Alliance
Municipal
Trust
- -Virginia Portfolio
Alliance Capital [LOGO](R)
Semi-Annual Report
December 31, 1999
(unaudited)
<PAGE>
STATEMENT OF NET ASSETS
December 31, 1999 (unaudited) Alliance Municipal Trust - Virginia Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-96.1%
VIRGINIA-96.1%
Alexandria IDA
Educational Facility
Revenue
(Church School Diocese
of Virginia)
Series 99 VRDN
$ 3,000 1/01/30 (b)................. 5.55% $ 3,000,000
Amelia County IDA
(Chambers Waste
Systems, Inc.)
AMT VRDN
4,990 7/01/07 (b)................. 5.45 4,990,000
Arlington County
(Ballston Public Parking
Facility Project)
Series 84 VRDN
5,100 8/01/17 (b)................. 5.15 5,100,000
Arlington County IDA
(Arna Valley View
Apartments Project)
Series 99 AMT PPB
2,500 8/01/32 (b)................. 3.60 2,500,000
Botetourt County IDA
(Emkay Holdings L.L.C.
Project)
Series 95 AMT VRDN
4,837 10/01/05 (b)................ 5.50 4,836,500
Botetourt County IDA
(Virginia Forge Co.
Project)
Series 96 AMT VRDN
900 7/01/11 (b)................. 5.55 900,000
Bristol IDA
(Bristol Health Care
Center)
Series 86 VRDN
2,025 6/01/10 (b)................. 4.20 2,025,000
Campbell County PCR
(Georgia Pacific Power)
AMT VRDN
3,000 12/01/19 (b)................ 5.65 3,000,000
Capital Region
Airport Commission
Revenue
(Passenger Facility)
Series B VRDN
6,000 6/01/29 (b)................. 5.40 6,000,000
Charlottesville IDA
(Martha Jefferson
Hospital Revenue)
Pre-Refunded
1,000 10/01/00.................... 3.80 1,045,271
Chesterfield County
IDA
(Philip Morris Co.)
VRDN
6,000 4/01/09 (b)................. 5.65 6,000,000
Chesterfield County
IDR SWDR
(Allied Signal Inc.)
Series 99 AMT VRDN
2,500 7/01/11 (b)................. 5.55 2,500,000
Emporia IDA
(Tollua III L.P. Project)
Series 99 AMT VRDN
2,000 11/01/23 (b)................ 5.50 2,000,000
Fairfax County GO
(Public Improvement)
Series A
2,500 6/01/00..................... 3.71 2,532,994
Fairfax County GO
Series A
2,000 6/01/00..................... 3.63 2,008,540
Hampton
Redevelopment HFA
(Township Apartments
Project)
Series 98 VRDN
3,300 2/01/28 (b)................. 5.30 3,300,000
Henrico County
Health Facility
Revenue
(Hermitage)
Series 98 VRDN
3,455 8/01/23 (b)................. 5.40 3,455,000
Henry County IDA
(Amfibe, Inc. Project)
Series 98 AMT VRDN
965 1/01/13 (b)................. 5.50 965,000
James City IDR
(Greystone of Virginia,
Inc.)
Series 98 AMT VRDN
5,850 9/01/08 (b)................. 5.75 5,850,000
1
<PAGE>
Alliance Municipal Trust -
STATEMENT OF NET ASSETS (continued) Virginia Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
King George County
IDA
(Garnet of VA, Inc.)
Series 96 AMT VRDN
$ 5,300 9/01/21 (b)................. 5.50% $ 5,300,000
Loudoun County IDA
(Falcons Landing Project)
Series 98 VRDN
7,445 11/01/28 (b)................ 5.20 7,445,000
Loudown County IDA
(Kinder-Care
Learning Centers)
Series A VRDN
394 6/01/02 (b)................. 5.50 394,000
Louisa County IDA
Series 95 VRDN
1,625 1/01/20 (b)................. 5.40 1,625,000
Nelson County IDA
(Taylor Ramsey Corp.)
Series 99 AMT VRDN
1,000 8/01/09 (b)................. 5.50 1,000,000
Newport News MFHR
(Jefferson Point
Development)
Series 98 VRDN
5,200 11/01/11 (b)................ 5.45 5,200,000
Norfolk GO
Series 94
3,000 6/01/00..................... 3.65 3,010,121
Norfolk IDA
(Ballentine Home Corp.)
Series 99 VRDN
5,625 12/01/24 (b)................ 5.45 5,625,000
Norfolk IDA
(Children Hospital of
King's Daughter
Project)
Series 99 VRDN
5,000 6/01/20 (b)................. 5.40 5,000,000
Portsmouth GO
FGIC Series 96
1,000 8/01/00..................... 3.55 1,008,109
Portsmouth IDA
(Fairwood Homes
Project)
Series A VRDN
3,000 11/01/27 (b)................ 5.35 3,000,000
Richmond GO
(Equipment Notes)
1,420 5/15/00..................... 3.30 1,426,040
Richmond
Redevelopment MFHR
(Tobacco Row)
Series 89B-2
AMT VRDN
1,000 10/01/24 (b)................ 6.00 1,000,000
Richmond
Redevelopment MFHR
(Tobacco Row)
Series 89B-8
AMT VRDN
3,555 10/01/24 (b)................ 6.00 3,555,000
Smythe County IDA
(Summit Products
Project)
AMT VRDN
700 3/01/06 (b)................. 5.70 700,000
Virginia Beach
Development Authority
(Kinder-Care
Learning Centers)
Series D VRDN
866 10/01/00 (b)................ 5.50 866,000
Virginia HDA SFMR
(Commonwealth
Mortgage)
Series 94G AMT
2,500 7/01/00..................... 3.67 2,527,900
Virginia Public
Building Authority GO
(Building Revenue)
Series 92A
1,920 8/01/00..................... 3.73 1,941,208
Virginia Public School
Authority GO
(School Equipment
Financing)
2,500 4/01/00..................... 3.15 2,506,292
Virginia Transportation
Board Revenue
(Northern VA
Transportation District)
Series A
1,125 5/15/00..................... 3.46 1,131,178
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Total Municipal Bonds
(amortized cost
$116,269,153)............... 116,269,153
------------
2
<PAGE>
Alliance Municipal Trust - Virginia Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER-3.1%
VIRGINIA-3.1%
Peninsula Port
Authority
(Dominion Terminal
Project)
Series 87A
3/06/00
(amortized cost
$ 3,700 $3,700,000)................. 3.60% $ 3,700,000
------------
TOTAL INVESTMENTS-99.2%
(amortized cost
$119,969,153)............... $119,969,153
Other assets less
liabilities-0.8%............ 983,522
------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
120,960,700 shares
outstanding)................ $120,952,675
============
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(a) All securities either mature or their interest rate changes in one year 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
FGIC - Federal Guaranty Insurance Company
GO - General Obligation
HDA - Housing Development Authority
HFA - Housing Finance Agency/Authority
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
SFMR - Single Family Mortgage Revenue
SWDR - Solid Waste Disposal Revenue
See notes to financial statements.
3
<PAGE>
STATEMENT OF OPERATIONS Alliance Municipal Trust -
Six Months Ended December 31, 1999 (unaudited) Virginia Portfolio
================================================================================
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME
Interest ........................................................................ $ 2,354,648
EXPENSES
Advisory fee (Note B) ........................................................... $ 331,525
Distribution assistance and administrative service (Note C) ..................... 298,316
Custodian fees .................................................................. 35,881
Transfer agency (Note B) ........................................................ 33,245
Printing ........................................................................ 7,962
Audit and legal fees ............................................................ 7,038
Registration fees ............................................................... 2,268
Trustees' fees .................................................................. 2,098
Amortization of oganization expense ............................................. 531
Miscellaneous ................................................................... 3,906
-----------
Total expenses .................................................................. 722,770
Less: expense reimbursement ..................................................... (59,720)
-----------
Net expenses .................................................................... 663,050
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS .......................................... $ 1,691,598
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1999 Year Ended
(unaudited) June 30, 1999
----------------- -------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 1,691,598 $ 2,992,273
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income .................................................. (1,691,598) (2,992,273)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (Note E) ....................................... 7,020,265 (9,889,578)
------------- -------------
Total increase (decrease) .............................................. 7,020,265 (9,889,578)
NET ASSETS
Beginning of year ...................................................... 113,932,410 123,821,988
------------- -------------
End of period .......................................................... $ 120,952,675 $ 113,932,410
============= =============
</TABLE>
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See notes to financial statements.
4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 (unaudited) Alliance Municipal Trust - Virginia 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, Alliance Municipal
Trust-New Jersey Portfolio, Alliance Municipal Trust-Virginia Portfolio (the
"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. Organization Expenses
The organization expenses of the Portfolio were being amortized against income
on a straight-line basis through October, 1999.
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
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 six
months ended December 31, 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
six months ended December 31, 1999, the reimbursement amounted to $59,720.
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 $9,000 for the six months ended December 31, 1999.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - Virginia 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 six
months ended December 31, 1999, the distribution fee amounted to $165,763. In
addition, the Portfolio may reimburse certain broker-dealers for administrative
costs incurred in connection with providing shareholder services, and may
reimburse the Adviser for accounting and bookkeeping, and legal and compliance
support. For the six months ended December 31, 1999, such payments by the
Portfolio amounted to $132,553, of which $46,500 was paid to the Adviser.
- --------------------------------------------------------------------------------
NOTE D: Investment Transactions
At December 31, 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 $8,025, of which $7,897 expires in
2004 and $128 expires in the year 2005.
- --------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1999, capital paid-in aggregated $120,960,700. Transactions, all at $1.00 per
share, were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1999 June 30,
(unaudited) 1999
----------------- ------------
<S> <C> <C>
Shares sold ................................................................ 112,222,851 212,940,218
Shares issued on reinvestments of dividends ................................ 1,691,598 2,992,273
Shares redeemed ............................................................ (106,894,184) (225,822,069)
------------ ------------
Net increase (decrease) .................................................... 7,020,265 (9,889,578)
============ ============
</TABLE>
6
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - Virginia Portfolio
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Six Months October 25,
Ended 1994(a)
December 31, Year Ended June 30, through
1999 ------------------------------------------------ June 30,
(unaudited) 1999 1998 1997 1996 1995
----------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment Operations
Net investment income (b) ............... .013 .023 .029 .028 .029 .023
-------- -------- -------- -------- -------- --------
Less: Dividends
Dividends from net investment income .... (.013) (.023) (.029) (.028) (.029) (.023)
-------- -------- -------- -------- -------- --------
Net asset value, end of period .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return
Total investment return based on net
asset value (c) ..................... 1.29% 2.34% 2.90% 2.83% 2.97% 2.37%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $120,953 $113,932 $123,822 $ 78,775 $ 89,557 $ 66,921
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .................... 1.00%(d) 1.00% .93% .80% .78% .44%(d)
Expenses, before waivers and
reimbursements .................... 1.09%(d) 1.07% 1.03% 1.15% 1.15% 1.30%(d)
Net investment income (b) ........... 2.58%(d) 2.34% 2.86% 2.78% 2.91% 3.48%(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.
7
<PAGE>
CHANGE IN INDEPENDENT ACCOUNTANT Alliance Municipal Trust - Virginia Portfolio
================================================================================
McGladrey & Pullen, LLP ("McGladrey") resigned as independent auditors of the
Fund pursuant to an agreement by PricewaterhouseCoopers LLP ("PwC") to acquire
McGladrey's investment company practice. The McGladrey partners and
professionals serving the Fund at the time of the acquisition joined PwC.
The reports of McGladrey on the financial statements of the Fund during the past
two fiscal years contained no adverse opinion or disclaimer of opinion, and were
not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audit for the two most recent fiscal years and through
August 27, 1999, there were no disagreements with McGladrey on any matter of
accounting principle or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of
McGladrey would have caused it to make reference to the subject matter of
disagreement in connection with its report.
On September 25, 1999, the Fund, with the approval of its Trustees and its Audit
Committee, engaged PwC as its independent auditors.
8
<PAGE>
Alliance Municipal Trust - Virginia Portfolio
================================================================================
Alliance Municipal Trust
1345 Avenue of the Americas
New York, NY 10105
Toll-free 1(800)221-5672
TRUSTEES
Dave H. Williams, Chairman William H. Foulk, Jr. (1)
John D. Carifa David K. Storrs (1)
Sam Y. Cross (1) Shelby White (1)
Charles H.P. Duell (1)
OFFICERS
Ronald M. Whitehill, President Frances M. Dunn, Vice President
Kathleen A. Corbet, Senior Vice President William J. Fagan, Vice President
Drew A. Biegel, Senior Vice President Linda D. Kelley, Vice President
John R. Bonczek, Senior Vice President Joseph R. LaSpina, Vice President
Patricia Ittner, Senior Vice President Eileen M. Murphy, Vice President
Robert I. Kurzweil, Senior Vice President William E. Oliver, Vice President
Wayne D. Lyski, Senior Vice President Edmund P. Bergan, Jr., Secretary
Raymond J. Papera, Senior Vice President Mark D. Gersten, Treasurer &
Doris T. Ciliberti, Vice President Chief Financial Officer
Vincent S. Noto, Controller
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 1912
Boston, MA 02105
DISTRIBUTOR
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
TRANSFER AGENT
Alliance Fund Services
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
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(1) Members of the Audit Committee.
9
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Alliance Municipal Trust - Virginia Portfolio ---------------
1345 Avenue of the Americas, New York, NY 10105 BULK RATE
Toll free 1 (800) 221-5672 U.S. POSTAGE
PAID
New York, NY
Permit No. 7131
---------------
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| |1| |#|
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.
AMTVASR1299
