Alliance
Municipal
Trust
-Connecticut Portfolio
Alliance Capital [LOGO](R)
Annual Report
June 30, 1999
<PAGE>
STATEMENT OF NET ASSETS
June 30, 1999 Alliance Municipal Trust - Connecticut Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-96.6%
ARKANSAS-1.8%
Blytheville IDA
(Nucor Corp. Project)
Series '98 AMT VRDN
$ 2,500 6/01/28 (b) .......................... 3.55% $ 2,500,000
------------
CONNECTICUT-71.1%
Bridgeport GO
Series '96 A AMBAC
1,150 9/01/99 .............................. 2.85 1,154,629
Connecticut Development
Authority
(Central Vermont Public
Service)
Series '85 VRDN
1,000 12/01/15 (b) ......................... 3.05 1,000,000
Connecticut Development
Authority
(Exeter Energy Project)
Series '89C AMT VRDN
3,500 12/01/19 (b) ......................... 4.65 3,500,000
Connecticut Development
Authority
(Independent Living)
Series '90 VRDN
6,060 7/01/15 (b) .......................... 3.30 6,060,000
Connecticut Development
Authority
(Northeast Foods, Inc.)
Series '98 AMT VRDN
5,200 6/01/13 (b) .......................... 3.95 5,200,000
Connecticut Development
Authority
(Pierce Memorial Baptist
Home)
Series '99
1,000 10/01/28 ............................. 3.40 1,000,000
Connecticut Development
Authority
(Rand Whitney Project)
Series '93 AMT VRDN
6,000 8/01/23 (b) .......................... 3.35 6,000,000
Connecticut Development
Authority
(Regional YMCA Western
Connecticut)
Series '88 VRDN
901 6/01/08 (b) .......................... 4.10 901,000
Connecticut Development Authority
Res. Rec. (Exeter Energy Project)
Series '89B AMT VRDN
3,700 12/01/19 (b) ......................... 4.65 3,700,000
Connecticut Development
Authority
(Connecticut Light and
Power Co.)
Series '96A AMBAC
AMT VRDN
5,900 5/01/31 (b) .......................... 3.65 5,900,000
Connecticut GO
Series '90C
400 9/15/99 .............................. 2.85 403,248
Connecticut GO
Series '96B
1,250 8/15/99 .............................. 3.00 1,252,238
Connecticut GO
Series '96D
650 12/01/99 ............................. 3.30 651,185
Connecticut GO
Series '97
1,000 8/01/99 .............................. 2.80 1,001,852
Connecticut GO
Series '99A
3,000 6/15/00 .............................. 3.33 3,018,697
Connecticut HEFA
(Bradley Health Care)
Series '97B VRDN
5,600 7/01/29 (b) .......................... 3.25 5,600,000
Connecticut HEFA
(Charlotte Hungerford
Hospital)
Series '98C VRDN
1,425 7/01/13 (b) .......................... 3.40 1,425,000
Connecticut HEFA
(Jerome Home Project)
Series '97C VRDN
3,630 7/01/29 (b) .......................... 3.25 3,630,000
Connecticut HEFA
(Kingswood-Oxford
School Inc.)
Series '89 VRDN
1,050 2/01/09 (b) .......................... 3.50 1,050,000
Connecticut HEFA
(Pomfret School Issue)
Series '95A VRDN
1,000 7/01/24 (b) .......................... 3.30 1,000,000
1
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - Connecticut Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Connecticut HEFA
(St. Raphel Hospital)
Series '98J VRDN
$2,000 7/01/22 (b) .......................... 3.05% $ 2,000,000
Connecticut HEFA
(St. Raphel Hospital)
Series '98K VRDN
2,200 7/01/22 (b) .......................... 3.05 2,200,000
Connecticut HEFA
(St. Vincents' Hospital)
Series '99B VRDN
7,500 11/01/29 (b) ......................... 3.25 7,500,000
Connecticut HEFA
(Yale University)
Series '97T-1 VRDN
4,300 7/01/29 (b) .......................... 3.60 4,300,000
Connecticut Special
Assessment Unemployment
Compensation
Series '93C FGIC PPB
4,500 7/01/00 (b) .......................... 3.38 4,500,000
5,000 7/01/99 (b) .......................... 3.60 5,000,000
Connecticut Special
Assessment Unemployment
Compensation
Series '96-A AMBAC
1,750 11/15/99 ............................. 5.00 1,762,503
Connecticut Special Tax
Obligation
(2nd Lien Transportation
Infrastructure)
Series '90-1 VRDN
10,000 12/01/10 (b) ......................... 3.45 10,000,000
Connecticut Special Tax
Obligation
(Transport Infrastructure)
Series '89 Pre-refunded
1,000 7/01/99 .............................. 3.68 1,020,000
Connecticut Special Tax
Obligation
(Transport Infrastructure)
Series '92S
1,000 2/15/00 .............................. 3.15 1,014,932
Connecticut Special Tax
Obligation
(Transport Infrastructure)
Series '95 FGIC
1,000 10/01/99 ............................. 2.85 1,003,447
Connecticut Special Tax
Obligation
(Transportation
Infrastructure)
Series '89C
1,000 12/01/99 ............................. 3.00 1,014,747
East Hartford GO
Series '99 FGIC
1,080 1/15/00 .............................. 2.90 1,094,903
Hartford GO
Series '88
1,050 12/15/99 ............................. 2.90 1,068,843
New Haven GO
FGIC
1,000 2/01/00 .............................. 2.90 1,007,840
Norwalk GO
Series '99
1,000 7/12/00 .............................. 3.33 1,001,630
South Central Regional
Water Authority
12th Series FGIC
200 8/01/99 .............................. 3.25 200,171
Stafford GO BAN
Series '98
960 8/04/99 .............................. 3.73 960,051
Stamford GO
Series '85
1,000 12/15/99 ............................. 3.00 1,019,015
Thomaston GO
Series '98 FSA
800 9/15/99 .............................. 3.38 803,767
------------
101,919,698
------------
DELAWARE-3.1%
Delaware Economic
Development Authority IDR
(Delaware Clean Power
Project)
Series '97A AMT VRDN
4,500 8/01/29 (b) .......................... 3.55 4,500,000
------------
ILLINOIS-0.7%
St. Charles IDA
(Pier 1 Imports -
Midwest Project)
AMT VRDN
1,000 12/15/26 (b) ......................... 3.40 1,000,000
------------
2
<PAGE>
Alliance Municipal Trust - Connecticut Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
LOUISIANA-0.8%
Calcasieu Parish IDA
(Citgo Petroleum Corp.)
Series '96 AMT VRDN
$1,200 7/01/26 (b) .......................... 3.55% $ 1,200,000
------------
MASSACHUSETTS-1.1%
Massachusetts Development
Finance Authority
(S-N Bedding Co. Inc.)
Series '98B AMT VRDN
1,500 11/01/23 (b) ......................... 3.65 1,500,000
------------
OHIO-1.3%
Ohio Air Authority PCR
(JMG Funding Partnership)
Series '94B AMT VRDN
1,900 4/01/28 (b) .......................... 3.45 1,900,000
------------
PENNSYLVANIA-2.3%
Montgomery County
(PA Higher Education &
Health Loan)
Series '96A VRDN
3,345 8/01/21 (b) .......................... 3.60 3,345,000
------------
SOUTH CAROLINA-2.8%
Berkeley County IDA
(Nucor Corp. Project)
Series '97 AMT VRDN
1,000 4/01/30 (b) .......................... 3.55 1,000,000
3,000 4/01/31 (b) .......................... 3.55 3,000,000
------------
4,000,000
------------
TEXAS-8.5%
Brazos River Habor
Navigation District
(Dow Chemical Co.
Project)
Series '93 AMT VRDN
2,700 5/01/23 (b) .......................... 3.60 2,700,000
Brazos River Harbor
Navigation District
(Dow Chemical Co.
Project)
Series '92A AMT VRDN
1,100 12/01/18 (b) ......................... 3.60 1,100,000
Brazos River Harbor
Navigation District
(Dow Chemical Co.
Project)
Series '96 AMT VRDN
1,000 4/01/26 (b) .......................... 3.60 1,000,000
Brazos River Harbor
Navigation District
(Dow Chemical Project)
Series '98 AMT VRDN
400 3/01/28 (b) .......................... 3.60 400,000
Brazos River Port
Facility
(Harbor Navigation
District)
Series '98 AMT VRDN
2,000 9/01/18 (b) .......................... 3.55 2,000,000
Camp County IDA
(Pilgrims Pride Project)
Series '99 AMT VRDN
3,000 7/01/29 (b) .......................... 4.00 3,000,000
Grayson County IDA
(Aluminum Co. of
America)
VRDN
2,000 12/01/02 (b) ......................... 3.95 2,000,000
------------
12,200,000
------------
UTAH-3.1%
Utah HFA SFMR
Series '99-2 AMT VRDN
4,500 7/01/32 (b) .......................... 2.95 4,500,000
------------
Total Municipal Bonds
(amortized cost
$138,564,698) ........................ 138,564,698
------------
COMMERCIAL PAPER-8.4%
CONNECTICUT-8.4%
Connecticut HEFA
(Yale University)
Series S-2
3,000 8/11/99 .............................. 2.85 3,000,000
2,000 8/12/99 .............................. 3.00 2,000,000
3,000 9/10/99 .............................. 3.10 3,000,000
Connecticut Special
Assessment Injury Fund
Series '97
2,000 8/19/99 .............................. 2.60 2,000,000
2,000 7/15/99 .............................. 3.30 2,000,000
------------
12,000,000
------------
Total Commercial Paper
(amortized cost
$12,000,000) ......................... 12,000,000
------------
3
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - Connecticut Portfolio
================================================================================
Value
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS-105.0%
(amortized cost
$150,564,698)....... $150,564,698
Other assets less
liabilities -- (5.0%) (7,163,425)
------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
143,430,865 shares
outstanding)........ $143,401,273
============
- --------------------------------------------------------------------------------
(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
HEFA Health & Educational Facility Authority
AMT Alternative Minimum Tax
HFA Housing Finance Agency/Authority
BAN Bond Anticipation Note
IDA Industrial Development Authority
FSA Financial Security Assurance
IDR Industrial Development Revenue
FGIC Financial Guaranty Insurance Company
PCR Pollution Control Revenue
GO General Obligation
SFMR Single Family Mortgage Revenue
See notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS
Year Ended June 30, 1999 Alliance Municipal Trust - Connecticut Portfolio
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest .................................................. $4,928,840
EXPENSES
Advisory fee (Note B) ..................................... $ 765,763
Distribution assistance and administrative service (Note C) 682,550
Custodian fees ............................................ 74,298
Transfer agency (Note B) .................................. 64,657
Registration fees ......................................... 18,121
Printing .................................................. 15,405
Audit and legal fees ...................................... 14,207
Trustees' fees ............................................ 2,283
Miscellaneous ............................................. 8,912
----------
Total expenses ............................................ 1,646,196
Less: expense reimbursement ............................... (114,669)
----------
Net expenses .............................................. 1,531,527
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................... $3,397,313
==========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
5
<PAGE>
STATEMENT OF CHANGES
IN NET ASSETS Alliance Municipal Trust - Connecticut Portfolio
================================================================================
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 1999 June 30, 1998
-------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .............................. $ 3,397,313 $ 3,174,536
Net change in unrealized appreciation of investments -0- (932)
------------- -------------
Net increase in net assets from operations ......... 3,397,313 3,173,604
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income .............................. (3,397,313) (3,174,536)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) .............................. 19,294,307 21,495,926
------------- -------------
Total increase ..................................... 19,294,307 21,494,994
NET ASSETS
Beginning of year .................................. 124,106,966 102,611,972
------------- -------------
End of year ........................................ $ 143,401,273 $ 124,106,966
============= =============
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 Alliance Municipal Trust - Connecticut 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, Alliance Municipal Trust-Connecticut Portfolio (the
"Portfolio"), Alliance Municipal Trust-New Jersey Portfolio, Alliance Muncipal
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. For the year ended June 30,
1999, the reimbursement amounted to $114,669.
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 $31,120 for the year ended June 30, 1999.
For the year ended June 30, 1999, the Fund's expenses were reduced by $496 under
an expense offset arrangement with Alliance Fund Services.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - Connecticut 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 $382,882. In addition, the
Portfolio may reimburse certain broker-dealers for administrative costs in
curred in connection with providing share holder 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 Port folio amounted to
$299,668, of which $92,000 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 $29,592, of which $10,717 expires
in 2000, $16,849 expires in 2002 and $2,026 expires in the year 2004.
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At June 30, 1999,
capital paid-in aggregated $143,430,865. Transactions, all at $1.00 per share,
were as follows:
Year Ended Year Ended
June 30, June 30,
1999 1998
------------- ------------
Shares sold .................................... 489,172,712 433,663,681
Shares issued on reinvestments of dividends .... 3,397,313 3,174,536
Shares redeemed ................................ (473,275,718) (415,342,291)
------------ ------------
Net increase ................................... 19,294,307 21,495,926
============ ============
8
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - Connecticut 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 (a) ....................... .022 .027 .027 .028 .028
------------ ------------ ------------ ------------ ------------
Less: Dividends
Dividends from net investment income ............ (.022) (.027) (.027) (.028) (.028)
------------ ------------ ------------ ------------ ------------
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) ............................. 2.25% 2.75% 2.76% 2.88% 2.78%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) ......... $ 143,401 $ 124,107 $ 102,612 $ 95,812 $ 75,991
Ratios to average net assets of:
Expenses, net of waivers and reimbursements .. 1.00% .93% .80% .80% .80%
Expenses, before waivers and reimbursements .. 1.07% 1.06% 1.10% 1.15% 1.21%
Net investment income (a) .................... 2.22% 2.69% 2.72% 2.84% 2.77%
</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.
9
<PAGE>
INDEPENDENT AUDITOR'S REPORT Alliance Municipal Trust - Connecticut Portfolio
================================================================================
To the Board of Trustees and Shareholders
Alliance Municipal Trust - Connecticut Portfolio
We have audited the accompanying statement of net assets of the Connecticut
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
Connecticut 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
10
<PAGE>
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<PAGE>
---------------
BULK RATE
U.S. POSTAGE
PAID
New York, NY
Permit No. 7131
---------------
Alliance Municipal Trust - Connecticut 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 # 2 8 #
- - - - - - - -
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.
AMTCTAR699
