ALLIANCE MUNICIPAL TRUST -CALIFORNIA PORTFOLIO
ALLIANCE CAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1997
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-91.1%
CALIFORNIA-90.1%
ALAMEDA COUNTY IDB
(Ream Enterprises Project)
Series A AMT VRDN (a)
$ 2,150 11/01/20 3.70% $ 2,150,000
ALAMEDA COUNTY IDR
(Dicon Fiberoptics Project)
Series '97A AMT VRDN (a)
1,725 5/01/03 4.25 1,725,000
ALAMEDA COUNTY IDR
(Heat & Control Project)
Series '95A AMT VRDN (a)
5,000 11/01/25 3.70 5,000,000
ALAMEDA COUNTY IDR
(JMS Family Partnership Project)
Series '95A AMT VRDN (a)
2,830 10/01/25 3.70 2,830,000
CALIFORNIA COUNTY IDR
(S&P Investment Project)
AMT VRDN (a)
1,095 9/01/08 3.85 1,095,000
CALIFORNIA ECONOMIC
DEVELOPMENT AUTHORITY
(Marko Foam Products Inc.)
Series '96 AMT VRDN (a)
2,900 10/01/26 4.30 2,900,000
CALIFORNIA ECONOMIC
DEVELOPMENT AUTHORITY
(Pioneer Converting Inc.)
AMT VRDN (a)
2,090 4/01/16 3.70 2,090,000
CALIFORNIA ECONOMIC
DEVELOPMENT AUTHORITY IDR
(National R.V. Inc.)
Series '95 AMT VRDN (a)
4,000 12/01/20 4.05 4,000,000
CALIFORNIA ECONOMIC
DEVELOPMENT FINANCE AUTHORITY
(Inland Empire Venture L.L.C.)
Series '95 AMT VRDN (a)
2,400 7/01/25 4.10 2,400,000
CALIFORNIA ECONOMIC
DEVELOPMENT FINANCE AUTHORITY
(Valley Plating Works Inc.)
Series '95 AMT VRDN (a)
5,925 10/01/20 4.05 5,925,000
CALIFORNIA HFA MFHR
Series '97B AMT VRDN (a)
2,100 8/01/39 3.65 2,100,000
CALIFORNIA HFA SFMR
(Home Mortgage Revenue)
Series '96J AMT PPB (a)
15,000 8/01/28 3.95 15,000,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Calsan Inc. Project)
Series '96A AMT VRDN (a)
4,860 12/01/11 3.50 4,860,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Contra Costa Waste Services)
Series A AMT VRDN (a)
4,325 12/01/10 3.45 4,325,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(CR & R Inc. Project)
Series '95A AMT VRDN (a)
2,195 10/01/10 3.50 2,195,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Edco Disposal Corp. Project)
Series '96A AMT VRDN (a)
3,000 10/01/16 3.50 3,000,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Greenteam of San Jose Project)
Series '97A AMT VRDN (a)
4,805 8/01/12 3.50 4,805,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Sanger Project)
Series A AMT VRDN (a)
3,300 9/01/20 3.40 3,300,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
(Taormina Industries, Inc. Project)
Series A AMT VRDN (a)
$ 2,500 8/01/16 4.00% $ 2,500,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
Res Rec.:(Burney Forest Project)
Series '88A AMT VRDN (a)
2,100 9/01/20 4.95 2,100,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
Res. Rec.:(Colmac Energy Project)
Series '90A AMT VRDN (a)
2,300 12/01/16 3.40 2,300,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY
Res. Rec.:(Colmac Energy Project)
Series B AMT VRDN (a)
1,800 12/01/16 3.40 1,800,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY PCR
(Athens Disposal Co., Inc. Project)
Series '95A AMT VRDN (a)
4,900 1/01/16 3.50 4,900,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY PCR
(Pacific Gas & Electric Co. Project)
Series '96C VRDN (a)
6,400 11/01/26 4.90 6,400,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY PCR
(Sanifill Inc. Project)
Series '94A AMT VRDN (a)
300 8/01/07 3.85 300,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY PCR
(Santa Fe Geothermal Inc.)
Series '83 VRDN (a)
2,400 9/01/13 3.65 2,400,000
CALIFORNIA POLLUTION
CONTROL FINANCE AUTHORITY PCR
(Shell Oil Co.)
Series '94 AMT VRDN (a)
3,500 10/01/24 4.90 3,500,000
CALIFORNIA POLLUTION
CONTROL FINANCE
AUTHORITY SOLID WASTE
(Burrtec Waste Project)
Series '95A AMT VRDN (a)
2,900 10/01/02 3.50 2,900,000
CALIFORNIA POLLUTION
CONTROL FINANCE
AUTHORITY SOLID WASTE
(Burrtec Waste Project)
Series '97B AMT VRDN (a)
2,000 7/01/12 3.50 2,000,000
CALIFORNIA POLLUTION
CONTROL FINANCE
AUTHORITY SOLID WASTE
(California Waste
Recovery Project)
Series '96A AMT VRDN (a)
1,710 10/01/06 3.50 1,710,000
CALIFORNIA POLLUTION
CONTROL FINANCE
AUTHORITY SOLID WASTE
(Gilton Solid Waste Management)
Series '95A AMT VRDN (a)
2,400 12/01/05 3.80 2,400,000
CALIFORNIA POLLUTION
CONTROL FINANCE
AUTHORITY SOLID WASTE
(Western Waste Project)
Series '94A AMT VRDN (a)
1,400 10/01/06 4.30 1,400,000
CALIFORNIA SCHOOL CASH RESERVE
Series '97A
10,000 7/02/98 3.77 10,043,833
2
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Artefex Project)
Series '97E AMT VRDN (a)
$ 2,575 7/01/17 4.05% $ 2,575,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Kennerly-Spratling Project)
Series '95A AMT VRDN (a)
3,065 6/01/20 3.85 3,065,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Lance Camper Project)
Series '94B AMT VRDN (a)
3,530 12/01/14 3.85 3,530,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Pacific Bearings Company Project)
Series '96L AMT VRDN (a)
2,305 10/01/06 4.05 2,305,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Primary Color Project)
Series '97F AMT VRDN (a)
2,700 7/01/17 4.05 2,700,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT AUTHORITY
(Tri-Valley Growers Project)
Series '95E AMT VRDN (a)
5,100 12/01/10 3.85 5,100,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT IDR
(Contech Construction)
Series '89 AMT VRDN (a)
1,440 5/01/09 3.85 1,440,000
CALIFORNIA STATEWIDE
COMMUNITY DEVELOPMENT IDR
(Howard Leight & Assoc.)
Series '95B AMT VRDN (a)
3,120 7/01/20 4.50 3,120,000
CHULA VISTA IDR
(Sutherland/Palumbo Project)
AMT VRDN (a)
3,190 12/01/21 4.45 3,190,000
COMMERCE JOINT POWERS
(Precision Wire Productions)
AMT VRDN (a)
2,355 11/01/14 3.70 2,355,000
CONTRA COSTA COUNTY MFHR
(Del Norte Apts.)
Series A AMT VRDN (a)
2,000 10/20/28 4.85 2,000,000
CONTRA COSTA COUNTY MFHR
(Delta Square Project)
Series A AMT VRDN (a)
4,500 8/01/07 4.15 4,500,000
CONTRA COSTA COUNTY MFHR
(Park Regency Apts.)
Series '92A AMT VRDN (a)
7,900 8/01/32 4.20 7,900,000
FAIRFIELD IDA
(Aitchison Family Partnership)
VRDN (a)
1,700 4/01/12 3.70 1,700,000
HUNTINGTON PARK COMMUNITY
REDEVELOPMENT AGENCY
(Personal Storage I) VRDN (a)
140 11/15/17 4.35 140,000
INDIO HOUSING AUTHORITY MFHR
(Smoketree Apts.)
Series A VRDN (a)
9,575 12/01/07 3.45 9,575,000
INDIO MFHR
(Olive Courts Apts.)
Series '96 AMT VRDN (a)
500 12/01/26 3.60 500,000
3
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
IRVINE CAPITAL
IMPROVEMENT AUTHORITY
(Public Facilities and
Infrastructure) VRDN (a)
$ 2,400 11/01/10 3.80% $ 2,400,000
KERN COUNTY TRAN
Board of Education Series '97
7,500 7/01/98 3.92 7,521,313
LONG BEACH
Res. Rec.:(Southeast Fac.
Authority Lease Rev.)
Series '95B AMT VRDN (a)
30,300 12/01/18 4.10 30,300,000
LOS ANGELES COUNTY COP
(Belmont Learning Complex)
Series '97A VRDN (a)
1,500 12/01/17 3.35 1,500,000
LOS ANGELES COUNTY TRAN
Series '97
8,000 6/30/98 3.90 8,022,747
LOS ANGELES HFA MFHR
(Malibu Meadows Project)
Series '91A VRDN (a)
1,500 12/01/15 4.30 1,500,000
LOS ANGELES MFHR
(Malibu Meadows Project II)
VRDN (a)
129 12/01/15 4.30 129,000
LOS ANGELES MFHR
(Skyline at Southpark)
Series '85 VRDN (a)
1,800 12/01/05 3.85 1,800,000
LOS ANGELES MFHR
(Studio Colony Project)
Series '85C VRDN (a)
2,900 5/01/07 4.35 2,900,000
MARIN COUNTY HOUSING
AUTHORITY MFHR
(Crest Marin ll Apts.)
Series A AMT VRDN (a)
9,300 10/15/29 3.40 9,300,000
MODESTO COUNTY SCHOOL DISTRICT
(Capital Facilities)
Series '91 VRDN (a)
2,755 8/01/11 3.50 2,755,000
MONROVIA REDEVELOPMENT AGENCY
(Holiday Inn Hotel Project)
Series '84 VRDN (a)
4,300 12/01/14 3.90 4,300,000
MONTEREY COUNTY FINANCE AUTHORITY
(Reclamation & District Projects)
Series '95A VRDN (a)
3,000 9/01/36 4.35 3,000,000
OCEANSIDE MFHR
(Riverview Springs Apts.)
Series '90A AMT VRDN (a)
17,100 7/01/20 3.90 17,100,000
ORANGE COUNTY
(Airport Revenue) MBIA
3,000 7/01/98 3.83 3,016,925
ORANGE COUNTY MFHR
(Alicia Viejo Project)
Series '86A AMT VRDN (a)
290 12/01/16 4.05 290,000
ORANGE COUNTY MFHR
(Vintage Woods Apts.)
Series '84E VRDN (a)
1,900 11/01/08 4.30 1,900,000
PANAMA-BUENA VISTA
(Unified School District
Capital Improvement Financing
Project) VRDN (a)
5,000 6/01/24 4.35 5,000,000
PETALUMA HFA MFHR
(Oakmont at Petaluma)
Series '96A AMT VRDN (a)
1,000 4/01/26 4.05 1,000,000
PLEASANT HILL REDEVELOPMENT
AGENCY MFHR
(Chateau III Project)
Series '96A AMT VRDN (a)
2,260 8/01/26 4.10 2,260,000
REDONDO BEACH
REDEVELOPMENT AGENCY MFHR
(McCandless Housing Project)
Series '95A VRDN (a)
3,640 12/01/25 3.65 3,640,000
4
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
RIVERSIDE COUNTY HOUSING
AUTHORITY MFHR
(Tyler Village Apts.)
Series '86A AMT VRDN (a)
$ 300 12/01/16 3.75% $ 300,000
RIVERSIDE COUNTY
HOUSING AUTHORITY MFHR
(Victoria Springs Apts.)
Series '89C AMT VRDN (a)
500 7/01/19 3.75 500,000
RIVERSIDE COUNTY IDR
(Advanced Business Forms)
Series '89 AMT VRDN (a)
1,500 4/01/14 3.90 1,500,000
RIVERSIDE COUNTY IDR
(Cryogenic Partners)
Series '89 AMT VRDN (a)
1,400 7/05/14 3.90 1,400,000
RIVERSIDE COUNTY IDR
(Riverfront Cresteel Project)
Series '89 AMT VRDN (a)
2,950 4/01/09 3.90 2,950,000
ROSEVILLE COUNTY SCHOOL
DISTRICT COP
(Northwest Roseville Land Project)
Series '91 VRDN (a)
3,220 8/01/06 3.50 3,220,000
SAN BERNARDINO COUNTY HFA MFHR
(Mountain View Apts.)
Series '97A VRDN (a)
6,000 3/01/27 4.05 6,000,000
SAN BERNARDINO COUNTY MFHR
(Alta Park Apts.)
Series '89A VRDN (a)
5,145 5/01/06 4.50 5,145,000
SAN DIMAS COMMUNITY
REDEVELOPMENT AGENCY
(San Dimas Commerce Center)
Series '83 VRDN (a)
110 12/01/13 3.75 110,000
SAN FRANCISCO IDR
(Hoefer Scientific Institute)
Series '92A AMT VRDN (a)
910 8/01/07 4.25 910,000
SAN JOSE MFHR
(Siena at Renaissance Apts.)
Series '96A AMT VRDN (a)
3,500 12/01/29 3.60 3,500,000
SANTA FE SPRINGS IDR
(Metal Center Inc. Project)
Series '89A AMT VRDN (a)
2,550 7/01/14 3.80 2,550,000
SIMI VALLEY LEASE REVENUE
(Public Financing Authority)
VRDN (a)
2,600 9/01/15 3.55 2,600,000
STANISLAUS COUNTY GO TRAN
Series '97
10,000 7/09/98 3.94 10,028,350
TRIUNFO COUNTY
Sanitation District Revenue
VRDN (a)
1,000 6/01/19 3.60 1,000,000
UNION CITY MFHR
(Skylark Apts.)
Series '89B VRDN (a)
400 11/01/07 4.50 400,000
UPLAND COMMUNITY
REDEVELOPMENT AGENCY MFHR
(Northwoods 156)
Series A VRDN (a)
5,850 3/01/14 4.25 5,850,000
UPLAND COMMUNITY
REDEVELOPMENT AGENCY MFHR
(Northwoods 168)
Series B VRDN (a)
3,235 3/01/14 4.25 3,235,000
VENTURA COUNTY TRAN
Series '97
10,000 7/01/98 3.90 10,028,613
VICTOR VALLEY COMMUNITY
COLLEGE DISTRICT
Series '96 VRDN (a)
6,300 8/01/26 4.45 6,300,000
-------------
349,210,781
5
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
PUERTO RICO-1.0%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '85 MBIA VRDN (a)
$ 3,800 12/01/15 3.35% $ 3,800,000
Total Municipal Bonds
(amortized cost $353,010,781) 353,010,781
COMMERCIAL PAPER-8.4%
CALIFORNIA-8.4%
CALIFORNIA GO
4,000 2/27/98 3.70 4,000,000
CALIFORNIA GO
4,000 1/12/98 3.75 4,000,000
CALIFORNIA GO
7,000 2/24/98 3.75 7,000,000
LOS ANGELES COUNTY
Wastewater System
7,500 2/26/98 3.65 7,500,000
RIVERSIDE COUNTY
Teeter Oblington Series B
4,000 1/15/98 3.75 4,000,000
SAN FRANCISCO COUNTY
AIRPORT COMMISSION
Series A AMT
3,000 1/15/98 3.75 3,000,000
SAN FRANCISCO COUNTY
AIRPORT COMMISSION
Series A AMT
3,045 2/10/98 3.75 3,045,000
Total Commercial Paper
(amortized cost $32,545,000) 32,545,000
TOTAL INVESTMENTS-99.5%
(amortized cost $385,555,781) 385,555,781
Other assets less liabilities-0.5% 2,031,239
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
387,611,020 shares outstanding) $387,587,020
# All securities either mature or their interest rate changes in one year or
less.
(a) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as the
prime interest rate). These instruments are payable on demand and are secured
by letters of credit or other credit support agreements from major banks.
Periodic Put Bonds (PPB) are payable on demand quarterly, semi-annually or
annually and their interest rates change less frequently than rates on Variable
Rate Demand Notes.
Glossary of Terms:
AMT Alternative Minimum Tax
COP Certificate of Participation
GO General Obligation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
6
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $7,292,447
EXPENSES
Advisory fee (Note B) $ 981,216
Distribution assistance and administrative
service (Note C) 657,849
Transfer agency (Note B) 138,101
Custodian fees 56,572
Audit and legal fees 19,497
Printing 17,574
Registration fees 4,371
Trustees' fees 1,596
Miscellaneous 5,013
Total expenses 1,881,789
Less: fee waiver (25,195)
Net expenses 1,856,594
NET INCREASE IN NET ASSETS FROM OPERATIONS $5,435,853
STATEMENT OF CHANGES IN NET ASSETS
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1997 YEAR ENDED
(UNAUDITED) JUNE 30, 1997
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 5,435,853 $ 9,627,307
Net realized gain on investment transactions -0- 99
Net change in unrealized appreciation
of investments -0- (114)
Net increase in net assets from operations 5,435,853 9,627,292
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (5,435,853) (9,627,307)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 30,438,818 59,285,776
Total increase 30,438,818 59,285,761
NET ASSETS
Beginning of period 357,148,202 297,862,441
End of period $387,587,020 $357,148,202
See notes to financial statements.
7
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Municipal Trust (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end investment company. The Fund
operates as a series company currently issuing eight classes of shares of
beneficial interest: Alliance Municipal Trust-General Portfolio, Alliance
Municipal Trust-New York Portfolio, Alliance Municipal Trust-California
Portfolio (the "Portfolio"), Alliance Municipal Trust-Connecticut Portfolio,
Alliance Municipal Trust-New Jersey Portfolio, Alliance Municipal
Trust-Virginia Portfolio, Alliance Municipal Trust-Florida Portfolio and
Alliance Municipal Trust-Massachusetts Portfolio. Each series is considered to
be a separate entity for financial reporting and tax purposes. The Portfolio
pursues its objectives by maintaining a portfolio of high-quality money market
securities all of which, at the time of investment, have remaining maturities
of 397 days or less. The financial statements have been prepared in conformity
with generally accepted accounting principles which require management to make
certain estimates and assumptions that affect the reported amounts of assets
and liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Portfolio.
1. VALUATION OF SECURITIES
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity. Amortization of premium is charged to income.
Accretion of market discount is credited to unrealized gains.
2. TAXES
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if applicable,
to its shareholders. Therefore, no provisions for federal income or excise
taxes are required.
3. DIVIDENDS
The Portfolio declares dividends daily from net investment income and
automatically reinvests such dividends in additional shares at net asset value.
Net realized capital gains on investments, if any, are expected to be
distributed near year end. Dividends paid from net investment income for the
six months ended December 31, 1997 are exempt from federal income taxes.
However, certain shareholders may be subject to the alternative minimum tax.
4. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued as earned. Investment transactions are recorded on a
trade date basis. Realized gain (loss) from investment transactions is recorded
on the identified cost basis.
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50 of 1% on the first $1.25 billion of average daily
net assets; .49 of 1% on the next $.25 billion; .48 of 1% on the next $.25
billion; .47 of 1% on the next $.25 billion; .46 of 1% on the next $1 billion;
and .45 of 1% in excess of $3 billion. The Adviser has agreed, pursuant to the
advisory agreement, to reimburse the Portfolio to the extent that its annual
aggregate expenses (excluding taxes, brokerage, interest and, where permitted,
extraordinary expenses) exceed 1% of its average daily net assets for any
fiscal year. No reimbursement was required for the six months ended December
31, 1997.
The Portfolio compensates Alliance Fund Services, Inc., a wholly-owned
subsidiary of the Adviser, under a Transfer Agency Agreement for providing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amounted to $78,213 for the six months ended December 31,
1997.
8
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this Plan, the Portfolio pays the Adviser a distribution fee at the
annual rate of up to .25 of 1% of the average daily value of the portfolio's
net assets. The Plan provides that the Adviser will use such payments in their
entirety for distribution assistance and promotional activities. For the six
months ended December 31, 1997, the distribution fee amounted to $490,608 of
which $25,195 was waived. In addition, the Portfolio may reimburse certain
broker-dealers for administrative costs incurred in connection with providing
shareholder services, and may reimburse the Adviser for accounting and
bookkeeping, and legal and compliance support. For the six months ended
December 31, 1997, such payments by the Portfolio amounted to $167,241, of
which $47,000 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1997, the cost of securities for federal income tax purposes
was the same as the cost for financial reporting purposes. At June 30, 1997,
the Portfolio had a capital loss carryforward of $24,000, of which $11,589
expires in 2002 and $12,411 expires in the year 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1997, capital paid-in aggregated $387,611,020. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1997 JUNE 30,
(UNAUDITED) 1997
---------------- ---------------
Shares sold 1,022,873,197 1,497,181,205
Shares issued on reinvestments of dividends 5,435,853 9,627,307
Shares redeemed (997,870,232) (1,447,522,736)
Net increase 30,438,818 59,285,776
9
FINANCIAL HIGHLIGHTS
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
1997 ---------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .014 .027 .029 .027 .018 .020
LESS: DIVIDENDS
Dividends from net investment income (.014) (.027) (.029) (.027) (.018) (.020)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (b) 2.79%(c) 2.76% 2.91% 2.78% 1.83% 2.05%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $387,587 $357,148 $297,862 $236,479 $219,673 $156,200
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .95%(c) .93% .93% .93% .93% .93%
Expenses, before waivers and
reimbursements .96%(c) .96% .94% 1.01% 1.02% 1.02%
Net investment income (a) 2.77%(c) 2.73% 2.86% 2.75% 1.82% 2.01%
</TABLE>
(a) Net of expenses reimbursed or waived by the Adviser.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(c) Annualized.
10
ALLIANCE MUNICIPAL TRUST - CALIFORNIA PORTFOLIO
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WHICH CONTAINS FURTHER INFORMATION ABOUT THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM
THE OWNER, ALLIANCE CAPITAL MANAGEMENT L.P.
ACASR
