Alliance
Municipal
Trust
- -Connecticut Portfolio
Alliance Capital [LOGO](R)
Semi-Annual Report
December 31, 1999
(unaudited)
<PAGE>
STATEMENT OF NET ASSETS
December 31, 1999 (unaudited) Alliance Municipal Trust - Connecticut Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-87.4%
ARKANSAS-2.2%
Blytheville IDA
(Nucor Corp. Project)
Series 98 AMT VRDN
$ 3,500 6/01/28 (b)................. 5.80% $ 3,500,000
------------
CONNECTICUT-60.8%
Connecticut Development
Authority
(Central Vermont Public
Service)
Series 85 VRDN
1,000 12/01/15 (b)................ 3.35 1,000,000
Connecticut Development
Authority
(Independent Living)
Series 90 VRDN
7,015 7/01/15 (b)................. 5.65 7,015,000
Connecticut Development
Authority
(Northeast Foods, Inc.)
Series 98 AMT VRDN
5,200 6/01/13 (b)................. 5.55 5,200,000
Connecticut Development
Authority
(Pierce Memorial Baptist
Home)
Series 99 VRDN
990 10/01/28 (b)................ 5.40 990,000
Connecticut Development
Authority
(Rand Whitney Project)
Series 93 AMT VRDN
6,000 8/01/23 (b)................. 4.85 6,000,000
Connecticut Development
Authority
(Regional YMCA Western
Connecticut)
Series 88 VRDN
849 6/01/08 (b)................. 3.85 849,000
Connecticut Development
Authority PCR
(Connecticut Light and
Power Co.)
AMBAC Series 96A
AMT VRDN
5,900 5/01/31 (b)................. 5.20 5,900,000
Connecticut GO
Series 92B
1,000 11/15/00.................... 3.80 1,018,081
Connecticut GO
Series 95B
2,000 10/01/00.................... 3.75 2,025,276
Connecticut GO
Series 99A
3,000 6/15/00..................... 3.33 3,008,761
Connecticut HEFA
(Bradley Health Care)
Series 97B VRDN
5,600 7/01/29 (b)................. 4.75 5,600,000
Connecticut HEFA
(Charlotte Hungerford
Hospital)
Series 98C VRDN
2,225 7/01/13 (b)................. 5.35 2,225,000
Connecticut HEFA
(Connecticut State
University Systems)
FSA Series 99C
1,035 11/01/00.................... 3.90 1,052,440
Connecticut HEFA
(Jerome Home Project)
Series 97C VRDN
3,630 7/01/29 (b)................. 4.75 3,630,000
Connecticut HEFA
(Kingswood-Oxford
School Inc.)
Series 89 VRDN
980 2/01/09 (b)................. 3.85 980,000
Connecticut HEFA
(Pomfret School Issue)
Series 95A VRDN
1,000 7/01/24 (b)................. 5.50 1,000,000
Connecticut HEFA
(St. Mary's Hospital)
Series 90C Pre-refunded
1,500 7/01/00..................... 3.75 1,555,558
Connecticut HEFA
(St. Raphel Hospital)
Series 98J VRDN
5,000 7/01/22 (b)................. 5.10 5,000,000
1
<PAGE>
Alliance Municipal Trust -
STATEMENT OF NET ASSETS (continued) Connecticut Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Connecticut HEFA
(St. Raphel Hospital)
Series 98K VRDN
$ 2,200 7/01/22 (b)................. 5.10% $ 2,200,000
Connecticut HEFA
(Yale University)
Series 97T-1 VRDN
7,300 7/01/29 (b)................. 5.10 7,300,000
Connecticut HEFA
(Yale University)
Series 99U VRDN
2,000 7/01/33 (b)................. 5.50 2,000,000
Connecticut HFA
Series 99C-2 PPB
3,800 5/15/31 (b)................. 3.90 3,800,000
Connecticut Special
Assessment
Unemployment
Compensation
FGIC Series 93C PPB
4,500 11/15/01 (b)................ 3.38 4,500,000
Connecticut Special Tax
Obligation
(2nd Lien Transportation
Infrastructure)
Series 90-1 VRDN
5,700 12/01/10 (b)................ 5.70 5,700,000
Connecticut Special Tax
Obligation
(Transport Infrastructure)
Escrowed to Maturity
Series 91
3,000 10/01/00.................... 3.73 3,135,905
Connecticut Special Tax
Obligation
(Transport Infrastructure)
Series 92B
4,275 9/01/00..................... 3.75 4,317,564
Connecticut Special Tax
Obligation
(Transport Infrastructure)
Series 92S
1,000 2/15/00..................... 3.15 1,002,804
East Hartford GO
FGIC Series 99
1,080 1/15/00..................... 2.90 1,080,903
Meriden GO
AMBAC Series 99
2,670 8/01/00..................... 3.50 2,689,473
New Fairfield GO BAN
Series 99
2,589 2/02/00..................... 3.35 2,589,827
New Haven GO
FGIC
1,000 2/01/00..................... 2.90 1,001,058
Norwalk GO
Series 99
1,000 7/12/00..................... 3.33 1,000,858
------------
96,367,508
------------
DELAWARE-2.9%
Delaware Economic
Development Authority
IDAR
(Delaware Clean Power
Project)
Series 97A
AMT VRDN
3,000 8/01/29 (b)................. 5.85 3,000,000
Delaware Economic
Development Authority
PCR
(Delmarva Power & Light
Co.)
Series 99A VRDN
1,600 7/01/24 (b)................. 5.65 1,600,000
------------
4,600,000
------------
ILLINOIS-0.6%
St. Charles IDA
(Pier 1 Imports-
Midwest Project)
AMT VRDN
1,000 12/15/26 (b)................ 5.70 1,000,000
------------
KANSAS-1.5%
Butler County PCR
(Texaco Inc. Project)
Series 96B
AMT VRDN
2,400 8/01/24 (b)................. 5.40 2,400,000
------------
2
<PAGE>
Alliance Municipal Trust - Connecticut Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
LOUISIANA-2.1%
Calcasieu Parish IDA
(Citgo Petroleum Corp.)
Series 96-2
AMT VRDN
$ 1,000 7/01/26 (b)................. 5.40% $ 1,000,000
West Baton Rouge IDA
(Dow Chemical Corp.)
Series 95
AMT VRDN
2,300 11/01/25 (b)................ 5.45 2,300,000
------------
3,300,000
------------
PENNSYLVANIA-5.6%
Allegheny County IDA
(Carrington of South
Hills)
Series 96
AMT VRDN
5,600 7/01/26 (b)................. 5.60 5,600,000
Montgomery County
(PA Higher Education &
Health Loan)
Series 96A VRDN
3,255 8/01/21 (b)................. 5.45 3,255,000
------------
8,855,000
------------
SOUTH CAROLINA-3.1%
Florence County PCR
(Roche Carolina Inc.
Project)
Series 98
AMT VRDN
4,900 4/01/28 (b)................. 5.40 4,900,000
------------
TENNESSEE-3.1%
Education Funding
of the South
(Student Funding Corp.)
Series 87A-3
AMT VRDN
5,000 12/01/17 (b)................ 5.30 5,000,000
------------
TEXAS-5.5%
Brazos River Harbor
Navigation District
(Dow Chemical Co.
Project)
Series 92A
AMT VRDN
1,100 12/01/18 (b)................ 5.45 1,100,000
Brazos River Harbor
Navigation District
(Dow Chemical Co.
Project)
Series 96
AMT VRDN
3,500 4/01/26 (b)................. 5.45 3,500,000
Brazos River Harbor
Navigation District
(Dow Chemical Project)
Series 98 A
AMT VRDN
500 3/01/28 (b)................. 5.45 500,000
Midlothian IDA
(Texas Industries)
Series 99
AMT VRDN
3,600 5/01/29 (b)................. 5.40 3,600,000
------------
8,700,000
------------
Total Municipal Bonds
(amortized cost
$138,622,508)............... 138,622,508
------------
COMMERCIAL PAPER-10.5%
CONNECTICUT-10.5%
Connecticut Development
Authority
(New England Power Co.
Project)
Series 99
3,500 1/10/00..................... 3.75 3,500,000
Connecticut HEFA
(Ascension Health Credit
Group)
Series 99B
3,200 1/26/00..................... 3.65 3,200,000
3
<PAGE>
Alliance Municipal Trust -
STATEMENT OF NET ASSETS (continued) Connecticut Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Connecticut HEFA
(Yale University)
Series S-2
$ 5,000 3/09/00..................... 3.50% $ 5,000,000
Connecticut Special
Assessment Injury Fund
5,000 4/11/00..................... 3.70 5,000,000
------------
Total Commercial Paper
(amortized cost
$16,700,000)................ 16,700,000
------------
TOTAL INVESTMENTS -97.9%
(amortized cost
$155,322,508)............... 155,322,508
Other assets less
liabilities-2.1%............ 3,278,982
------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
158,631,082 shares
outstanding)................ $158,601,490
============
- --------------------------------------------------------------------------------
(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
BAN - Bond Anticipation Note
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
GO - General Obligation
HEFA - Health & Educational Facility Authority
HFA - Housing Finance Agency/Authority
IDA - Industrial Development Authority
PCR - Pollution Control Revenue
See notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended December 31, 1999
(unaudited) Alliance Municipal Trust - Connecticut Portfolio
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest ........................................................................ $ 2,664,458
EXPENSES
Advisory fee (Note B) ........................................................... $ 390,693
Distribution assistance and administrative service (Note C) ..................... 363,959
Custodian fees .................................................................. 37,200
Transfer agency (Note B) ........................................................ 35,215
Printing ........................................................................ 10,174
Audit and legal fees ............................................................ 5,889
Registration fees ............................................................... 3,836
Trustees' fees .................................................................. 1,241
Miscellaneous ................................................................... 4,898
-----------
Total expenses .................................................................. 853,105
Less: expense reimbursement ..................................................... (71,719)
-----------
Net expenses .................................................................... 781,386
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS .......................................... $ 1,883,072
===========
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
5
<PAGE>
STATEMENT OF CHANGES
IN NET ASSETS Alliance Municipal Trust - Connecticut Portfolio
================================================================================
<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 .................................................. $ 1,883,072 $ 3,397,313
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income .................................................. (1,883,072) (3,397,313)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) .................................................. 15,200,217 19,294,307
------------- -------------
Total increase ......................................................... 15,200,217 19,294,307
NET ASSETS
Beginning of year ...................................................... 143,401,273 124,106,966
------------- -------------
End of period .......................................................... $ 158,601,490 $ 143,401,273
============= =============
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 (unaudited) 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 six
months ended December 31, 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
six months ended December 31, 1999, the reimbursement amounted to $71,719.
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 $13,649 for the six months ended December 31,
1999.
For the six months ended December 31, 1999, the Fund's expenses were reduced by
$540 under an expense offset arrangement with Alliance Fund Services, Inc.
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 six
months ended December 31, 1999, the distribution fee amounted to $195,347. 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 $168,612, 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 $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 December 31,
1999, capital paid-in aggregated $158,631,082. 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 ................................................................ 236,970,922 489,172,712
Shares issued on reinvestments of dividends ................................ 1,883,072 3,397,313
Shares redeemed ............................................................ (223,653,777) (473,275,718)
------------ ------------
Net increase ............................................................... 15,200,217 19,294,307
============ ============
</TABLE>
8
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - Connecticut Portfolio
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Six Months
Ended
December 31, Year Ended June 30,
1999 ---------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment Operations
Net investment income (a) ............... .012 .022 .027 .027 .028 .028
-------- -------- -------- -------- -------- --------
Less: Dividends
Dividends from net investment income .... (.012) (.022) (.027) (.027) (.028) (.028)
-------- -------- -------- -------- -------- --------
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 (b) ..................... 1.21% 2.25% 2.75% 2.76% 2.88% 2.78%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $158,601 $143,401 $124,107 $102,612 $ 95,812 $ 75,991
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .................... 1.00%(c) 1.00% .93% .80% .80% .80%
Expenses, before waivers and
reimbursements .................... 1.09%(c) 1.07% 1.06% 1.10% 1.15% 1.21%
Net investment income (a) ........... 2.43%(c) 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. Total investment return
calculated for a period less than one year is not annualized.
(c) Annualized.
9
<PAGE>
Alliance Municipal Trust -
CHANGE IN INDEPENDENT ACCOUNTANT Connecticut 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.
10
<PAGE>
Alliance Municipal Trust - Connecticut 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
- --------------------------------------------------------------------------------
(1) Members of the Audit Committee.
11
<PAGE>
Alliance Municipal Trust - Connecticut 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| |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.
AMTCTSR1299
