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Alliance
Municipal
Trust
- -Massachusetts Portfolio
Alliance Capital [LOGO](R)
Annual Report
June 30, 1999
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<PAGE>
STATEMENT OF NET ASSETS
June 30, 1999 Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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MUNICIPAL BONDS-97.7%
ARKANSAS-2.0%
Blytheville IDA
(Nucor Corp. Project)
Series '98 AMT VRDN
$ 1,000 6/01/28 (b)......... 3.55% $ 1,000,000
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DELAWARE-5.1%
Delaware IDA
(Delmarva Power &
Light Co.)
Series '87A
AMT VRDN
500 10/01/17 (b)........ 4.00 500,000
Delaware IDA
(Delmarva Power &
Light Co.)
Series '88 AMT VRDN
2,100 10/01/17 (b)........ 4.00 2,100,000
-----------
2,600,000
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FLORIDA-4.9%
Orange County HFA
MFHR
(Smokewood/Sunkey
Apartments)
Series '92A VRDN
2,500 12/01/22 (b)........ 3.75 2,500,000
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ILLINOIS-2.9%
Rock Island
Metropolitan Airport
(Elliot Aviation Project)
Series '98 AMT VRDN
1,500 12/01/18 (b)........ 3.70 1,500,000
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MASSACHUSETTS-71.0%
Andover GO
Series '98
800 12/15/99............ 3.13 811,334
Beverly GO
Series '99 AMBAC
627 9/01/99............. 3.00 630,121
Chatham GO
Series '98 FGIC
875 7/15/99............. 3.77 875,890
Clinton GO
Series '99 AMBAC
950 3/15/00............. 3.21 968,295
Harwich GO
Series '98 FSA
450 10/15/99............ 3.21 452,933
Haverhill GO
FGIC
925 6/01/00............. 3.23 957,882
Marshfield GO
MBIA
430 5/01/00............. 3.50 438,726
Massachusetts GO
Series '90 FGIC
pre-refunded
1,000 3/01/00............. 3.00 1,047,439
Massachusetts Health &
Education Facility
(Brigham & Women's
Hospital)
Series '85A VRDN
1,990 7/01/17 (b)......... 3.40 1,990,000
Massachusetts Health &
Education Facility
(Capital Asset Program)
VRDN
1,700 1/01/01 (b)......... 3.20 1,700,000
Massachusetts Health &
Education Facility
(Harvard Pilgrim Health)
Series '98A FSA
1,500 7/01/99 (b)......... 3.15 1,500,000
Massachusetts Health &
Education Facility
(Harvard University)
Series '96 Q-1 VRDN
1,000 9/01/40 (b)......... 3.70 1,000,000
Massachusetts Health &
Education Facility
(Harvard University)
Series Q-2 VRDN
400 9/01/40 (b)......... 3.70 400,000
Massachusetts IDA
(Goddard House Project)
Series '95 VRDN
1,900 11/01/25 (b)........ 3.55 1,900,000
Massachusetts IFA
(346 University LLC)
Series '96 AMT VRDN
400 3/01/16 (b)......... 3.65 400,000
Massachusetts IFA
(ADP Inc. Project)
Series '97 VRDN
1,000 12/01/19 (b)........ 3.70 1,000,000
1
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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Massachusetts IFA
(America Tech)
Series '97 AMT VRDN
$ 500 8/01/22 (b)......... 3.65% $ 500,000
Massachusetts IFA
(Berkshire Project)
Series '90 VRDN
3,400 9/01/20 (b)......... 3.50 3,400,000
Massachusetts IFA
(Carand Realty Trust)
AMT VRDN
825 5/01/17 (b)......... 3.60 825,000
Massachusetts IFA
(Gordon College Project)
Series '97 VRDN
1,100 12/01/27 (b)........ 3.50 1,100,000
Massachusetts IFA
(ICC Realty Project)
Series '97 AMT VRDN
1,800 12/01/16 (b)........ 3.65 1,800,000
Massachusetts IFA
(Lasell Village)
Series '98C VRDN
1,500 12/01/08 (b)........ 3.35 1,500,000
Massachusetts IFA
(Mount Ida College
Project)
Series '97 AMT VRDN
1,470 12/01/27 (b)........ 3.50 1,470,000
Massachusetts IFA
(Newbury College
Project)
Series '96 VRDN
10 6/01/21 (b)......... 3.45 10,000
Massachusetts IFA
(Prevention of Cruelty
to Animals)
Series '97 VRDN
300 8/01/27 (b)......... 3.50 300,000
Massachusetts IFA
(Showa Womens
Institute, Inc.)
Series '94 VRDN
900 3/15/04 (b)......... 3.50 900,000
Massachusetts IFA
(Tamasi Family
Development)
VRDN
900 5/01/13 (b)......... 3.60 900,000
Massachusetts IFA
(Techprint Issue)
Series '97 AMT VRDN
842 6/01/17 (b)......... 3.65 842,000
Massachusetts IFA IDA
(JPF Realty)
Series '98 AMT VRDN
2,200 4/01/19 (b)......... 3.65 2,200,000
Massachusetts IFA PCR
(Holyoke Water &
Power Co.)
Series '90 AMT VRDN
1,000 12/01/20 (b)........ 3.30 1,000,000
Sudbury GO
Series '99
445 9/15/99............. 3.30 445,950
Triton School District
Series '99 FGIC
782 4/01/00............. 3.21 800,922
Watertown GO
Series '98 MBIA
890 10/15/99............ 3.00 896,063
Westfield GO
Series '98
873 8/01/99............. 3.77 874,607
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35,837,162
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OHIO-2.0%
Ohio Air Quality
Development Authority
(JMG Funding Partnership)
Series '94B
AMT VRDN
1,000 4/01/28 (b)......... 3.45 1,000,000
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OREGON-2.2%
Oregon Economic
Development Authority
(Kyotaru Oregon Project)
Series '89 AMT VRDN
1,100 12/01/99 (b)........ 4.08 1,100,000
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PUERTO RICO-2.0%
Puerto Rico Industrial,
Medical, Higher
Education &
Environment
(Ana G. Mendez Educ.
Foundation Project)
VRDN
1,000 12/01/15 (b)........ 3.20 1,000,000
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2
<PAGE>
Alliance Municipal Trust - Massachusetts Portfolio
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Principal
Amount
(000) Security(a) Yield Value
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SOUTH CAROLINA-1.0%
Berkeley County IDA
(Nucor Corp. Project)
Series '97 AMT VRDN
$ 500 4/01/30 (b)......... 3.55% $ 500,000
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TEXAS-1.6%
Brazos River Texas
Harbor Navigation
District
(Dow Chemicals Co.
Project)
Series '96 AMT VRDN
800 4/01/26 (b)......... 3.60 800,000
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UTAH-3.0%
Utah HFA SFMR
Series '99-2 VRDN
1,500 7/01/32 (b)......... 2.95 1,500,000
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Total Municipal Bonds
(amortized cost
$49,337,162)........ 49,337,162
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COMMERCIAL PAPER-2.0%
MASSACHUSETTS-2.0%
Massachusetts Port
Authority
Series '96
9/09/99
(amortized cost
1,000 $1,000,000)......... 3.20 1,000,000
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TOTAL INVESTMENTS-99.7%
(amortized cost
$50,337,162)........ 50,337,162
Other assets less
liabilities-0.3%.... 142,923
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NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
50,480,085 shares
outstanding)........ $50,480,085
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(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
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance
GO General Obligation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IFA Industrial Finance Authority
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
See notes to financial statements.
3
<PAGE>
STATEMENT OF OPERATIONS
Year Ended June 30, 1999 Alliance Municipal Trust - Massachusetts Portfolio
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<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest............................................................. $ 1,293,749
EXPENSES
Advisory fee (Note B)................................................ $ 198,463
Distribution assistance and administrative service (Note C).......... 245,232
Custodian fees....................................................... 68,735
Transfer agency (Note B)............................................. 27,212
Audit and legal fees................................................. 13,155
Printing............................................................. 11,914
Registration fees.................................................... 11,808
Trustees' fees....................................................... 2,159
Amortization of organization expense................................. 1,858
Miscellaneous........................................................ 4,437
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Total expenses....................................................... 584,973
Less: expense reimbursement.......................................... (188,046)
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Net expenses......................................................... 396,927
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NET INCREASE IN NET ASSETS FROM OPERATIONS.............................. $ 896,822
==============
</TABLE>
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See notes to financial statements.
4
<PAGE>
STATEMENT OF CHANGES
In Net Assets Alliance Municipal Trust - Massachusetts Portfolio
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<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 1999 June 30, 1998
-------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income................................................ $ 896,822 $ 707,293
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................ (896,822) (707,293)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E)................................................ 22,647,685 12,786,301
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Total increase....................................................... 22,647,685 12,786,301
NET ASSETS
Beginning of year.................................................... 27,832,400 15,046,099
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End of year.......................................................... $ 50,480,085 $ 27,832,400
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</TABLE>
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See notes to financial statements.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 Alliance Municipal Trust - Massachusetts Portfolio
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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, 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 (the "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. Organization Expenses
The organization expenses of the Portfolio are being amortized against income on
a straight-line basis through July, 2002.
3. 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 its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. 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.
5. 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.
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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. For the
year ended June 30, 1999, the reimbursement amounted to $188,046.
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 $18,000 for the year ended June 30, 1999.
For the year ended June 30, 1999, the Fund's expenses were reduced by $127 under
an expense offset arrangement with Alliance Fund Services.
6
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Alliance Municipal Trust - Massachusetts Portfolio
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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 $99,232. 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 $146,000, of
which $92,000 was paid to the Adviser.
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NOTE D: Investment Transactions
At June 30, 1999, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes.
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NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At June 30, 1999,
capital paid-in aggregated $50,480,085. Transactions, all at $1.00 per share,
were as follows:
Year Ended Year Ended
June 30, June 30,
1999 1998
------------ ------------
Shares sold .................................... 157,532,699 134,199,946
Shares issued on reinvestments of dividends .... 896,822 707,293
Shares redeemed ................................ (135,781,836) (122,120,938)
------------ ------------
Net increase ................................... 22,647,685 12,786,301
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7
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - Massachusetts Portfolio
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Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Year Ended June 30, April 17, 1997(a)
------------------------------ through
1999 1998 June 30, 1997
----------- ----------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ............... $ 1.00 $ 1.00 $ 1.00
----------- ----------- -----------
Income From Investment Operations
Net investment income (b) .......................... .023 .028 .007
----------- ----------- -----------
Less: Dividends
Dividends from net investment income ............... (.023) (.028) (.007)
----------- ----------- -----------
Net asset value, end of period ..................... $ 1.00 $ 1.00 $ 1.00
=========== =========== ===========
Total Return
Total investment return based on net asset value (c) 2.31% 2.83% 0.72%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $ 50,480 $ 27,832 $ 15,046
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ..... 1.00% .85% .50%(d)
Expenses, before waivers and reimbursements ..... 1.47% 1.37% 2.99%(d)
Net investment income (b) ....................... 2.26% 2.80% 3.47%(d)
</TABLE>
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(a) Commencement of operations.
(b) Net of expenses reimbursed or waived by the Adviser.
(c) 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. Total investment return
calculated for a period less than one year is not annualized.
(d) Annualized.
8
<PAGE>
INDEPENDENT AUDITOR'S REPORT Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
To the Board of Trustees and Shareholders
Alliance Municipal Trust - Massachusetts Portfolio
We have audited the accompanying statement of net assets of the Massachusetts
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.
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
Massachusetts 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
9
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BULK RATE
U.S. POSTAGE
PAID
New York, NY
Permit No. 7131
-----------------
Alliance Municipal Trust - Massachusetts 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:
1 # 1 # 1 5 #
For non-touch-tone telephones, call toll-free (800) 221-9513
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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.
AMTMAAR699
