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Alliance
Municipal
Trust
- -New York 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 - New York Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-82.4%
NEW YORK-82.4%
Albany IDA
(Davies Office
Refurbishing Inc.)
Series '95 AMT VRDN
$ 2,310 9/01/15 (b)............. 3.45% $ 2,310,000
Albany IDA
(Davies Office
Refurbishing Inc.)
Series '97 AMT VRDN
1,265 2/01/17 (b)............. 3.45 1,265,000
Albany IDA
(Institute of History & Art)
Series '99A VRDN
2,130 6/01/04 (b)............. 3.35 2,130,000
Albany IDA
(United Cerebal Palsy)
Series '97B VRDN
12,775 12/01/19 (b)............ 3.35 12,775,000
Chautauqua Lake
Central School District
BAN
Series '99
10,000 2/18/00................. 3.03 10,013,539
Duanesburg Central
School District BAN
5,795 6/15/00................. 3.19 5,811,625
Dutchess County IDA
(Samuel F.B. Morse
Historic)
Series '99 VRDN
4,000 2/01/29 (b)............. 3.55 4,000,000
Erie County RAN
Series '98
15,500 10/13/99................ 3.21 15,531,216
Goshen Central School
District BAN
Series '99
9,550 6/22/00................. 3.30 9,581,485
New York City GO
Series '92D VRDN
FGIC
19,800 2/01/20 (b)............. 3.30 19,800,000
New York City GO
Series '95F-3 VRDN
3,000 2/15/13 (b)............. 3.30 3,000,000
New York City GO
Series F-2 VRDN
8,050 2/15/12 (b)............. 3.25 8,050,000
New York City Health &
Hospital Corp.
(Health System)
Series '97A VRDN
13,955 2/15/26 (b)............. 3.30 13,955,000
New York City Housing
Development Corp.
(Related Broadway)
Series '98 AMT VRDN
24,500 12/01/31 (b)............ 3.30 24,500,000
New York City Housing
Development Corp.
MFHR
(2nd Avenue Project)
Series '98A AMT VRDN
3,800 9/01/30 (b)............. 3.30 3,800,000
New York City Housing
Development Corp.
MFHR
(Crotona Avenue Project)
Series '98A AMT VRDN
2,100 9/01/30 (b)............. 3.30 2,100,000
New York City IDA
(American Civil Liberties
Union)
Series '97 VRDN
917 6/01/12 (b)............. 3.35 917,000
New York City IDA
(Korean Airlines Co.)
Series '97A AMT VRDN
13,800 11/01/24 (b)............ 3.30 13,800,000
New York City IDA
(Korean Airlines Co.)
Series '97B AMT VRDN
2,000 11/01/24 (b)............ 3.35 2,000,000
New York City
Transitional Finance
Authority
(Future Tax Secured)
Series '98 A-1 VRDN
10,000 11/15/26 (b)............ 3.50 10,000,000
8,000 11/15/28 (b)............ 3.50 8,000,000
New York City
Transitional Finance
Authority
(Future Tax Secured)
Series '98 A-2 VRDN
7,900 11/15/21 (b)............ 3.35 7,900,000
1
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - New York Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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New York City
Transitional Finance
Authority
(Future Tax Secured)
Series '99 B-3 VRDN
$ 9,500 11/01/28 (b)............ 3.50% $ 9,500,000
New York State
Dormitory Authority
(Memorial
Sloan-Kettering)
Series '96 VRDN
8,800 7/01/26 (b)............. 3.40 8,800,000
New York State
Dormitory Authority
(NY Foundling
Charitable)
VRDN
3,585 7/01/12 (b)............. 3.15 3,585,000
New York State ERDA
(Central Hudson Gas &
Electric)
Series '87A AMT VRDN
4,400 6/01/27 (b)............. 3.65 4,400,000
New York State ERDA
(Niagara Mohawk Corp.)
VRDN AMT
4,300 7/01/27 (b)............. 3.55 4,300,000
New York State ERDA
(Niagara Mohawk Power
Corp.)
Series '85C VRDN
2,000 12/01/25 (b)............ 3.45 2,000,000
New York State ERDA
(RG&E)
Series '97B VRDN
MBIA
7,130 8/01/32 (b)............. 3.40 7,130,000
New York State GO
Series '98D
4,085 7/15/99................. 3.63 4,085,754
New York State HFA
(101 West End Avenue
Project)
Series '98A AMT VRDN
13,000 11/01/31 (b)............ 3.30 13,000,000
New York State HFA
(101 West End Avenue
Project)
Series '99A AMT VRDN
25,350 11/01/31 (b)............ 3.30 25,350,000
New York State HFA
(250 West 50th Street)
Series '97A AMT VRDN
6,200 5/01/30 (b)............. 3.35 6,200,000
New York State HFA
(345 East 94th Street
Housing)
Series '98A AMT VRDN
8,700 11/01/31 (b)............ 3.30 8,700,000
New York State HFA
(345 East 94th Street
Housing)
Series '99A AMT VRDN
4,300 11/01/31 (b)............ 3.30 4,300,000
New York State HFA
(East 84th Street)
Series '95A AMT VRDN
10,500 11/01/28 (b)............ 3.30 10,500,000
New York State HFA
(Mount Sinai Medical
School)
Series '84A VRDN
3,700 11/01/14 (b)............ 3.50 3,700,000
New York State HFA
(Saxony Apartments)
Series '97A AMT VRDN
33,700 11/01/30 (b)............ 3.30 33,700,000
New York State HFA
(South Cove Plaza)
Series '99A AMT VRDN
10,000 11/01/30 (b)............ 3.45 10,000,000
New York State Medical
Care Facilities
(North General Hospital)
Series '89 pre-refunded
28,000 8/15/99................. 3.08 28,703,662
Niagara County IDA
(American Ref-Fuel)
Series '94A VRDN
19,310 11/15/24 (b)............ 3.40 19,310,000
Niagara County IDA
(American Ref-Fuel)
Series '94C AMT VRDN
18,200 11/15/24 (b)............ 3.35 18,200,000
Niagara County IDA
(American Ref-Fuel)
Series '96D AMT VRDN
3,100 11/15/26 (b)............ 3.35 3,100,000
2
<PAGE>
Alliance Municipal Trust - New York Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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Niagara County IDA
(Pyron Corp. Project)
Series '89 AMT VRDN
$ 1,670 11/01/04 (b)............ 3.45% $ 1,670,000
Oneida County IDA
(Champion Home
Builders Co.)
Series '99 VRDN
6,820 6/01/29 (b)............. 3.75 6,820,000
Ontario County IDA
(Ultrafab Inc.)
Series '95AMT VRDN
2,000 12/01/15 (b)............ 3.60 2,000,000
Port Authority of New
York & New Jersey
(Versatile Structure OB-6)
AMT VRDN
6,500 12/01/17 (b)............ 3.65 6,500,000
Port Authority of New
York & New Jersey
(Versatile Structure)
AMT VRDN
6,300 4/01/24 (b)............. 3.65 6,300,000
Port Authority of New
York & New Jersey
(Versatile Structure)
Series '94-2 VRDN
2,100 5/01/19 (b)............. 3.60 2,100,000
Rensselaer County IDA
(Rensselaer Polytechnic
Institute Project)
Series '97A VRDN
4,325 2/01/22 (b)............. 3.40 4,325,000
Saint Lawrence County
IDA
(Alcoa)
Series '99B VRDN
2,500 1/01/22 (b)............. 3.62 2,500,000
Southeast IDA
(The Rawplug Project)
Series '96 AMT VRDN
2,100 5/01/21 (b)............. 3.65 2,100,000
Suffolk County IDA
(ADP Inc. Project)
Series '97 VRDN
3,785 4/01/18 (b)............. 3.70 3,785,000
Suffolk County TAN
Series '99-1
20,000 8/12/99................. 2.92 20,013,355
Westchester County IDA
(Music Conservatory of
Westchester)
Series '99 VRDN
3,500 7/01/29 (b)............. 3.55 3,500,000
Westchester County IDA
(Rye Country Day School)
Series '99 VRDN
5,000 5/01/04 (b)............. 3.55 5,000,000
4,800 5/01/29 (b)............. 3.55 4,800,000
------------
Total Municipal Bonds
(amortized cost
$481,217,636)........... 481,217,636
------------
COMMERCIAL PAPER-16.6%
NEW YORK-15.2%
Long Island Power
Authority
(Electric System Revenue)
Series '98
10,000 8/19/99................. 3.10 10,000,000
9,500 9/15/99................. 3.10 9,500,000
8,000 9/15/99................. 3.15 8,000,000
Metropolitan Transit
Authority BAN
(Transit Facility Special
Obligation)
Series CP-1A
7,500 8/10/99................. 3.05 7,500,000
10,000 9/07/99................. 3.05 10,000,000
7,000 9/10/99................. 3.15 7,000,000
New York City Municipal
Water Authority
Series 3
6,700 9/09/99................. 3.10 6,700,000
5,500 8/19/99................. 3.15 5,500,000
New York City Municipal
Water Authority
Series 5
4,000 8/26/99................. 3.15 4,000,000
3
<PAGE>
STATEMENT OF NET ASSETS Alliance Municipal Trust - New York Portfolio
(continued)
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
New York State GO
(Environmental
Quality 86)
Series '97A
$ 9,350 8/17/99................. 3.10% $ 9,350,000
New York State Power
Authority
Series 4
11,100 9/09/99................. 3.10 11,100,000
------------
88,650,000
------------
PUERTO RICO-1.4%
Puerto Rico Government
Development Bank
8,387 9/08/99................. 3.10 8,387,000
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Total Commercial Paper
(amortized cost
$97,037,000)............ 97,037,000
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TOTAL INVESTMENTS-99.0%
(amortized cost
$578,254,636)........... $578,254,636
Other assets less
liabilities-1.0%........ 5,976,031
------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
584,294,613 shares
outstanding)............ $584,230,667
============
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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:
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
ERDA Energy Research & Development Authority
FGIC Financial Guaranty Insurance Company
GO General Obligation
HFA Housing Financing Agency/Authority
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
RAN Revenue Anticipation Note
TAN Tax Anticipation Note
See notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS
Year Ended June 30, 1999 Alliance Municipal Trust - New York Portfolio
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest .................................................. $18,334,970
EXPENSES
Advisory fee (Note B) ..................................... $ 2,858,296
Distribution assistance and administrative service (Note C) 2,296,722
Transfer agency (Note B) .................................. 470,134
Custodian fees ............................................ 127,805
Printing .................................................. 98,216
Registration fees ......................................... 58,067
Audit and legal fees ...................................... 15,788
Trustees' fees ............................................ 2,648
Miscellaneous ............................................. 16,518
-----------
Total expenses ............................................ 5,944,194
Less: expense reimbursement ............................... (227,602)
-----------
Net expenses .............................................. 5,716,592
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................... $12,618,378
===========
</TABLE>
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See notes to financial statements.
5
<PAGE>
STATEMENT OF CHANGES
In Net Assets Alliance Municipal Trust - New York Portfolio
================================================================================
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 1999 June 30,1998
------------- -------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income .................... $ 12,618,378 $ 12,056,052
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income .................... (12,618,378) (12,056,052)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) .................... 63,669,113 165,101,028
------------- -------------
Total increase ........................... 63,669,113 165,101,028
NET ASSETS
Beginning of year ........................ 520,561,554 355,460,526
------------- -------------
End of year .............................. $ 584,230,667 $ 520,561,554
============= =============
</TABLE>
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See notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 Alliance Municipal Trust - New York 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 (the "Portfolio"), Alliance
Municipal Trust-California Portfolio, Alliance Munici pal Trust-Con necticut
Port folio, Alliance Municipal Trust-New Jersey Portfolio, Alliance Municipal
Trust-Virginia Portfolio, Alliance Municipal Trust-Florida Portfolio and
Alliance Munic ipal 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
gen erally 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 require ments 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 in vestment 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.
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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 expens es
(excluding taxes, brokerage, interest and, where permitted, extraordinary ex
penses) exceed 1% of its average daily net assets for any fiscal year. For the
year ended June 30, 1999, the reimbursement amounted to $227,602.
The Portfolio compensates Alliance Fund Services, Inc., a wholly-owned
subsidiary of the Adviser, under a Transfer Agency Agreement for provid ing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amount ed to $259,568 for the year ended June 30, 1999.
For the year ended June 30, 1999, the Fund's expenses were reduced by $4,295
under an expense offset arrangement with Alliance Fund Services.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - New York 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 $1,429,148. In addition,
the Portfolio may reimburse certain broker-dealers for admini strative costs
incurred in connection with providing sharehold er services, and may reimburse
the Adviser for accounting and book keeping, and legal and compli ance support.
For the year ended June 30, 1999, such payments by the Portfolio amounted to
$867,574 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 $20,548, of which $7,459 expires in
2002 and $13,089 expires in the year 2003.
- --------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At June 30, 1999,
capital paid-in aggregated $584,251,215. Transactions, all at $1.00 per share,
were as follows:
Year Ended Year Ended
June 30, June 30,
1999 1998
-------------- --------------
Shares sold ................................ 1,417,305,305 1,778,864,407
Shares issued on reinvestments of dividends 12,618,378 12,056,052
Shares redeemed ............................ (1,366,254,570) (1,625,819,431)
-------------- --------------
Net increase ............................... 63,669,113 165,101,028
============== ==============
8
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - New York 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) . 2.24% 2.74% 2.77% 2.87% 2.84%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) .............. $ 584,231 $ 520,562 $ 355,461 $ 330,984 $ 177,254
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ....... 1.00% .93% .85% .85% .85%
Expenses, before waivers and reimbursements ....... 1.04% 1.01% 1.04% 1.03% 1.03%
Net investment income (a) ......................... 2.21% 2.69% 2.73% 2.82% 2.81%
</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 - New York Portfolio
================================================================================
To the Board of Trustees and Shareholders
Alliance Municipal Trust - New York Portfolio
We have audited the accompanying statement of net assets of the New York
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
New York 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 - New York 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 # 4 9 #
- - - - - - - -
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.
AMTNYAR699
