- --------------------------------------------------------------------------------
Alliance
Municipal
Trust
- - California Portfolio
- --------------------------------------------------------------------------------
Alliance Capital [LOGO](R)
Annual Report
June 30, 1999
- --------------------------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS
June 30, 1999 Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------
MUNICIPAL BONDS-93.3%
CALIFORNIA-91.0%
ABAG Finance
Authority COP
(Harker School
Foundation)
Series '98 VRDN
$ 2,905 1/01/23 (b)................. 3.40 $ 2,905,000
Alameda Contra-Costa
School Finance
Authority COP
Series C VRDN
6,020 7/01/25 (b)................. 3.40 6,020,000
Alameda County IDA
(Heat & Control Inc.
Project)
Series '95A
AMT VRDN
4,900 11/01/25 (b)................ 3.40 4,900,000
Alameda County IDA
(JMS Family Partnership
Project)
Series '95A
AMT VRDN
2,930 10/01/25 (b)................ 3.40 2,930,000
Alameda County IDA
(Ream Enterprises
Project)
Series A AMT VRDN
1,665 11/01/20 (b)................ 3.40 1,665,000
Alameda County TRAN
7,000 7/07/00..................... 3.32 7,038,142
California County IDR
(S&P Investment
Project)
Series '98A
AMT VRDN
1,050 9/01/08 (b)................. 3.35 1,050,000
California Economic
Development Authority
(Marko Foam Products
Inc.)
Series '96 AMT VRDN
2,855 10/01/26 (b)................ 3.95 2,855,000
California Economic
Development Finance
Authority
(Valley Plating Works Inc.)
Series '95 AMT VRDN
5,735 10/01/20 (b)................ 3.95 5,735,000
California Educational
Facilities Authority
Revenue
(University of Judaism)
Series '98A VRDN
4,500 12/01/28 (b)................ 3.40 4,500,000
California Health
Facilities
(Adventist Health
System)
Series '91A VRDN
9,800 8/01/21 (b)................. 3.40 9,800,000
California HFA
(Home Mortgage
Revenue)
Series D AMT
5,000 4/30/00..................... 3.02 5,000,000
California HFA
(Multifamily Housing III)
AMT VRDN
6,500 8/01/33 (b)................. 3.30 6,500,000
California HFA
(Single Family Mortgage
Program)
Series '99B AMT PPB
2,255 2/01/00 (b)................. 3.00 2,255,000
California Infrastructure
and Economic
Development Bank
(Nelson Name Plate Co.
Project)
Series '99 AMT VRDN
3,000 5/01/14 (b)................. 3.70 3,000,000
California Pollution
Control Finance
Authority
(Athens Disposal Co.,
Inc. Project)
Series '95A AMT
VRDN
4,600 1/01/16 (b)................. 3.45 4,600,000
California Pollution
Control Finance
Authority
(Burrtec Waste Industries)
Series '98A AMT
VRDN
1,800 5/01/05 (b)................. 3.50 1,800,000
1
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------
California Pollution
Control Finance
Authority
(Burrtec Waste Project)
Series '97B AMT
VRDN
$ 1,900 7/01/12 (b)................. 3.50% $ 1,900,000
California Pollution
Control Finance
Authority
(Burrtec Waste Project)
Series A AMT VRDN
2,300 10/01/02 (b)................ 3.50 2,300,000
California Pollution
Control Finance
Authority
(Calsan Inc. Project)
Series '96A AMT
VRDN
4,515 12/01/11 (b)................ 3.45 4,515,000
California Pollution
Control Finance
Authority
(Contra Costa Waste
Services)
Series A AMT VRDN
5,725 12/01/10 (b)................ 3.40 5,725,000
California Pollution
Control Finance
Authority
(CR & R Inc. Project)
Series '95A AMT
VRDN
2,040 10/01/10 (b)................ 3.45 2,040,000
California Pollution
Control Finance
Authority
(Edco Disposal Corp.
Project)
Series '96A AMT
VRDN
2,885 10/01/16 (b)................ 3.45 2,885,000
California Pollution
Control Finance
Authority
(Escondido/Jemco
Equipment)
Series '98A AMT
VRDN
3,000 7/01/13 (b)................. 3.45 3,000,000
California Pollution
Control Finance
Authority
(Gilton Solid Waste
Management)
Series '95A AMT
VRDN
2,100 12/01/05 (b)................ 3.65 2,100,000
California Pollution
Control Finance
Authority
(Greenteam of San Jose
Project)
Series '97A AMT
VRDN
4,215 8/01/12 (b)................. 3.45 4,215,000
California Pollution
Control Finance
Authority
(Homestake Mining)
Series '84B VRDN
3,100 5/01/04 (b)................. 3.10 3,100,000
California Pollution
Control Finance
Authority
(New United Motor
Manufacturing)
Series '98A AMT
VRDN
2,000 4/01/18 (b)................. 3.65 2,000,000
California Pollution
Control Finance
Authority
(Pacific Electric & Gas)
Series '96C VRDN
5,450 11/01/26 (b)................ 3.00 5,450,000
California Pollution
Control Finance
Authority
(Pacific Electric & Gas)
Series '96D VRDN
10,100 11/01/26 (b)................ 3.00 10,100,000
California Pollution
Control Finance
Authority
(Pacific Electric & Gas)
Series '96G VRDN
7,000 2/01/16 (b)................. 3.05 7,000,000
2
<PAGE>
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------
California Pollution
Control Finance
Authority
(Pacific Electric & Gas)
Series '97B AMT
VRDN
$22,600 11/01/26 (b)................ 3.05% $ 22,600,000
California Pollution
Control Finance
Authority
(Pacific Electric & Gas)
Series '97C AMT
VRDN
5,000 11/01/26 (b)................ 3.15 5,000,000
California Pollution
Control Finance
Authority
(Santa Clara Valley
Industries)
Series '98A VRDN
2,000 3/01/18 (b)................. 3.50 2,000,000
California Pollution
Control Finance
Authority
(Santa Fe Geothermal Inc.)
Series '83 VRDN
2,400 9/01/13 (b)................. 3.15 2,400,000
California Pollution
Control Finance
Authority
(Shell Martinez Refining)
Series '96A AMT
VRDN
3,000 10/01/31 (b)................ 3.00 3,000,000
7,700 10/01/31 (b)................ 2.85 7,700,000
California Pollution
Control Finance
Authority
(Shell Oil Co.)
AMT VRDN
6,700 12/01/24 (b)................ 3.00 6,700,000
California Pollution
Control Finance
Authority
(Shell Oil Co.)
Series '94 AMT
VRDN
10,900 10/01/24 (b)................ 3.00 10,900,000
California Pollution
Control Finance
Authority
(Taormina Industries,
Inc. Project)
Series '94A AMT
VRDN
3,160 8/01/14 (b)................. 3.35 3,160,000
California Pollution
Control Finance
Authority
(Western Waste Project)
Series '94A AMT
VRDN
1,400 10/01/06 (b)................ 3.95 1,400,000
California Pollution
Control Finance
Authority
(Zanker Road Landfill)
Series '99C AMT
VRDN
6,370 6/01/14 (b)................. 3.50 6,370,000
California Pollution
Control Finance
Authority
Res. Rec.: (Colmac
Energy Project)
Series '90A AMT
VRDN
13,300 12/01/16 (b)................ 3.35 13,300,000
California Pollution
Control Finance
Authority Solid Waste
(Atlas Disposal
Industries LLC)
Series '99A AMT
VRDN
2,400 5/01/19 (b)................. 3.80 2,400,000
California Pollution
Control Finance
Authority Solid Waste
(BLT Enterprises)
Series '99A AMT
VRDN
4,000 4/01/14 (b)................. 3.45 4,000,000
3
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------
California Pollution
Control Finance
Authority Solid Waste
(Browing Ferris
Industries)
Series A AMT VRDN
$ 10,000 9/01/19 (b)................. 3.20% $ 10,000,000
California School
Cash Reserve Program
Authority
Series '98A
10,000 7/02/99..................... 3.75 10,000,201
California School Cash
Reserve Program
Authority
Series '99A
15,000 7/03/00..................... 3.10 15,131,250
California Statewide
Community
Development Authority
(Aegis of Aptos Project)
Series '98Y AMT VRDN
5,000 6/01/33 (b)................. 3.30 5,000,000
California Statewide
Community
Development Authority
(Artefex Project)
Series '97E AMT
VRDN
2,475 7/01/17 (b)................. 4.40 2,475,000
California Statewide
Community
Development Authority
(Biocol Investments)
Series '97B AMT
VRDN
1,375 5/01/22 (b)................. 4.40 1,375,000
California Statewide
Community
Development Authority
(Chino Basin Municipal
Water Project)
Series '90 AMT VRDN
3,750 8/01/10 (b)................. 3.25 3,750,000
California Statewide
Community
Development Authority
(Contech Construction)
Series '89 AMT VRDN
1,200 5/01/09 (b)................. 3.35 1,200,000
California Statewide
Community
Development Authority
(Delaware Mesa Farms
Project)
Series '99A AMT
VRDN
2,500 5/01/19 (b)................. 3.65 2,500,000
California Statewide
Community
Development Authority
(Kennerly-Spratling
Project)
Series '95A AMT
VRDN
2,470 6/01/20 (b)................. 3.30 2,470,000
California Statewide
Community
Development Authority
(Lance Camper Project)
Series '94B AMT
VRDN
3,225 12/01/14 (b)................ 3.30 3,225,000
California Statewide
Community
Development Authority
(Lesaint Limited Partners)
Series '98B VRDN
2,660 3/01/18 (b)................. 3.35 2,660,000
California Statewide
Community
Development Authority
(Pacific Bearings Co.
Project)
Series '96L AMT
VRDN
2,050 10/01/06 (b)................ 4.40 2,050,000
California Statewide
Community
Development Authority
(Primary Color Project)
Series '97F AMT
VRDN
1,930 7/01/17 (b)................. 4.40 1,930,000
4
<PAGE>
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------
California Statewide
Community
Development Authority
(S.V.D.P. Management
Inc. Project)
VRDN
$ 5,000 2/01/28 (b)................. 3.30% $ 5,000,000
California Statewide
Community
Development Authority
(Tri-Valley Growers
Project)
Series '95E AMT
VRDN
5,500 12/01/10 (b)................ 3.25 5,500,000
California Statewide
Community
Development IDR
(Integrated Rolling Co.)
Series '99A AMT
VRDN
2,950 7/01/09 (b)................. 3.70 2,950,000
California Statewide
Economic
Development Authority
(Pioneer Converting Inc.)
AMT VRDN
1,850 4/01/16 (b)................. 3.40 1,850,000
Chula Vista IDR
(Sutherland/Palumbo
Project)
AMT VRDN
2,725 12/01/21 (b)................ 3.95 2,725,000
City of West Hollywood
Public Facilities Corp.
COP
Series '98 VRDN
3,340 2/01/25 (b)................. 3.85 3,340,000
Commerce Joint Powers
(Precision Wire
Productions)
AMT VRDN
2,265 11/01/14 (b)................ 3.40 2,265,000
Contra Costa COP
(Concord Healthcare
Center Inc.)
AMT VRDN
3,465 12/01/12 (b)................ 3.50 3,465,000
Contra Costa County
MFHR
(Park Regency Partners)
Series '92A AMT
VRDN
17,300 8/01/32 (b)................. 3.15 17,300,000
Fairfield IDA
(Aitchison Family
Partnership)
VRDN
3,500 4/01/12 (b)................. 3.40 3,500,000
Fillmore COP
(Water Systems Refing &
Capital Project)
Series '97 VRDN
7,345 5/01/29 (b)................. 3.45 7,345,000
Foothill/Eastern
Transportation
Authority
(California Toll Road
Revenue)
Series '95D VRDN
12,500 1/02/35 (b)................. 3.40 12,500,000
Foothill/Eastern
Transportation
Authority
(California Toll Road
Revenue)
Series B VRDN
5,100 1/02/35 (b)................. 3.35 5,100,000
Foothill/Eastern
Transportation
Authority
(California Toll Road
Revenue)
Series E VRDN
9,000 1/02/35 (b)................. 3.35 9,000,000
Hacienda LA Puente
Unified School District
COP
(Adult Education Facility
Financing Project)
VRDN
1,785 10/01/09 (b)................ 3.95 1,785,000
Indio Housing
Authority MFHR
(Olive Courts Apts.)
Series '96 AMT VRDN
500 12/01/26 (b)................ 3.55 500,000
5
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------
Indio Housing
Authority MFHR
(Smoketree Apts.)
Series A VRDN
$ 9,325 12/01/07 (b)................ 3.30% $ 9,325,000
Irvine Assessment
District
Series '85-7 VRDN
6,950 9/02/11 (b)................. 3.10 6,950,000
Los Angeles County
COP
(Belmont Learning
Complex)
Series '97A VRDN
1,450 12/01/17 (b)................ 3.00 1,450,000
Los Angeles County
Housing Authority
MFHR
(Canyon Country Villas)
Series '85H VRDN
15,000 12/01/07 (b)................ 3.35 15,000,000
Los Angeles County
Housing Authority
MFHR
(Diamond Park Apts.
Project)
Series '87A AMT
VRDN
14,200 2/01/09 (b)................. 3.35 14,200,000
Los Angeles County
Housing Authority
MFHR
(Valencia Village Project)
Series '84 VRDN
12,300 10/01/14 (b)................ 3.30 12,300,000
Los Angeles County
TRAN
10,100 6/30/00..................... 3.32 10,166,256
Los Angeles IDA
(Delta Tav Data
Systems Inc.)
Series '98 AMT VRDN
3,800 8/01/23 (b)................. 3.30 3,800,000
Mission Viejo
Community
Development Authority
(Mission Viejo Mall
Improvement)
Series '99A VRDN
10,000 9/01/28 (b)................. 3.20 10,000,000
Monrovia
Redevelopment Agency
(Holiday Inn Hotel
Project)
Series '84 VRDN
4,300 12/01/14 (b)................ 3.30 4,300,000
Northern California
Power Agency
(Geothermal Project)
Series B AMBAC
5,905 7/01/99..................... 3.57 5,905,000
Oceanside Housing
Authority MFHR
(Riverview Springs Apts.)
Series '90A AMT
VRDN
16,400 7/01/20 (b)................. 4.45 16,400,000
Panama-Buena Vista
(Unified School District
Capital Improvement
Financing Project)
VRDN
5,000 6/01/24 (b)................. 4.00 5,000,000
Petaluma Housing
Authority HFA MFHR
(Oakmont at Petaluma)
Series '96A AMT
VRDN
800 4/01/26 (b)................. 3.50 800,000
Pleasant Hill
Redevelopment
Agency MFHR
(Chateau III Project)
Series '96A AMT
VRDN
2,260 8/01/26 (b)................. 3.50 2,260,000
Redondo Beach
Redevelopment
Agency MFHR
(McCandless Housing
Project)
Series '95A VRDN
3,635 12/01/25 (b)................ 3.40 3,635,000
Riverside County IDR
(Advanced Business
Forms)
Series '89 AMT VRDN
1,400 4/05/14 (b)................. 3.70 1,400,000
6
<PAGE>
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------
Riverside County IDR
(Cryogenic Partners)
Series '89 AMT VRDN
$ 1,400 7/05/14 (b)................. 3.70% $ 1,400,000
Riverside County IDR
(Riverfront Cresteel
Project)
Series '89 AMT VRDN
2,550 4/01/09 (b)................. 3.70 2,550,000
Roseville County High
School District COP
(Northwest Roseville
Land Project)
Series '91 VRDN
2,935 8/01/06 (b)................. 4.05 2,935,000
Sacramento County
Airport Facility
(Cessna Aircraft Co.)
Series '98 AMT VRDN
3,700 11/01/28 (b)................ 3.55 3,700,000
Sacramento County
COP
(Administration Center &
Courthouse Project)
Series '90 VRDN
5,885 6/01/20 (b)................. 3.35 5,885,000
Sacramento County
HFA MFHR
(Grouse Run Apts.)
Series '90 VRDN
6,500 6/01/10 (b)................. 3.40 6,500,000
San Bernardino
Housing County HFA
MFHR
(Mountain View Apts.)
Series '97A VRDN
6,000 3/01/27 (b)................. 3.55 6,000,000
San Diego Area Local
Governments
(Pooled Transportation)
Series '99A
10,000 6/30/00..................... 3.15 10,082,100
San Diego HFA MFHR
(Paseo Point Apts.)
Series A VRDN
9,000 8/01/15 (b)................. 3.85 9,000,000
San Dimas Community
Redevelopment Agency
(San Dimas Commerce
Center)
Series '83 VRDN
110 12/01/13 (b)................ 3.20 110,000
San Jose HFA MFHR
(Timberwood Apts.)
VRDN
5,360 2/01/20 (b)................. 3.20 5,360,000
San Jose Redevelopment
Agency MFHR
(San Fernando Apts.)
Series '98A AMT
VRDN
8,000 12/01/28 (b)................ 3.35 8,000,000
San Luis Obispo
County TRAN
10,500 7/07/99..................... 3.56 10,501,149
Santa Clara County
Hospital Facilities
(Aces El Comino
Hospital District)
Series B VRDN
7,400 8/01/15 (b)................. 3.25 7,400,000
Santa Fe Springs IDR
(Metal Center Inc.
Project)
Series '89A AMT
VRDN
2,400 7/01/14 (b)................. 3.65 2,400,000
Simi Valley Housing
Authority MFHR
(Shadowridge Apts.)
Series '89 VRDN
5,000 9/01/19 (b)................. 3.40 5,000,000
South Coast Local
Education TRAN
Series '99 MBIA
10,000 6/30/00..................... 3.35 10,062,700
Upland Community
Redevelopment Agency
MFHR
(Northwoods 156)
Series A VRDN
5,800 3/01/14 (b)................. 3.15 5,800,000
7
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------
Upland Community
Redevelopment Agency
MFHR
(Northwoods 168)
Series B VRDN
$ 3,185 3/01/14 (b)................. 3.15% $ 3,185,000
------------
596,466,798
------------
PUERTO RICO-2.3%
Puerto Rico Government
Development Bank
Series '85 MBIA VRDN
7,000 12/01/15 (b)................ 3.00 7,000,000
Puerto Rico Highway &
Transportation
Series '98A AMBAC
VRDN
8,000 7/01/28 (b)................. 3.10 8,000,000
------------
15,000,000
------------
Total Municipal Bonds
(amortized cost
$611,466,798)............... 611,466,798
------------
COMMERCIAL PAPER-10.3%
CALIFORNIA-9.2%
Los Angeles County MTA
Capital Asset Lease
Revenue
16,650 7/16/99..................... 3.05 16,650,000
Los Angeles County
MTA
Sales Tax Revenue
Series A
5,300 7/20/99..................... 3.15 5,300,000
Northern California
Transmission Agency
Series B
32,600 7/15/99..................... 3.05 32,600,000
University of California
Board of Regents
Series A
6,000 9/09/99..................... 3.00 6,000,000
------------
60,550,000
------------
PUERTO RICO-1.1%
Puerto Rico Government
Development Bank
7,000 9/08/99..................... 3.10 7,000,000
------------
Total Commercial Paper
(amortized cost
$67,550,000)................ 67,550,000
------------
TOTAL INVESTMENTS-103.6%
(amortized cost
$679,016,798)............... 679,016,798
Other assets less
liabilities-(3.6%).......... (23,373,195)
------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
655,667,600 shares
outstanding)................ $655,643,603
============
- --------------------------------------------------------------------------------
(a) All securities either mature or their interest rate changes in 397 days or
less.
(b) 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:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
COP Certificate of Participation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
MTA Metro Transit Authority
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
8
<PAGE>
STATEMENT OF OPERATIONS
Year Ended June 30, 1999 Alliance Municipal Trust - California Portfolio
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest........................................................ $16,367,835
EXPENSES
Advisory fee (Note B)........................................... $2,590,077
Distribution assistance and administrative service (Note C)..... 2,058,125
Transfer agency (Note B)........................................ 178,709
Custodian fees.................................................. 106,738
Registration fees............................................... 52,535
Printing........................................................ 40,071
Audit and legal fees............................................ 19,564
Trustees' fees.................................................. 2,467
Miscellaneous................................................... 15,875
----------
Total expenses.................................................. 5,064,161
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS.......................... $11,303,674
===========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
9
<PAGE>
STATEMENT OF CHANGES
IN NET ASSETS Alliance Municipal Trust - California Portfolio
================================================================================
Year Ended Year Ended
June 30, 1999 June 30, 1998
------------- -------------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income......................... $ 11,303,674 $ 10,913,939
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income......................... (11,303,671) (10,913,939)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E)......................... 233,179,409 65,315,989
------------ ------------
Total increase................................ 233,179,412 65,315,989
NET ASSETS
Beginning of year............................. 422,464,191 357,148,202
------------ ------------
End of year................................... $655,643,603 $422,464,191
============ ============
- --------------------------------------------------------------------------------
See notes to financial statements.
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 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 an open-end investment company. The Fund operates as a series
company currently consisting of: 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 policy of the Portfolio to meet 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 any, to
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
year ended June 30, 1999, 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% on the first $1.25 billion of average daily net
assets; .49% on the next $.25 billion; .48% on the next $.25 billion; .47% on
the next $.25 billion; .46% on the next $1 billion; and .45% 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 year ended June 30, 1999.
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 $89,151 for the year ended June 30, 1999.
For the year ended June 30, 1999, the Fund's expenses were reduced by $1,002
under an expense offset arrangement with Alliance Fund Services.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - California Portfolio
================================================================================
NOTE C: Distribution Assistance and Administrative Services Plan
Under this Plan, the Portfolio pays Alliance Fund Distributors, Inc., (the
"Distributor"), a wholly-owned subsidiary of the Adviser, a distribution fee at
the annual rate of .25% of the average daily value of the Portfolio's net
assets. The Plan provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. For the year
ended June 30, 1999, the distribution fee amounted to $1,295,039. 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 year ended June 30, 1999, such payments by the Portfolio amounted to
$763,086, of which $95,000 was paid to the Adviser.
- --------------------------------------------------------------------------------
NOTE D: Investment Transactions
At June 30, 1999, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1999, the
Portfolio had a capital loss carryforward of $23,997, of which $6,132 expires in
2000, $13,804 expires in 2002, $3,239 expires in 2003 and $822 expires in the
year 2004.
- --------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At June 30, 1999,
capital paid-in aggregated $655,667,600. Transactions, all at $1.00 per share,
were as follows:
Year Ended Year Ended
June 30, June 30,
1999 1998
-------------- --------------
Shares sold.................................... 1,644,768,715 1,649,193,927
Shares issued on reinvestments of dividends.... 11,303,674 10,913,939
Shares redeemed................................ (1,422,892,980) (1,594,791,877)
-------------- --------------
Net increase................................... 233,179,409 65,315,989
============== ==============
12
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - California Portfolio
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Year
<TABLE>
<CAPTION>
Year Ended June 30,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income From Investment Operations
Net investment income ................................. .022 .027(a) .027(a) .029(a) .027(a)
-------- -------- -------- -------- --------
Less: Dividends
Dividends from net investment income .................. (.022) (.027) (.027) (.029) (.027)
-------- -------- -------- -------- --------
Net asset value, end of year .......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return
Total investment return based on net asset value (b) .. 2.20% 2.74% 2.76% 2.91% 2.78%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) ............... $655,644 $422,464 $357,148 $297,862 $236,479
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ....... .98% .96% .93% .93% .93%
Expenses, before waivers and reimbursements ....... .98% .97% .96% .94% 1.01%
Net investment income ............................. 2.18% 2.71%(a) 2.73%(a) 2.86%(a) 2.75%(a)
</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.
13
<PAGE>
INDEPENDENT AUDITOR'S REPORT Alliance Municipal Trust - California Portfolio
================================================================================
To the Board of Trustees and Shareholders
Alliance Municipal Trust - California Portfolio
We have audited the accompanying statement of net assets of the California
Portfolio of Alliance Municipal Trust as of June 30, 1999 and the related
statements of operations, changes in net assets, and financial highlights for
the periods indicated in the accompanying financial statements. These financial
statements and financial highlights are the responsibility of the Portfolio's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1999, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
California Portfolio of Alliance Municipal Trust as of June 30, 1999, and the
results of its operations, changes in its net assets, and its financial
highlights for the periods indicated, in conformity with generally accepted
accounting principles.
/s/ McGladrey & Pullen, LLP
McGladrey & Pullen, LLP
New York, New York
July 23, 1999
14
<PAGE>
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<PAGE>
---------------
BULK RATE
U.S. POSTAGE
PAID
New York, NY
Permit No. 7131
---------------
Alliance Municipal Trust - California Portfolio
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
Yields. For current recorded yield information on Alliance Municipal Trust, call
on a touch-tone telephone toll-free (800) 251-0539 and press the following
sequence of keys:
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1 # 1 # 3 0 #
- - - - - - - -
For non-touch-tone telephones, call toll-free (800) 221-9513
Alliance Capital [LOGO](R)
Distribution of this report other than to shareholders must be preceded or
accompanied by the Fund's current prospectus, which contains further information
about the Fund.
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
AMTCAAR699
