus for the Portfolio is attached. Also attached are copies of various correspondence Art and I
have had with Mr. Bob Hullinghorst of Colorado Champ regarding the investment.
From reading the Prospectus and through our correspondence, it now appears to me that the
investment policies and goals of the Portfolio meet the requirements of C.R.S. §24-75-601.1 (1)(k),
as follows:
1. The Portfolio is registered as an investment company under the Federal "Investment
Company Act of 1940,"as amended.
2. I am convinced from reading Mr. Hullinghorst's June 24, 1999, letter that the investment
policies of the Portfolio include seeking to maintain a constant per share net asset value.
3. No sales or load fees are added to the purchase prices or deducted from the redemption
prices of the investments in the Portfolio.
4. The Portfolio has" . . . the highest current rating from one or more nationally recognized
organizations that regularly rate such obligations . . . "
5. The dollar weighted average portfolio maturities of the Portfolio meets the requirements
specified in Rule 2a-7 under the Federal "Investment Company Act of 1940," as
amended.
991640
'
Board of County Commissioners, Memo
June 30, 1999
Page 2.
Please review the attached Prospectus and Resolution. Then let me know if you have any objections to
Art's request. If there are no objections, I will place the Resolution on the Board's Agenda for July 14,
1999.
/
/
i ,
B e T. Barker, County Attorney
1
Place on Schedule
Agenda Work Session
_ Dale Hall
`��
--Barb Kirkmeyer .
George Baxter V 'h�l
Mike Geile
T
Glenn Vaad ✓ /
- r .
Attachments - <
pc Art Willis
Don Warden
M:\WPFILES\NIEMO\BOCC\AIMPORT.WPD
; f,PEAF17177,7 R
COLORADO ChAMP J � fi j
CASH ASSET MANAGEMENT PROGRAMS, NC. i• U 213 1999
PO Box 88,Niwot,CO 8054i• ,l' dtlj
888-516-0001 303-516-0000 FAX 303-417-0532
VELD COUNTY
June 24, 1999 • A'A7r1Oi N EY'S OFFICE
Mr. Art Willis
Treasurer
Weld County
PO Box 458
Greeley, CO 80632
Dear Art:
This letter is intended to address the concerns of your County Attorney,Bruce Barker,
regarding AIM Institutional Fund's Short-Term Investments Trust Treasury Portfolio.
More specifically,Mr. Barker was concerned that the prospectus did not state that the
Portfolio "seeks to maintain a constant share price." C.R.S. Section 24-75-601.1(k)(I)
requires that "The investment policies of the fund include seeking to maintain a constant
share price."
Although the prospectus does not specifically state that the Portfolio seeks to maintain a
constant share price, it is in fact required by Rule 2a-7 of the Investment Company Act of
1940. Rule 2a7-(c)(2) states that "the'money market fund shall maintain a dollar-
weighted average portfolio maturity appropriate to its objective of maintaining a stable
net asset value per share or price per share . . ." AIM's intention of following this rule is
evidenced in its policy manual, excerpts of which are enclosed. See XIII. Determination
of Amortized Cost-Based and Market-Based Net Asset Values, "The Fund seeks to
maintain a constant: S1.00 per share net asset value for each Portfolio . . ."
•
Because federal law requires that the Portfolio seeks to maintain a constant share price,
and the policy manual follows the federal law,the Portfolio does comply with C.R.S.
Section 24-75-601.1(k)(I). I hope that this adequately responds to Mr. Barker's concerns.
If you should have any further questions, please call me at 888-516-0001.
r_Sinerely,
•^'1
.L.,c cc/L.
Robert S. Hulling horst 0
President
cc: Bruce Barker, County Attorney
08/25/99 12:24 FAX 713 214 1538 INST MKT SPEC I�j002
11 Nil
FUNDS Memorandum
To: Bob Hullinghorst
From: Scott Holick
Date: 06125199
Subject: Short-Term Investments Trust-Treasury Portfolio
The following twc pages were taken from the AIM Investment Compliance Manual. Please note this is not the entire
document.
For internal use only
06/25/99 12: 24 FAX 713 214 1538 INST MKT SPEC 003
XED. DETERMINATION OF AMORTIZED COST-BASED AND MARKET-BASED NET ASSET
VALUES i;"NAVa")
The shares of each Portfolio are sold and redeemed at their net asset value per share, which is
determined.by dividing the amortized cost value of each Portfolio's securities and the cash and other
assets of eke Portfolio, less the Portfolio's liabilities, by the number of shares outstanding of all
classes of shares of the Portfolio. The Fund seeks to maintain a constant$1.00 per share net asset
value for each Portfolio for the purpose of effecting sales and redemptions of shares at a single price.
Realized gains and losses on the assets of each Portfolio are reflected in the net asset value per share
of each Portfolio until distributed to shareholders.
The Fund will periodically detixm ne the net asset value per share of each Portfolio based upon
available market quotations (or an appropriate substitute which reflects current market conditions)
for the Portfolio's portfolio instruments. The Fund's Board of Directors/Trustees shall specify the
persons who shall perform these calculations, the method to be used in performing such calculations
and the frequency of such calculations. The specifications for Taxable Portfolios which may be
amended from time to time and attached hereto, are attached As Appendix F to these Procedures
(Appendix G for any municipal securities purchased). Such specifications for Tax-Exempt Portfolios
shall be similarly attached as Appendix G to these Procedures.
Information concerning the market-based net asset value per share of each Portfolio shall be included
in the Monthly Reports to Directors/Trustees (see Appendix H)which are sent to the Fund's Board of
Directors/Tmstees. The Board of Directors/Trustees shall quarterly be furnished with sufficient
information as to enable it to review the application of the specified procedures for performing such
calculation.
XIV. ACTION TO BE TAKEN UPON DEVIATION OF MARKET-BASED NAV FROM$1.00
A. Deviation Resulting in Material Dilution or Unfair Results: If the Fund's Board of
Directors/Trustees should believe, based upon information supplied by the Fund's investment
adviser, that the deviation of the market-based net asset value per share of a Portfolio from the
Portfolio's purchase and redemption price of$1.00 per share may result in material dilution or
other unfair results to investors or existing shareholders of the Portfolio,it shall take such action
as it deems appropriate to eliminate or reduce,to the extent reasonably practicable,such dilution
or unfair results.
B. Deviation of.25%: If the deviation of the market-based net asset value per share of a Portfolio
from its $1.00 purchase and redemption price per share should exceed .25%, no later than the
day following such occurrence, the investment adviser shall notify the members of the
Investments Committee of the Fund's Board of Directors/Trustees by telephone of such
occurrence and the action, if any, which the investment adviser intends to take to reduce such
deviation. The investment adviser shall also notify the members of the Investments Committee
when the deviation subsequently becomes less than .25%. Such notifications may be made
individually,to each member of the Investments Committee,or by conference call.
C. Deviation of.4%: If the deviation of the market-based net asset value per share of a Portfolio
from its$1.00 purchase and redemption price per share should exceed .4%,no later than the day
following such occurrence a telephonic meeting of the Fund's Board of Directors/Trustees shall
be held,to decide what additional action, if any,should be taken to reduce the deviation.
D. Deviation of.5%: If the deviation of the market-based net asset value per share of a Portfolio
from it;$1.00 purchase and redemption price per share should exceed .5%, no later than the day
following such occurrence, a telephonic meeting of the Fund's Board of Directors/Trustees shall
be held to decide what additional action, if any, should be taken to reduce the deviation. Such
U5/25/90 1.2: '24 FAX 71:! 214 1578 !NISI MKT SPRC Z004
action may include, but not be limited to: redemption of shares in kind; the sale of portfolio
securi des prior to maturity to realize capital gains or losses,or to shorten the Portfolio's average
maturity;withholding dividends;or utilizing a market-based net asset value per share.
XV. REPORTS TO D/RECTORs/TRASTEES
A. Monthly Statistical Report As soon as practicable following the end of each mouth,the Fund's
investment adviser shall send to the Directors/Trustees a report for each Portfolio, substantially
in the form of Appendix H,containing statistics for the month.
B. Quarterly Representation-Taxable Portfolios: Following the end of each quarter,the Fund's
investment adviser shall submit to the Board of Directors/Trustees a representation,substantially
in the form of Appendix C, concerning the issuers on the Approved List(s) of each Taxable
Portfolio,as well as any taxable municipal securities purchased during the quarter.
C. Quarterly Representation - Tax-Exempt Portfolios: Following the end of each quarter, the
Fund's investment adviser, shall submit to the Board of Directors/Trustees a representation,
substantially in the form of Appendix E, that the securities purchased during the quarter were
permitted by these Procedures and that the "Floating Rate Instruments" and "Variable Rate
Instruments" held as of the end of the quarter satisfied the criteria specified by these Procedures.
The investment adviser shall attach to this representation a quarterly report including, for each
Tax-Exempt Portfolio, listing(s) of banks, insurance companies and other providers of credit
support with respect to the portfolio securities held by the Portfolio, a listing of the top 10
holdings of securities which are not credit-enhanced and a summary of rating changes relating to
the Portfolio's securities holdings which were made during the period.
D. Quarterly Information Concerning Market-Based NAV Calculation: Following the end of
each quarter, the Fund's.investment adviser shall send to the Directors/Trustees sufficient
information as to enable them to review the application of the procedures specified for
calculating the market-based net asset value per share of each Portfolio.
XVL RECORD KEEPING AND REPORTING
The Fund shall maintain and preserve permanently, in an easily accessible place, a written copy of
these Procedures and any modifications thereto and the Fund will record,maintain and preserve for a
period of not less than six years(the first two years in an easily accessible place)a written record of
the considerations of the Fund's Board of Directors/Trustees and the actions taken by the Board in
connection with the discharge of its responsibilities, as set forth above,to be included in the minutes
of the Board's meetings.
From: BRUCE BARKER
To: NORTHDOMAIN.NORTHPOST.AWILLIS
Subject: Fax from Bob Hullinghorst, Colorado Champ
I received a fax yesterday from Bob Hullinghorst of Colorado Champ. In that
fax, his associate, Scott Holick, confirms that the Treasury Porfolio is an
"investment company" under the Investment Company Act of 1940 and that the
Portfolio is rated by S&P, Moody's and Fitch IBCA as having their highest
rating. I hate co be the monkey wrench, fly in the ointment, wet blanket,
etc. , but the problem remains that the 2nd concern in my Memo (the investment
policy includes seeking to maintain a constant share price [C.R.S. Sec.
24-75-601 . 1 (1) (k) (I) 1 ) can't be satisfied. Scott says the following in the
fax: "Although the investment policies of the Portfolio do not include
seeking to maintain a constant NAV of $1.00, with the rules set forth by the
SEC under the Ac: of 1940, the NAV of the Trust will normally remain constant
at $1 . 00. " I can't recommend for the Board to approve this investment because
of Scott's admission that the Portfolio does not meet one of the requirements
of the statute. A copy of the statute and my Memo are attached. I will send
a hard copy of Bob's fax to you by Interoffice Mail . Sorry.
Bob's assistant has called here twice to find out what my verdict is . I will
call her back to let her know my thoughts. Bruce.
CC: DWARDEN, DHALL
06/22/1999 16:13 3034170F2 CASH ASSET MGT PAGE 01
COLORADO ChAMP
CASH ASSET MANAGEMENT PROGRAMS,INC.
2855 Aurora Avenue Suite 12:D Boulder,CO 50303
303-417.9490 FAX 303417-0532 855-516-0001
Fax Cover Sheet
Date : June 22., 1999 Pages : 5 (including cover)
To : Bruce Barker From : Robert S. Hullinghorst
Company : Weld County Company ; COLORADO ChAMP
Fax: 970-352-0242 Fax: 303-417-0532
Phone : 970-353-3845 Phone ; 303-417-9490
•
Subject: AIM Fund Short Term Investments Trust Treasury Portfolio
Comments:
Bruce,
Here is the memo from AIM responding to the issues you raised. We hope that this answers all of your
questions. If you would like to discuss this further, please feel free to call Ariel Steele at 888-518.0001.
She will be able to put you in touch with someone who can answer your questions.
06/22/1999 16:' L3 30341705'12 CASH ASSET MGT PAGE 02
36/22/99 15:54 FAX 713 214 8 .,_ _, _1'NST UT SPEC /002/002
\ I \ l
PONDS Memorandum
To: Bob Hullisghorst
From: Scott Holick
Date: 06/22/99
Subject Short-Term Inveatmemts Trust-Treasury Portfolio
This writing is in response to a Mentoraddum on June 21, 1999,from Bruce T.Barker,Weld County Attorney,
regarding certain issues and concerns about the Short-Term Investments Trust-Treasury Portfolio.
1. The Treasury Portfolio(the"Portfolio")is an investment portfolio of Short-Term Investments Trust(the"Trust).
The Trust is an open-end diversified management series investment company under the Investment Company
Act of 1940. Although the Portfolio is a business trust it is an investment company registered with the SEC
under the Investment Company Act of 1940.
2. By definition,rule 2a-7 under the Act of 1940 requires money madcet funds to adhere to certain conditions with
regards to NAV. These rules require that the Trust maintain in a dollar-weighted average portfolio maturity of 90
days or less for the Portfolio,purchase only instruments having remaining maturities of 397 days or less and
invest only in securities determined by the Trust's Board of Trustees to be of high quality with minimal credit
risk. Although the investment policies of the Portfolio do not include seeking to maintain a constant ION of
51.00,with the rules set forth by the SEC under the Act of 1940,the NAV of the Trust will normally remain
constant to$1.00.
3. The Short-Team Investments Trust Treasury Portfolio is rated by three nationally recognized organizations_
The ratings are as follows:
,AAAm Standard&Poor's
Asa Moody's
AAA Fitch IBCA
Please refer to the attached materials that confirm these ratings.
For Internal use only
06/22/1999 16.1.3 3034170Fg2 CASH ASSET MGT PAGE 03
06/22/99 14:41 PAX 713 214 3 INST MKT SPEC Idi003
a, e
\I
A varat
FUNDS Strategy for the institutional Investor
•
Fitch IBCA Rating Added to Money Funds
AIM now the only multi fund complex to be rated by three agencies
In Its commitment to nuking safety paramount in the management of its Institutional money market portfolios,NM has added
Fitch IBCA ratings to its six funds.Fitch IBCA,awell-known credit rating agency highly regarded by state agencies and munid-
paGties,has issued each of the AIM Institutional Funds° an AAA rating,its
highest credit quality mark
The Value of AAA Ratings
According to IBC Financial Data,Inc.,an independent mutual fund monitor,
AIM is the industry's only multi-fund complex to offer MA ratings for each of As mom as 36 states now allow their stale
its money market portfolios ftmn three different sources—Standard& investment pools or memidpolfies to brad in
Poor s,Moody's investors Service and,now,Fitch IBCA These rating money market mutual lends,with wend requiringMA ,
agencies,which monitor the portfolios weekly, provide additional oversight ratings on those hinds
to ensure the funds'investments maintain the highest credit quality and stay Some ir°mton simply refit"tire s,efeiy
within the weighted avenge maturity requirement of 60 days or less.Ratings It's no c l the enced deli h wail taonds the
are based on anof a rtfollo's credit quality,market riceexposure Set mlmigme en shows der Imdt we the
analysis po price kstest growing money fund seder hided by lit
and management.
Rating the AIM Institutional Funds°
Fitch Standard&
MCA Paor's Moody's
Short-Term Investments Co.Mine Portfolio MA AAAm Asa
Short-Term lmestmente Co.Liquid Assets Portfolio MA AAAm An
Short-Tenn lmesestmenta Trust Ttemury Portfolio AM AAAm An
Short-Term investments Trust Treasury TaxAdvantage Portfolio MA AAAm-G Asa
Stuart-Term inseemsents Trutt Government&Agency POAfaLn MA AAAm An
Tay-Free Investments Co.Cash Reserve Portfolio MA AAAm An
Diverse, Competitive Products
The AIM Institutional stoney market funds offer prime,governmenVtreasury and tax-free investments to meet the needs of the
institutional Investor.The rands historically have provided competitive performance within their respective peer groups compiled
by IBC and Lipper Analytkd Services,Inc.
If your Institution requires a AM-rated product for the investment of Its short-term cash reserves or you would like more
information about the NM institutional money market funds, contact your ftnandal consultant or Fund Management Company
at 800-659-1005,option 4.
Ian swam trats Mae*l ioml Government hwas!nru Peak Min,eshm tivamonrynmbtfundIsnotinssad«geomrueedb'theFodoepmalo nice
eraaolionawfothergwwwnem moo Although omoney mole fund setm wine denedmofywrinvestme taSL00petshoe,ItIspmsi lemkse money im seriinden
nut This medal omtbepmttbdndeenne hdbycwmdprosspedusesf«thefoodsoffmdlorepmpectuses& ainmmcompleteinformationMMoodenfuds,iridulinperpemu.
Plum lead the pry car G lfrlefine knSsg mending g mmer.3/99
Invest with DISCIPLINE°
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06/22/1999 16:1',:3 3034170Rn CASH ASSET MGT PAGE 04
98/22/99 14:42 FAX 713 214 • 1 INST lT SPEC 111004
" " '''' MONEY MARKET FUND PROFILE January 28, 1999
ag
,� .µ Short-Term Investments Trust
i>, ` Treasury Portfolio
•
, '
Moiiey'Market • . About the Fund
. Fund Rating AAAm Portfolio Composition as of January 28,1999
Fund Ratings . Fund Type Treasury& Repo
Definitions - :: Investment Adviser AIM Advisors,Inc.
AAAm .:Safety is • Test
TNOTc a ix-I.
excellent-Superkir" 16.1% 1
capacity to maintain - portfolio Manager Karen Dunn Kelley Tsmlp
principal value and : . (Since 1989) a•'%°
limit exposure to loss.-
• : Date Rating Assigned August 1966
AArn';'SefetYy IS Very REPO
. Custodian Bank of New York, NY 11.1%
good:Sirdhg capacity ' .
to maintain principal.
value and limit' : Distributor Fund Management Co.
exposure to!obi :
REPO-Repeannt Agreement:TNOTE-Treasury Note;TILL-Trwwy
ERTSTRIP-Treasury Sno
Ara-,Safetyy is'good.
Sound capacity to : Rationale
maintain principal : The Short-Term investments Trust Treasury Portfolio Assets
value and limit Portfolio is rated'AAAm'. The rating reflects the Short-Term Investments Trust Treasury Portfolio
exposure to loss. : high degree of liquidity and strong credit quality invests exclusively in U-S-Treasury bills and
- of the 7orifolio, which consists of U.S.Treasury notes, and repurchase agreements secured by
BBBm' •;Safety is fair . obligations and repurchase agreements secured U.S. Treasury obligations. Conservative policies
Adequate capacity to by Treasuries.The rating indicates that the concerning these repurchase agreements
maintain principal
- Fund has a superior capacity to maintain a ensure strong portfolio quality. Repurchase
value and limit
exposure to loss • $1.00 per share net asset value at all times. The agreements are transacted with highly
.: portfolio is monitored on a weekly basis by creditworthy banks and broker/dealers.
BErn •.Safety.le . : Standard &Poor's. Repurchase agreements secured by Treasuries
uncertain.-Vulnerable typically have comprised more than halt of the
to loss of principal - Overview portfolio. Conservative liquidity policies are
vales. Short-Term Investments Trust Treasury Portfolio essential to the Fund because of Its
began operations in 1984 and was assigned the concentrated shareholder base. Potential
BM"Safety lsilrrilteih: 'AAAni rating in 1986. It is designed as a volatility due to such shareholder concentration
Very vulnerable to loss-.: vehicle for institutions to invest short-term cash is controlled through frequent communications
Lor principal value: .'.. reserves. The Funds investment objective is to with shareholders, and a one-day minimum
Cccin
,E>ivomely . ' maximize current income to the extent notice requested for large redemptions. The
vulnerable to loss of -. consit.tent with preservation of capital and - Fund safeguards against any potential liquidity
principal value. . . maintenance of liquidity, The Fund targets squeeze by purchasing primarily overnight
primarily institutional shareholders, although repurchase agreements or other assets
'F Dm ' und has failed Individuals may indirectly purchase shares maturing within 30 days.
to maintain'principal through bank accounts.
'value?realiied or ;•.-:
'unrealited fosses.:::.. Management
exceed 0.5%of net •
asset value. • -• A I M Advisors, Inc. serves as the investment
advisor and administrator,for the portfolio. AIM is
G ,.7he'letier"t.. ,- a wholly owned subsidiary of AMVESCAP PLC-
Foliovirs the feting r' Fund Management Company is the distributor
• for the Fund, while The Bank of New York and Standard&Poor's Analyst
symbobwhan a flit-1'1:1's-
'portfolio consists . A I M Fund Services, Inc. are the portfoilo's Rizzo Peter-(1) 212.208.8057 - .
primarilyof direct.U.S custodian and transfer agent, respectively. wow-stanaerdandpoors.com _
government securities.'
. ... . . The foa)wing has been added at the request of A I M Advisors.Inc.Standard&Poor's assumes no respomtbkgy for Me accuracy.
Ptts6(F�'br.Minu5 (-�..: ecequa:y,or completeness of this information.The 7-and 30-day yields.which are for the Institutional Class.represent annualized
results liar the periods,net of expenses,and exclude any realized capital gaits or lases.Investment returns wit vary so you may
-Ratings'may be-.. have a gain or loss when seeing shams.Past performance cannot guarantee comparable future results.Pmtrollo composition Is
modlfled'to Show : %SAact to change.An investment in the Fund Is neither guaranteed nor insured by the any government agency.the FDIC or a bank
'relative-standing-Within•'. Although the Fund seeks to preserve the value or your investment at$1.00 per share,it is possible to lose money by investing in the
the rating categories. . Fund.This material must be preceded or accompanied by a currentfund prospectus,Which contains more complete information
about the Fund,including expenses.Please read the prospectus carefully before Investing or sending money.Fund Management
06/22/1999 16:13 3034170512 CASH ASSET MGT PAGE 05
.96/22/99 14:43 FAX 713 214 5 INST MKT SPEC Q005
Moody's Investors Service
99 Church Street
New York, New York 10007
November 30, 1998
AIM Advisors, Inc.
11 Greenway Plaza
Suite 100
Houston,Texas 77046-1173
This letter is to confirm Moody's money market fund ratings for the following AIM managed funds:
Fund Ratios
Short-Term]investments Co.Treasury Portfolio Aaa
Short-Tenn Investments Co_Treasury Tax-Advantage Portfolio Aaa
Short-Tenn Investments Co.Prime Portfolio Arta
Short-Term]investments Co.Liquid Assets Portfolio An
Short-Term:Investments Trust Government&Agency Portfolio Ma
Tax-Free Investments Co.:Cash Reserves Portfolio Aaa.
Short-Tam Investments Company(Global Series)plc-U.S.Dollar Portfolio Aaa/MR1+
Short-Tent Investments Company(Global Series)plc-Sterling Portfolio Aaa/MRl+
If you have any questions regarding this rating,please contact myself at 212 553 7712.
Sincerely,
Douglas A.Rivkin
Vice President/Senior Credit Officer
Fund rodeo ere Iiena9cM and based on an analysis of a porrolles neat godly, market price opine and menagenuW. •An
Investment la a money mead fund le not loaned or prnsteed by the Pedaal Depost humane Corporation or any other rtnmeat
agencyIM pantie to lase money by fur ..th Although wnwbbeemo or by current proapFemme the value of your invalment mwaddeAdeNWhWtedmmer t Investing
In the
The pragraWsa mouth more complete Nfarmadon about the fund.,Iudoaog apnea. Pla.se read the praepeen ua carefully berate
Investing or rending Melia. hind Mnaaemet Compton 12Ns
•
` 6
'�` � TO: Art Willis, II, Weld County Treasurer
FROM: Bruce T. Barker, Weld County Attorney
I lige DATE: June 21, 1999
6 RE: Short-Term Investments Trust Treasury Portfolio
COLORADO
This writing is in response to your Memorandum of June 11, 1999, regarding the Short-Term
Investments Trust Treasury Portfolio. With the Memorandum you sent a prospectus for the
Portfolio and various correspondence from Bob Hullinghorst of Colorado Cash Asset Management
Programs, Inc. Those documents are attached.
I have reviewed the prospectus and have concluded that the Portfolio does not meet the
requirements of C.R.S. §24-75-601.1 (1)(k), as follows:
1. The Portfolio is a Business Trust and does not appear to be registered as an
investment company under the Federal "Investment Company Act of 1940," as
amended.
2. The investment policies of the Portfolio do not include seeking to maintain a constant
share price, although the net asset value "will normally remain constant at $1.00."
3. Although the Portfolio invests in very highly rated investments, it does not appear to
carry " . . . the highest current rating from one or more nationally recognized
organizations that regularly rate such obligations . . ." I think this is because the
Portfolio is a business trust and therefore is not rated like an investment company.
As you know, I am no expert in the area of these type investments. I may be incorrect in my above
three conclusions. If Mr. Hullinghorst has different conclusions, I would welcome the discussion.
Please feel free to call me at extension 4390 if you hav e ons or would like to discuss.
ce T. Barker
Weld County Attorney
Attachments
pc: Dale Hall
MEMORANDUM
Wi` a TO: Bruce Barker June 11, 1999
COLORADO From: Art Willis, Treasurer
SUBJECT: New Investment Account
Bruce,
Would you please review the attached prospectus for compliance as an additional investment
vehicle for county funds? If it meets the compliance test, I would like to get the Board's approval
to use it.
We already work thrc ugh Mr Hullinghorst's organization investing in the Government Agency
Fund (see blue page). Adding the AIM Treasury Fund would offer diversification and increased
yield in liquid asset rranagement.
Thanks!
Art
COLORADO ChAMP
CASH ASSET MANAGEMENT PROGRAMS,INC.
2885 Aurora A`enue Suite 12D Boulder,CO 80303
303-516-0000 FAX 303-017-91.90 888-516-0001
May 7, 1999
Mr. Art Willis
Treasurer
Weld County
PO Box 458
Greeley, CO 80632
Re: AIM Short-Term Investments Trust Treasury Portfolio
Dear Art Willis:
Please find enclosed prospv tus, fact sheet and account opening materials for the AIM
Short-Term Investments, Trust Treasury Portfolio which Bob Hullinghorst has asked to
be sent to you.
It is our pleasure to assist with your investment management needs. Please do not
hesitate to call with any subsequent questions or requests you may have.
Sincerely,
Jerry arter for
Bob Hullinghorst
Enclosures:AIM materials
CoLDRADO ChAMP
CASH ASSET MANAGEMENT PROGRAMS,INC.
PO BOX 88 NIWOT CO 80544 303-516-0000 888-516-0001 FAX 303-471-9490
May 7, 1999
Mr. Art Willis, Treasurer
Weld County
PO Box 458
Greeley, CO 80632
Dear Art:
Here is your April review for some of the investments available through Cash Asset
Management Programs,Inc. (ChAMP). I hope you will be able to use these rates for
comparison purposes.
Colorado statutes permit local governments like yours to invest in either local government pools
or in certain money market mutual funds. In Colorado,the pools must comply with the same
investment restrictions that apply to money market mutual funds, except that the funds must be
registered with the Securities and Exchange Commission and either be(1)over$1 billion in
assets, (2) invested entirely in government backed securities, or(3) rated AAAm or comparable.
The money market mutual fund investments offered through Colorado ChAMP meet not just
one of the above critera required by the State of Colorado,but ALL THREE of them. This
permits you to diversify your investments into legal securities that are fully registered in your
name and not commingled in a pooled investment. Your investments with us are safe, earn a
competitive yield, and are available up to 3:00 PM every day.
The process of investing with us is simple and quick, but has provisions to insure your safety.
Please call me if you need more information about our investments, a copy of our revised Form
ADV, or other any other information that might help you do your job. That's why we are here.
We are still trying to collect copies of local investment policies. If you have not sent yours, we
would appreciate hearing from you.
Sincerely,
Robert S. Hullinghorst,President
Short-Term
Investments Trust
Prospectus
Treasury
Portfolio The Treasury Portfolio is a money market fund whose investment objective is the maximization of
current income to the extent consistent with the preservation of capital and the maintenance of liquidity.
The Treasury Portfolio seeks to achieve its objective by investing in direct obligations of the U.S.Treasury
Reso tl rc a and repurchase agreements secured by such obligations.The instruments purchased by the Treasury Port-
folio will have maturities of 397 days or less.
Class The Treasury Portfolio is a series portfolio of Short-Term Investments Trust(the"Trust"),an open-
end, diversified, series management investment company.This Prospectus relates solely to the Resource
Class of the Treasury Portfolio,a class of shares designed to be a convenient vehicle in which institutional
customers of banks, certain broker-dealers and other financial institutions can invest in a diversified
money market fund.
December IR, 19971 THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.ANY:REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
This Prospectus sets forth basic information that a prospective investor should know
before investing in shares of the Resource Class of the Treasury Portfolio and should be read
and retained for future reference.A Statement of Additional Information,dated December 18,
1998,has been filed with the United States Securities and Exchange Commission (the"SEC"
and is hereby incorporated by reference.For a copy of the Statement of Additional Informa-
tion without charge,write to the address below or call (800) 825-6858.The SEC maintains a
Web Site at http://www.sec.gov that contains the Statement of Additional Information,mate-
rial incorporated by reference,and other information regarding the Trust.
The Trust's shares are not deposits or obligations of,or guaranteed or endorsed by,any
bank,and the Trust's shares are not federally insured or guaranteed by the U.S.Government,
the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other agency.
There can be no assurance that the Treasury Portfolio will be able to maintain a stable net as-
set value of$1.00 per share.Shares of the Trust involve investment risks,including the possi-
ble loss of principal.
yin'.,- il(
os;.s
SHORT-TERM INVESTMENTS TRUST PROSPECTUS
11 Greenwav Plaza,Suite 100
Houston,Texas 77046-1173
(800) 825-6858 December 18, 1998
Investment Advisor
A I M ADVISORS,INC. SHORT-TERM
11 Greenway Plaza,Suite 100
Houston,Texas 77046-1173 INVESTMENTS TRUST
(713) 626-1919
Distributor
FUND MANAGEMENT COMPANY
11 Greenway Plaza,Suit=100 •
Houston,Texas 77046-1173
(800) 825-6858 TREASURY PORTFOLIO
Auditors
KPMG PEAT MARWICK LIP
700 Louisiana
Houston,Texas 77002
Custodian RESOURCE CLASS
THE BANK OF NEWYORK
90 Washington Street,
11th Floor Table of Contents
New York,New York 10'286 Page
Summary 2
Transfer Agent 'Fable of Fees and Expenses 4
AIM FUND SERVICES,]NC. Financial Highlights 5
P.O.Box 4497 Suitability for Investors 5
Houston,Texas 77210-4497 Investment Program 5
Purchase of Shares
No person has been authorized to give any informa- Redemption of Shares 9
tion or to make any representations not contained in Dividends 9
this Prospectus in connection with the offering made Taxes 10
by this Prospectus,and if given or made,such infor- Net Asset Value 10
mation or representations must not be relied upon
Yield information 11
as having been authorized by the Trust or the Dis-
tributor.This Prospectus does not constitute an of- Reports to Shareholders
fer in any jurisdiction to any person to whom such Management of the Trust 11
offering may not lawfully be made. General Information 13
ti
SUMMARY
The Portfolio and Its Investment Objective
The Trust is an open-end diversified series management investment company.This Prospectus relates to the Resource Class
(the"Class")of the Treasury Portfolio(the"Portfolio").The Portfolio is a money market fund which invests in direct obliga-
tions of the U.S.Treasury and repurchase agreements secured by such obligations.The instruments purchased by the Portfolio
will have maturities of 397 days or less.The investment objective of the Portfolio is the maximization of current income to the
extent consistent with the preservation of capital and the maintenance of liquidity.
Pursuant to separate prospectuses,the Trust also offers other classes of shares of beneficial interest representing interests in
the Portfolio: the Cash Mar agement Class,Institutional Class, Personal Investment Class, Private Investment Class, and Re-
serve Class. Such classes have different distribution arrangements and are designed for institutional and other categories of
•
investors.The Trust also offers shares of six classes of the Treasury TaxAdvantage Portfolio and shares of six classes of the Gov-
ernment&Agency Portfolio, each pursuant to separate prospectuses. Such classes have different distribution arrangements
and are designed.for institutional and other categories of investors.The portfolios of the Trust are referred to collectively as the
"Portfolios."
Because the Trust declares dividends on a daily basis,shares of each class of the Portfolio have the same net asset value(pro-
portionate interest in the net assets of the Portfolio) and bear equally those expenses,such as the advisory fee,that are allo-
cated to the Portfolio as a whole.All classes of the Portfolio share a common investment objective and portfolio of investments. •
However,different classes of the Portfolio have different shareholder qualifications and are.separately allocated certain class
expenses,such as those associated with the distribution of their shares.Therefore,each class will have a different dividend pay-
ment and a different yield. •
Investors in the Class
The Class is designed to oe a convenient vehicle in which institutional customers of banks,certain broker-dealers and other •
financial institutions can invest in a diversified open-end money market fund.
Purchase of Shares
Shares of the Class that. are offered hereby are sold at net asset value. The minimum initial investment in the Class is
$10,000.There is no minimum amount for subsequent investments.Payment for shares of the Class purchased must be in funds
immediately available to tt e Portfolio.See"Purchase of Shares."
Redemption of Shares
Redemptions may be made without charge at net asset value.Payment for redeemed shares of the Class for which redemp-
tion orders are received pr or to 5:00 p.m.Eastern Time will normally be made on the same day.See"Redemption of Shares."
Dividends
The net income of the Portfolio is declared as a dividend daily to shareholders of record immediately after 4:00 p.m.Eastern
Time.Dividends are paid monthly by check or wire transfer unless the shareholder has previously elected to have such divi-
dends automatically reinvested in additional shares of the Class.Information concerning the amount of the dividends declared
on any particular day will normally be available by 6:00 p.m.Eastern Time on that day. See"Dividends."
Net Asset Value
The Trust uses the amortized cost method of valuing the securities of the Portfolio and rounds the per share net asset value to !,
the nearest whole cent.Ac:ordingly,the net asset value per share of the Portfolio will normally remain constant at$1.00.An
investment in the Portfolio is not insured or guaranteed by the U.S.Government,and there is no assurance that
the Portfolio will be able to maintain a stable net asset value.See"Net Asset Value."
Investment Advisor
A I M Advisors,Inc. ("AIM")serves as the Portfolio's investment advisor and receives a fee based on the Portfolio's average
daily net assets. During the fiscal year ended August 31, 1998,the Trust paid AIM advisory fees with respect to the Portfolio •
'.
which represented 0.06% of the average daily net assets of the Portfolio.AIM is primarily engaged in the business of acting as
manager or advisor to investment companies.Under a separate Administrative Services Agreement,AIM maybe reimbursed by
the Trust for its costs of performing certain accounting and other administrative services for the Fund.See"Management of the
Trust—Investment Advisor"and"—Administrative Services."Under a Transfer Agency and Service Agreement,A I M Fund
Services,Inc. ("Transfer Agent"),AIM's wholly owned subsidiary and a registered transfer agent,receives a fee for its provi-
sion of transfer agency,dividend distribution and disbursement,and shareholder services to the Trust.See"General Informa-
tion —Transfer Agent and Custodian."
Distributor and Distribution Plan •
Fund Management Company("FMC")acts as the exclusive distributor of the shares of the Class.Pursuant to a plan of distri-
bution adopted by the Trust's Board of Trustees,FMC receives a fee from the Trust of up to 0.20%of the average daily net assets
of the Portfolio attributable to the shares of the Class as compensation for distribution-related services pursuant to plans of
distribution adopted by the Trust's Board of Trustees.The Trust may also make payments pursuant to such distribution plans to
certain broker-dealers or other financial institutions for distribution-related services.See"Purchase of Shares"and"Distribu-
tion Plan."
Special Risk Considerations
The Portfolio may borrow money and enter into reverse repurchase agreements. The Portfolio may invest in repurchase
agreements and purchase securities for delayed delivery.Accordingly,an investment in the Portfolio may entail somewhat dif-
ferent risks from an investment in an investment company that does not engage in such practices.There can be no assurance
that the Portfolio will be able to maintain a stable net asset value of$1.00 per share.See"Investment Program."
The AIM Family of Funds, The AIM Family of Funds and Design (i.e.,the AIM Logo),AIM and Design,AIM,AIM LINK,
MM Institutional Funds,aimfunds.com,La Familia AIM de Fondos,La Familia AIM de Fondos and Design and Invest
With Discipline are registered service marks and AIM Bank Connection is a service mark of AIM Management
Group Inc.
3
TABLE OF FEES AND EXPENSES
Shareholder Transaction Expenses*
Maximum sales load imposed on purchases
(as a percentage of offering price) None
Maximum sales load on reinvested dividends
(as a percentage of offering price) None
Deferred sales load(as a percentage of original purchase price or redemption
proceeds,as applicable) None
Redemption fees (as a percentage of amount
redeemed,if applicable) None
Exchange fee None
Annual Portfolio Operating Expenses—Resource Class
(as a percentage of average net assets)
Management.fees 0.06%
12b-1 fees (after fee ws.ivers)** 0.16%
Other expenses (estimated):
Custodian fees 0.01%
Other 0.01%
Total other expenses 0.02%
Total portfolio operating expenses—Resource Class** 0.24%
* Beneficial owners of stares of the Class should consider the effect of any charges imposed by their bank,broker:dealer or
other financial institution for various services.
** Had there been no fee waivers, 12b-1 fees and Total portfolio operating expenses would be 0.20%and 0.28%,respectively.
Example
An investor i.n the Class would pay the following expenses on a$1,000 investment,assuming (1) a 5% annual return and
(2)redemption at the end of Bach time period.
1 year $ 3
3 years S S
5 years $14
10 years $31
The Table of Fees and Expenses is designed to assist an investor in understanding the various costs and expenses that an in-
vestor in the Class will bear directly or indirectly. (For more complete descriptions of the various costs and expenses, see
"Management of the Trust"below.)The expense figures are based upon actual costs and fees charged to the Class for the fiscal
year ended August 31, 1998.The"Other Expenses"and"12b-1 fees"figures are based upon estimated costs and the estimated
size of the Class and the Portfolio and estimated fees to be charged for the current fiscal year. Thus,actual expenses may be
greater or less than such estimates.Future waivers of fees (if any)may vary from the figures reflected in the Table of Fees and
Expenses.To the extent any service providers assume expenses of the Class,such assumption of expenses will have the effect of
lowering the Class's overall expense ratio and increasing its yield to investors.Beneficial owners of shares of the Class should
also consider the effect of any charges imposed by the institution maintaining their accounts.
The example in the Table of Fees and Expenses assumes that all dividends and distributions are reinvested and that the
amounts listed under"Annual Portfolio Operating Expenses— Resource Class"remain the same in the years shown.
The example shown in :he above table is based on the amounts listed under"Annual Portfolio Operating Expenses." The
example should not be considered to be an accurate representation of past or future expenses and actual ex-
penses may be greater at.lesser than those shown.
4
•
FINANCIAL HIGHLIGHTS
Shown below are the per share data,ratios and supplemental data for each of the years in the two-year period ended Au-
gust 31,1998 and for the period March 12,1996(date sales commenced)through August 31, 1996.The data has been audited
by KPMG Peat Marwick LLP,independent auditors,whose report on the financial statements and the related notes appears in
the Statement of Additional Information.
1998 1997 1996
Net asset value,beginning of period $ 1.00 $ 1.00 $ 1.00
Income from investment operations:
Net investment income 0.05 0.05 0.03
Less distributions:
Dividends from net investment income (0.05) (0.05) (0.03)
Net asset value,end of period $ 1.00 $ 1.00 $ 1.00
Total return 5.47% 5.30% 5.09%(a) •
Ratios/supplemental data:
Net assets,end of period(000s nmitted) $455,961 $237,123 $33,339
Ratio of expenses to average net assets(b) 0.24%(c) 0.25% 0.25%(a)
Ratio of net investment income to average net assets(d) 5.34%(c) 5.19% 5.07%(a)
(a) Annualized.
(h) After fee waivers and/or expense reimbursements. Ratios of expenses to average net assets prior to fee waivers and/or
expense reimbursement were 0.28%,0.29%and 0.29% (annualized) for the periods 1998-1996,respectively.
(c) Ratios are based on average ret assets of$320,537,856.
(d) After fee waivers and/or expense reimbursements.Ratio of net investment income to average net assets prior to fee waiv-
ers and/or expense reimbursement was 5.30%,5.15%and 5.03%(annualized) for the periods 1998-1996,respectively.
SUITABILITY FOR INVESTORS
The shares of the Class are inter,ded for use primarily by institutional customers of banks,certain broker-dealers and other
financial institutions who seek a convenient vehicle in which to invest in an open-end diversified money market fund.It is ex-
pected that the shares of the Class may be particularly suitable investments for corporate cash managers, municipalities or
other public entities.The minimum initial investment is$10,000.
Investors in the shares of the Class have the opportunity to receive a somewhat higher yield than might be obtainable
through direct investment in money market instruments, and enjoy the benefits of diversification, economies of scale and
same-day liquidity. Generally,higher interest rates can be obtained on the purchase of very large blocks of money market in-
struments.Of course,any such relative increase in interest rates may be offset to some extent by the operating expenses of the
shares of the Class.
INVESTMENT PROGRAM
Investment Objective
The investment objective of the Portfolio is the maximization of current income to the extent consistent with the preserva-
tion of capital and the maintenance of liquidity.The Portfolio seeks to achieve its objective by investing in direct obligations of
the U.S. Treasury and repurchase agreements secured by such obligations. The money market instruments in which the
Portfolio invests are considered to carryvery little risk and accordingly may not have as high a yield as that available on money
market instruments of lesser quality.The Portfolio consists exclusively of money market instruments which have maturities of
397 days or less from the date of purchase (except that securities subject to repurchase agreements may have longer
maturities-I.
5
•
•
Investment Policies
The Portfolio invests exclusively in direct obligations of the U.S.Treasury,which include Treasury bills,notes and bonds,and
repurchase agreements relating to such securities.The Portfolio may also engage in the investment practices described below.
The market values of the money market instruments held by the Portfolio will be affected by changes in the yields available on
similar securities.If yields have increased since a security was purchased,the market value of such security will generally have
decreased.Conversely,if yields have decreased,the market value of such security will generally have increased.
Repurchase Agreements. The Portfolio intends to invest in repurchase agreements with banks and broker-dealers per-
taining to the securities described above and which at the date of purchase are"First Tier" securities as defined in Rule 2a-7
under the 1940 Act,as such Rule maybe amended from time to time.Briefly,"First Tier"securities are securities that are rated
in the highest rating category for short-term debt obligations by two nationally recognized statistical rating organizations
("NRSROs"),or,if only rated by one NRSRO, are rated in the highest rating category by the NRSRO,or,if nitrated,are deter-
mined by the Portfolio's investment advisor(under the supervision of and pursuant to guidelines established by the Board of
Directors)to be of comparable quality to a rated security that meets the foregoing quality standards,as well as securities issued
by a registered investment company that is a money market fund and U.S.government securities.A repurchase agreement is an
instrument under which the Portfolio acquires ownership of a debt security and the seller agrees,at the time of the sale,to re-
purchase the obligation at a mutually agreed-upon time and price,thereby determining the yield during the Portfolio's holding
period. Repurchase transactions are limited to a term not to exceed 365 days.The Portfolio may enter into repurchase agree-
ments only with institutions believed by the Trust's Board of Trustees to present minimal credit risk.With regard to repurchase
transactions,in the evens.of a bankruptcy or other default of a seller of a repurchase agreement(such as the seller's failure to
repurchase the obligation in accordance with the terms of the agreement),the Portfolio could experience both delays:n liqui-
dating the underlying securities and losses,including: (a) a possible decline in the value of the underlying security during the
period while the Portfolio seeks to enforce its rights thereto, (b) possible subnormal levels of income and tack of access to
income during this period,and (c) expenses of enforcing its rights. Repurchase agreements are considered to be loans under
the 1940 Act.
Borrowin.g Money/Reverse Repurchase Agreements. The Portfolio may borrow money and enter into reverse re-
purchase agreements wi.h respect to its portfolio securities in amounts up to 10%of the value of its total assets at the time of
borrowing or entering into a reverse repurchase agreement.Reverse repurchase agreements involve the sale by the Portfolio of
a portfolio security at an agreed-upon price,date and interest payment.The Portfolio will borrow money or enter into reverse
repurchase agreements solely for temporary or defensive purposes,such as to facilitate the orderly sale of portfolio securities
• or to accommodate abnormally heavy redemption requests should they occur.Reverse repurchase transactions are limited to a
term not to exceed 92 days.The Portfolio will use reverse repurchase agreements when the interest income to be earned from
the securities that would otherwise have to be liquidated to meet redemption requests is greater than the interest expense of the
reverse repurchase transaction. The Portfolio will give shareholders notice of its intent to enter into a reverse repurchase
agreement in sufficient time to permit shareholder redemptions before the Portfolio enters into any reverse repurchase agree-
ments. Reverse repurchase agreements involve the risk that the market value of securities retained by the Portfolio in lieu of
liquidation may decline below the repurchase price of the securities sold by the Portfolio which it is obligated to repurchase.
The risk,if encountered could cause a reduction in the net asset value of the Portfolio's shares.Reverse repurchase agreements
are considered to be borrowings by the Portfolio under the 1940 Act.
Lending of Portfolio Securities. 'fhe Portfolio may also lend its portfolio securities in amounts up to 3'3'b%of its total
assets to financial institutions in accordance with the investment restrictions of the Portfolio.Such loans would j,nvolve risks of
delay in receiving additional collateral in the event the value of the collateral decreased below the value of the securities loaned
or of delay in recovering the securities loaned or even loss of rights in the collateral should the borrower of the securities fail
financially.However,loans will be made only to borrowers deemed by AIM to be of good standing and only when,in AIM's judg-
ment,the income to be earned from the loans justifies the attendant risks.
Purchasing Delayed Delivery Securities. In managing the Portfolio's investments, AIM may indicate to dealers or is-
suers its interest in acquiring certain securities for the Portfolio for settlement beyond a customary settlement date. In some
cases, the Portfolio may agree to purchase such securities at stated prices and yields.In such cases,such securities are consid-
ered"delayed delivery" securities when traded in the secondary market.Since this is done to facilitate the acquisition of port-
folio securities and is not for the purpose of investment leverage, the amount of delayed delivery securities involved may not
exceed the estimated amount of funds available for investment on the settlement date.Until the settlement date,liquid assets of
the Portfolio with a dollar value sufficient at all times to make payment for the delayed delivery securities will be segregated.
The total amount of segregated liquid assets may not exceed 25%of the Portfolio's total assets.The delayed delivery securities,
which will not begin to accrue interest until the settlement date,will be recorded as an asset of the Portfolio and will be subject
to the risks of market value fluctuations.The purchase price of the delayed delivery securities will be recorded.as a liability of
6
•
the Portfolio until settlement.Absent extraordinary circumstances,the Portfolio's right to acquire delayed delivery securities
will not be divested prior to the settlement date.
Illiquid Securities. The Portfolio will invest no more than 10%of its net assets in illiquid securities.
Portfolio Transactions. The Portfolio does not seek profits through short-term trading and will generally hold portfolio
securities to maturity,but AIM may seek to enhance the yield of the Portfolio by taking advantage of yield disparities or other
factors that occur in the money markets.For example,market conditions frequently result in similar securities trading at differ-
. ent prices.AIM may dispose o:`any portfolio security prior to its maturity if such disposition and reinvestment of proceeds are
expected to enhance yield cor_sistentwith AIM's judgment as to desirable portfolio maturity structure or if such disposition is
believed to be advisable due to other circumstances or conditions. Securities held by the Portfolio will he disposed of prior to
maturity if an earlier disposition is deemed desirable by AIM to meet redemption requests.In addition,AIM will continually
monitor the creditworthiness of issuers whose securities are held by the Portfolio,and securities held by the Portfolio may be
disposed of prior to maturity is a result of a revised credit evaluation of the issuer or other circumstances or considerations.
Investment in Other Investment Companies. The Trust is permitted to invest in other investment companies to the
extent permitted by the 1940 Act, and rules and regulations thereunder, and, if applicable,exemptive orders granted by the
SEC.
The investment policies described above may be changed by the Board of Trustees without the affirmative vote of a majority
of the outstanding shares of beneficial interest of the Trust.
Investment Restrictions
The Portfolio's investment program is subject to a number of investment restrictions which reflect self-imposed standards as
well as federal and state regulatory limitations.These restrictions are designed to minimize certain risks associated with invest-
ing in specified types of securities or engaging in certain transactions and to limit the amount of the Portfolio's assets which
may be concentrated in any specific industry or issuer. The most significant of these restrictions provide that the Portfolio
will not:
(1) purchase securities of any one issuer (other than obligations of the U.S. Government,its agencies or instru-
mentalities) if,immedi ately after such purchase, more than 5%of the value of the Portfolio's total assets would be in-
vested in such issuer, except as permitted by Rule 2a-7 under the 1940 Act, as such rule may be amended from time to
time,and except that ti e Portfolio may purchase securities of other investment companies to the extent permitted by ap-
plicable law or exemptive order;or
(2) borrow morey or issue senior securities except (a) for temporary or emergency purposes (e.g., in order to
facilitate the orderly sale of portfolio securities or to accommodate abnormally heavy redemption requests),the Portfo-
lio may borrow money from banks or obtain funds by entering into reverse repurchase agreements,and(b)to the extent
that entering into commitments to purchase securities in accordance with the Portfolio's investment program may be
considered the issuance of senior securities.The Portfolio will not purchase securities while borrowings in excess of 5%of
its total assets are outstanding.
The foregoing investment restrictions of the Portfolio (as well as certain others set forth in the Statement of Additional In-
formation) are matters of fundamental policy which may not be changed without the affirmative vote of a majority of the out-
standing shares of the Portfolio.
In addition to the restrictions described above,the Portfolio must also comply with the requirements of Rule 2a-7 under the
1940 Act, as such Rule may be amended from time to time,which govern the operations of money market funds, and maybe
more restrictive:than the policies described herein.A description of further investment restrictions applicable to the Portfolio is
contained in the Statement if Additional Information.
PURCHASE OF SHARES
Shares of the Class are sold on a continuing basis at their net asset value next determined after an order has been received by
the Portfolio.As discussed below,the Trust reserves the right to reject any purchase order. Although there is no stiles charge
imposed on the purchase of shares of the Class,banks or other institutions may charge a recordkeeping,account maintenance
or other fee to their customers,and beneficial holders of the shares of the Class should consult with the institutions maintaining
their accounts to obtain a schedule of applicable fees.To facilitate the investment of proceeds of purchase orders.the investors
are urged to place their orders as early in the day as possible. Purchase orders will be accepted for execution on :he day the
order is placed, provided that the order is properly submitted and received by the Transfer Agent prior to 5:00 p.m. Eastern
Time on a business day of toe Portfolio. Purchase orders received after such time will be processed at the next day's net asset
value.Following the initial investment,subsequent purchases of shares of the Class may also be made via AIM LINK®Remote,a
personal computer application software product. Shares of the Class will earn the dividend declared on the effective date of
purchase.
A"business day of the Portfolio"is any day on which both the Federal Reserve Bank of New York and The Bank of New York.
the Trust's custodian bank. are open for business. The Portfolio, however, reserves the right to change the time for which
purchase and redemption request must be submitted to the Portfolio for execution on the same day or any day when the
U.S.primary broker-dealer community is closed for business or trading is restricted due to national holidays.It is expected that
The Bank of New York and the Federal Reserve Bank of NewYork will be closed during the next twelve months on Saturdays and
Sundays, and on the observed holidays of New Year's Day,Martin Luther King Jr.'s Birthday,Presidents'Day,Memorial Day,
Independence Day,Labor Day,Columbus Day,Veterans'Day,Thanksgiving Day and Christmas Day.
Shares of the Class are sold to institutional customers of banks,certain broker-dealers and other financial institutions(indi-
vidually, an "Institution" and collectively, "Institutions").Individuals,corporations,partnerships and other businesses that
maintain qualified account>at an Institution may invest in the shares of the Class. Each Institution will render administrative
support services to its customers who are the beneficial owners of the shares of the Class. Such services may include, among
other things,establishment and maintenance of shareholder accounts and records; assistance in processing purchase and re-
demption transactions in shares of the Class;providing periodic statements showing a customer's account balance in shares of
the Class; distribution of Trust proxy statements, annual reports and other communications to shareholders whose accounts
are serviced by the Institution;and such other services as the Trust may reasonably request.Institutions will be required to cer-
tify to the Trust that they comply with applicable state laws regarding registration as broker-dealers, or that they are exempt
from such registration.
Prior to the initial purct ase of shares of the Class,an Account Application,which can be obtained from the Transfer Agent,
must be completed and sent to the Transfer Agent at P.O. Box 4497,Houston,Texas 77210-4497. Any changes made to the
information provided in the Account Application must be made in writing or by completing a new form and providing it to the
Transfer Agent. An investc r must open an account in the shares of the Class through an Institution in accordance with proce-
dures established by such Institution. Each Institution separately determines the rules applicable to accounts in the shares of
the Class opened with it,in:.luding minimum initial and subsequent investment requirements and the procedures to be followed
by investors to effect purchases of shares of the Class. The minimum initial investment is$10,000,and there is no minimum
amount of subsequent purchases of shares of the Class by an Institution on behalf of its customers.An investor who proposes to
open a Portfolio account with an Institution should consult with a representative of such Institution to obtain a description of
the rules governing such an account.The Institution holds shares of the Class registered in its name,as agent for th.e customer,
on the books of the Institution.A statement with regard to the customer's shares of the Class is supplied to the customer period-
ically, and confirmations of all transactions for the account of the customer are provided by the Institution to the customer
promptly upon request.In addition,the Institution sends to each customer proxies,periodic reports and other information with
regard to the customer's st ares of the Class.The customer's shares of the Class are fully assignable and subject to encumbrance
by the customer.
All agreements which relate to a customer's account with an Institution are with the Institution.An investor may terminate
his relationship with an Institution at any time,in which case an account in the investor's name will be established directly with
the Portfolio and the investor will become a shareholder of record. In such case, however, the investor will not be able to
purchase additional shares of the Class directly,except through reinvestment of dividends and distributions.
Orders for the purchase of shares of the Class are placed by the investor with the Institution.The Institution is responsible
for the prompt rransmissicn of the order to the Trust.The Portfolio will normally be required to make immediate settlement in
federal funds (member bank deposits with a Federal Reserve Bank) for portfolio securities purchased.Accordingly,payment
for shares of the Class purchased by Institutions on behalf of their customers must be in federal funds.If an investor's order to
purchase shares of the Class is paid for other than in federal funds,the Institution,acting on behalf of the investor,completes
the conversion-into federa.funds(which may take two business days),or itself advances federal funds prior to conversion,and
promptly transmits the order and payment in the form of federal funds to the Transfer:Agent.
Subject to the conditions stated above and to the Trust's right to reject any purchase order,orders will be accepted(i)when
payment for shares of the Class purchased is received by The Bank of New York, the Trust's custodian bank, in the form de-
scribed above and notice of such order is provided to the Transfer Agent or(ii)at the time the order is placed,if the Portfolio is
assured of payment.Shares of the Class purchased by orders which are accepted prior to 5:00 p.m.Eastern Time will earn the
dividend declared on the c ate of purchase.
Any request for correction to a transaction of Portfolio shares must be submitted in writing to the Transfer Agent.The Trans-
fer Agent reserves the right to reject any such request.When a correction results in a dividend adjustment,the institution must
8
agree in writing to reimburse the Portfolio for any loss resulting from the correction.Failure to deliver purchase proceeds on
the requested settlement date may result in a claim against the institution for an amount equal to the overdraft charge incurred
by the Portfolio.
Federal Reserve wires should be sent as early as possible in order to facilitate crediting to the shareholder's account. Any
funds received with respect to an crder which is not accepted by the Trust and any funds received for which an order has not
been received will be returned to the sending Institution.An order must specify that it is for the purchase of shares of the"Re-
source Class of the Treasury Portfc'lio,"otherwise any funds received will be returned to the sending Institution.
The Trust reserves the right in its sole discretion to withdraw all or any part of the offering made by this Prospectus or to
reject any purchase order.
REDEMPTION OF SHARES
A shareholder may redeem any or all of its shares of the Class at the net asset value next determined after receipt of the
redemption request in proper fora by the Trust.Redemption requests with respect to the Class may also be made via AIM LINK®
Remote.Normally,the net asset value per share of the Portfolio will remain constant at$1.00.See"Net Asset Value."Redemp-
tion requests with respect to shares of the Class are normally made through a customer's Institution.
Payment for redeemed shares c f the Class is normally made by Federal Reserve wire to the commercial bank account desig-
nated in the Institution's Account Application,but may be remitted by check upon request by a shareholder.If a redemption
request is received by the Transfer Agent prior to 5:00 p.m.Eastern Time on a business day of the Portfolio,the redemption will
be effected at the net asset value next determined on such day and the shares of the Class to be redeemed will not receive the
dividend declared on the effective date of the redemption. If a redemption request is received by the Transfer Agent after
5:00 p.m.Eastern Time or on other than a business day of the Portfolio,the redemption will be effected at the net asset value of
the Portfolio determined as of 5:00 p.m.Eastern Time on the next business day of the Portfolio,and the proceeds of such re-
demption will normally he wired on the effective day of the redemption.The Portfolio reserves the right to change the time for
which redemption requests must he submitted to and received by the Transfer Agent for execution on the same day on any day
when the U.S.primary broker-dealer community is closed for business or trading is restricted due to national holidays.
A shareholder may change the bank account designated to receive redemption proceeds by written notice to the Trust.The
authorized signature on the notice must be guaranteed by a commercial bank or a trust company. Additional documentation
maybe required when deemed appropriate by the Trust or the Transfer Agent.
Shareholders may request a redemption by telephone.Neither the Transfer Agent nor FMC will be liable for any loss, ex-
pense or cost arising out of any telephone redemption request effected in accordance with the authorization set forth in the
Account Application if they reasc nably believe such request to be genuine but may in certain cases be liable for losses due to
unauthorized or fraudulent transactions if they do not follow reasonable procedures for verification of telephone transactions.
Such reasonable procedures for verification of telephone transactions may include recordings of telephone transactions
(maintained for six months),and mailings of confirmations promptly after the transaction.
Payment for shares of the Clad s redeemed by mail and payment for telephone redemptions in amounts of less than $1.,000
may be made by check mailed within seven days after receipt of the redemption request in proper form.The Trust may make
payment for telephone redemptions in excess of$1,000 by check when it is considered to be in the Portfolio's best interest to
do so.
The shares of the Class are not redeemable at the option of the Trust unless the Board of Trustees of the Trust determines in
its sole discretion that failure to so redeem may have materially adverse consequences to the shareholders of the Trust.
DIVIDENDS
Dividends from the net income of the Portfolio are declared daily to shareholders of record of each class of the Portfolio as of
immediately after 5:00 p.m.Eastern Time on the day of declaration.Net income for dividend purposes is determined daily as of
5:00 p.m.Eastern Time.The dividend accrued and paid for each class will consist of(a) income of the Portfolio,the allocation
of which is based upon such class's pro rata share of the total outstanding shares representing an interest in the Portfolio,less
(b) Portfolio expenses,such as custodian fees,trustees'fees,accounting and legal expenses,based upon such class's pro rata
share of the net assets of the Portfolio,less (c) expenses directly attributable to such class, such as distribution expenses,if
any, and transfer agency fees. Although realized gains and losses on the assets of the Portfolio are reflected in its net. asset
value, they are not expected tc be of an amount which would affect its $1.00 per share net asset value for purposes of
9
purchases and redemptions.See"Net Asset Value"Distributions from net realized short-term gains may be declared.and paid
yearly or more frequently.See"Taxes."The Portfolio does not expect to realize any long-term capital gains or losses.
All dividends declared during a month will normally be paid by wire transfer. Payment will normally be made on the first
business day of the following,month.A shareholder may elect to have all dividends automatically reinvested in additional full
and fractional Shares at the net asset value as of 4:00 p.m.Eastern Time on the last business day of the month.Such election,or
any revocation thereof, must be made in writing by the Institution to the Transfer Agent at P.O. Box 4497, Houston, Texas
77210-4497 and will become effective with dividends paid after its receipt by the Transfer Agent.If a shareholder redeems all
the Shares in its account at any time during the month,all dividends declared through the date of redemption are paid to the
shareholder along with the proceeds of the redemption.
The Portfolio uses its best efforts to maintain its net assetvalue per share at$1.00 for purposes of sales and redemptions.See
"Net Asset Value." Should the Trust incur or anticipate any unusual expense,loss or depreciation which could adversely affect
the income or net asset value of the Portfolio,the Trust's Board of Trustees would at that time consider whether to adhere to the
present dividend policy described above or to revise it in light of the then prevailing circumstances. For example,under such
unusual circumstances,the Board of Trustees might reduce or suspend the daily dividend in order to prevent to the extent possi-
ble the net asset value per share of the Portfolio from being reduced below$1.00.Thus,such expenses,losses or depreciation
may result in a shareholder:•eceiving no dividends for the period during which it held its Shares and cause such a shareholder to
receive upon redemption a_rice per share lower than the shareholder's original cost.
TAXES
The policy of the Portfolio is to distribute to its shareholders at least 90%of its investment company taxable income for each
year and consistent therew:th to meet the distribution requirements of Part I of Subchapter M of the Internal Revenue Code of
1986,as amended(the"Code").The Portfolio also intends to meet the distribution requirements imposed by the Code in or-
der to avoid the imposition of a 4%excise tax.The Portfolio intends to distribute at least 98%of its net investment income for
the calendar year and at least 98%of its net realized capital gains,if any,for the period ending on October 31,The Portfolio
also intends to meet the oiler requirements of Subchapter M,including the requirements with respect to diversification of as-
sets and sources of income so that the Portfolio will pay no taxes on net investment income and net realized capital gains paid
to shareholders.
Dividends paid by the Pcrtfolio are subject to taxation as of the date of payment,whether received by shareholders in cash or
shares of the Class.The Cole provides an exception to this general rule:if the Portfolio declares a dividend in October,Novem-
ber or December to shareholders of record in such months and pays the dividend during January of the next year,a shareholder
will be treated for tax purposes as having received the dividend on December 31 of the year in which it is declared rather than in
January when it is paid.It is anticipated that no portion of distributions will be eligible for the dividends received deduction for
corporations.Dividends paid by the Portfolio from its net investment income and short-term capital gains are taxable to share-
holders at ordinary income tax rates.
The Portfolio will be treated as a separate corporation for purposes of determining taxable income, distribution require-
ments and other requirements of Subchapter M.Therefore,the Portfolio may not offset its gains against the losses of the other
portfolios of the Trust anc.each portfolio of the Trust must specifically comply with all the provisions of the Code.
Distributions and transactions referred to in the preceding paragraphs maybe subject to state,local or foreign taxes,and the
treatment thereof may differ from the federal income tax consequences discussed herein.Shareholders are advised to consult
with their own tax advisors concerning the application of state,local or foreign taxes.
Foreign persons who ft e a United States tax return after December 31,1996 for a U.S.tax refund and who are not eligible to
obtain a social security number must apply to the Internal Revenue Service ("IRS") for an individual taxpayer identification
number,using IRS Form W-7.For a copy of the IRS Form W-7 and accompanying instructions,please contact your tax advisor or
the Transfer Agent.
NET ASSET VALUE
The net asset value per share of the Portfolio is determined daily as of 5:00 p.m.Eastern Time on each business day of the
Portfolio.Net asset value per share is determined by dividing the value of the Portfolio's securities,cash and other assets (in-
cluding interest accrued but not collected) less all of its liabilities (including accrued expenses and dividends payable),by the
number of shares outstar ding of the Portfolio and rounding the resulting per share net asset value to the nearest one cent.
The securities of the Portfolio are valued on the basis of amortized cost pursuant to rules promulgated by the SEC applicable
to money market funds. This method values a security at its cost on the date of purchase and thereafter assumes a constant
10
amortization to maturity of any discount or premium,regardless of the impact of fluctuating interest rates on the market value
of the security.While this methon provides certainty in valuation,it may result in periods during which value,as determined by
amortized cost,is higher or lower than the price the Portfolio would receive if the security were sold.During such periods,the
daily yield on shares of the Portfolio,computed as described in"Purchases and Redemptions—Performance Information"in
the Statement of Additional Information,may differ somewhat from an identical computation made by an investment company
with identical investments utilizing available indications as to market value to value its portfolio securities.
YIELD INFORMATION
Yield information for the Class can be obtained by calling the Trust at (800) 825-6858.Yields will fluctuate from time to
time and are not necessarily indicative of future results.Accordingly,the yield information may not provide a basis for compar-
ison with investments which pay a fixed rate of interest for a stated period of time.Yield is a function of the type and quality of
the Portfolio's investments,the Portfolio's maturity and the operating expense ratio of the Class.A shareholder's invest-
ment in the Portfolio is not insured or guaranteed by the U.S.Government or by any Institution.These factors
should be carefully considered by an investor before making an investment in the Portfolio.
•
For the seven day period ended August 31, 1998 the current yield and the effective yield of the Class (which assumes the
reinvestment of dividends for a 365-day year and a return for the entire year equal to the annualized current yield for the
period)were 5.37%and 552%,respectively.These performance numbers are quoted for illustration purposes only.The per-
formance numbers for any other seven-day period may be substantially different from those quoted above.
To assist banks and other institutions performing their own subaccounting,same day information as to the daily dividend per
share for the Portfolio to eight decimal places and current yield normally will be available by 6:00 p.m.Eastern Time.
From time to time and in it: discretion, AIM or its affiliates may waive all or a portion of its advisory fees and/or assume
certain expenses of the Portfolio.Such a practice will have the effect of increasing the Portfolio's yield and total return.
REPORTS TO SHAREHOLDERS
The Trust furnishes shareholders with semi-annual reports containing information about the Portfolio and its operations,
including a list of the investments held by the Portfolio and financial statements.The annual financial statements are audited by
the Trust's independent audits rs.
Unless otherwise requested by the shareholder,each shareholderwill be provided by its Institution with a written confirma-
tion for each transaction. Institutions establishing sub-accounts will receive a written confirmation for each transaction in a
sub-account.Duplicate confirmations maybe transmitted to the beneficial owner of the sub-account if requested by the Institu-
tion.The Institution will receive a periodic statement setting forth,for each sub-account,the share balance,income earned for
the month,income earned for the year to date and the total current value of the account.
MANAGEMENT OF THE TRUST
Board of Trustees
The overall management of the business and affairs of the Trust is vested with its Board of Trustees.The Board of Trustees
approves all significant agreements between the Trust and persons or companies furnishing services to the Trust, including
agreements with the Trust's investment advisor, distributor, custodian and transfer agent.The day-to-day operations of the
Trust are delegated to the Trust's officers and to AIM,subject always to the objective and policies of the Trust and to the general
supervision of the Trust's Board of Trustees.Information concerning the Board of Trustees may be found in the Statement of
Additional Information. Certain trustees and officers of the Trust are affiliated with AIM and A I M Management Group Inc.
("AIM Management!),the parent corporation of AIM.
For a discussion of A I M Management and its subsidiaries'Year 2000 Compliance Project, see "General Information —
Year 2000 Compliance Projett."
Investment Advisor
AIM Advisors,Inc., 11 Greenway Plaza,Suite 100,Houston,Texas 77046-1173,acts as the investment advisor for the Port-
folio pursuant to:a Master Investment Advisory Agreement (the"Advisory Agreement").AIM was organized in 1976 and,to-
gether with its affiliates,manages or advises over 90 investment company portfolios. Certain of the directors and officers of
AIM are also trustees or executive officers of the Trust.AIM is a wholly owned subsidiary of AIM Management.AIM Management
11
is a holding company engaged in the financial services business.AIM Management is an indirect,wholly owned.subsidiary of
AMVESCAP PLC,a publicly-traded holding company that,through its subsidiaries,engages in institutional investment manage-
ment and retail fund businesses in the United States,Europe and the Pacific Region.
Pursuant to the terms of the Advisory Agreement,AIM manages the investment of the Portfolio's assets and obtains and eval-
uates economic,statistical and financial information to formulate and implement investment policies for the Por:folio.The Ad-
visory Agreement requires AIM to reduce its fee to the extent required to satisfy any expense limitations imposed by the
securities laws or regulations thereunder of any state in which the Portfolio's shares are qualified for sale.
For the fiscal year ended August 31, 1998,AIM received fees from the Trust with respect to the Portfolio under the Advisory
Agreement which represented 0.06%of the Portfolio's average daily net assets. During such fiscal year,the expenses of the
Class,including AIM's fees,amounted to 0.24%of the Class's average daily net assets.
Administrative Services
The Trust has entered into a Master Administrative Services Agreement with AIM (the "Administrative Services Agree-
ment"),pursuant to which AIM has agreed to provide or arrange for the provision of certain accounting and other administra-
tive services to the Portfolio, including the services of a principal financial officer of the Trust and related staff. As
compensation to AIM fcr its services under the Administrative Services Agreement,the Portfolio may reimburse AIM for ex-
penses incurred by AIM in connection with such services.
Fee Waivers
AIM or its affiliates may in its discretion from time to time agree to waive voluntarily all or any portion of its advisory fee
and/or assume certain expenses of the Portfolio but will retain its ability to be reimbursed for such fee or expenses prior to the
end of each fiscal year.
Distributor
The Trust has entered into a Master Distribution Agreement(the"Distribution Agreement")with FMC,a registered broker-
dealer and a wholly owr ed subsidiary of AIM,to act as the exclusive distributor of the shares of the Class.The address of FMC is
11 Greenway Plaza,Suite 100,Houston,Texas 77046-1173. Certain trustees and officers of the Trust are affiliated with FMC
and AIM.The Distribution Agreement provides that FMC has the exclusive right to distribute shares of the Trust either directly
or through other broker-dealers.FMC is the distributor of several of the mutual funds managed or advised by AIM.
FMC may,from time to time,at its expense,pay a bonus or other consideration or incentive to dealers or financial institu-
tions who sell a minimum dollar amount of the shares of the Class during a specific period of time. In some instances,these
incentives may be offered only to certain dealers or financial institutions who have sold or may sell significant amounts of
shares. The total amount of such additional bonus payments or other consideration shall not exceed 0.05% of the net asset
value of the shares of the Class sold.Any such bonus or incentive programs will not change the price paid by investors for the
purchase of shares of the Class or the amount received as proceeds from such sales.Sales of the shares of the Class may not be
used to qualify for any incentives to the extent that such incentives may be prohibited by the laws of any jurisdiction.
Distribution Plan
The Trust has adopted a Master Distribution Plan (the"Plan") pursuant to Rule 12b-1 under the 1940 Act.The Plan pro-
vides that the Trust may compensate FMC in connection with the distribution of the shares of the Class an amount equal to
0.20%on an annualized basis of the average daily net assets of the Portfolio attributable to the Class.Such amount may be ex-
pended when and if authorized by the Board of Trustees and may be used to finance such distribution-related services as ex-
penses of organizing and conducting sales seminars,printing of prospectuses and statements of additional information (and
supplements thereto) and reports for other than existing shareholders, preparation and distribution of advertising material
and sales literature and costs of administering the Plan.
Of the compensatioc paid to FMC under the Plan, a service fee may be paid to dealers and other financial institutions that
provide continuing personal shareholder services to their customers who purchase and own shares of the Class, in amounts of
up to 0.2096 of the average daily net assets of the Portfolio attributable to the Class which are attributable to the customers of
such dealers or financial institutions.Payments retained by FMCwouldbe characterized as an asset-based sales charge pursuant
to the Plan.The Plan also imposes a cap on the total amount of sales charges.including asset-based sales charges,that maybe
paid by the Portfolio with respect to the Class.The Plan does not obligate the Trust to reimburse FMC for the actual expenses
FMC may incur in fulfilling its obligations under the Plan on behalf of the Class.Thus,under the Plan,even if FMC's actual ex-
12
penses exceed the fee payable to FMC thereunder at any given time,the Trust will not be obligated to pay more than that fee.If
FMC's expenses are less than the fee it receives,FMC will retain the full amount of the fee.
The Plan requires the officers of the Trust to provide the Board of Trustees at least quarterly with a written report of the
amounts expended pursuant to the Plan and the purposes for which such expenditures were made.The Board of Trustees shall
review these reports in connection with their decisions with respect to the Plan.
As required by Rule 12b-1 unc.er the 1940 Act,the Plan has been approved by the Board of Trustees,including a majority of
the trustees who are not"intere.ated persons" (as defined in the 1940 Act) of the Trust and who have no direct or indirect fi-
nancial interest in the operation of the Plan or in any agreements related to the Plan ("Qualified Trustees").In approving the
Plan,the trustees considered various factors and determined that there is a reasonable likelihood that the Plan will benefit the
Trust and the holders of the shares of the Class.
The Plan may be terminated ty a vote of a majority of the Qualified Trustees,or by a vote of a majority of the holders of the
outstanding voting securities of the class to which the Plan relates.Any change in the Plan that would increase materially the
distribution expenses paid by the Class requires shareholder approval;otherwise the Plan maybe amended by the trustees,in-
cluding a majority of the Qualified Trustees,by vote cast in person at a meeting called for the purpose of voting upon such
amendment.As long as the Plan is in effect.the selection or nomination of the Qualified Trustees is committed to the discretion
of the Qualified Trustees.
Portfolio Transactions and Brokerage
AIM is responsible for decisions to buy and sell securities for the Portfolio,broker-dealer selection and negotiation of com-
mission rates.Since purchases and sales of portfolio securities by the Portfolio are usually principal transactions,the Portfolio
incurs little or no brokerage commissions.Portfolio securities are normally purchased directly from the issuer or from a mar-
ket maker for the securities.The purchase price paid to dealers serving as market makers may include a spread between the bid
and asked prices.The Portfolio;nay also purchase securities from underwriters at prices which include a concession paid by the
issuer to the underwriter.
AIM's primary consideration in effecting a security transaction is to obtain the best net price and the most favorable execu-
tion of the order.To the extent:hat the executions and prices offered by more than one dealer are comparable,AIM may,in its •
discretion,effect transactions with dealers that furnish statistical,research or other information or services which are deemed
by AIM to be beneficial to the Portfolio's investment programs.Certain research services furnished by dealers may be useful to
clients of AIM other than the Portfolio.Similarly,any research services received by AIM through placement of portfolio trans-
actions of other clients may be of value to AIM in fulfilling its obligations to the Portfolio.
GENERAL INFORMATION
Organization and Description of Shares
The Trust is a Delaware business trust.The Trust was originally incorporated in Maryland on January 24, 1977,but had no
operations prior to November 10, 1980.Effective December 31, 1986,the Trust was reorganized as a Massachusetts business
trust;and effective October 15, 1993,the Trust was reorganized as a Delaware business trust.On October 15, 1993,the Portfo-
lio succeeded to the assets and assumed the liabilities of the Treasury Portfolio (the"Predecessor Portfolio") of Short-Term
Investments Co.,a Massachusetts business trust("STIC"),pursuant to an Agreement and Plan of Reorganization between the
Trust and STIC.All historical financial and other information contained in this Prospectus for periods prior to October 15,1993
relating to the Portfolio(or a c..ass thereof)is that of the Predecessor Portfolio(or the corresponding class thereof).Shares of
beneficial interest of the Trust;ire divided into eighteen classes.Six classes,including the Class,represent interests in the Port-
folio,six classes represent interests in the Treasury TaxAdvantage Portfolio,and six classes represent interests in the Govern-
ment&Agency Portfolio. Earl class of shares has a par value of$.01 per share. The other classes of the Trust may have
different sales charges and other expenses which may affect performance.An investor may obtain information concerning the
Trust's other classes by contacting FMC.
All shares of the.Trust have equal rights with respect to voting,except that the holders of shares of a particular portfolio or
class will have the exclusive right to vote on matters pertaining solely to that portfolio or class.For example.holders of shares
of a particular portfolio will have the exclusive right to vote on any investment advisory agreement or investment restriction
that relates only to such portfo.io.In addition,if a portfolio is divided into various classes,holders of shares of a particular class
will have the exclusive right to vote on any matter, such as distribution arrangements,which relates solely to such class. The
holders of shares of the Portfolio have distinctive rights with respect to dividends and redemption which are more fully de-
scribed in this Prospectus.Intl e event of liquidation or termination of the Trust,holders of shares of each portfolio will.receive
13
pro rata,subject to the rights of creditors, (a) the proceeds of the sale of the assets held in the respective portfolio to which
such shares relate,less (h)the liabilities of the Trust attributable or allocated to the respective portfolio based on the liquida-
tion value of the portfolio.Fractional shares of each portfolio have the same rights as full shares to the extent of their propor-
tionate interest.
There will not normally be annual shareholders'meetings.Shareholders may remove trustees from office by votes cast at a
meeting of shareholders called solely for such purpose or by written consent.A meeting of shareholders for the sole purpose of
considering removal of a trustee shall be called at the request of the holders of 10%or more of the Trust's outstanding shares.
There are no preemptive or conversion rights applicable to any of the Trust's shares.The Trust's shares,when issued,will be
fully paid and non-assessable. The Board of Trustees may create additional portfolios of the Trust without shareholder
approval.
Transfer Agent and Custodian
The Bank of New York,90 Washington Street, 11th Floor,New York,New York 10286, acts as custodian for the portfolio
securities an.d cash of the Portfolio.AIM Fund Services, Inc., P.O. Box 4497, Houston, Texas 77210-4497, acts as transfer
agent for the shares of the Class.
Legal Counsel
The law firm of Ballard Spahr Andrews & Ingersoll, LLP, Philadelphia, Pennsylvania, serves as counsel to the Trust and
passes upon certain legal matters for the Trust.
Shareholder Inquiries
Shareholder inquiries concerning the status of an account should be directed to an investor's Institution,or to the Trust at
11 Greenway Plaza,Suite 100,Houston,Texas 77046-1173,or may be made by calling(800) 825-6858.
Year 2000 Compliance Project
In providing services to the Trust, AIM Management and its subsidiaries rely on both internal software systems as well as
external software systems provided by third parties.Many software systems in use today are unable to distinguish the year 2000
from the year 1900.This defect if not cured will likely adversely affect the services that AIM Management,its subsidiaries and
other service providers to the Trust provide the Trust and its shareholders.
To address this issue,AIM Management and its subsidiaries, together with independent technology consultants, are under-
taking a comprehensive Year 2000 Compliance Project (the "Project"). The Project consists of three phases, namely
(i) inventorying every software application in use at AIM Management and its subsidiaries, as well as remote, third party
software systems on which AIM Management and its subsidiaries rely, (ii)identifying those applications that may not function
properly after December 31, 1999, and (iii) correcting and subsequently testing those applications that may not function
properly after December 31, 1999.Phases (i)and(ii)are complete and phase(iii)has commenced.The Project is scheduled
to be completed during the second quarter of 1999. Software applications acquired by AIM Management and its subsidiaries
after completion of the Project will be reviewed to confirm year 2000 compliance upon installation.No assurance can be given
that the Project will be successful or that AIM Management and its subsidiaries will not otherwise be adversely affected by the
year 2000 issue.
Other Information
This Prospectus sets forth basic information that investors should know about the Trust and the Portfolio prior to investing.
A Statement of Addition ii Information has been filedwith the SEC.Copies of the Statement of Additional Information are avail-
. able upon request and without charge by writing or calling the Trust or FMC.This Prospectus omits certain information con-
tained in the registration statement filed with the SEC. Copies of the registration statement, including items omitted herein,
may be obtained from the SEC by paying the charges prescribed under its rules and regulations.
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