Alliance
Municipal
Trust
- - Massachusetts
Portfolio
Alliance Capital [LOGO](R)
Semi-Annual Report
December 31, 1999
(unaudited)
<PAGE>
STATEMENT OF NET ASSETS
December 31, 1999 (unaudited) Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 94.5%
GEORGIA - 6.1%
Gainesville &
Hall County
(Senior Living Facility
Lanier Village)
Series 99A VRDN
$ 2,000 11/15/10 (b)............ 5.90% $ 2,000,000
Summerville IDA
(Image Industries Project)
Series 97 AMT VRDN
4,000 9/01/17 (b)............. 5.50 4,000,000
---------------
6,000,000
---------------
ILLINOIS - 1.5%
Rock Island
Metropolitan Airport
(Elliot Aviation Project)
Series 98 AMT VRDN
1,500 12/01/18 (b)............ 5.70 1,500,000
---------------
INDIANA - 4.1%
Indiana Health
Facility Authority
(Hartsfield Village)
Series 97B VRDN
4,000 8/15/27 (b)............. 5.55 4,000,000
---------------
MASSACHUSETTS - 52.7%
Billerica GO
FGIC Series 99
700 12/15/00................ 4.10 721,875
Bourne GO BAN
Series 99B
2,000 9/29/00................. 3.75 2,007,116
Clinton GO
AMBAC Series 99
950 3/15/00................. 3.21 955,106
Fitchburg GO
FSA Series 99
550 11/15/00................ 3.90 562,028
Haverhill GO
FGIC
925 6/01/00................. 3.23 939,679
Holden GO BAN
Series 99
1,000 3/15/00................. 3.75 1,000,481
Kingston GO
FGIC Series 99
445 11/15/00................ 3.92 450,911
Mansfield GO BAN
Series 99
2,000 4/26/00................. 3.73 2,003,174
Marshfield GO
MBIA Series 99
430 5/01/00................. 3.50 433,405
Massachusetts Bay
Transport Authority
(General Transportation
Systems)
Series 99 VRDN
1,000 3/01/14 (b)............. 5.55 1,000,000
Massachusetts
Development Finance
Agency
(Waste Management)
Series 99 AMT VRDN
2,000 7/01/29 (b)............. 5.65 2,000,000
Massachusetts GO
FGIC Series 90
Pre-refunded
1,000 3/02/00................. 3.00 1,026,522
Massachusetts GO
Series 97
500 8/01/00................. 3.71 503,640
Massachusetts GO
Series 98A VRDN
3,500 9/01/16 (b)............. 5.50 3,500,000
Massachusetts Health &
Education Facility
(Brigham &
Women's Hospital)
Series 85A VRDN
2,540 7/01/17 (b)............. 5.50 2,540,000
Massachusetts Health &
Education Facility
(Capital Asset Program)
Series 85A VRDN
2,700 1/01/35 (b)............. 4.75 2,700,000
Massachusetts Health &
Education Facility
(Wellesley College)
Series 92E VRDN
1,085 7/01/22 (b)............. 5.30 1,085,000
Massachusetts IFA
(ADP Inc. Project)
Series 97 VRDN
1,000 12/01/19 (b)............ 5.00 1,000,000
Massachusetts IFA
(America Tech)
Series 97 AMT VRDN
500 8/01/22 (b)............. 5.65 500,000
1
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Massachusetts IFA
(Berkshire Project)
Series 90 VRDN
$ 3,700 9/01/20 (b)............. 5.65% $ 3,700,000
Massachusetts IFA
(Carand Realty Trust)
AMT VRDN
825 5/01/17 (b)............. 5.40 825,000
Massachusetts IFA
(Gordon College Project)
Series 97 VRDN
1,100 12/01/27 (b)............ 5.30 1,100,000
Massachusetts IFA
(ICC Realty Project)
Series 97 AMT VRDN
1,700 12/01/16 (b)............ 5.65 1,700,000
Massachusetts IFA
(Mount Ida College
Project)
Series 97 AMT VRDN
1,440 12/01/27 (b)............ 5.30 1,440,000
Massachusetts IFA
(Nutramax Prods Inc.)
Series 96 AMT VRDN
5,300 5/01/16 (b)............. 5.45 5,300,000
Massachusetts IFA
(Showa Womens
Institute, Inc.)
Series 94 VRDN
4,100 3/15/04 (b)............. 4.50 4,100,000
Massachusetts IFA
(Tamasi Family
Development)
Series 98 VRDN
900 5/01/13 (b)............. 5.40 900,000
Massachusetts IFA
(Techprint Issue)
Series 97 AMT VRDN
842 6/01/17 (b)............. 5.60 842,000
Massachusetts IFA
PCR
(Holyoke Water &
Power Co.)
Series 90 AMT VRDN
2,500 12/01/20 (b)............ 5.10 2,500,000
Massachusetts Municipal
Wholesale Electric
AMBAC Series 92B
1,000 7/01/00................. 3.90 1,011,539
Massachusetts
Port Authority
FGIC Series 90A
1,100 7/01/00................. 3.71 1,117,387
Medfield GO
Series 99
470 8/15/00................. 3.75 478,849
Salisbury GO
MBIA Series 99
510 8/01/00................. 3.62 518,952
Triton School District
FGIC Series 99
782 4/01/00................. 3.21 788,124
Upper Blackstone
(Water Pollution
Abatement Dist.)
AMBAC Series 99
335 8/01/00................. 3.71 341,666
---------------
51,592,454
---------------
PUERTO RICO - 10.6%
Puerto Rico
Commonwealth
Highway & Transit
AMBAC Series 98A
VRDN
4,100 7/01/28 (b)............. 5.00 4,100,000
Puerto Rico Government
Development Bank
MBIA Series 85 VRDN
6,300 12/01/15 (b)............ 4.95 6,300,000
---------------
10,400,000
---------------
SOUTH CAROLINA - 6.6%
Berkeley County IDA
(Nucor Corp. Project)
Series 97 AMT VRDN
500 4/01/30 (b)............. 5.80 500,000
Series 98 AMT VRDN
3,700 4/01/31 (b)............. 5.80 3,700,000
Florence County
Solid Waste
(Roche Carolina Inc.)
Series 97 AMT VRDN
2,200 4/01/27 (b)............. 5.40 2,200,000
---------------
6,400,000
---------------
2
<PAGE>
Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
TENNESSEE - 5.4%
Education Funding
of the South
(Student Funding Corp.)
Series 87A-3 AMT
VRDN
$ 3,700 12/01/17 (b)............ 5.30% $ 3,700,000
Rutherford County
(Tennessee Farmers
Cooperative Project)
Series 99C AMT
VRDN
1,600 11/01/14 (b)............ 5.60 1,600,000
---------------
5,300,000
---------------
TEXAS - 7.5%
Camp County IDA
(Pilgrims Pride Corp.)
Series 99 AMT VRDN
3,000 7/01/29 (b)............. 5.60 3,000,000
North Central Texas
Health Facility
(YMCA Metropolitan
Dallas Project)
Series 91 VRDN
2,100 6/01/21 (b)............. 6.50 2,100,000
Panhandle Plains
(Student Loan Revenue)
Series 97X AMT
VRDN
2,200 6/01/27 (b)............. 5.25 2,200,000
---------------
7,300,000
---------------
Total Municipal Bonds
(amortized cost
$92,492,454)............ 92,492,454
---------------
COMMERCIAL PAPER - 3.5%
MASSACHUSETTS - 3.5%
Massachusetts
Port Authority
Series 96 AMT
1,000 3/09/00................. 3.55 1,000,000
Massachusetts
Water Authority
Series 94
1,200 3/13/00................. 3.75 1,200,000
1,235 5/02/00................. 3.75 1,235,000
---------------
Total Commercial Paper
(amortized cost
$3,435,000)............. 3,435,000
---------------
TOTAL INVESTMENTS - 98.0%
(amortized cost
$95,927,454)............ 95,927,454
Other assets less
liabilities - 2.0%...... 1,909,840
---------------
NET ASSETS - 100%
(offering and redemption
price of $1.00 per share;
97,837,294 shares
outstanding)............ $ 97,837,294
===============
- --------------------------------------------------------------------------------
(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:
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax
BAN - Bond Anticipation Note
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance
GO - General Obligation
IDA - Industrial Development Authority
IFA - Industrial Finance Authority
MBIA - Municipal Bond Investors Assurance
PCR - Pollution Control Revenue
See notes to financial statements.
3
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended
December 31, 1999
(unaudited) Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
INVESTMENT INCOME
Interest ....................................... $1,173,900
EXPENSES
Advisory fee (Note B) .......................... $ 166,863
Distribution assistance and administrative
service (Note C) ............................. 164,734
Custodian fees ................................. 34,534
Transfer agency (Note B) ....................... 13,330
Printing ....................................... 6,047
Audit and legal fees ........................... 5,891
Registration fees .............................. 4,876
Trustees' fees ................................. 1,179
Amortization of organization expense ........... 930
Miscellaneous .................................. 2,015
----------
Total expenses ................................. 400,399
Less: expense reimbursement .................... (66,672)
----------
Net expenses ................................... 333,727
----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ........ $ 840,173
==========
STATEMENT OF CHANGES IN NET ASSETS
================================================================================
Six Months Ended
December 31, 1999 Year Ended
(unaudited) June 30, 1999
------------ ------------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income ....................... $ 840,173 $ 896,822
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ....................... (840,173) (896,822)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) ....................... 47,357,209 22,647,685
------------ ------------
Total increase .............................. 47,357,209 22,647,685
NET ASSETS
Beginning of year ........................... 50,480,085 27,832,400
------------ ------------
End of period ............................... $ 97,837,294 $ 50,480,085
============ ============
- --------------------------------------------------------------------------------
See notes to financial statements.
4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(unaudited) Alliance Municipal Trust - Massachusetts 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,
Alliance Municipal Trust-Florida Portfolio and Alliance Municipal
Trust-Massachusetts Portfolio (the "Portfolio"). Each series is considered to be
a separate entity for financial reporting and tax purposes. The Portfolio
pursues its objectives by maintaining a portfolio of high-quality money market
securities all of which, at the time of investment, have remaining maturities of
397 days or less. The financial statements have been prepared in conformity with
generally accepted accounting principles which require management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Portfolio.
1. Valuation of Securities
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity. Amortization of premium is charged to income.
Accretion of market discount is credited to unrealized gains.
2. Organization Expenses
The organization expenses of the Portfolio are being amortized against income on
a straight-line basis through July 2002.
3. Taxes
It is the policy of the Portfolio to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if any, to its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Dividends
The Portfolio declares dividends daily from net investment income and
automatically reinvests such dividends in additional shares at net asset value.
Net realized capital gains on investments, if any, are expected to be
distributed near year end. Dividends paid from net investment income for the 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.
- --------------------------------------------------------------------------------
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
$3Ebillion. 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 $66,672.
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.
For the six months ended December 31, 1999, the Fund's expenses were reduced by
$113 under an expense offset arrangement with Alliance Fund Services, Inc.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - Massachusetts 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 $83,432. 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 $81,302, of which $46,500 was paid to the Adviser.
- --------------------------------------------------------------------------------
NOTE D: Investment Transactions
At December 31, 1999, the cost of investments for federal income tax purposes
was the same as the cost for financial reporting purposes.
- --------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1999, capital paid-in aggregated $97,837,294. Transactions, all at $1.00 per
share, were as follows:
Six Months Ended Year Ended
December 31, 1999 June 30,
(unaudited) 1999
------------ ------------
Shares sold .................................... 153,488,015 157,532,699
Shares issued on reinvestments of dividends .... 840,173 896,822
Shares redeemed ................................ (106,970,979) (135,781,836)
------------ ------------
Net increase ................................... 47,357,209 22,647,685
============ ============
6
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Six Months Ended Year Ended June 30, April 17, 1997(a)
December 31, 1999 ----------------------------------- through
(unaudited) 1999 1998 June 30, 1997
----------------- ------------------ ----------------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------
Income From Investment Operations
Net investment income (b)......................... .012 .023 .028 .007
-------- -------- -------- -------
Less: Dividends
Dividends from net investment income.............. (.012) (.023) (.028) (.007)
-------- -------- -------- -------
Net asset value, end of period.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== =======
Total Return
Total investment return based on net asset
value (c)...................................... 1.24% 2.31% 2.83% 0.72%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)......... $97,837 $50,480 $27,832 $15,046
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements.............................. 1.00%(d) 1.00% .85% .50%(d)
Expenses, before waivers and
reimbursements.............................. 1.20%(d) 1.47% 1.37% 2.99%(d)
Net investment income (b) 2.56%(d) 2.26% 2.80% 3.47%(d)
</TABLE>
- --------------------------------------------------------------------------------
(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 - Massachusetts 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 audits for the two most recent fiscal years and through
August 27, 1999, there were noEdisagreements 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 - Massachusetts Portfolio
================================================================================
Alliance Municipal Trust
1345 Avenue of the Americas
New York, NY 10105
Toll-free 1(800)221-5672
TRUSTEES
Dave H. Williams, Chairman
John D. Carifa
Sam Y. Cross (1)
Charles H.P. Duell (1)
William H. Foulk, Jr. (1)
David K. Storrs (1)
Shelby White (1)
OFFICERS
Ronald M. Whitehill, President
Kathleen A. Corbet, Senior Vice President
Drew A. Biegel, Senior Vice President
John R. Bonczek, Senior Vice President
Patricia Ittner, Senior Vice President
Robert I. Kurzweil, Senior Vice President
Wayne D. Lyski, Senior Vice President
Raymond J. Papera, Senior Vice President
Doris T. Ciliberti, Vice President
Frances M. Dunn, Vice President
William J. Fagan, Vice President
Linda D. Kelley, Vice President
Joseph R. LaSpina, Vice President
Eileen M. Murphy, Vice President
William E. Oliver, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & 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.
9
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<PAGE>
---------------
BULK RATE
U.S. POSTAGE
PAID
New York, NY
Permit No. 7131
---------------
Alliance Municipal Trust - Massachusetts Portfolio
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
Yields. For current recorded yield information on Alliance Municipal Trust, call
on a touch-tone telephone toll-free (800) 251-0539 and press the following
sequence of keys:
|1| |#| |1| |#| |1| |5| |#|
For non-touch-tone telephones, call toll-free (800) 221-9513
- --------------------------------------------------------------------------------
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.
AMTMASR1299
