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Alliance
Municipal
Trust
-California Portfolio
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AllianceCapital [LOGO](R)
Annual Report
June 30, 2000
<PAGE>
LETTER TO SHAREHOLDERS Alliance Municipal Trust - California Portfolio
===============================================================================
August 2, 2000
Dear Shareholder:
We are pleased to provide you with an update of Alliance Municipal
Trust-California Portfolio for the annual reporting period ended June 30, 2000.
U.S. financial markets were anticipating some signs of a slowdown for the first
half of 2000--some sign that past Fed rate hikes were having an effect and that
little, if any, further tightening would be necessary. The U.S. economy,
however, has continued to grow. The U.S. Commerce Department recently reported
that the U.S. economy grew at an impressive, seasonally-adjusted annual rate of
+5.2% during the spring quarter. Inflation, as measured by the broad and
reliable gross domestic purchases and personal consumption price indices, held
stable at 2.5% on a year-earlier basis. The second-quarter growth number, well
above the 3.5% to 4.0%, consensus and actually faster than a downward-revised
quarter-one growth rate of +4.8%, created immediate anxiety. As a result,
interest rates headed higher and stock prices headed lower.
The U.S. economy's gross domestic product report does, however, give evidence
to some signs of cooling off. For example, a key measure of aggregate demand
(real final sales) slowed sharply to +4.2% from +6.7% in the first quarter.
Monthly evidence that consumers had taken a break from their long-running
shopping spree was confirmed. Household spending dipped to just +3.0% in the
second quarter versus +7.6% in the first quarter. Unwanted inventories added a
full percentage point to second-quarter growth. We also believe that a more
meaningful comparison can be made between growth during the second half of
1999 (+7.0%) and growth during the first half of this year (+5.0%).
In his late-July Congressional testimony, Fed Chairman Alan Greenspan laid out
an upbeat forecast for the U.S. economy and rendered a somewhat
self-congratulatory assessment of the role the Federal Reserve has played in
securing that future. To be sure, we welcome his endorsement of both the "New
Economy" paradigm and our own bullishness about accelerating productivity. The
subsequent report on employment costs, showing a quarter-to-quarter gain of
only 1.0% in the spring versus a 1.4% rise in the first quarter, and the
soon-to-be-released report on second-quarter productivity, should help to
validate the Chairman's optimism. Mr. Greenspan is repositioning the Fed to
play a more reactive role going forward. He understands that financial markets
should and must take the lead role in terms of steering the New Economy. As a
consequence, although we still believe the Fed will tighten further, we look
for that tightening to come late in the year and only after the bond market
has laid the groundwork.
As for U.S. financial markets, the road to higher prices will be a bit bumpier
than we expected. Inaction by the Fed toward the end of August could open the
window to the upside, but for now we see more volatility than opportunity. With
an election in front of us, the next several months could be a difficult time
for investors. Therefore investors may want to use periods of asset market
strength to establish more defensive positions.
We appreciate your investment in the portfolios of Alliance Municipal
Trust-California Portfolio and look forward to reporting further investment
progress in the coming period.
Sincerely,
/s/ Ronald Whitehill
Ronald M. Whitehill
President
1
<PAGE>
STATEMENT OF NET ASSETS
June 30, 2000 Alliance Municipal Trust - California Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
----------------------------------------------------------------------------
MUNICIPAL BONDS- 84.7%
CALIFORNIA-84.0%
ABAG Finance
Authority COP
(Harker School
Foundation)
Series 98
$ 2,820 1/01/23 (b)................. 4.40% $ 2,820,000
Alameda Contra-Costa
(Capital Improvements)
AMBAC
Series 99H
10,000 11/01/14 (b)................ 4.35 10,000,000
Alameda County IDA
(Heat & Control Inc.
Project)
Series 95A
AMT
4,900 11/01/25 (b)................ 4.50 4,900,000
Alameda County IDA
(JMS Family Partnership
Project)
Series 95A
AMT
2,930 10/01/25 (b)................ 4.50 2,930,000
Alameda County IDA
(Ream Enterprises Project)
Series A
AMT
1,460 11/01/20 (b)................ 4.50 1,460,000
Alameda County TRAN
7,000 7/07/00..................... 3.32 7,000,755
Alameda County TRAN
Series 00 WI
20,950 7/05/01..................... 4.24 21,104,192
Anaheim HFA
(Park Vista Apts.)
Series 93A
AMT
15,000 12/15/23 (b)................ 4.45 15,000,000
Auburn Union School
District COP
(Capital Improvement
Project)
Series 97
10,750 12/01/23 (b)................ 4.25 10,750,000
Big Bear Lake IDA
(Southwest Gas Corp.)
Series 93A
AMT
15,000 12/01/28 (b)................ 4.45 15,000,000
California County IDA
(S&P Investment Project)
Series 98A
AMT
965 9/01/08 (b)................. 4.65 965,000
California Economic
Development Authority
(Marko Foam Products Inc.)
Series 96
AMT
2,810 10/01/26 (b)................ 5.05 2,810,000
California Economic
Development Finance
Authority
(Valley Plating Works
Inc.)
Series 95
AMT
5,505 10/01/20 (b)................ 5.05 5,505,000
California Educational
Facilities Authority
Revenue
(University of Judaism)
Series 98A
4,500 12/01/28 (b)................ 4.30 4,500,000
California Health
Facilities
(Adventist Health
System)
Series 91A
9,800 8/01/21 (b)................. 4.40 9,800,000
California HFA
(Home Mortgage
Revenue)
Series E
AMT
5,745 8/01/00..................... 3.40 5,745,000
California Infrastructure
and Economic
Development Bank
(Nelson Name Plate Co.
Project)
Series 99
AMT
3,000 5/01/14 (b)................. 4.60 3,000,000
2
<PAGE>
Alliance Municipal Trust - California Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-----------------------------------------------------------------------------
California Pollution
Control Finance
Authority
(Athens Disposal Co.,
Inc. Project)
Series 95A
AMT
$ 4,300 1/01/16 (b)................. 4.50% $ 4,300,000
California Pollution
Control Finance
Authority
(Atlas Disposal
Industries LLC)
Series 99A
AMT
2,400 5/01/19 (b)................. 4.55 2,400,000
California Pollution
Control Finance
Authority
(BLT Enterprises)
Series 99A
AMT
4,000 4/01/14 (b)................. 4.50 4,000,000
California Pollution
Control Finance
Authority
(Blue Line Transfer Inc.)
Series 99A
AMT
5,000 8/01/19 (b)................. 4.50 5,000,000
California Pollution
Control Finance
Authority
(Browning Ferris
Industries of California)
Series A
AMT
10,000 9/01/19 (b)................. 4.45 10,000,000
California Pollution
Control Finance
Authority
(Browning Ferris
Industries of California)
Series 97B
AMT
7,000 9/01/17 (b)................. 4.40 7,000,000
California Pollution
Control Finance
Authority
(Burrtec Waste Industries)
Series 98A
AMT
1,500 5/01/05 (b)................. 4.60 1,500,000
California Pollution
Control Finance
Authority
(Burrtec Waste Project)
Series 00A
AMT
8,240 6/01/20 (b)................. 4.60 8,240,000
California Pollution
Control Finance
Authority
(Burrtec Waste Project)
Series 97B
AMT
1,800 7/01/12 (b)................. 4.60 1,800,000
California Pollution
Control Finance
Authority
(Burrtec Waste Project)
Series A
AMT
1,700 10/01/02 (b)................ 4.60 1,700,000
California Pollution
Control Finance
Authority
(Calsan Inc. Project)
Series 96A
AMT
5,905 12/01/11 (b)................ 4.50 5,905,000
California Pollution
Control Finance
Authority
(Colmac Energy Project)
Series 90A
AMT
7,600 12/01/16 (b)................ 4.40 7,600,000
California Pollution
Control Finance
Authority
(Contra Costa Waste
Services)
Series A
AMT
5,225 12/01/10 (b)................ 4.50 5,225,000
3
<PAGE>
STATEMENT OF NET ASSETS (continued) Alliance Municipal Trust -
California Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-----------------------------------------------------------------------------
California Pollution
Control Finance
Authority
(CR & R Inc. Project)
Series 95A
AMT
$ 1,935 10/01/10 (b)................ 4.50% $ 1,935,000
California Pollution
Control Finance
Authority
(Edco Disposal Corp.
Project)
Series 96A
AMT
2,765 10/01/16 (b)................ 4.50 2,765,000
California Pollution
Control Finance
Authority
(Escondido/Jemco
Equipment)
Series 98A
AMT
2,900 7/01/13 (b)................. 4.50 2,900,000
California Pollution
Control Finance
Authority
(Gilton Solid Waste
Management)
Series 95A
AMT
1,800 12/01/05 (b)................ 4.40 1,800,000
California Pollution
Control Finance
Authority
(Greenteam of San Jose
Project)
Series 97A
AMT
3,375 8/01/12 (b)................. 4.50 3,375,000
California Pollution
Control Finance
Authority
(New United Motor
Manufacturing)
Series 98A
AMT
2,000 4/01/18 (b)................. 4.40 2,000,000
California Pollution
Control Finance
Authority
(Pacific Gas & Electric)
Series 97C
AMT
13,400 11/01/26 (b)................ 4.05% 13,400,000
California Pollution
Control Finance
Authority
(Sanger Project)
Series A
AMT
17,500 9/01/20 (b)(c).............. 4.40 17,500,000
California Pollution
Control Finance
Authority
(Santa Clara Valley
Industries)
Series 98A
1,865 3/01/18 (b)................. 4.55 1,865,000
California Pollution
Control Finance
Authority
(Santa Fe Geothermal
Inc.)
Series 83
2,400 9/01/13 (b)................. 4.35 2,400,000
California Pollution
Control Finance
Authority
(Shell Martinez Refining)
Series 96A
AMT
10,000 10/01/31 (b)................ 4.10 10,000,000
California Pollution
Control Finance
Authority
(Shell Oil Co.)
Series 94
AMT
13,000 10/01/24 (b)................ 4.10 13,000,000
California Pollution
Control Finance
Authority
(Southern California
Edison)
Series 86A
8,800 2/28/08 (b)................. 4.40 8,800,000
4
<PAGE>
Alliance Municipal Trust - California Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
----------------------------------------------------------------------------
California Pollution
Control Finance
Authority
(West Valley Multi Family
Project)
Series 00A
AMT
$ 7,500 6/01/30 (b)................. 4.60% $ 7,500,000
California Pollution
Control Financing
Authority
(Stanislaus Waste Energy)
Series 87A
AMT
18,345 12/01/17 (b)................ 3.60 18,345,000
California School Cash
Reserve Program
Authority
Series 99A
30,000 7/03/00 (c)................. 3.47 30,001,140
California Statewide
Community
Development Authority
(Artefex Project)
Series 97E
AMT
2,265 7/01/17 (b)................. 4.75 2,265,000
California Statewide
Community
Development Authority
(Biocol Investments)
Series 97B
AMT
1,305 5/01/22 (b)................. 4.75 1,305,000
California Statewide
Community Development
Authority
(Chino Basin Municipal
Water Project)
Series 90
AMT
3,540 8/01/10 (b)................. 4.65 3,540,000
California Statewide
Community Development
Authority
(Contech Construction)
Series 89
AMT
1,080 5/01/09 (b)................. 4.65 1,080,000
California Statewide
Community Development
Authority
(Delaware Mesa Farms
Project)
Series 99A
AMT
2,400 5/01/19 (b)................. 4.40 2,400,000
California Statewide
Community Development
Authority
(Grundfos Pumps Corp.
Project)
Series 89
6,000 5/01/09 (b)................. 4.65 6,000,000
California Statewide
Community Development
Authority
(Integrated Rolling Co.)
Series 99A
AMT
2,950 7/01/09 (b)................. 4.60 2,950,000
California Statewide
Community Development
Authority
(Jewish Federation
Council)
Series 00A
11,000 5/01/30 (b)................. 4.30 11,000,000
California Statewide
Community Development
Authority
(Pacific Bearings Co.
Project)
Series 96L
AMT
1,795 10/01/06 (b)................ 4.75 1,795,000
California Statewide
Community Development
Authority
(Primary Color Project)
Series 97F
AMT
1,930 7/01/17 (b)................. 4.75 1,930,000
California Statewide
Community Development
Authority
(Sunrise of Moraga)
Series 97G
3,600 7/01/27 (b)................. 4.40 3,600,000
5
<PAGE>
STATEMENT OF NET ASSETS (continued) Alliance Municipal Trust -
California Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-----------------------------------------------------------------------------
California Statewide
Economic Development
Authority
(Pioneer Converting Inc.)
AMT
$ 1,720 4/01/16 (b)................. 4.50% $ 1,720,000
Chula Vista IDA
(San Diego G&E Co.
Project)
Series 92B
AMT
11,000 12/01/27 (b)................ 4.45 11,000,000
Chula Vista IDA
(Sutherland/Palumbo
Project)
AMT
2,440 12/01/21 (b)................ 5.05 2,440,000
Chula Vista PCR
(San Diego G&E Project)
Series 96B
AMT
7,600 12/01/21 (b)................ 4.45 7,600,000
City of West Hollywood
COP
(Public Facilities Corp.)
Series 98
3,215 2/01/25 (b)................. 4.75 3,215,000
Commerce Joint Powers
(Precision Wire
Productions)
AMT
2,170 11/01/14 (b)................ 4.50 2,170,000
Contra Costa COP
(Concord Healthcare Center)
AMT
3,315 12/01/12 (b)................ 4.70 3,315,000
Contra Costa County
BOE TRAN
Series 00 WI
20,000 7/05/01..................... 4.22 20,149,200
Contra Costa County
HFA MFHR
(Park Regency Partners)
Series 92A
AMT
31,300 8/01/32 (b)................. 4.40 31,300,000
Fairfield IDA
(Aitchison Family
Partnership)
3,500 4/01/12 (b)................. 4.50 3,500,000
Fillmore COP
(Water Systems Refining &
Capital Project)
Series 97
7,205 5/01/29 (b)................. 4.50 7,205,000
Fresno California SWR
FGIC
Series 00A
4,600 9/01/25 (b)................. 4.30 4,600,000
Golden Empire School
Finance Authority
(Kern High School
District Project)
Series 99
4,000 8/01/29 (b)................. 4.25 4,000,000
Indio HFA MFHR
(Olive Courts Apts.)
Series 96
AMT
500 12/01/26 (b)................ 4.80 500,000
Indio HFA MFHR
(Smoketree Apts.)
Series A
9,050 12/01/07 (b)................ 4.35 9,050,000
Irvine Ranch
(Water District)
Series 85B
8,800 10/01/09 (b)................ 4.30 8,800,000
Irvine Ranch WTR
(IMP District 186,188,
140, 240)
8,000 6/01/15 (b)................. 4.30 8,000,000
Long Beach
(Southeast Facility Lease
Revenue)
Series 95A
10,756 12/01/18 (b)................ 4.40 10,756,000
Long Beach
(Southeast Facility Lease
Revenue)
Series 95B
AMT
12,819 12/01/18 (b)................ 4.45 12,819,000
Los Angeles Community
Redevelopment Agency
(Broadway Spring Center)
Series 87
AMT
10,500 7/01/12 (b)................. 4.50 10,500,000
6
<PAGE>
Alliance Municipal Trust - California Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-----------------------------------------------------------------------------
Los Angeles County
HFA MFHR
(Canyon Country Villas)
Series 85H
$15,000 12/01/07 (b)................ 4.75% $15,000,000
Los Angeles County
HFA MFHR
(Diamond Park Apts. Project)
Series 87A
AMT
14,200 2/01/09 (b)................. 4.45 14,200,000
Los Angeles County
HFA MFHR
(Valencia Village Project)
Series 84
17,300 10/01/14 (b)(c)............. 4.30 17,300,000
Los Angeles HFA MFHR
(Mission Village Apts.)
Series 97D
AMT
3,540 7/01/27 (b)................. 4.35 3,540,000
Los Angeles IDA
(Delta Tav Data Systems
Inc.)
Series 98
AMT
3,800 8/01/23 (b)................. 4.45 3,800,000
Milpitas MFHR
(The Crossing at
Montague)
Series 00A
AMT
7,500 8/15/33 (b)................. 4.80 7,500,000
Monrovia
Redevelopment Agency
(Holiday Inn Hotel
Project)
Series 84
4,200 12/01/14 (b)................ 4.10 4,200,000
Oakland-Alameda
County
(Coliseum Project)
Series 00C-2
15,000 2/01/25 (b)................. 4.30 15,000,000
Oceanside HFA MFHR
(Riverview Springs Apts.)
Series 90A
AMT
16,300 7/01/20 (b)................. 4.37 16,300,000
Panama-Buena Vista
(Unified School District
Capital Improvement
Financing Project)
5,000 6/01/24 (b)................. 5.05 5,000,000
Petaluma HFA MFHR
(Oakmont at Petaluma)
Series 96A
AMT
800 4/01/26 (b)................. 4.40 800,000
Pleasant Hill
Redevelopment Agency
MFHR
(Chateau III Project)
Series 96A
AMT
2,260 8/01/26 (b)................. 4.40 2,260,000
Redondo Beach
Redevelopment Agency
MFHR
(McCandless Housing
Project)
Series 95A
3,550 12/01/25 (b)................ 4.50 3,550,000
Riverside County COP
Series 85A
10,000 12/01/15 (b)................ 4.80 10,000,000
Riverside County IDA
(Advanced Business Forms)
Series 89
AMT
1,300 4/05/14 (b)................. 4.40 1,300,000
Riverside County IDA
(Cryogenic Partners)
Series 89
AMT
1,400 7/05/14 (b)................. 4.40 1,400,000
Roseville County High
School District COP
(Northwest Roseville Land
Project)
Series 91
2,635 8/01/06 (b)................. 4.75 2,635,000
Sacramento County
Airport Facility
(Cessna Aircraft Co.)
Series 98
AMT
3,700 11/01/28 (b)................ 4.50 3,700,000
7
<PAGE>
STATEMENT OF NET ASSETS (continued) Alliance Municipal Trust -
California Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-----------------------------------------------------------------------------
Sacramento County COP
(Administration Center &
Courthouse Project)
Series 90
$ 5,755 6/01/20 (b)................. 4.35% $ 5,755,000
Sacramento County
Sanitation District
(Sacramento Regional)
Series 00
12,000 12/01/30 (b)................ 4.25 12,000,000
San Bernardino City
Unified School District
TRAN
12,000 12/07/00.................... 3.79 12,023,314
San Bernardino
County HFA MFHR
(Mountain View Apts.)
Series 97A
6,000 3/01/27 (b)................. 4.25 6,000,000
San Francisco
Redevelopment Agency
MFHR
(Third & Mission)
Series 99C
AMT
7,500 7/01/34 (b)................. 4.30 7,500,000
Santa Clara County
Hospital Facility
(Aces El Camino Hospital
District)
Series B
21,220 8/01/15 (b)................. 4.80 21,220,000
Santa Clara County
Transportation District
(Refunding Equipment
Trust)
AMBAC Series 85A
19,925 6/01/15 (b)................. 4.35 19,925,000
Santa Fe Springs IDA
(Metal Center Inc. Project)
Series 89A
AMT
2,300 7/01/14 (b)................. 4.40 2,300,000
Simi Valley HFA MFHR
(Shadowridge Apts.)
Series 89
5,000 9/01/19 (b)................. 4.55 5,000,000
South Coast Local
Education TRAN
Series 00 WI
20,000 7/03/01..................... 4.22 20,149,600
Southern California
Public Power Authority
(Transmission Project
Revenue)
AMBAC
100 7/01/19 (b)................. 4.30 100,000
Southern California
Public Power Authority
(Transmission Project)
FSA Series 00A
17,000 7/01/23 (b)................. 4.25 17,000,000
------------
782,508,201
------------
PUERTO RICO-0.7%
Puerto Rico Highway &
Transportation
AMBAC Series 98A
6,500 7/01/28 (b)................. 4.25 6,500,000
------------
Total Municipal Bonds
(amortized cost
$789,008,201)............... 789,008,201
------------
COMMERCIAL PAPER- 18.7%
CALIFORNIA-18.7%
California GO
3,000 9/06/00..................... 3.96 3,000,000
California GO
2,000 9/06/00..................... 4.00 2,000,000
California GO
16,000 8/23/00..................... 3.96 16,000,000
California GO
10,000 9/07/00..................... 4.10 10,000,000
Los Angeles County
Capital Asset Lease
Revenue
9,000 9/07/00..................... 4.00 9,000,000
Los Angeles County MTA
(Second Subordinate
Sales Tax)
Series A
20,000 9/08/00..................... 4.00 20,000,000
Los Angeles County MTA
(Second Subordinate
Sales Tax)
Series A
15,900 9/12/00..................... 4.00 15,900,000
Los Angeles Water &
Power
(Electric Plant
Certificates)
10,000 9/12/00..................... 4.10 10,000,000
8
<PAGE>
Alliance Municipal Trust - California Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-----------------------------------------------------------------------------
Sacramento County
(Municipal Utility District)
Series I
5,000 9/06/00..................... 3.96% $ 5,000,000
San Diego County
(Teeter Obligation)
Series B-1
10,000 7/31/00..................... 4.25 10,000,000
San Francisco Airport
Commission
Series 97A
AMT
3,400 9/11/00..................... 3.95 3,400,000
San Francisco Airport
Commission
Series A
AMT
8,965 8/10/00..................... 4.30 8,965,000
San Francisco Airport
Commission
Series B
AMT
7,300 8/08/00..................... 4.30 7,300,000
San Francisco Bay Area
Rapid Transit
Series 98A
5,500 9/07/00..................... 3.96 5,500,000
San Francisco Bay Area
Rapid Transit
Series 98A
5,500 9/07/00..................... 3.96 5,500,000
San Francisco Bay Area
Rapid Transit
Series 99C
5,000 9/11/00..................... 3.96 5,000,000
San Francisco Bay
Unified Port
District
Series B
5,650 8/28/00..................... 3.96 5,650,000
San Francisco Public
Utility Commission
(Water Series)
5,000 8/07/00..................... 4.00 5,000,000
San Jose International
Airport
8,300 9/21/00..................... 4.05 8,300,000
University of California
(Board of Regents)
9,000 9/07/00..................... 3.96 9,000,000
University of California
(Board of Regents)
10,000 9/11/00..................... 4.00 10,000,000
------------
Total Commercial Paper
(amortized cost
$174,515,000)............... 174,515,000
------------
TOTAL INVESTMENTS-103.4%
(amortized cost
$963,523,201)............... 963,523,201
Other assets less
liabilities-(3.4%).......... (31,530,700)
------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
932,061,427 shares
outstanding)................ $931,992,501
============
-------------------------------------------------------------------------------
See footnote summary on page 10.
9
<PAGE>
STATEMENT OF NET ASSETS (continued) Alliance Municipal Trust -
California Portfolio
===============================================================================
(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.
(c) Securities, or portion thereof, with an aggregate market value of
$64,801,000 have been segregated to collateralize when issued securities.
Glossary of Terms:
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax
BOE - Board of Education
COP - Certificate of Participation
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
GO - General Obligation
HFA - Housing Finance Agency/Authority
IDA - Industrial Development Authority
MFHR - Multi-Family Housing Revenue
MTA - Mass Transit Authority
PCR - Pollution Control Revenue
SWR - Solid Waste Revenue
TRAN - Tax & Revenue Anticipation Note
WI - When Issued
WTR - Water
See notes to financial statements.
10
<PAGE>
STATEMENT OF OPERATIONS
Year Ended June 30, 2000 Alliance Municipal Trust - California Portfolio
===============================================================================
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest ......................................................$ 29,636,859
EXPENSES
Advisory fee (Note B).......................................... $ 4,417,425
Distribution assistance and administrative service (Note C).... 3,424,238
Transfer agency (Note B)............................................276,355
Custodian fees......................................................182,129
Registration fees...................................................148,332
Printing.............................................................92,240
Audit and legal fees.................................................27,754
Trustees' fees........................................................3,626
Miscellaneous.........................................................8,228
-----------
Total expenses .................................................. 8,580,327
------------
Net investment income ...........................................21,056,532
REALIZED LOSS ON INVESTMENTS
Net realized loss on investment transactions ......................(44,929)
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ........................$ 21,011,603
============
</TABLE>
-------------------------------------------------------------------------------
See notes to financial statements.
11
<PAGE>
STATEMENT OF CHANGES
IN NET ASSETS Alliance Municipal Trust - California Portfolio
===============================================================================
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 2000 June 30, 1999
------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .....................$ 21,056,532 $ 11,303,674
Net realized loss on investment transactions ....(44,929) -0-
------------- -------------
Net increase in net assets from operations ...21,011,603 11,303,674
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ......................(21,056,532) (11,303,671)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) ......................276,393,827 233,179,409
------------- -------------
Total increase .............................276,348,898 233,179,412
NET ASSETS
Beginning of period ........................655,643,603 422,464,191
------------- -------------
End of period ............................$ 931,992,501 $ 655,643,603
============= =============
</TABLE>
-------------------------------------------------------------------------------
See notes to financial statements.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 Alliance Municipal Trust - California 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 (the "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. 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 accounting principles generally accepted in the United States,
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 in vestment income for the
year ended June 30, 2000, 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. No
reimbursement was required for the year ended June 30, 2000.
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 $121,456 for the year ended June 30, 2000.
For the year ended June 30, 2000, the Fund's expenses were reduced by $1,046
under an expense offset arrangement with Alliance Fund Services, Inc.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - California 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, 2000, the distribution fee amounted to $2,208,713. 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 year ended June 30, 2000, such payments by the Portfolio amounted to
$1,215,525, a substantial portion of which was paid to the Adviser and its
affiliates.
-------------------------------------------------------------------------------
NOTE D: Investment Transactions
At June 30, 2000, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 2000, the
Portfolio had a capital loss carryforward of $17,865, of which $13,804 expires
in 2002, $3,239 expires in 2003 and, $822 expires in 2004. To the extent that
any net capital loss carryforward is used to offset future capital gains, it is
probable that these gains will not be distributed to shareholders. The Portfolio
had deferred capital losses occurring subsequent to October 31, 1999 of
$44,929. For tax purposes, such losses will be reflected in the year ending
June 30, 2001.
-------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At June 30,
2000, capital paid-in aggregated $932,055,295. Transactions, all at $1.00 per
share, were as follows:
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, June 30,
2000 1999
-------------- --------------
<S> <C> <C>
Shares sold ................................. 3,359,359,238 1,644,768,715
Shares issued on reinvestments of dividends .... 21,056,532 11,303,674
Shares redeemed .............................(3,104,021,943) (1,422,892,980)
-------------- --------------
Net increase ...................................276,393,827 233,179,409
============== ==============
</TABLE>
14
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - California Portfolio
===============================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Year Ended June 30,
-------------------------------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .....$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income From Investment Operations
Net investment income ....... .024 .022 .027(a) .027(a) .029(a)
-------- -------- -------- -------- --------
Less: Dividends
Dividends from net
investment income .........(.024) (.022) (.027) (.027) (.029)
-------- -------- -------- -------- --------
Net asset value,
end of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return
Total investment return
based on net asset value (b) 2.39% 2.20% 2.74% 2.76% 2.91%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) .........$931,993 $655,644 $422,464 $357,148 $297,862
Ratios to average net assets of:
Expenses, net of waivers
and reimbursements .... .97% .98% .96% .93% .93%
Expenses, before waivers
and reimbursements .... .97% .98% .97% .96% .94%
Net investment income ... 2.38% 2.18% 2.71%(a) 2.73%(a) 2.86%(a)
</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 of less than one year is not annualized.
15
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS Alliance Municipal Trust -
California Portfolio
===============================================================================
To the Board of Trustees and Shareholders of
Alliance Municipal Trust - California Portfolio
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Alliance Municipal Trust - California Portfolio (the "Fund") at June 30, 2000,
and the results of its operations, the changes in its net assets and the
financial highlights for the year then ended, in conformity with accounting
principles generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express
an opinion on these financial statements based on our audit. We conducted our
audit of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audit, which included confirmation of
securities at June 30, 2000, by correspondence with the custodian and brokers,
provides a reasonable basis for the opinion expressed above. The financial
statements for the year ended June 30, 1999, including the financial highlights
for each of the four years in the period then ended, were audited by other
independent accountants whose report dated July 23, 1999, expressed an
unqualified opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
July 28, 2000
16
<PAGE>
Alliance Municipal Trust - California 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
Dave H. Willliams, Chairman
Ronald M. Whitehill, President
Kathleen A. Corbet, Senior Vice President
Drew Biegel, Senior Vice President
John R. Bonczek, Senior Vice President
Doris T. Ciliberti, Senior Vice President
Robert I. Kurzweil, Senior Vice President
Wayne D. Lyski, Senior Vice President
Patricia Ittner, Senior Vice President
William E. Oliver, Senior Vice President
Raymond J. Papera, Senior 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
Maria C. Sazon, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer and 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.
17
<PAGE>
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<PAGE>
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<PAGE>
Alliance Municipal Trust - California Portfolio ---------------
1345 Avenue of the Americas, New York, NY 10105 BULK RATE
Toll free 1 (800) 221-5672 U.S. POSTAGE
PAID
Yields. For current recorded yield information on New York, NY
Alliance Municipal Trust, call on a touch-tone Permit No. 7131
telephone toll-free (800) 251-0539 and press the ---------------
following sequence of keys:
- - - - - - -
* * 1 2 2 1 #
- - - - - - -
For non-touch-tone telephones, call toll-free (800) 221-9513
------------------------------------------------------------
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(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
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