ALLIANCE MUNICIPAL INCOME FUND
SEMI-ANNUAL REPORT
APRIL 30, 1999
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
June 28, 1999
Dear Shareholder:
We are pleased to report municipal market activity and investment results for
Alliance Municipal Income Fund's six-month fiscal reporting period ending April
30, 1999.
ALLIANCE MUNICIPAL INCOME FUND--CLASS A SHARES
Period Ended April 30, 1999
<TABLE>
<CAPTION>
6 MONTHS 1 YEAR 3 YEAR 5 YEAR 10 YEAR 3 YEAR
FUND PORTFOLIO LIPPER LIPPER LIPPER LIPPER MORNINGSTAR
PORTFOLIO TOTAL RETURNS* RANKINGS** RANKINGS** RANKINGS** RANKINGS** RATINGS***
- ------------- -------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
National 2.06% 57/258 12/202 5/150 11/75 5 stars
California 1.78% 33/105 6/89 3/64 3/33 5 stars
New York 1.85% 61/99 5/87 2/61 4/31 5 stars
Insured National 1.54% 40/48 3/44 3/31 2/17 3 stars
Insured California 1.38% 18/26 1/25 1/18 4/7 4 stars
Number of Funds in
Morningstar Municipal
Bond Fund Category 1,579
</TABLE>
* THE FUND'S INVESTMENT RESULTS ARE BASED ON THE NET ASSET VALUE OF CLASS A
SHARES. ALL FEES AND EXPENSES RELATED TO THE OPERATION OF THE FUND HAVE BEEN
DEDUCTED, BUT NO ADJUSTMENT HAS BEEN MADE FOR SALES CHARGES THAT MAY APPLY WHEN
SHARES ARE PURCHASED OR REDEEMED. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS. ADDITIONAL PERFORMANCE INFORMATION CAN BE FOUND ON PAGES 3-6.
** LIPPER RANKINGS CORRESPOND TO THE PORTFOLIO'S RETURN AMONG THE RETURNS OF
ITS PEER GROUP OF FUNDS, AS REPRESENTED BY THE RESPECTIVE STATE SPECIFIC LIPPER
MUNICIPAL DEBT FUNDS AVERAGE. FUNDS IN THE LIPPER AVERAGES GENERALLY HAVE
SIMILAR INVESTMENT OBJECTIVES TO THE FUND, ALTHOUGH SOME MAY HAVE DIFFERENT
INVESTMENT POLICIES. AN INVESTOR CANNOT INVEST DIRECTLY IN AN AVERAGE.
*** MORNINGSTAR PROPRIETARY RATINGS REFLECT HISTORICAL RISK-ADJUSTED
PERFORMANCE AS OF APRIL 30, 1999. EACH PORTFOLIO'S OVERALL, 5-YEAR AND 10-YEAR
MORNINGSTAR RATINGS WERE: NATIONAL 4 STARS, 4 STARS AND 4 STARS; CALIFORNIA 5
STARS, 5 STARS AND 4 STARS; NEW YORK 4 STARS, 4 STARS AND 4 STARS; INSURED
NATIONAL 2 STARS, 2 STARS AND 2 STARS; AND INSURED CALIFORNIA 2 STARS, 3 STARS
AND 1 STAR. THE NUMBER OF FUNDS IN THE MORNINGSTAR MUNICIPAL BOND FUND CATEGORY
FOR THE OVERALL, 5-YEAR AND 10-YEAR PERIODS ENDED APRIL 30, 1999 WERE: 1579,
1151, AND 367. THESE RATINGS MAY CHANGE MONTHLY AND ARE CALCULATED FROM EACH
PORTFOLIO'S 3-YEAR, 5-YEAR, 10-YEAR AND OVERALL AVERAGE ANNUAL RETURNS IN
EXCESS OF 90-DAY TREASURY BILL RETURNS WITH APPROPRIATE FEE ADJUSTMENTS AND A
RISK FACTOR THAT REFLECTS PORTFOLIO PERFORMANCE BELOW 90-DAY TREASURY BILL
RETURNS. IF THE PORTFOLIO SCORES IN THE TOP 10% OF ITS CLASS, IT RECEIVES 5
STARS; IF IT FALLS IN THE NEXT 22.5%, IT RECEIVES 4 STARS; A PLACE IN THE
MIDDLE 35% EARNS IT 3 STARS; IF IT FALLS IN THE NEXT 22.5%, IT RECEIVES 2
STARS; AND IF IT SCORES AT THE BOTTOM 10%, IT GETS 1 STAR. EACH PORTFOLIO'S SEC
AVERAGE ANNUAL TOTAL RETURNS CAN BE FOUND ON PAGES 4 AND 5.
MARKET OVERVIEW
For the six months ended April 30, 1999, the municipal bond market continued to
perform well compared to the U.S. government bond (Treasury) market. Part of
this positive performance was attributable to a declining yield ratio, or
relationship of municipal bond yields to Treasury yields, over the period. In
the latter part of calendar 1998, investors seeking the "safe haven" of U.S.
government bonds during the emerging markets crisis pushed the yield ratio
toward 100%, compared with traditional levels of roughly 85%. The markets
reversed course in recent months, retracing much of the ground lost in 1998. In
addition to the easing of international financial tensions, continued investor
demand for tax-exempt income and the absence of any significant tax reform
legislation contributed to the price appreciation we have seen throughout the
municipal market.
Another significant contributor to the health of the municipal bond market was
the continuing improvement of the creditworthiness of state and local
governments. The strong domestic economy continued to produce record levels of
sales, income and property tax receipts. In addition, state and local
government spending increased at a lower rate than tax revenues, resulting in
overall budget surpluses.
1
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
INVESTMENT STRATEGY
In response to the unusually high yields on municipal bonds compared with
government bonds (on an after-tax basis) during the reporting period, your
management team selectively added new municipal positions to the portfolios. In
particular, we have continued to focus our research efforts on project-specific
financings, primarily basic infrastructure improvement projects. Over time, we
expect that the underlying credit fundamentals of the issuers of these
securities will improve and that the original, higher-yielding debt that we
hold will outperform the broader municipal market. We have also continued our
strategy of selectively adding new, non-rated positions to our single state
portfolios, which offer substantially more income for acceptable incremental
risk.
In addition to our overall portfolio strategy built on fundamental credit
analysis, we attempt, when market conditions are favorable, to make
opportunistic purchases and sales of securities at advantageous prices. A good
example of such a time in the market was December 1998, when dealers and
investors provided lower levels of liquidity during holiday and year-end
reporting periods. In December, we made several purchases at attractive prices.
We also use these market opportunities to improve the call protection in the
portfolios and to increase the overall risk-adjusted return profile. Over time,
we have found that this type of opportunistic investing provides an important
part of our total return advantage compared with our peer group of competing
mutual funds.
MARKET OUTLOOK
The U.S. economy's low inflation, steady growth and federal budget surplus
should lead to further stability in all sectors of the bond market. The
municipal market should continue to perform in line with the broader market. In
this type of trading-range environment, we anticipate that the yield ratio of
municipals to Treasuries should continue to decline to its historic mean level
of approximately 85%. This room for improvement should allow municipals to
continue to perform well relative to Treasuries and corporate bonds. However,
more new infrastructure projects are under consideration at the state level and
the local level than in the recent past. This may lead to an increased supply
of new issues of tax-exempt bonds. We expect, however, that the overall supply
and demand characteristics of the market will remain in approximate equilibrium
and that neither new issues nor net redemptions will move the market
appreciably.
As always, we will continue to pursue our tactics of buying on weakness and
selling on strength within the overall strategy of fundamental credit analysis.
We appreciate your investment in Alliance Municipal Income Fund and look
forward to reporting future investment results.
Sincerely,
John D. Carifa
Chairman and President
Susan P. Keenan
Senior Vice President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
2
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
The five portfolios of Alliance Municipal Income Fund, by investing principally
in high-yielding, predominantly medium quality municipal securities, seek to
provide their shareholders with the highest level of income exempt from Federal
and state personal income tax that is available without assuming undue risk.
These securities generally offer current yields above those of higher quality
municipal obligations.
HOW YOUR PORTFOLIO PERFORMED OVER THE PAST TWELVE MONTHS
- -------------------------------------------------------------------------------
The Portfolios' Class A share total returns at net asset value (NAV) for the
6-month and 1-year periods ended April 30, 1999 are shown below. For
comparison, we have also shown returns for the overall municipal bond market,
represented by the unmanaged state specific Lipper Municipal Debt Funds
Average, for the 1-year, 3-year, 5-year and 10-year periods ended April 30,
1999. Current yields and returns for Class B and Class C shares are on the next
two pages.
INVESTMENT RESULTS
- -------------------------------------------------------------------------------
MUNICIPAL INCOME FUND--CLASS A SHARES COMPARED TO LIPPER MUNICIPAL DEBT FUNDS
AVERAGE*
PERIOD ENDED APRIL 30, 1999
<TABLE>
<CAPTION>
FUND FUND
PORTFOLIO PORTFOLIO
TOTAL RETURNS TOTAL RETURNS LIPPER LIPPER LIPPER LIPPER
(AT NAV) (AT NAV) AVERAGE AVERAGE AVERAGE AVERAGE
PORTFOLIO 6 MONTHS 1 YEAR 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------- -------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
National 2.06% 6.40% 5.78% 6.98% 6.79% 7.44%
California 1.78% 6.81% 6.47% 7.38% 7.06% 7.37%
New York 1.85% 6.12% 6.25% 7.02% 6.60% 7.34%
Insured National 1.54% 5.42% 6.04% 6.73% 6.73% 7.17%
Insured California 1.38% 6.09% 6.36% 7.22% 7.03% 7.67%
</TABLE>
* TOTAL RETURNS FOR THE FUND'S PORTFOLIOS ARE BASED ON THE NET ASSET VALUE
OF CLASS A SHARES AS OF APRIL 30, 1999. ALL FEES AND EXPENSES RELATED TO THE
OPERATION OF THE FUND HAVE BEEN DEDUCTED, BUT NO ADJUSTMENT HAS BEEN MADE FOR
SALES CHARGES THAT MAY APPLY WHEN SHARES ARE PURCHASED OR REDEEMED. PAST
PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE STATE SPECIFIC LIPPER
MUNICIPAL DEBT FUNDS AVERAGES HAVE GENERALLY SIMILAR INVESTMENT OBJECTIVES TO
YOUR FUND'S PORTFOLIOS, ALTHOUGH SOME MAY HAVE DIFFERENT INVESTMENT POLICIES.
AN INVESTOR CANNOT INVEST DIRECTLY IN AN AVERAGE.
3
INVESTMENT RESULTS
AS OF APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
<TABLE>
<CAPTION>
NAV AND SEC TOTAL RETURNS
------------------------------------------------------------------------------
WITHOUT SALES CHARGE WITH SALES CHARGE
------------------------------------- --------------------------------------
SINCE SINCE
PORTFOLIO 1 YEAR 5 YEARS 10 YEARS INCEPTION 1 YEAR 5 YEARS 10 YEARS INCEPTION
- ---------- -------- ------- -------- --------- ------ ------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NATIONAL
Class A 6.40% 8.03% 8.15% 8.00% 1.92% 7.10% 7.68% 7.62%
Class B 5.54% 7.28% n/a 6.33%(a) 2.55% 7.28% n/a 6.33%(a)
Class C 5.56% 7.29% n/a 5.86% 4.56% 7.29% n/a 5.86%
CALIFORNIA
Class A 6.81% 8.34% 8.10% 8.00% 2.30% 7.41% 7.64% 7.62%
Class B 6.10% 7.56% n/a 6.62%(a) 3.10% 7.56% n/a 6.62%(a)
Class C 6.10% 7.56% n/a 6.21% 5.10% 7.56% n/a 6.21%
NEW YORK
Class A 6.12% 7.88% 7.99% 7.25% 1.62% 6.94% 7.53% 6.87%
Class B 5.39% 7.09% n/a 6.12%(a) 2.39% 7.09% n/a 6.12%(a)
Class C 5.39% 7.09% n/a 5.63% 4.39% 7.09% n/a 5.63%
INSURED NATIONAL
Class A 5.42% 7.77% 7.91% 7.61% 0.94% 6.85% 7.44% 7.23%
Class B 4.76% 7.02% n/a 6.30%(a) 1.80% 7.02% n/a 6.30%(a)
Class C 4.76% 7.04% n/a 5.82% 3.77% 7.04% n/a 5.82%
INSURED CALIFORNIA
Class A 6.09% 7.84% 7.57% 7.76% 1.56% 6.92% 7.10% 7.41%
Class B 5.33% 7.02% n/a 5.95%(a) 2.33% 7.02% n/a 5.95%(a)
Class C 5.33% 7.02% n/a 5.46% 4.33% 7.02% n/a 5.46%
</TABLE>
(a) Assumes conversion of Class B shares into Class A shares after 6 years.
The Fund's investment results represent total returns. The NAV and SEC
returns reflect reinvestment of dividends and/or capital gains distributions in
additional shares, without (NAV) and with (SEC) the effect of the 4.25% maximum
front-end sales charge for Class A shares or applicable contingent deferred
sales charge for Class B shares (3% year 1, 2% year 2, 1% year 3, 0% year 4);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
n/a: not applicable.
4
INVESTMENT RESULTS ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END (MARCH 31,
1999)
SINCE
PORTFOLIO 1 YEAR 5 YEARS 10 YEARS INCEPTION
- --------- -------- ------- -------- ---------
NATIONAL
Class A 1.49% 7.03% 7.91% 7.66%
Class B 2.28% 7.22% n/a 6.38%(a)
Class C 4.28% 7.24% n/a 5.92%
CALIFORNIA
Class A 1.79% 7.42% 7.89% 7.65%
Class B 2.63% 7.57% n/a 6.67%(a)
Class C 4.63% 7.57% n/a 6.26%
NEW YORK
Class A 1.06% 6.89% 7.79% 6.90%
Class B 1.78% 7.03% n/a 6.16%(a)
Class C 3.78% 7.03% n/a 5.68%
INSURED NATIONAL
Class A 0.62% 6.98% 7.69% 7.27%
Class B 1.46% 7.18% n/a 6.36%(a)
Class C 3.42% 7.18% n/a 5.89%
INSURED CALIFORNIA
Class A 1.26% 6.92% 7.37% 7.45%
Class B 2.07% 7.06% n/a 6.01%(a)
Class C 4.07% 7.06% n/a 5.54%
(a) Assumes conversion of Class B shares into Class A shares after 6 years.
SEC average annual total returns for the periods shown reflect
reinvestment of all distributions and deduction of the maximum 4.25% front-end
sales charge and applicable contingent deferred sales charge.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
5
INVESTMENT RESULTS
AS OF APRIL 30, 1999 ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
PORTFOLIO YIELDS
- --------------------------------------------------
TAXABLE
EQUIVALENT
YIELD IN 36%
30 DAY TAX BRACKET
PORTFOLIO SEC YIELD* (AT NAV)
- --------- ---------- ------------
NATIONAL
Class A 4.57% 8.27%
Class B 4.03% 6.88%
Class C 4.06% 6.88%
CALIFORNIA
Class A 4.72% 8.94%
Class B 4.21% 7.32%
Class C 4.22% 7.32%
NEW YORK
Class A 5.00% 8.97%
Class B 4.50% 7.73%
Class C 4.51% 7.73%
INSURED NATIONAL
Class A 3.93% 6.66%
Class B 3.39% 5.66%
Class C 3.39% 5.66%
INSURED CALIFORNIA
Class A 4.18% 7.60%
Class B 3.65% 6.37%
Class C 3.66% 6.37%
* SEC yields are based on SEC guidelines and are calculated on 30 days ended
April 30, 1999.
6
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD & PRINCIPAL
POOR'S AMOUNT
RATINGS (000) VALUE
- -------------------------------------------------------------------------------
MUNICIPAL BONDS-98.9%
LONG TERM MUNICIPAL BONDS-82.0%
ARIZONA-1.8%
NR Goodyear
Assess Dist #1 (Palm Valley)
Ser 96C
7.25%, 7/01/16 $ 1,000 $ 1,094,650
AA- Maricopa Cnty
Util Rev (Citizen's Util)
Ser 95 AMT
6.20%, 5/01/30 5,920 6,440,309
AA- Mohave Cnty IDR
(Citizen's Util)
Ser 93B AMT
5.80%, 11/15/28 2,000 2,085,720
B Pima Cnty IDR
(Tuscon Elec Pwr Co Proj)
Ser 97C
6.00%, 9/01/29 1,000 1,000,800
NR Scottsdale GO
(McDowell Ranch)
Ser 97 Pre-refunded
6.50%, 7/15/07 2,000 2,318,140
-------------
12,939,619
CALIFORNIA-9.3%
Aaa Encinitas Comm
Fac Dist #1 (Encinitas Ranch)
Ser 95A
7.375%, 9/01/05 (a) 22,900 27,347,409
BBB- Orange Cnty Sr Lien
Foothill/Eastern Corridor
Zero coupon, 1/01/24 10,255 2,763,312
Zero coupon, 1/01/30 27,935 5,421,904
NR Riverside Cnty Assess
Dist #161 (Winchester Prop)
Ser 94C
10.00%, 9/02/14 5,355 5,562,881
NR Sacramento
(Conv Ctr Hotel: Sheraton Grand)
Ser A
6.25%, 1/01/30 12,000 11,950,080
NR San Diego Comm Fac Dist #1
(Miramar Ranch North)
Ser 95B Pre-refunded
7.10%, 9/01/05 7,000 8,318,730
A- Vacaville Ca Redev Agy
Comm Housing Fin
Ser 94A
7.85%, 11/01/24 4,625 4,970,025
-------------
66,334,341
COLORADO-5.2%
Aaa Arapahoe Cnty
(E-470 Public Highway Auth)
Pre-refunded
7.00%, 8/31/05 (a) 11,830 14,048,598
BBB Denver City & Cnty
(Arpt Sys Rev)
Ser 92C AMT
6.75%, 11/15/22 9,500 10,315,804
BB+ Denver City & Cnty Arpt Auth
(United Airlines)
Ser 92A AMT
6.875%, 10/01/32 11,775 12,610,790
-------------
36,975,192
CONNECTICUT-1.6%
B+ Connecticut Dev Auth
PCR (Conn Light & Pwr Co Proj)
Ser 93 AMT
5.95%, 9/01/28 11,000 11,131,120
DISTRICT OF COLUMBIA-0.4%
AAA Washington DC
(Natl Academy/Science Proj)
AMBAC Ser 99A
5.00%, 1/01/28 3,000 2,872,170
FLORIDA-8.6%
NR Collier Cnty Comm Fac Dist
(Fiddlers Creek)
Ser 96
5.80%, 5/01/21 7,940 7,939,921
5.875%, 5/01/21 9,305 9,304,907
7.50%, 5/01/18 11,985 12,903,051
NR Collier Cnty IDR
(Southern State Util)
Ser 96 AMT
6.50%, 10/01/25 12,605 13,498,568
A3 Dade Cnty
(Courthouse Ctr Proj)
Ser 95
6.10%, 4/01/20 (a) 3,000 3,362,310
7
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
NR Lee Cnty Comm Fac
(Stoneybrook)
Ser 98
5.70%, 5/01/08 $ 3,440 $ 3,459,195
NR Northern Palm Beach Cnty
Imp Dist #9A (ABACOA)
Ser 96A
7.20%, 8/01/16 5,000 5,493,250
NR Orlando
(Conroy Rd Proj)
Ser 98A
5.80%, 5/01/26 2,250 2,249,978
NR St. John's Cnty Comm Dev
(Julington Creek Plantation)
Ser 97
6.70%, 5/01/07 2,830 3,030,166
-------------
61,241,346
GEORGIA-4.9%
AAA Atlanta Arpt Fac Rev
MBIA AMT
Zero coupon, 1/01/10 60,535 34,988,625
ILLINOIS-3.0%
AAA Illinois Hlth Fac
(Alexian Brothers Hlth)
FSA Ser 99
5.125%, 1/01/28 22,145 21,480,429
INDIANA-6.6%
BB+ Indianapolis Arpt Auth
(United Airlines
Maintenance Ctr Proj)
Ser 95A AMT
6.50%, 11/15/31 43,660 47,189,474
MARYLAND-0.2%
NR Maryland Dev Fin Auth
Eco Dev (Med Waste Assoc)
Ser 89 AMT
8.75%, 11/15/10 1,365 1,402,442
MASSACHUSETTS-7.0%
BBB Massachusetts Dev Fin Agcy
Res Rec (Ogden Hill Proj)
Ser 98B
5.50%, 12/01/19 2,135 2,132,289
AAA Massachusetts Port Auth
(Boston Fuel Corp)
MBIA Ser 97 AMT
6.00%, 7/01/36 20,960 22,217,390
AAA Massachusetts Port Auth
(US Air Proj)
MBIA Ser 96A AMT
5.875%, 9/01/23 $2,580 2,720,791
AAA Massachusetts Trpk Auth
(Metro Highway System)
AMBAC Ser 99A
5.00%, 1/01/39 19,570 18,631,031
AA+ Massachusetts Wtr Poll
(So Essex Program)
Ser 94A
6.375%, 2/01/15 3,000 3,330,900
A1 New England Higher Ed
Student Loan Rev
Ser 93H AMT
6.90%, 11/01/09 (a) 1,000 1,156,280
-------------
50,188,681
MICHIGAN-4.0%
BB- Detroit
(Daimler/Chrysler Jefferson
No Assembly Plant)
Ser 98A
5.50%, 5/01/21 4,225 4,161,414
AAA Kent Cnty Arpt Rev
(Kent Cnty Int'l)
Ser 95 AMT
6.10%, 1/01/25 3,550 3,946,109
AAA Michigan HDA
MFHR (Rental Hsg Rev)
MBIA Ser 99A AMT
5.30%, 10/01/37 13,170 13,083,736
AA+ Michigan Hosp Fin Auth
(Charity Obg Group)
Ser 99A
5.125%, 11/01/29 5,335 5,163,213
A Michigan Strategic Fund
PCR (General Motors Corp)
Ser 95
6.20%, 9/01/20 2,005 2,163,215
-------------
28,517,687
MINNESOTA-1.8%
AAA Duluth GO
Arpt Lease Rev
Ser 95C AMT
6.25%, 8/01/14 3,515 3,820,208
AAA Minneapolis HFA
MFHR (Riverside Plaza Proj)
GNMA Ser 98 AMT
5.20%, 12/20/30 4,670 4,662,528
8
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
AA+ Rochester Hosp Rev
(Mayo Med Ctr)
Ser 92H
8.472%, 11/15/15 (b) $ 1,620 $ 1,870,889
Aaa Saint Paul
MFHR (Wellington Proj)
Ser 99A FHLMC
5.10%, 2/01/24 (a) 2,400 2,406,120
-------------
12,759,745
NEW HAMPSHIRE-2.1%
B+ New Hampshire
PCR (Conn Pwr & Light Co Proj)
Ser 86 AMT
5.90%, 11/01/16 10,000 10,156,200
BB- New Hampshire Fin Auth
PCR (Pub Svc Co of NH)
Ser 93E AMT
6.00%, 5/01/21 5,000 5,094,900
-------------
15,251,100
NEW JERSEY-2.5%
NR New Jersey Eco Dev Auth
(Kapkowski Rd/Jersey Gardens)
Ser 98B AMT
6.50%, 4/01/31 2,800 2,906,120
BBB New Jersey Eco Dev Auth
PCR (NUI Corp)
Ser 98A AMT
5.25%, 11/01/33 10,940 10,734,765
A+ New Jersey Eco Dev Auth
Swr Rev (Anheuser-Busch)
Ser 95 AMT
5.85%, 12/01/30 3,940 4,162,571
-------------
17,803,456
NEW YORK-2.6%
NR New York IDR
(British Airways)
Ser 98 AMT
5.25%, 12/01/32 6,500 6,378,970
AAA NYS Energy Res & Dev Auth
PCR (NYS Elec & Gas) MBIA
Ser 88A AMT VRDN
5.95%, 12/01/27 (c) 6,700 7,166,253
AA- Port Auth of NY & NJ
Cons Rev (95th Ser) AMT
6.125%, 7/15/29 4,440 4,765,274
-------------
18,310,497
OHIO-5.4%
AAA Cleveland Arpt Rev
(Cleveland Int'l)
FGIC Ser 94A AMT
6.25%, 1/01/20 6,050 6,548,278
AAA Columbus Arpt Rev
(Port Columbus Int'l)
MBIA Ser 94A AMT
6.25%, 1/01/24 4,000 4,327,680
AAA Cuyahoga Cnty Hosp Rev
(Meridia Hlth Sys)
Ser Pre-refunded
6.25%, 8/15/05 2,600 2,957,630
AAA Cuyahoga Cnty MFHR
(Natl Terminal Apts Proj) FNMA
6.40%, 7/01/16 5,180 5,227,967
BBB Dayton Spec Fac
(Emery Air Freight)
Ser 96D AMT
6.20%, 10/01/09 4,120 4,517,086
BBB+ Ohio Air Quality Dev Auth
PCR (Columbus So Pwr)
Ser 85B
6.25%, 12/01/20 1,105 1,165,068
AA- Ohio Air Quality Dev Auth
PCR (Dayton Pwr & Light)
Ser 92B
6.40%, 8/15/27 2,000 2,166,880
AAA Ohio Air Quality Dev Auth
PCR (JMG Funding/Ohio Pwr Co)
AMBAC Ser 94B AMT
6.375%, 4/01/29 6,015 6,557,132
A- Ohio Wtr Dev Auth Solid Waste
(North Star/BHP) AMT
6.45%, 9/01/20 4,940 5,345,623
-------------
38,813,344
PENNSYLVANIA-2.9%
Aaa Allegheny Cnty
MFHR (Green Meadow Apts)
GNMA Ser 98A-1 AMT
5.125%, 10/20/40 (a) 1,595 1,576,035
AAA Pennsylvania Higher
Ed Fac Auth
(Univ of Pitt Med Ctr)
FSA Ser 99
5.00%, 8/01/29 13,000 12,547,210
9
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
AAA Pennsylvania Higher
Ed Student Loan Rev
AMBAC Ser 88D AMT
6.05%, 1/01/19 $ 1,000 $ 1,080,250
AAA Philadelphia Aprt Sys Rev
AMBAC Ser 95A AMT
6.10%, 6/15/25 5,200 5,611,736
-------------
20,815,231
PUERTO RICO-0.0%
AAA Puerto Rico HFC
SFMR(Home Mtg Rev)
GNMA Ser 98 AMT
5.20%, 12/01/32 260 259,457
TEXAS-6.9%
BBB- Alliance Arpt Auth
Fac Imp (American Airlines)
Ser 90 AMT
7.50%, 12/01/29 11,690 12,467,268
BB Harris Cnty Arpt Rev
(Continental Airlines)
Ser 98 AMT
5.375%, 7/01/19 3,155 3,051,137
BB Houston Arpt Rev
(Continental Airlines)
Ser 97B AMT
6.125%, 7/15/27 8,000 8,251,040
AAA# Houston Arpt Sys Rev
FGIC Ser 98B AMT
5.00%, 7/01/25 27,000 25,969,680
-------------
49,739,125
VIRGINIA-1.0%
AAA Harrisonburg Redev &
Hsg Auth MFHR
(Greens of Salem Run)
FSA Ser 97 AMT
6.30%, 4/01/29 1,545 1,668,971
A- Isle of Wight Cnty Solid Waste
(Union Camp Corp)
Ser 94 AMT
6.55%, 4/01/24 1,415 1,541,840
A+ James Cnty Swr Rev
(Anheuser-Busch Proj)
Ser 97 AMT
6.00%, 4/01/32 1,595 1,702,519
AAA Metro Wash DC Arpt Auth Rev
Ser A
5.00%, 10/01/27 2,000 1,932,240
-------------
6,845,570
WASHINGTON-0.6%
A- Pilchuck Dev Pub Corp
(BF Goodrich)
Ser 93 AMT
6.00%, 8/01/23 4,500 4,640,940
WEST VIRGINIA-1.5%
A Braxton Cnty SWR
(Weyerhaeuser)
Ser 98 AMT
5.40%, 5/01/25 10,000 9,913,000
AA+ West Virginia Pub Engy Auth
(Morgantown Energy)
Ser 90A AMT
5.05%, 7/01/08 1,000 1,021,500
-------------
10,934,500
WISCONSIN-2.1%
AAA Wisconsin GO
MBIA Ser 96B AMT
6.20%, 11/01/26 13,930 15,017,515
TOTAL LONG TERM MUNICIPAL BONDS
(cost $570,814,278) 586,451,606
SHORT TERM MUNICIPAL NOTES-16.9%
CONNECTICUT-2.2%
A-2 Connecticut Dev Auth
PCR (Exeter Energy Proj)
Ser 89B AMT VRDN
5.00%, 12/01/19 (c) 7,900 7,900,000
A-2 Connecticut Dev Fin Auth
PCR (Exeter Energy Proj)
Ser 89C AMT VRDN
5.00%, 12/01/19 (c) 7,500 7,500,000
-------------
15,400,000
DELAWARE-0.9%
A1+ Delaware St Econ Indl Dev Rev
Del Clean Pwr Proj
Ser C
3.50%, 8/01/29 6,500 6,500,000
GEORGIA-2.5%
VMIG Athens-Clarke Cnty IDR
(Nakanishi Mfg Corp)
Ser 88 AMT VRDN
4.60%, 5/01/08 (a)(c) 8,000 8,000,000
10
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
A-2 Cartersville IDR
(Sekisui Jushi America)
Ser 92 AMT VRDN
5.15%, 6/01/12 (c) $ 1,700 $ 1,700,000
VMIG Rockdale Cnty IDR
(Liochem Inc Proj)
Ser 88 AMT VRDN
5.50%, 3/01/03 (a)(b)(c) 8,000 8,000,000
-------------
17,700,000
HAWAII-4.0%
VMIG Hawaii HFA
MFHR (Kamakee Vista)
Ser 90A VRDN
5.45%, 7/01/25 (a)(c) 2,600 2,600,000
VMIG Hawaii HFA
MFHR (Rental Hsg)
Ser 90B VRDN
5.45%, 7/01/25 (a)(c) 26,300 26,300,000
-------------
28,900,000
ILLINOIS-1.1%
A-2 Illinois IDR
(MTI Corp Proj)
Ser 89 AMT VRDN
5.50%, 1/01/09 (c) 4,000 4,000,000
VMIG Illinois IDR
(THK America Inc. Proj)
Ser 91 AMT VRDN
5.15%, 7/01/11 (a)(c) 3,700 3,700,000
-------------
7,700,000
INDIANA-2.0%
A-1+ Gibson Cnty
PCR (Toyota Mtr Mfg Proj)
Ser 97 AMT VRDN
4.05%, 10/01/27 (c) 10,000 10,000,000
NR Indiana St Hsg Finance Auth
Hsg Pedcor Invts M A
4.05%, 1/01/29 4,000 4,000,000
-------------
14,000,000
KENTUCKY-0.4%
A-2 Russellville IDR
(JS Technos Corp Proj)
Ser 89 AMT VRDN
5.15%, 12/01/09 (c) 3,000 3,000,000
MAINE-0.9%
A-1+ Maine Solid Waste
(Regional Wste Sys Inc)
Ser 90K AMT VRDN
4.05%, 7/01/12 (c) 2,200 2,200,000
A-1+ Maine Solid Waste
(Regional Wste Sys Inc)
Ser 95O AMT VRDN
4.05%, 7/01/09 (c) 4,500 4,500,000
-------------
6,700,000
NEW JERSEY-0.7%
A-2 New Jersey Eco Dev
Auth IDR
(Epitaxx Inc Proj)
Ser 91 AMT VRDN
4.225%, 8/01/16 (c) 5,000 5,000,000
NEW YORK-2.2%
VMIG Islip IDA
(Radiation Dynamics)
Ser 88A AMT VRDN
4.625%, 1/01/09 (a)(c) 6,000 6,000,000
A-2 New York City IDA
(Nippon Cargo Air Proj)
Ser 92 AMT VRDN
5.00%, 11/01/15 (c) 9,700 9,700,000
-------------
15,700,000
TOTAL SHORT TERM MUNICIPAL NOTES
(cost $120,600,000) 120,600,000
TOTAL INVESTMENTS-98.9%
(cost $691,414,278) 707,051,606
Other assets less liabilities-1.1% 8,000,624
NET ASSETS-100% $715,052,230
See footnote summary on page 23.
See Glossary of Terms on page 23.
See notes to financial statements.
11
INSURED NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-82.0%
LONG TERM MUNICIPAL BONDS-77.3%
ALASKA-15.5%
AAA Alaska Hsg Fin Corp
MFHR (Mtg Rev)
MBIA Ser 96A
6.00%, 12/01/15 $ 2,000 $ 2,121,880
AAA Alaska Hsg Fin Corp
SFMR (Mtg Rev)
MBIA Ser 97A
6.00%, 6/01/27 25,000 26,152,500
6.10%, 12/01/37 10,000 10,482,400
-------------
38,756,780
ARIZONA-1.9%
AAA Mesa
Hlth Fac (Lutheran Hlth Sys)
MBIA Series 98A
5.00%, 1/01/19 2,097 2,065,902
AAA Tempe
MFHR (Quadrangles)
FHA Ser 93
6.25%, 6/01/26 2,425 2,567,614
-------------
4,633,516
CALIFORNIA-2.9%
AAA Mojave Wtr Agy
Imp Dist M (Morongo
Basin Pipeline)
FGIC Ser 96
5.80%, 9/01/22 5,000 5,421,200
AAA Univ of California Regents
Hosp Rev (UCLA Med Ctr)
MBIA Ser 94
5.50%, 12/01/20 1,685 1,753,630
-------------
7,174,830
COLORADO-2.7%
AAA Denver City & Cnty
(Arpt Sys Rev)
MBIA Ser 95A
5.70%, 11/15/25 6,375 6,754,249
DISTRICT OF COLUMBIA-4.6%
AAA Washington DC
(Natl Academy/Science)
AMBAC Ser 99A
5.00%, 1/01/28 12,000 11,488,680
GEORGIA-5.0%
AAA Atlanta Wtr & Swr Rev
FGIC Ser 99
5.00%, 11/01/38 10,000 9,601,300
AAA Burke Cnty Dev Auth
PCR (Georgia Power)
AMBAC Ser 99-2
5.25%, 5/01/34 2,950 2,921,975
-------------
12,523,275
ILLINOIS-4.0%
AAA Chicago
Parking Rev (Lakefront Facs)
MBIA Ser 98
5.125%, 1/01/28 4,500 4,429,935
AAA Metro Pier & Expo Auth
(McCormick Place Expo)
FGIC Ser 93A
Zero coupon, 6/15/19 15,850 5,535,295
-------------
9,965,230
MASSACHUSETTS-10.5%
AAA Chelsea GO
AMBAC Ser 94
6.00%, 6/15/14 1,965 2,188,656
AAA Holyoke GO
FSA Ser 93B
6.125%, 8/01/13 1,435 1,566,374
AAA Massachusetts HFA
MFHR (Residential Dev)
FNMA Coll Sec 8
Ser 92F
6.25%, 11/15/12 5,000 5,381,500
AA+ Massachusetts Hlth &
Ed Fac
(Wellesley College)
Series 99F
5.125%, 7/01/39 9,785 9,710,145
AAA Massachusetts Hlth &
Ed Fac
Hosp Rev (New England
Med Ctr) MBIA
6.83%, 7/01/18 (a) 1,025 1,072,929
AAA Massachusetts Muni
Wholesale Elec
(Pwr Supply Sys)
MBIA Ser 92A
6.00%, 7/01/18 5,940 6,247,158
-------------
26,166,762
12
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
MICHIGAN-10.7%
AAA Detroit Swr Sys Rev
FGIC Ser 93A
7.922%, 7/01/23 (b) $ 9,860 $ 11,508,234
AAA Grand Rapids Swr Sys Rev
MBIA Ser 92
6.00%, 1/01/22 1,000 1,076,810
AAA Kalamazoo HFA
Hosp Rev (Borgess Med Ctr)
FGIC Ser 94A
7.013%, 6/01/11 (a) 5,990 6,460,215
AAA Michigan Hosp Fin Auth
(St. John's Hospital)
AMBAC Ser A
6.00%, 5/15/13 1,000 1,077,160
AAA Michigan Strategic Fund
PCR (Detroit Edison Co)
MBIA Ser 95AA
6.40%, 9/01/25 3,560 3,984,138
AAA Three Rivers GO
Sch Dist MBIA Ser 96
6.00%, 5/01/23 2,400 2,688,072
-------------
26,794,629
MINNESOTA-3.5%
Aaa Little Canada
MFHR (Cedars Lakeside Apt)
GNMA Ser 97A
5.95%, 2/01/32 (a) 1,120 1,188,723
AAA Minneapolis COP
(Spec School Dist #1)
MBIA Ser 96A
5.90%, 2/01/17 3,490 3,752,134
AAA Minnesota HFA
MFHR (Rental Hsg)
MBIA Ser 95D
6.00%, 2/01/22 3,720 3,916,974
-------------
8,857,831
NEBRASKA-1.4%
AAA Nebraska Inv Fin Auth
Hosp Rev (Bishop
Clarkson Mem)
MBIA Ser 91
9.791%, 12/08/16 (b) 3,000 3,508,650
NEW JERSEY-1.3%
AAA New Jersey Hlth Fac
Hosp Rev (Barnabas)
MBIA Ser 98B
5.00%, 7/01/24 1,500 1,474,605
AAA Vineland
Swr Rev (Landis Swr Auth)
FGIC Ser 93C
7.62%, 9/19/19 1,625 1,906,092
-------------
3,380,697
OHIO-2.2%
AAA Ohio Air Quality
Dev Auth
(Ohio Pwr Co)
Ser C
5.15%, 5/01/26 5,500 5,460,290
PENNSYLVANIA-9.1%
AAA Montgomery Cnty
Hlth Fac (Holy Redeemer)
AMBAC Ser 97A
5.25%, 10/01/23 5,180 5,246,045
AAA North East GO
Sch Dist FGIC
Ser 93A
5.20%, 9/01/23 20 20,057
AAA Pennsylvania Higher Ed
(Univ of Pitt Med Ctr)
FSA Ser 99
5.00%, 8/01/29 11,500 11,099,455
AAA Philadelphia GO
FSA Ser 98
5.00%, 3/15/28 6,600 6,432,294
-------------
22,797,851
VIRGINIA-1.1%
AAA Harrisonburg Redev &
Hsg Auth
MFHR (Battery Heights Assoc)
GNMA Ser 96A
6.25%, 4/20/36 2,565 2,755,862
WEST VIRGINIA-0.9%
AAA West Virginia Eco Dev
(Parkway Proj) FGIC
Ser 93
8.022%, 5/16/19 (b) 2,100 2,366,700
TOTAL LONG TERM MUNICIPAL BONDS
(cost $185,929,241) 193,385,832
13
INSURED NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
SHORT TERM MUNICIPAL-4.7%
IOWA-3.8%
A-1 Iowa Fin Auth
Hlth Fac (Burlington Med Ctr)
FSA Ser 97 VRDN
4.05%, 6/01/27 (c) $ 9,400 $ 9,400,000
SOUTH CAROLINA-0.9%
A-1+ Piedmont Cnty
Elec Rev (Piedmont Pwr Agy)
MBIA Ser 96C VRDN
3.55%, 1/01/22 (c) 2,300 2,300,000
TOTAL SHORT TERM MUNICIPAL
(cost $11,700,000) 11,700,000
TOTAL INVESTMENTS-82.0%
(cost $197,629,241) 205,085,832
Other assets less liabilities-18.0% 44,928,406
NET ASSETS-100% $ 250,014,238
See footnote summary on page 23.
See Glossary of Terms on page 23.
See notes to financial statements.
14
NEW YORK PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-98.4%
LONG TERM MUNICIPAL BONDS-96.5%
NEW YORK-96.5%
BBB+ Essex Cnty IDR
(Int'l Paper)
Ser 95A AMT
5.80%, 12/01/19 $ 7,000 $ 7,267,609
Aaa Glen Cove IDR
(The Regency at Glen Cove)
Ser 92B ETM
Zero coupon, 10/15/19 (a) 35,010 11,801,871
AAA Islip Res Rec Agy
AMBAC Ser 94B AMT
6.125%, 7/01/12 2,020 2,193,720
AAA New York City GO
MBIA Ser 93D
6.00%, 5/15/11 (c) 5,000 5,462,731
A- New York City GO
Ser 93A
6.25%, 8/01/18 4,025 4,303,369
6.25%, 8/01/18 (c) 1,975 2,154,212
A3 New York City GO
Ser 93D
8.919%, 8/29/14 10,000 11,532,700
A- New York City GO
Ser 96-J
6.00%, 2/15/24 11,515 12,409,830
6.00%, 2/15/24 (c) 2,065 2,310,694
A- New York City GO
Ser 97A
6.25%, 8/01/17 16,750 18,483,793
Aa1 New York City Hsg
Dev Corp
MFHR (So Williamsburg Coop)
Ser 90A AMT
7.90%, 2/01/23 (a) 3,715 3,883,995
BBB- New York City IDR
(American Airlines)
Ser 90 AMT
5.40%, 7/01/20 3,500 3,513,370
BBB- New York City IDR
(American Airlines)
Ser 94 AMT
1.00%, 8/01/24 12,000 13,264,560
A2 New York City IDR
(British Airways)
Ser 98 AMT
5.25%, 12/01/32 (a) 25,305 24,833,821
AAA New York City IDR
(Japan Airlines)
FSA Ser 91 AMT
6.00%, 11/01/15 4,300 4,704,372
A New York City IDR
(Terminal One LP)
Ser 94 AMT
6.125%, 1/01/24 36,500 38,858,265
AAA Niagara Frontier Trans
Arpt Rev (Gtr Buffalo Int'l)
AMBAC Ser 94A AMT
6.25%, 4/01/24 16,125 17,420,321
Aaa NYS Dorm Auth Rev
(Brooklyn Hosp Ctr)
FHA Ser 99
5.20%, 2/01/39 (a) 3,000 2,969,880
AAA NYS Energy Res & Dev Auth
(Brooklyn Union Gas)
MBIA AMT
7.843%, 7/08/26 6,000 6,415,140
AAA NYS Energy Res & Dev Auth
(Brooklyn Union Gas)
MBIA Ser 89B AMT
6.75%, 2/01/24 7,500 8,123,175
A+ NYS Energy Res & Dev Auth
(Consolidated Edison)
Ser 94A AMT
7.125%, 12/01/29 22,000 24,881,120
A- NYS Energy Res & Dev Auth
(Long Island Lighting Co
Proj A)
5.30%, 8/01/25 7,500 7,532,100
AAA NYS Energy Res &
Dev Auth
(Rochester Gas & Elec)
MBIA AMT
6.50%, 5/15/32 6,460 6,946,180
AAA NYS Energy Res &
Dev Auth
PCR (NYS Elec & Gas)
MBIA Ser 87A AMT
6.15%, 7/01/26 15,000 16,366,800
BBB NYS Envir Fac Auth IDR
(Occidental Petroleum)
Ser 93A AMT
5.70%, 9/01/28 6,950 7,037,570
15
NEW YORK PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
AAA NYS Envir Fac Corp
Wtr Fac (Spring Valley Wtr)
AMBAC Ser 94A AMT
6.30%, 8/01/24 $ 11,800 $ 12,822,942
AAA NYS HFA
MFHR (Erie/Monroe
Cnty Proj)
AMBAC Ser 89B AMT
7.55%, 11/01/29 5,845 6,062,200
Aa1 NYS HFA
MFHR (Westchester/
Onondaga/Rockland Proj)
Ser 92F AMT
6.70%, 8/15/25 (a) 6,000 6,384,180
Aa2 NYS Mtg Agy
SFMR Ser 42 AMT
6.65%, 4/01/26 (a) 4,500 4,792,230
Aa2 NYS Mtg Agy
SFMR Ser 46 AMT
6.65%, 10/01/25 (a) 19,260 20,487,247
Aa2 NYS Mtg Agy
SFMR Ser 79 AMT
5.30%, 4/01/29 (a) 22,750 22,787,765
A Oneida County IDA
(Mohawk Valry Proj)
ACA Ser 99
5.35%, 3/15/29 1,000 991,090
AAA Onondaga Cnty
PCR (Bristol-Myers Squibb)
AMT
5.75%, 3/01/24 4,000 4,357,480
AAA Port Auth of NY & NJ
(JFK Int'l Proj)
MBIA Ser 97-6 AMT
5.75%, 12/01/22 9,905 10,559,126
AA- Port Auth of NY & NJ
Cons Rev (95th Ser) AMT
6.125%, 7/15/29 6,385 6,852,765
AAA Port Auth of NY & NJ
Cons Rev (96th Ser)
FGIC AMT
6.60%, 10/01/23 10,000 11,111,400
NR Suffolk County IDR
(Nissequogue Cogen fac)
Ser 98 AMT
5.50%, 1/01/23 3,000 3,015,150
AAA Troy Hsg Dev Corp
MFHR (Ninth St #2) FHA
Ser 90B
8.10%, 2/01/24 3,455 3,841,373
AAA Troy Hsg Dev Corp
MFHR (T.U.R. Proj)
FHA Ser 90C
8.10%, 2/01/24 3,675 4,090,569
TOTAL LONG TERM MUNICIPAL BONDS
(cost $358,768,024) 382,826,715
SHORT TERM MUNICIPAL NOTES-1.9%
NEW YORK-1.9%
A-2 New York City IDR
(Nippon Cargo Air Proj)
Ser 92 AMT VRDN
5.00%, 11/01/15 (c)
(cost $7,500,000) 7,500 7,500,000
TOTAL INVESTMENTS-98.4%
(cost $366,268,024) 390,326,715
Other assets less liabilities-1.6% 6,536,974
NET ASSETS-100% $396,863,689
See footnote summary on page 23.
See Glossary of Terms on page 23.
See notes to financial statements.
16
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
CALIFORNIA MUNICIPAL BONDS-97.8%
LONG TERM MUNICIPAL BONDS-83.5%
NR Alameda
Assess Dist
(Harbor Bay Bus Park)
5.00%, 9/02/05 $ 1,870 $ 1,872,880
5.50%, 9/02/12 9,830 9,856,836
NR Calabasas Comm
Fac Dist #98-1 Spec Tax
5.75%, 9/01/28 1,000 1,002,530
A+ California GO
(Veterans Hsg)
Ser 95 AMT
6.40%, 2/01/20 33,130 33,692,879
A+ California HFA
MFHR (Multi-Unit
Rental Hsg)
Ser 92A AMT
6.50%, 2/01/14 4,865 5,152,084
AAA California HFA
SFMR (Home Mtg Rev)
AMBAC Ser 96H AMT
6.20%, 2/01/27 8,000 8,412,400
AA- California HFA
SFMR (Home Mtg Rev)
Ser 94E AMT
6.70%, 8/01/25 9,290 9,851,859
AAA California HFA
SFMR (Home Mtg Rev)
Ser 95A-2 AMT
6.45%, 8/01/25 13,400 14,116,632
AA California HFA
SFMR (Home Mtg Rev)
Ser 99A-2 AMT
5.25%, 8/01/26 7,550 7,561,249
A- California Poll Ctl Fin Auth
PCR (Keller Canyon/
Browning-Ferris Ind) Asset Gty
Ser 92 AMT
6.875%, 11/01/27 5,000 5,267,300
AA- California Poll Ctl Fin Auth
PCR (Pacific Gas & Elec)
Ser 93A AMT
5.875%, 6/01/23 45,345 47,134,313
AA- California Poll Ctl Fin Auth
PCR (Pacific Gas & Elec)
Ser 93B AMT
5.85%, 12/01/23 56,000 58,286,480
A+ California Poll Ctl Fin Auth
PCR (San Diego Gas & Elec)
Ser 93A-C AMT
5.85%, 6/01/21 32,335 33,654,915
A+ California Poll Ctl Fin Auth
PCR (So Calif Edison)
Ser 92B AMT
6.40%, 12/01/24 36,030 39,241,354
NR California Statewide
(San Diego Space & Science)
Ser 96
7.50%, 12/01/16 3,410 3,980,322
NR Capistrano Sch Dist
Comm Fac # 98-1 (Ladera)
Ser 99
5.30%, 9/01/11 1,800 1,801,476
NR Capistrano Sch Dist
Comm Fac #98-2 (Ladera)
Ser 99
5.70%, 9/01/20 6,500 6,505,135
5.75%, 9/01/29 14,500 14,511,310
A+ Chula Vista
PCR (San Diego Gas & Elec)
Ser 92A AMT
6.40%, 12/01/27 28,240 30,678,242
Aaa Contra Costa Cnty
MFHR (Byron Park Proj)
GNMA Ser 93A AMT
6.40%, 1/20/31 (a) 11,860 12,763,969
NR Corona Comm
Fac Dist # 97-2
(Eagle Glen)
5.75%, 9/01/16 2,505 2,510,962
NR Corona Comm
Fac Dist #97-2
(Eagle Run)
5.875%, 9/01/23 3,345 3,373,600
NR Corona Comm
Fac Dist # 97-2
(Eagle Glen)
5.875%, 9/01/23 3,260 3,287,873
NR Encinitas Comm
Fac Dist #1
(Encinitas Ranch)
Ser 98A
4.80%, 9/01/03 1,835 1,854,139
5.30%, 9/01/07 2,295 2,308,518
5.70%, 9/01/12 4,270 4,290,581
5.875%, 9/01/20 10,020 10,119,699
6.00%, 9/01/30 21,170 21,405,834
17
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
NR Encinitas Rec Rev
(Encinitas Ranch Golf Course)
Ser 96A
7.75%, 9/01/26 $ 10,760 $ 12,117,051
NR Fairfield Assess Dist
(No Cordelia Imp Dist)
Ser 93
7.375%, 9/02/18 2,380 2,468,750
NR Fontana Comm
Fac Dist #11 (Heritage
West End)
Ser 99A
6.50%, 9/01/27 2,350 2,355,476
6.50%, 9/01/28 8,150 8,168,989
NR Fontana Comm
Fac Dist #3 (Hunters Ridge)
Ser 90A
8.70%, 10/01/15 8,000 8,496,000
AAA Fresno Comm
Fac Dist #3 (Palm Bluffs)
Ser 98
4.75%, 9/01/05 8,000 8,009,760
NR La Verne Comm
Fac Dist # 88-1 Spec Tax
5.875%, 3/01/14 6,920 6,938,546
AA- Long Beach
Port Fac (Harbor Rev)
Ser 93 AMT
5.125%, 5/15/18 17,325 17,421,154
AAA Los Angeles Cnty Arpt
(Ontario Int'l Arpt)
FGIC Ser 96A AMT
6.00%, 5/15/22 12,780 13,928,666
NR Los Angeles Cnty Comm
Fac Dist #3 (Valencia/
Newhall Area)
Ser 95A
7.125%, 9/01/20 5,500 6,027,670
NR Los Angeles Cnty Comm
Fac Dist #4 (Calabasas Area)
Ser 92A
7.65%, 9/01/17 2,500 2,773,625
NR Los Angeles Cnty Comm
Fac Dist #92-1
(Castaic Union SD/
Northlake)
Ser 92
9.00%, 10/01/19 8,710 9,797,792
BB Los Angeles Comm Redev
MFHR (Grand Ctrl Proj)
Ser 93A AMT
5.85%, 12/01/26 4,030 4,039,994
AAA Los Angeles Harbor Rev
MBIA Ser 96B AMT
6.20%, 8/01/25 10,000 11,053,300
AA Los Angeles Harbor Rev
Ser 95B AMT
6.625%, 8/01/25 24,000 26,094,240
AAA No Calif Trans Agy
Elec Rev
(Calif-Oregon Trans)
MBIA Ser 93A
7.309%, 4/29/24 (c) 11,600 12,163,992
NR Novato Comm
Fac Dist #94-1
(Hamilton Field)
Ser 95 ETM
7.375%, 9/01/25 12,400 13,724,816
NR Ontario Assess Dist #107
(CA Commerce Ctr So)
7.70%, 9/02/10 6,130 6,329,348
AAA Orange Cnty Arpt Rev
(John Wayne Int'l)
MBIA Ser 93 AMT
5.50%, 7/01/18 4,500 4,670,730
NR Orange Cnty Comm
Fac Dist #87-2
(Portola Hills)
Ser 91A
9.30%, Pre-refunded
8/15/01 8,850 10,110,240
NR Orange Cnty Comm
Fac Dist #92-1 (Las Flores/
Capistrano USD)
Ser 97
7.10%, Pre-refunded
9/01/03 3,200 3,821,088
BBB- Orange Cnty Sr Lien
Foothill/Eastern Corridor
Ser 95A
Zero coupon, 1/01/15 18,500 8,094,675
Zero coupon, 1/01/25 15,000 3,832,500
Zero coupon, 1/01/27 10,000 2,291,000
Zero coupon, 1/01/28 10,000 2,172,100
18
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
AAA Orange Cnty Sr Lien
San Joaquin Hills
Transp Corridor
Ser 93 ETM
Zero coupon, 1/01/17 $ 16,000 $ 6,678,880
Zero coupon, 1/01/19 20,000 7,432,600
Zero coupon, 1/01/20 20,000 7,067,400
Zero coupon, 1/01/21 20,000 6,720,400
Zero coupon, 1/01/23 35,000 10,658,550
Zero coupon, 1/01/25 18,100 4,984,740
7.00%, 1/01/30 13,400 15,176,974
AAA Palm Springs COP
Ser 91B ETM
Zero coupon, 4/15/21 53,025 16,259,056
AAA Palm Springs Fin Auth
Arpt Rev
(Palm Springs Regional Arpt)
MBIA Ser 92 AMT
6.00%, 1/01/22 6,860 7,278,940
AAA Port of Oakland
MBIA Ser 92E AMT
6.40%, 11/01/22 23,370 25,378,885
6.50%, 11/01/16 8,000 8,776,320
BBB+ Port of Oakland Spec Fac
(Mitsui OSK Lines)
Ser 92A AMT
6.80%, 1/01/19 3,700 4,000,366
NR Riverside Comm
Fac Dist #90-1
(Highlander Proj)
Ser 91A
8.50%, 9/01/15 2,000 2,189,900
AAA Sacramento Cnty Arpt
Sys Rev
FGIC Ser 92A AMT
6.00%, 7/01/20 11,750 12,578,281
AAA Sacramento Cnty Arpt
Sys Rev
MBIA Ser 96A AMT
5.90%, 7/01/24 5,050 5,493,138
NR Sacramento Comm
Fac Dist #97-01
(No Natomas Proj)
Ser 97A
6.70%, 9/01/17 6,805 7,286,726
6.75%, 9/01/27 9,370 10,031,991
NR Sacramento Comm
Fac Lease/Rev
(No Natomas Proj)
Ser 99A
6.25%, 9/01/23 6,435 6,450,315
NR Sacramento Cty & Cnty Comm
Fac Dist#4
(No Natomas Proj)
Ser 99A
5.70%, 9/01/23 6,215 6,228,300
AAA San Bernardino Cnty
Solid Waste
(Inland Empire)
FSA Ser 96B AMT
6.00%, 8/01/16 2,500 2,744,325
AAA San Diego HFA
MFHR Rental Housing Rev
Ser 98C AMT
5.25%, 1/20/40 6,380 6,379,490
AAA San Francisco City &
Cnty Int'l Arpt
AMBAC Ser 94 II-6 AMT
6.60%, 5/01/24 5,000 5,573,150
AAA San Francisco City &
Cnty Int'l Arpt
FGIC Ser 94 II-5 AMT
6.50%, 5/01/24 11,000 12,238,380
AAA San Francisco City &
Cnty Int'l Arpt
FGIC Ser 96-II AMT
6.25%, 5/01/26 7,000 7,675,010
AAA San Francisco City &
Cnty Int'l Arpt
MBIA Ser 10A AMT
5.70%, 5/01/26 9,385 9,897,609
AAA San Francisco Cty &
Cnty Int'l Arpt
MBIA Ser 93 II-3 AMT
6.20%, 5/01/20 8,920 9,873,013
AAA San Francisco Cty &
Cnty Int'l Arpt
MBIA Ser 93 AMT
6.10%, 5/01/13 3,320 3,662,491
6.20%, 5/01/20 5,580 6,065,404
AAA San Jose Arpt Rev
(San Jose Arpt)
FGIC Ser 93 AMT
5.70%, 3/01/18 8,825 9,315,758
19
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
AAA So Calif HFA
SFMR GNMA/FNMA
Ser 91B AMT
6.90%, 10/01/24 $ 1,420 $ 1,488,728
AAA So Calif HFA
SFMR GNMA/FNMA
Ser 92A AMT
6.75%, 9/01/22 1,200 1,260,480
BBB+ Westminster Redev Agy
MFHR (Rose Garden Apt)
Ser 93A AMT
6.75%, 8/01/24 1,000 1,058,420
NR Winchester Hills Comm
Fac Dist #98-1
(Winchester Hills)
Ser 98A
6.30%, 9/01/18 4,555 4,693,927
6.375%, 9/01/28 6,700 6,904,819
AAA Yolo Cnty Hsg Auth
MFHR (Waggener Ranch Apts)
FHA Ser 91 AMT
7.00%, 10/01/33 9,000 9,737,550
TOTAL LONG TERM MUNICIPAL BONDS
(cost $802,136,390) 870,637,189
SHORT TERM MUNICIPAL NOTES-14.3%
A-1+ Alameda Cnty IDR
(West Coast Pack) Project A
4.20%, 4/01/29 5,400 5,400,000
A-1+ Alameda Cnty IDR
(Dicon Fiberoptics)
Series 97A AMT VRDN
3.60%, 5/01/03 (c) 1,400 1,400,000
A-2 Assoc Bay Area Gov't IDR
(Reliance Tech Service Inc)
Ser 95A AMT VRDN
5.50%, 10/01/19 (c) 5,041 5,041,000
NR Auburn IDR
(Coherent Inc Proj)
Ser 88 AMT VRDN
5.20%, 10/01/08 (c) 1,800 1,800,000
A-1+ California Statewide
(Johanson Dev Proj.)
Ser E
4.05%, 11/01/20 1,950 1,950,000
A-1+ California Comm Dev Auth
(Pasco Proj.) Ser B
4.05%, 12/01/14 2,295 2,295,000
A-1+ California Statewide
(Sunclipse Union City)
4.05%, 9/01/04 2,135 2,135,000
P-1 California Statewide
(Chevron)
4.25%, 12/15/24 7,200 7,200,000
A-2 California Statewide
(APM Inc Proj)
Ser 94A AMT VRDN
5.50%, 6/01/04 (c) 900 900,000
A-2 California Statewide
(DV Industries Inc Proj)
Ser 94A AMT VRDN
5.50%, 8/01/19 (c) 1,950 1,950,000
A-2 California Statewide
(Merrill Packaging Proj)
Ser 93 AMT VRDN
5.50%, 12/01/18 (c) 1,510 1,510,000
A-2 California Statewide
(Packaging Innovators Corp)
Ser 94A AMT VRDN
5.50%, 6/01/19 (c) 2,775 2,775,000
A-2 California IDR
(Watt Four, LLC)
Ser 97 AMT VRDN
6.00%, 5/01/22 (c) 2,750 2,750,000
A-1+ California Poll Ctl Fin Auth
PCR (Shell Martinez Proj)
Ser 96A AMT VRDN
4.00%, 10/01/31 (c) 7,700 7,700,000
VMIG-1 California Poll Ctl Fin Auth
PCR (Taormina Inds Inc)
Ser 96A AMT VRDN
3.90%, 8/01/16 (a)(c) 14,300 14,300,000
A-1 California Poll Ctl Fin Auth
PCR (Wadham Energy Proj)
Ser 87A AMT VRDN
4.10%, 11/01/17 (c) 6,075 6,075,000
A-2 California Poll Ctl Fin Auth
PCR (Wadham Energy Proj)
Ser 87C AMT VRDN
4.10%, 11/01/17 (c) 2,400 2,400,000
A-1 California Poll Ctl Fin Auth
(Pacific Gas & Elec)
Revenue
4.05%, 1/01/10 2,500 2,500,000
A-1 California Poll Ctl Fin Auth
Solid Waste Rev
(Nummi Mfg)
Ser 98A AMT VRDN
5.50%, 4/01/18 (c) 9,015 9,015,000
20
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
A-1+ Garden Grove MFHR
(Malabar Apts) Ser A
4.00%, 12/15/29 $ 7,150 $ 7,150,000
A-1+ Long Beach Res Rec
(Southeast Fac Auth
Lease Rev)
Ser 95B AMT VRDN
3.95%, 12/01/18 (c) 28,819 28,819,000
VMIG-1 Los Angeles Cnty HFA
MFHR (Sand Canyon
Villas Proj)
Ser 89A AMT VRDN
6.00%, 11/01/09 (a)(c) 12,000 12,000,000
A-1+ Ontario Redev Agy
MFHR (Vineyard Village
Proj)
Ser 97A AMT VRDN
4.15%, 9/01/27 (c) 2,900 2,900,000
A-1+ San Bernardino Cnty
(Master Halco, Inc.) Ser I
3.85%, 12/01/06 1,800 1,800,000
A-1+ San Bernardino Cnty IDR
(NRIInc. Proj)
4.05%, 5/01/09 1,425 1,425,000
A-1 Santa Cruz Cnty HFA
MFHR (Paloma Del Mar
Apts)
Ser 92A AMT VRDN
5.40%, 6/01/22 (c) 7,700 7,700,000
A-2 Santa Cruz Cnty IDR
(Wilson Entities Ltd)
Ser 93 AMT VRDN
5.50%, 11/01/18 (c) 2,610 2,610,000
A-1+ Vallejo MFHR
(Hillside Terrace Apts)
Ser A
3.95%, 3/15/27 5,350 5,350,000
TOTAL SHORT TERM MUNICIPAL NOTES
(cost $148,850,000) 148,850,000
TOTAL INVESTMENTS-97.8%
(cost $950,986,390) 1,019,487,189
Other assets less liabilities-2.2% 22,746,020
NET ASSETS-100% $1,042,233,209
See footnote summary on page 23.
See Glossary of Terms on page 23.
See notes to financial statements.
21
INSURED CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
CALIFORNIA MUNICIPAL BONDS-99.0%
LONG TERM MUNICIPAL BONDS-93.3%
AAA Alhambra COP
Assess Dist #91-1 (Police Fac)
AMBAC Ser 92
6.75%, 9/01/23 $ 5,000 $ 5,402,200
AAA Brea Pub Fin Auth
Tax Alloc Redev (Proj B)
MBIA Ser 91A
7.00%, 8/01/15 1,470 1,600,286
AAA California HFA
MFHR (Home Mtg Rev)
AMBAC Ser 95A
6.25%, 2/01/37 5,000 5,342,750
AAA Coronado Comm Dev Proj
Tax Alloc FSA Ser 96
6.00%, 9/01/26 8,700 9,637,164
AAA Fontana Pub Fin Auth
Tax Alloc (No Fontana)
MBIA Ser 93A
5.625%, 9/01/24 8,805 9,231,778
AAA Glendale Hlth Fac Rev
(Glendale Mem Hosp)
CONNIE LEE
Ser 95A
5.60%, 11/15/25 2,000 2,058,660
AAA La Mirada Redev Agy
Tax Alloc (Commercial
Redev)
FSA Ser 95B
5.90%, 8/15/24 5,000 5,431,400
Aa Lancaster Redev Agy
MFHR (High Valley Apts)
FHA Ser 96A
6.00%, 6/01/27 (a) 4,170 4,370,661
AAA Los Angeles Cnty
Metro Trans Auth
MBIA Ser 93A
5.625%, 7/01/18 3,000 3,172,770
AAA Los Angeles Cnty Comm
Redev
Tax Alloc (Bunker Hill Proj)
FSA Ser 93H
5.60%, 12/01/28 9,000 9,380,790
AAA Los Angeles Cnty Trans
Comm
FGIC Ser 91B
6.50%, 7/01/15 5,000 5,368,750
AAA Madera Cnty COP
Hosp Rev (Valley Children's
Hosp)
MBIA Ser 95
6.125%, Pre-refunded
3/15/05 4,000 4,530,400
AAA Mojave Wtr Agy
Imp Dist M (Morongo Basin
Pipeline)
FGIC Ser 96
5.80%, 9/01/22 5,000 5,421,200
AAA No Calif Trans Agy
Elec Rev (Calif-Oregon
Trans)
MBIA Ser 93A
7.309%, 4/29/24 (b) 7,650 8,021,943
AAA Orange Cnty
(Saddleback Valley)
FSA Ser 95A
5.65%, 9/01/17 2,000 2,125,220
AAA Orange Cnty COP
(Loma Ridge Data Ctr Proj)
AMBAC
6.00%, 6/01/21 1,000 1,076,770
AAA Orange Cnty Recov
MBIA Ser 96A
6.00%, 7/01/26 3,000 3,318,090
AAA Palm Springs COP
Ser 91B ETM
Zero coupon, 4/15/21 17,475 5,358,359
AAA Rancho Wtr Dist Fin Auth
AMBAC Ser 91
9.304%, Pre-refunded
9/11/01 3,000 3,499,260
AAA Redding COP
Elec Sys Rev
MBIA Ser 92A
9.319%, 7/01/22 2,000 2,668,700
AAA Sacramento Cnty Arpt
Sys Rev
MBIA Ser 96B
5.75%, Pre-refunded
7/01/06 3,260 3,665,218
AAA Sacramento Muni Util Dist
Elec Rev
MBIA Ser 93E
5.75%, 5/15/22 5,000 5,309,500
22
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS(A) (000) VALUE
- -------------------------------------------------------------------------
AAA San Bernardino Cnty Redev
(Ontario Proj #1)
MBIA Ser 93 ETM
5.80%, 8/01/23 $ 10,000 $ 10,701,600
AAA San Bernardino Cnty
Redev Agy
Tax Alloc (Joint Pwr Fin)
FSA Ser 95A
5.75%, 10/01/25 5,000 5,346,500
AAA San Dimas Redev Agy
(Creative Growth)
FSA Ser 91A
6.75%, 9/01/16 1,000 1,083,700
AAA San Francisco City & Cnty
Int'l Arpt
MBIA Ser 93 II-4
6.00%, 5/01/14 5,000 5,467,655
A San Francisco Univ Ed Fac
(Student Hsg Rev)
ACA Ser 99
5.25%, 7/01/32 15,000 14,905,500
AAA Shasta Lake COP
Elec Sys Rev FSA
Ser 96-2
6.00%, 4/01/16 2,895 3,181,402
AAA So Tahoe Joint Pwr Fin Auth
CAP MAC Ser 95A
5.75%, 10/01/25 4,500 4,795,830
TOTAL LONG TERM MUNICIPAL BONDS
(cost $140,509,999) 151,474,056
SHORT TERM MUNICIPAL NOTES-5.7%
A-2 California Cmnty Hlth Fac
(Sutter Hlth)
AMBAC Ser 95 VRDN
4.45%, 7/01/15 (c) 7,400 7,400,000
A1+ Westminster Redev Agy
Tax Alloc (Westminster
Commer Redev Proj #1)
AMBAC Ser 97 VRDN
3.90%, 8/01/27 (c) 1,940 1,940,000
TOTAL SHORT TERM MUNICIPAL NOTES
(cost $9,340,000) 9,340,000
TOTAL INVESTMENTS-99.0%
(cost $149,849,999) 160,814,056
Other assets less liabilities-1.0% 1,618,772
NET ASSETS-100% $162,432,828
(a) Moody's or Fitch Rating.
(b) Inverse floater security--security with variable or floating interest rate
that moves in opposite direction of short-term interest rates.
(c) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specific 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). This instrument is payable on demand and is secured by
letters of credit or other credit support agreements from major banks.
See Glossary of Terms below.
Glossary of Terms:
ACA American Capital Access Financial Guaranty Corporation
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax - (subject to)
CAP MAC Capital Markets Assurance Corporation
CONNIE LEE Connie Lee Insurance Company
COP Certificate of Participation
ETM Escrow to Maturity
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Administration
FHLMC Federal Home Loan Mortgage Corp.
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Inc.
GNMA Government National Mortgage Association
GO General Obligation
HDA Housing Development Authority
HFA Housing Finance Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
NR Rating not applied for
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
See notes to financial statements.
23
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
<TABLE>
<CAPTION>
INSURED INSURED
NATIONAL NATIONAL NEW YORK CALIFORNIA CALIFORNIA
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost: $691,414,278; $197,629,241;
$366,268,024; $950,986,390 and
$149,849,999 respectively) $707,051,606 $205,085,832 $390,326,715 $1,019,487,189 $160,814,056
Cash -0- -0- -0- -0- 36,706
Receivable for investment securities sold 14,118,019 50,664,184 -0- -0- -0-
Interest receivable 10,129,447 2,844,162 5,712,049 15,053,038 2,101,470
Receivable for capital stock sold 5,113,119 844,167 2,027,918 13,842,614 400
Prepaid expenses 72,822 16,062 21,898 65,906 10,193
Total assets 736,485,013 259,454,407 398,088,580 1,048,448,747 162,962,825
LIABILITIES
Due to custodian 301,253 339,512 259,407 263,763 -0-
Payable for investment securities purchased 19,199,727 8,450,530 -0- 3,117,100 -0-
Dividends payable 935,217 298,063 523,366 1,326,133 189,562
Payable for capital stock redeemed 387,173 73,541 107,303 571,233 43,248
Distribution fee payable 355,246 102,989 196,940 467,253 66,386
Advisory fee payable 116,653 102,652 48,538 249,298 73,714
Unclaimed dividends 78,007 -0- -0- 90,989 90,989
Accrued expenses 59,507 72,882 89,337 129,769 66,098
Total liabilities 21,432,783 9,440,169 1,224,891 6,215,538 529,997
NET ASSETS $715,052,230 $250,014,238 $396,863,689 $1,042,233,209 $162,432,828
COMPOSITION OF NET ASSETS
Capital stock, at par $65,474 $24,453 $38,827 $92,617 $11,495
Additional paid-in capital 694,507,912 240,587,793 375,147,336 982,808,585 151,956,599
Distributions in excess of net investment income (2,895,294) (762,487) (722,177) (3,256,998) (277,790)
Accumulated net realized gain (loss) on
investment transactions 7,737,636 2,707,888 (1,658,988) (5,911,794) (221,533)
Net unrealized appreciation of investments 15,636,502 7,456,591 24,058,691 68,500,799 10,964,057
$715,052,230 $250,014,238 $396,863,689 $1,042,233,209 $162,432,828
CLASS A SHARES
Net assets $400,729,987 $178,179,571 $220,796,372 $653,895,576 $117,415,613
Shares of capital stock outstanding 36,674,691 17,421,022 21,600,584 58,103,531 8,309,905
CLASS B SHARES
Net assets $196,760,136 $48,432,177 $123,931,965 $237,539,020 $27,392,894
Shares of capital stock outstanding 18,027,527 4,741,115 12,126,253 21,110,548 1,938,408
CLASS C SHARES
Net assets $117,562,107 $23,402,490 $52,135,352 $150,798,613 $17,624,321
Shares of capital stock outstanding 10,771,510 2,290,675 5,100,653 13,402,584 1,247,048
</TABLE>
24
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
<TABLE>
<CAPTION>
INSURED INSURED
NATIONAL NATIONAL NEW YORK CALIFORNIA CALIFORNIA
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
CALCULATION OF MAXIMUM
OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share $10.93 $10.23 $10.22 $11.25 $14.13
Sales charge--4.25% of public offering price .49 .45 .45 .50 .63
Maximum offering price $11.42 $10.68 $10.67 $11.75 $14.76
CLASS B SHARES
Net asset value and offering price per share $10.91 $10.22 $10.22 $11.25 $14.13
CLASS C SHARES
Net asset value and offering price per share $10.91 $10.22 $10.22 $11.25 $14.13
</TABLE>
See notes to financial statements.
25
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
<TABLE>
<CAPTION>
INSURED INSURED
NATIONAL NATIONAL NEW YORK CALIFORNIA CALIFORNIA
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $18,422,981 $6,275,611 $10,589,465 $25,568,144 $4,320,991
EXPENSES
Advisory fee 2,141,327 743,757 1,184,709 2,928,161 439,574
Distribution fee - Class A 559,951 264,184 318,820 873,518 170,902
Distribution fee - Class B 997,141 244,853 595,450 1,099,614 145,493
Distribution fee - Class C 562,478 114,100 237,349 673,733 84,061
Transfer agency 256,889 86,463 146,328 206,818 31,626
Custodian 90,206 37,489 61,262 90,692 26,981
Administrative 46,875 46,875 46,875 46,875 46,875
Printing 37,359 34,616 19,958 34,778 16,137
Registration 18,586 12,594 13,440 31,300 6,041
Audit and legal 15,312 15,206 13,853 40,906 13,702
Directors' fees 2,896 2,896 2,896 2,896 2,896
Miscellaneous 5,927 2,004 5,471 11,863 2,662
Total expenses 4,734,937 1,605,037 2,646,411 6,041,154 986,950
Less: advisory fee waived (see note B) (1,456,102) (123,973) (900,379) (1,522,643) -0-
Net expenses 3,278,835 1,481,064 1,746,032 4,518,511 986,950
Net investment income 15,144,146 4,794,547 8,843,433 21,049,633 3,334,041
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on investment
transactions 7,743,922 2,711,384 (195,470) 449,269 -0-
Net change in unrealized appreciation of
investments (10,234,864) (4,073,053) (2,335,297) (5,439,695) (1,257,257)
Net loss on investments (2,490,942) (1,361,669) (2,530,767) (4,990,426) (1,257,257)
NET INCREASE IN NET ASSETS FROM OPERATIONS $12,653,204 $3,432,878 $6,312,666 $16,059,207 $2,076,784
</TABLE>
See notes to financial statements.
26
STATEMENTS OF CHANGES IN NET ASSETS ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
<TABLE>
<CAPTION>
NATIONAL INSURED NATIONAL
------------------------------- -----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $15,144,146 $29,641,197 $4,794,547 $9,694,579
Net realized gain on investment
transactions 7,743,922 11,054,812 2,711,384 6,650,920
Net change in unrealized
appreciation of investments (10,234,864) (660,042) (4,073,053) (168,400)
Net increase in net assets from
operations 12,653,204 40,035,967 3,432,878 16,177,099
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A (9,845,693) (17,277,432) (3,891,356) (7,331,490)
Class B (4,608,868) (8,200,493) (923,432) (1,655,195)
Class C (2,609,647) (4,163,272) (430,983) (707,894)
Distributions in excess of net
investment income
Class A -0- (1,076,316) -0- (882,481)
Class B -0- (510,858) -0- (199,233)
Class C -0- (259,356) -0- (85,208)
Net realized gain on investments
Class A (3,218,494) -0- (3,796,552) (3,321,194)
Class B (1,764,842) -0- (1,065,308) (878,080)
Class C (974,028) -0- (476,055) (370,918)
CAPITAL STOCK TRANSACTIONS
Net increase 55,149,521 51,860,472 7,419,752 13,768,898
Total increase 44,781,153 60,408,712 268,944 14,514,304
NET ASSETS
Beginning of year 670,271,077 609,862,365 249,745,294 235,230,990
End of period $715,052,230 $670,271,077 $250,014,238 $249,745,294
</TABLE>
See notes to financial statements.
27
STATEMENTS OF CHANGES IN NET ASSETS (CONT.) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
NEW YORK
-------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998
------------- -------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $8,843,433 $15,989,493
Net realized gain (loss) on investment
transactions (195,470) 2,109,069
Net change in unrealized appreciation of
investments (2,335,297) 4,593,642
Net increase in net assets from operations 6,312,666 22,692,204
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A (5,403,545) (9,784,034)
Class B (2,609,225) (4,539,871)
Class C (1,040,503) (1,665,588)
Distributions in excess of net
investment income
Class A -0- (329,150)
Class B -0- (152,729)
Class C -0- (56,033)
CAPITAL STOCK TRANSACTIONS
Net increase 33,098,451 43,586,484
Total increase 30,357,844 49,751,283
NET ASSETS
Beginning of year 366,505,845 316,754,562
End of period $396,863,689 $366,505,845
See notes to financial statements.
28
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
<TABLE>
<CAPTION>
CALIFORNIA INSURED CALIFORNIA
---------------------------- ----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $21,049,633 $37,386,117 $3,334,041 $6,625,535
Net realized gain on investment
transactions 449,269 6,234,155 -0- 112,114
Net change in unrealized
appreciation of investments (5,439,695) 16,056,939 (1,257,257) 4,135,620
Net increase in net assets from
operations 16,059,207 59,677,211 2,076,784 10,873,269
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A (15,080,232) (24,897,286) (2,548,379) (4,943,558)
Class B (4,934,713) (7,973,937) (546,127) (1,139,926)
Class C (3,032,104) (4,514,894) (315,923) (542,051)
Distributions in excess of net
investment income
Class A -0- (1,151,725) -0- (287,347)
Class B -0- (368,867) -0- (66,259)
Class C -0- (208,855) -0- (31,507)
CAPITAL STOCK TRANSACTIONS
Net increase 166,728,204 134,072,838 4,694,134 10,150,493
Total increase 159,740,362 154,634,485 3,360,489 14,013,114
NET ASSETS
Beginning of year 882,492,847 727,858,362 159,072,339 145,059,225
End of period $1,042,233,209 $882,492,847 $162,432,828 $159,072,339
</TABLE>
See notes to financial statements.
29
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Municipal Income Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a open-end management investment company. The
Fund, which is a Maryland corporation, operates as a series company currently
comprised of five portfolios: National Portfolio, Insured National Portfolio,
New York Portfolio, California Portfolio and Insured California Portfolio (the
"Portfolios"). Each of the State Portfolios are non-diversified. Each series is
considered to be a separate entity for financial reporting and tax purposes.
Each Portfolio offers three classes of shares: Class A, Class B and Class C
Shares. Class A shares are sold with a front-end sales charge of up to 4.25%
for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000
or more, Class A shares redeemed within one year of purchase may be subject to
a contingent deferred sales charge of 1%. Class B shares are currently sold
with a contingent deferred sales charge which declines from 3% to zero
depending on the period of time the shares are held. Class B shares will
automatically convert to Class A shares six years after the end of the calendar
month of purchase. Class C shares are subject to a contingent deferred sales
charge of 1% on redemptions made within the first year after purchase. All
three classes of shares have identical voting, dividend, liquidation and other
rights, except that each class bears different distribution expenses and has
exclusive voting rights with respect to its distribution plan. 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 Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange are valued at the
last sale price on such exchange on the day of valuation or, if there was no
sale on such day, the last bid price quoted on such day. If no bid prices are
quoted, then the security is valued at the mean of the bid and asked prices as
obtained on that day from one or more dealers regularly making a market in that
security. Securities traded on the over-the-counter market are valued at the
mean of the closing bid and asked prices provided by two or more dealers
regularly making a market in such securities. U.S. government securities and
other debt securities which mature in 60 days or less are valued at amortized
cost unless this method does not represent fair value. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by, or in accordance with procedures approved by, the
Board of Directors. Fixed income securities may be valued on the basis of
prices provided by a pricing service when such prices are believed to reflect
the fair market value of such securities.
2. TAXES
It is the policy of each 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. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued daily. Investment transactions are accounted for on
the trade date securities are purchased or sold. The Fund amortizes premiums,
accretes original issue discounts and market discounts as adjustments to
interest income. Investment gains and losses are determined on the identified
cost basis.
The New York, Insured California and California Portfolios follow an investment
policy of investing primarily in municipal obligations of one state. Economic
changes affecting the state and certain of its public bodies and municipalities
may affect the ability of issuers within the state to pay interest on, or repay
principal of, municipal obligations held by the Portfolios.
4. INCOME AND EXPENSES
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each settled class of shares, based on proportionate interest in the
Fund represented by the net assets of such class, except that the Fund's Class
B and Class C shares bear higher distribution and transfer agent fees than
Class A shares.
5. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
30
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
Income dividends and capital gains distributions are determined in accordance
with federal tax regulations and may differ from those determined in accordance
with generally accepted accounting principles. To the extent these differences
are permanent, such amounts are reclassified within the capital accounts based
on their federal tax basis treatment; temporary differences do not require such
reclassification.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, the National, New York and
California Portfolios pay Alliance Capital Management L.P. (the "Adviser"), an
advisory fee at an annual rate of up to .625 of 1% of each Portfolio's average
daily net assets. For the Insured National Portfolio, the Agreement provides
for a fee at an annual rate of up to .625 of 1% of the first $200 million, .50
of 1% of the next $200 million and .45 of 1% in excess of $400 million of its
average daily net assets. For the Insured California Portfolio, the Agreement
provides for a fee at an annual rate of up to .55 of 1% of the first $200
million, .50 of 1% of the next $200 million and .45 of 1% in excess of $400
million of its average daily net assets. Such fees are accrued daily and paid
monthly.
For the six months ended April 30, 1999, the Adviser has agreed to waive part
of its advisory fee for the National, Insured National, New York and California
Portfolios. The aggregate amounts of such fee waivers were: $1,456,102,
$123,973, $900,379 and $1,522,643 respectively. Pursuant to the advisory
agreement, the Fund paid $234,375 to the Adviser representing the cost of
certain legal and accounting services provided to each Portfolio by the Adviser.
Each 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 each
Portfolio. Such compensation amounted to: National Portfolio, $257,201; Insured
National Portfolio, $54,729; New York Portfolio, $106,937; California
Portfolio, $166,219 and Insured California Portfolio, $31,444 for the six
months ended April 30, 1999.
In addition, for the year ended April 30, 1999, the Fund's expenses were
reduced by: National Portfolio $16,127; Insured National Portfolio $4,305; New
York Portfolio $8,317; California Portfolio $13,434 and Insured California
Portfolio, $2,062 under an expense offset arrangement with Alliance Fund
Services.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of the Fund's shares. The amount of
front-end sales charges received by the Distributor from sales of the
respective Portfolio's Class A shares for the six months ended April 30, 1999
were: National Portfolio, $45,885; Insured National Portfolio, $11,960; New
York Portfolio, $33,836; California Portfolio, $53,375; Insured California,
$8,008. The amount of contingent deferred sales charge imposed upon redemptions
by shareholders of Class A shares were: National Portfolio, $10,734; New York,
$9,752; California Portfolio, $15,466; and Insured National, $11,948. Insured
California Portfolio had no contingent deferred sales charges. The amount of
contingent deferred sales charges imposed upon redemptions by shareholders of
Class B shares were: National Portfolio, $98,512; Insured National Portfolio,
$23,872; New York Portfolio, $35,086; California Portfolio, $91,247; and
Insured California Portfolio, $11,688. The amount of contingent deferred sales
charges imposed upon redemptions by shareholders of Class C shares
were:National Portfolio, $17,370; Insured National Portfolio, $3,315; New York
Portfolio, $24,089; California Portfolio, $24,422; and Insured California,
$2,599.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
Each Portfolio has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, each Portfolio pays a distribution fee to the Distributor at an
annual rate of up to .30 of 1% of each Portfolio's average daily net assets
attributable to the Class A shares and 1% of each Portfolio's average daily net
assets attributable to both Class B and Class C shares. The fees are accrued
daily and paid monthly. The Agree
31
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
ment provides that the Distributor will use such payments in their entirety for
distribution assistance and promotional activities. The Distributor has
incurred expenses in excess of the distribution costs reimbursed by each
Portfolio as follows:
PORTFOLIO CLASS B CLASS C
- --------- ---------- ----------
National $3,962,461 $3,405,680
Insured National 2,250,839 1,147,423
New York 3,978,526 1,751,214
California 6,286,421 3,347,062
Insured California 1,792,634 847,721
Such costs may be recovered from each Portfolio in future periods so long as
the Agreement is in effect. In accordance with the Agreement, there is no
provision for recovery of unreimbursed distribution costs incurred by the
Distributor beyond the current fiscal year for Class A shares. The Agreement
also provides that the Adviser may use its own resources to finance the
distribution of each Portfolio's shares.
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) for the six months ended April 30, 1999 were as
follows:
PORTFOLIO PURCHASES SALES
- --------- ------------ ------------
National $377,734,681 $312,948,149
Insured National 131,858,167 94,804,929
New York 106,966,360 29,475,793
California 227,155,526 84,353,455
Insured California 28,941,788 4,994,968
There were no purchases or sales of U.S. government and government agency
obligations for the six months ended April 30, 1999.
At April 30, 1999, the cost of investments for federal income tax purposes,
gross unrealized appreciation, gross unrealized depreciation and net unrealized
appreciation/depreciation of investments for each Portfolio were as follows:
GROSS UNREALIZED NET
---------------------------- UNREALIZED
TAX COST APPRECIATION (DEPRECIATION) APPRECIATION
------------ ------------ -------------- ------------
National $691,414,278 $18,365,121 $(2,727,793) $15,637,328
Insured National 197,629,241 7,839,216 (382,625) 7,456,591
New York 366,434,851 24,284,545 (392,681) 23,891,864
California 950,986,390 68,767,373 (266,574) 68,500,799
Insured California 149,849,999 11,237,301 (273,244) 10,964,057
NOTE E: TAXES
For Federal income tax purposes at October 31, 1998, the Fund had capital loss
carryforwards for the following Portfolios: $1,444,926 expiring in 2003 for the
New York Portfolio; $4,309,001 expiring in 2003 and $2,052,062 expiring in 2004
for the California Portfolio; and $221,533 expiring in 2002 for the Insured
California Portfolio.
32
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
NOTE F: CAPITAL STOCK
There are 3,000,000,000 shares of $.001 par value capital stock authorized,
divided into three classes, designated Class A, Class B and Class C shares.
Each class consists of 200,000,000 authorized shares. Transactions in capital
stock were as follows:
NATIONAL PORTFOLIO
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCT. 31, APRIL 30, 1999 OCT. 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS A
Shares sold 3,625,136 7,594,850 $ 39,876,544 $ 83,693,512
Shares issued in
reinvestment of
dividends and
distributions 720,250 958,894 7,922,599 10,582,438
Shares converted
from Class B 2,229,948 899,961 24,441,008 9,934,458
Shares redeemed (2,759,099) (6,731,237) (30,342,259) (74,127,641)
Net increase 3,816,235 2,722,468 $ 41,897,892 $ 30,082,767
CLASS B
Shares sold 3,054,277 4,004,496 $ 33,551,173 $ 44,261,765
Shares issued in
reinvestment of
dividends and
distributions 371,266 532,635 4,080,390 5,876,000
Shares converted
to Class A (2,229,948) (899,961) (24,441,008) (9,934,458)
Shares redeemed (990,214) (3,238,840) (10,892,671) (35,717,016)
Net increase 205,381 398,330 $ 2,297,884 $ 4,486,291
CLASS C
Shares sold 1,702,077 2,677,765 $ 18,688,829 $ 29,579,521
Shares issued in
reinvestment of
dividends and
distributions 221,340 392,655 2,432,489 4,329,223
Shares redeemed (926,780) (1,506,893) (10,167,573) (16,617,330)
Net increase 996,637 1,563,527 $ 10,953,745 $ 17,291,414
INSURED NATIONAL PORTFOLIO
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCT. 31, APRIL 30, 1999 OCT. 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS A
Shares sold 495,226 1,642,188 $ 5,133,849 $ 17,152,883
Shares issued in
reinvestment of
dividends and
distributions 485,714 702,615 5,010,227 7,318,564
Shares converted
from Class B 475,959 111,070 4,880,124 1,163,290
Shares redeemed (1,044,283) (1,706,766) (10,774,668) (17,848,065)
Net increase 412,616 749,107 $ 4,249,532 $ 7,786,672
33
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
INSURED NATIONAL PORTFOLIO
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCT. 31, APRIL 30, 1999 OCT. 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS B
Shares sold 714,879 1,034,758 $ 7,386,069 $ 10,829,842
Shares issued in
reinvestment of
dividends and
distributions 135,837 190,011 1,399,764 1,977,801
Shares converted
to Class A (475,959) (111,070) (4,880,124) (1,163,290)
Shares redeemed (269,776) (817,274) (2,794,566) (8,543,696)
Net increase 104,981 296,425 $ 1,111,143 $ 3,100,657
CLASS C
Shares sold 409,680 402,996 $ 4,220,330 $ 4,220,683
Shares issued in
reinvestment of
dividends and
distributions 58,446 115,304 602,336 1,200,682
Shares redeemed (268,657) (243,043) (2,763,589) (2,539,796)
Net increase 199,469 275,257 $ 2,059,077 $ 2,881,569
NEW YORK PORTFOLIO
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCT. 31, APRIL 30, 1999 OCT. 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS A
Shares sold 2,036,065 4,204,543 $ 20,938,082 $ 43,008,797
Shares issued in
reinvestment of
dividends and
distributions 311,234 610,190 3,199,620 6,244,173
Shares converted
from Class B 757,605 70,171 7,765,346 719,730
Shares redeemed (1,616,940) (2,761,081) (16,614,062) (28,246,100)
Net increase 1,487,964 2,123,823 $ 15,288,986 $ 21,726,600
CLASS B
Shares sold 2,150,453 2,973,222 $ 22,085,496 $ 30,435,248
Shares issued in
reinvestment of
dividends and
distributions 162,273 336,709 1,667,938 3,444,476
Shares converted
to Class A (757,605) (70,171) (7,765,346) (719,730)
Shares redeemed (576,351) (1,605,906) (5,931,039) (16,421,860)
Net increase 978,770 1,633,854 $ 10,057,049 $ 16,738,134
34
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
NEW YORK PORTFOLIO
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCT. 31, APRIL 30, 1999 OCT. 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS C
Shares sold 1,273,374 1,797,741 $ 13,077,215 $ 18,408,602
Shares issued in
reinvestment of
dividends and
distributions 66,927 185,639 687,951 1,897,746
Shares redeemed (585,705) (1,486,617) (6,012,750) (15,184,598)
Net increase 754,596 496,763 $ 7,752,416 $ 5,121,750
CALIFORNIA PORTFOLIO
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS A
Shares sold 10,324,555 10,042,110 $116,580,990 $112,726,624
Shares issued in
reinvestment of
dividends and
distributions 599,605 1,185,228 6,776,210 13,289,149
Shares converted
from Class B 1,300,183 114,030 14,663,854 1,283,090
Shares redeemed (2,693,723) (5,372,737) (30,425,549) (60,189,528)
Net increase 9,530,620 5,968,631 $107,595,505 $ 67,109,335
CLASS B
Shares sold 4,732,578 5,018,694 $ 53,446,679 $ 56,293,953
Shares issued in
reinvestment of
dividends and
distributions 225,321 488,172 2,546,051 5,472,448
Shares converted
to Class A (1,300,183) (114,030) (14,663,854) (1,283,090)
Shares redeemed (874,561) (2,159,593) (9,897,864) (24,224,615)
Net increase 2,783,155 3,233,243 $ 31,431,012 $ 36,258,696
CLASS C
Shares sold 3,445,079 3,787,068 $ 38,904,320 $ 42,523,071
Shares issued in
reinvestment of
dividends and
distributions 168,687 411,862 1,906,024 4,614,537
Shares redeemed (1,161,155) (1,466,724) (13,108,657) (16,432,801)
Net increase 2,452,611 2,732,206 $ 27,701,687 $ 30,704,807
35
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
INSURED CALIFORNIA PORTFOLIO
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCT. 31, APRIL 30, 1999 OCT. 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS A
Shares sold 631,448 1,208,098 $ 8,962,531 $ 17,010,840
Shares issued in
reinvestment of
dividends and
distributions 83,765 183,708 1,190,944 2,585,734
Shares converted
from Class B 192,318 13,557 2,725,156 192,508
Shares redeemed (536,256) (930,895) (7,613,620) (13,086,251)
Net increase 371,275 474,468 $ 5,265,011 $ 6,702,831
CLASS B
Shares sold 206,647 439,858 $ 2,935,393 $ 6,185,442
Shares issued in
reinvestment of
dividends and
distributions 26,432 53,385 375,718 751,134
Shares converted
to Class A (192,318) (13,557) (2,725,156) (192,508)
Shares redeemed (204,729) (392,027) (2,913,514) (5,515,049)
Net increase
(decrease) (163,968) 87,659 $ (2,327,559) $ 1,229,019
CLASS C
Shares sold 185,477 251,196 $ 2,639,269 $ 3,555,671
Shares issued in
reinvestment of
dividends 15,736 38,215 223,821 537,625
Shares redeemed (77,908) (133,253) (1,106,408) (1,874,653)
Net increase 123,305 156,158 $ 1,756,682 $ 2,218,643
NOTE G: BANK BORROWING
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility") to
provide short-term financing if necessary, subject to certain restrictions, in
connection with abnormal redemption activity. Commitment fees related to the
Facility are paid by the participating funds and are included in the
miscellaneous expenses in the statement of operations. The Fund did not utilize
the Facility during the six months ended April 30, 1999.
36
FINANCIAL HIGHLIGHTS ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NATIONAL PORTFOLIO
------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $11.09 $10.94 $10.51 $10.45 $ 9.41 $11.05
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .26(b) .55(b) .57(b) .58 .58 .57
Net realized and unrealized gain (loss)
on investment transactions (.03) .18 .44 .06 1.04 (1.37)
Net increase (decrease) in net asset
value from operations .23 .73 1.01 .64 1.62 (.80)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.29) (.55) (.58) (.58) (.58) (.57)
Distributions in excess of net
investment income -0- (.03) -0- -0- -0- (.03)
Distributions from net realized gains (.10) -0- -0- -0- -0- (.24)
Total dividends and distributions (.39) (.58) (.58) (.58) (.58) (.84)
Net asset value, end of period $10.93 $11.09 $10.94 $10.51 $10.45 $ 9.41
TOTAL RETURN
Total investment return based on net
asset value (c) 2.06% 6.82% 9.88% 6.32% 17.73% (7.65)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $400,730 $364,429 $329,540 $325,288 $338,311 $338,814
Ratios to average net assets of:
Expenses, net of fee waivers .64%(d) .66% .69% .69% .71% .62%
Expenses, before fee waivers 1.07%(d) 1.08% 1.11% 1.10% 1.09% 1.09%
Net investment income, net of fee
waivers 4.75%(d) 4.98% 5.40% 5.55% 5.84% 5.61%
Portfolio turnover rate 57% 56% 72% 137% 118% 110%
</TABLE>
See footnote summary on page 51.
37
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NATIONAL PORTFOLIO
------------------------------------------------------------------------------
CLASS B
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $11.08 $10.94 $10.51 $10.45 $ 9.41 $11.05
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .22(b) .46(b) .50(b) .51 .51 .50
Net realized and unrealized gain (loss)
on investment transactions (.04) .19 .44 .06 1.04 (1.38)
Net increase (decrease) in net asset
value from operations .18 .65 .94 .57 1.55 (.88)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.25) (.46) (.50) (.51) (.51) (.50)
Distributions in excess of net
investment income -0- (.05) (.01) -0- -0- (.02)
Distributions from net realized gains (.10) -0- -0- -0- -0- (.24)
Total dividends and distributions (.35) (.51) (.51) (.51) (.51) (.76)
Net asset value, end of period $10.91 $11.08 $10.94 $10.51 $10.45 $9.41
TOTAL RETURN
Total investment return based on net
asset value (c) 1.65% 6.05% 9.16% 5.61% 16.91% (8.34)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $196,760 $197,517 $190,530 $214,994 $252,357 $250,391
Ratios to average net assets of:
Expenses, net of fee waivers 1.35%(d) 1.37% 1.40% 1.40% 1.42% 1.32%
Expenses, before fee waivers 1.75%(d) 1.79% 1.79% 1.81% 1.80% 1.80%
Net investment income, net of fee
waivers 4.02%(d) 4.28% 4.69% 4.85% 5.13% 4.91%
Portfolio turnover rate 57% 56% 72% 137% 118% 110%
</TABLE>
See footnote summary on page 51.
38
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NATIONAL PORTFOLIO
------------------------------------------------------------------------------
CLASS C
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $11.08 $10.94 $10.51 $10.45 $ 9.41 $11.05
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .22(b) .47(b) .50(b) .51 .51 .50
Net realized and unrealized gain (loss)
on investment transactions (.03) .18 .44 .06 1.04 (1.38)
Net increase (decrease) in net asset
value from operations .19 .65 .94 .57 1.55 (.88)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.26) (.47) (.50) (.51) (.51) (.50)
Distributions in excess of net
investment income -0- (.04) (.01) -0- -0- (.02)
Distributions from net realized gains (.10) -0- -0- -0- -0- (.24)
Total dividends and distributions (.36) (.51) (.51) (.51) (.51) (.76)
Net asset value, end of period $10.91 $11.08 $10.94 $10.51 $10.45 $ 9.41
TOTAL RETURN
Total investment return based on net
asset value (c) 1.66% 6.06% 9.18% 5.62% 16.93% (8.33)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $117,562 $108,325 $89,792 $96,134 $108,068 $133,249
Ratios to average net assets of:
Expenses, net of fee waivers 1.34%(d) 1.36% 1.39% 1.39% 1.41% 1.31%
Expenses, before fee waivers 1.76%(d) 1.82% 1.81% 1.80% 1.78% 1.79%
Net investment income, net of fee
waivers 4.04%(d) 4.28% 4.70% 4.85% 5.16% 4.89%
Portfolio turnover rate 57% 56% 72% 137% 118% 110%
</TABLE>
See Footnote Summary On Page 51.
39
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
INSURED NATIONAL PORTFOLIO
------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $10.52 $10.49 $10.28 $10.07 $ 8.96 $10.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .21(b) .44(b) .50(b) .51 .51 .53
Net realized and unrealized gain (loss)
on investment transactions (.05) .28 .37 .22 1.13 (1.40)
Net increase (decrease) in net asset
value from operations .16 .72 .87 .73 1.64 (.87)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.23) (.44) (.50) (.52) (.51) (.53)
Distributions in excess of net
investment income -0- (.05) (.02) -0- (.02) (.01)
Distributions from net realized gains (.22) (.20) (.14) -0- -0- (.39)
Total dividends and distributions (.45) (.69) (.66) (.52) (.53) (.93)
Net asset value, end of period $10.23 $10.52 $10.49 $10.28 $10.07 $ 8.96
TOTAL RETURN
Total investment return based on net
asset value (c) 1.54% 7.15% 8.77% 7.43% 18.72% (8.69)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $178,180 $179,003 $170,631 $160,425 $165,548 $153,656
Ratios to average net assets of:
Expenses, net of fee waivers .99%(d) 1.00% 1.02% 1.02% 1.01% .66%
Expenses, before fee waivers 1.09%(d) 1.12% 1.15% 1.12% 1.12% 1.11%
Net investment income, net of fee
waivers 4.07%(d) 4.21% 4.85% 5.04% 5.37% 5.40%
Portfolio turnover rate 53% 27% 98% 157% 171% 149%
</TABLE>
See footnote summary on page 51.
40
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
INSURED NATIONAL PORTFOLIO
------------------------------------------------------------------------------
CLASS B
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $10.52 $10.49 $10.28 $10.07 $ 8.96 $10.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .17(b) .37(b) .42(b) .44 .45 .46
Net realized and unrealized gain (loss)
on investment transactions (.06) .28 .38 .22 1.12 (1.40)
Net increase (decrease) in net asset
value from operations .11 .65 .80 .66 1.57 (.94)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.19) (.37) (.42) (.45) (.45) (.46)
Distributions in excess of net
investment income -0- (.05) (.03) -0- (.01) (.01)
Distributions from net realized gains (.22) (.20) (.14) -0- -0- (.39)
Total dividends and distributions (.41) (.62) (.59) (.45) (.46) (.86)
Net asset value, end of period $10.22 $10.52 $10.49 $10.28 $10.07 $ 8.96
TOTAL RETURN
Total investment return based on net
asset value (c) 1.13% 6.48% 8.07% 6.74% 17.91% (9.38)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $48,432 $48,751 $45,542 $52,156 $58,990 $51,439
Ratios to average net assets of:
Expenses, net of fee waivers 1.69%(d) 1.71% 1.75% 1.73% 1.72% 1.37%
Expenses, before fee waivers 1.79%(d) 1.87% 1.86% 1.83% 1.83% 1.82%
Net investment income, net of fee
waivers 3.36%(d) 3.49% 4.12% 4.32% 4.65% 4.71%
Portfolio turnover rate 53% 27% 98% 157% 171% 149%
</TABLE>
See footnote summary on page 51.
41
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
INSURED NATIONAL PORTFOLIO
------------------------------------------------------------------------------
CLASS C
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $10.52 $10.49 $10.28 $10.07 $ 8.96 $10.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .17(b) .37(b) .42(b) .44 .45 .46
Net realized and unrealized gain (loss)
on investment transactions (.06) .28 .38 .22 1.12 (1.40)
Net increase (decrease) in net asset
value from operations .11 .65 .80 .66 1.57 (.94)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.19) (.37) (.42) (.45) (.45) (.46)
Distributions in excess of net
investment income -0- (.05) (.03) -0- (.01) (.01)
Distributions from net realized gains (.22) (.20) (.14) -0- -0- (.39)
Total dividends and distributions (.41) (.62) (.59) (.45) (.46) (.86)
Net asset value, end of period $10.22 $10.52 $10.49 $10.28 $10.07 $ 8.96
TOTAL RETURN
Total investment return based on net
asset value (c) 1.13% 6.48% 8.07% 6.74% 17.91% (9.38)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $23,402 $21,992 $19,057 $22,763 $22,265 $24,112
Ratios to average net assets of:
Expenses, net of fee waivers 1.70%(d) 1.70% 1.72% 1.72% 1.71% 1.36%
Expenses, before fee waivers 1.80%(d) 1.83% 1.84% 1.82% 1.82% 1.81%
Net investment income, net of fee
waivers 3.37%(d) 3.51% 4.15% 4.34% 4.69% 4.68%
Portfolio turnover rate 53% 27% 98% 157% 171% 149%
</TABLE>
See footnote summary on page 51.
42
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $10.29 $10.10 $ 9.66 $ 9.62 $ 8.72 $10.17
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .25(b) .51(b) .53(b) .55 .55 .55
Net realized and unrealized gain (loss)
on investment transactions (.06) .21 .46 .04 .90 (1.40)
Net increase (decrease) in net asset
value from operations .19 .72 .99 .59 1.45 (.85)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.26) (.51) (.54) (.55) (.55) (.55)
Distributions in excess of net
investment income -0- (.02) (.01) -0- -0- (.01)
Distributions from net realized gains -0- -0- -0- -0- -0- (.04)
Total dividends and distributions (.26) (.53) (.55) (.55) (.55) (.60)
Net asset value, end of period $10.22 $10.29 $10.10 $ 9.66 $ 9.62 $ 8.72
TOTAL RETURN
Total investment return based on net
asset value (c) 1.85% 7.31% 10.52% 6.30% 17.10% (8.76)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $220,796 $207,031 $181,745 $179,452 $183,987 $182,170
Ratios to average net assets of:
Expenses, net of fee waivers .61%(d) .61% .65% .64% .75% .66%
Expenses, before fee waivers 1.08%(d) 1.08% 1.12% 1.11% 1.12% 1.11%
Net investment income, net of fee
waivers 4.98%(d) 5.04% 5.45% 5.66% 5.93% 5.75%
Portfolio turnover rate 8% 18% 34% 64% 69% 69%
</TABLE>
See footnote summary on page 51.
43
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------------------------------------
CLASS B
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $10.29 $10.10 $ 9.66 $ 9.62 $ 8.72 $10.17
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .22(b) .44(b) .46(b) .48 .48 .48
Net realized and unrealized gain (loss)
on investment transactions (.07) .21 .46 .04 .90 (1.41)
Net increase (decrease) in net asset
value from operations .15 .65 .92 .52 1.38 (.93)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.22) (.44) (.47) (.48) (.48) (.47)
Distributions in excess of net
investment income -0- (.02) (.01) -0- -0- (.01)
Distributions from net realized gains -0- -0- -0- -0- -0- (.04)
Total dividends and distributions (.22) (.46) (.48) (.48) (.48) (.52)
Net asset value, end of period $10.22 $10.29 $10.10 $ 9.66 $ 9.62 $ 8.72
TOTAL RETURN
Total investment return based on net
asset value (c) 1.50% 6.57% 9.72% 5.52% 16.19% (9.44)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $123,932 $114,739 $96,119 $96,959 $94,400 $81,941
Ratios to average net assets of:
Expenses, net of fee waivers 1.32%(d) 1.32% 1.35% 1.35% 1.45% 1.36%
Expenses, before fee waivers 1.79%(d) 1.80% 1.84% 1.82% 1.83% 1.82%
Net investment income, net of fee
waivers 4.26%(d) 4.34% 4.75% 4.95% 5.21% 5.05%
Portfolio turnover rate 8% 18% 34% 64% 69% 69%
</TABLE>
See footnote summary on page 51.
44
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------------------------------------
CLASS C
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $10.29 $10.10 $ 9.66 $ 9.62 $ 8.72 $10.17
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .22(b) .44(b) .46(b) .48 .48 .48
Net realized and unrealized gain (loss)
on investment transactions (.07) .21 .46 .04 .90 (1.41)
Net increase (decrease) in net asset
value from operations .15 .65 .92 .52 1.38 (.93)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.22) (.44) (.47) (.48) (.48) (.47)
Distributions in excess of net
investment income -0- (.02) (.01) -0- -0- (.01)
Distributions from net realized gains -0- -0- -0- -0- -0- (.04)
Total dividends and distributions (.22) (.46) (.48) (.48) (.48) (.52)
Net asset value, end of period $10.22 $10.29 $10.10 $ 9.66 $ 9.62 $ 8.72
TOTAL RETURN
Total investment return based on net
asset value (c) 1.50% 6.57% 9.72% 5.52% 16.19% (9.44)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $52,135 $44,736 $38,890 $34,562 $32,259 $34,646
Ratios to average net assets of:
Expenses, net of fee waivers 1.31%(d) 1.31% 1.35% 1.34% 1.44% 1.36%
Expenses, before fee waivers 1.81%(d) 1.82% 1.82% 1.81% 1.82% 1.81%
Net investment income, net of fee
waivers 4.27%(d) 4.33% 4.75% 4.95% 5.24% 5.03%
Portfolio turnover rate 8% 18% 34% 64% 69% 69%
</TABLE>
See footnote summary on page 51.
45
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $11.34 $11.04 $10.59 $10.45 $ 9.43 $10.90
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .27(b) .56(b) .58(b) .58 .59 .59
Net realized and unrealized gain (loss)
on investment transactions (.07) .32 .45 .14 1.02 (1.41)
Net increase (decrease) in net asset
value from operations .20 .88 1.03 .72 1.61 (.82)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.29) (.56) (.58) (.58) (.59) (.59)
Distributions in excess of net
investment income -0- (.02) -0- -0- -0- -0-
Distributions from net realized gains -0- -0- -0- -0- -0- (.06)
Total dividends and distributions (.29) (.58) (.58) (.58) (.59) (.65)
Net asset value, end of period $11.25 $11.34 $11.04 $10.59 $10.45 $ 9.43
TOTAL RETURN
Total investment return based on net
asset value (c) 1.78% 8.20% 10.07% 7.15% 17.55% (7.73)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $653,896 $550,626 $470,444 $460,444 $478,535 $470,308
Ratios to average net assets of:
Expenses, net of fee waivers .70%(d) .72% .78% .77% .74% .64%
Expenses, before fee waivers 1.03%(d) 1.04% 1.05% 1.05% 1.04% 1.05%
Net investment income, net of fee
waivers 4.76%(d) 4.99% 5.43% 5.57% 5.90% 5.78%
Portfolio turnover rate 11% 22% 20% 49% 39% 45%
</TABLE>
See footnote summary on page 51.
46
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
------------------------------------------------------------------------------
CLASS B
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $11.34 $11.04 $10.59 $10.45 $ 9.43 $10.90
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .23(b) .48(b) .51(b) .51 .51 .52
Net realized and unrealized gain (loss)
on investment transactions (.07) .33 .45 .14 1.02 (1.41)
Net increase (decrease) in net asset
value from operations .16 .81 .96 .65 1.53 (.89)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.25) (.48) (.51) (.51) (.51) (.52)
Distributions in excess of net
investment income -0- (.03) -0- -0- -0- -0-
Distributions from net realized gains -0- -0- -0- -0- -0- (.06)
Total dividends and distributions (.25) (.51) (.51) (.51) (.51) (.58)
Net asset value, end of period $11.25 $11.34 $11.04 $10.59 $10.45 $ 9.43
TOTAL RETURN
Total investment return based on net
asset value (c) 1.44% 7.46% 9.29% 6.37% 16.64% (8.43)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $237,539 $207,751 $166,672 $164,895 $166,759 $160,879
Ratios to average net assets of:
Expenses, net of fee waivers 1.40%(d) 1.43% 1.48% 1.47% 1.45% 1.35%
Expenses, before fee waivers 1.72%(d) 1.75% 1.76% 1.75% 1.75% 1.75%
Net investment income, net of fee
waivers 4.05%(d) 4.30% 4.72% 4.87% 5.19% 5.07%
Portfolio turnover rate 11% 22% 20% 49% 39% 45%
</TABLE>
See footnote summary on page 51.
47
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
------------------------------------------------------------------------------
CLASS C
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $11.33 $11.04 $10.59 $10.45 $ 9.43 $10.90
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .23(b) .48(b) .51(b) .51 .51 .52
Net realized and unrealized gain (loss)
on investment transactions (.06) .32 .45 .14 1.02 (1.41)
Net increase (decrease) in net asset
value from operations .17 .80 .96 .65 1.53 (.89)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.25) (.48) (.51) (.51) (.51) (.52)
Distributions in excess of net
investment income -0- (.03) -0- -0- -0- -0-
Distributions from net realized gains -0- -0- -0- -0- -0- (.06)
Total dividends and distributions (.25) (.51) (.51) (.51) (.51) (.58)
Net asset value, end of period $11.25 $11.33 $11.04 $10.59 $10.45 $ 9.43
TOTAL RETURN
Total investment return based on net
asset value (c) 1.53% 7.36% 9.29% 6.38% 16.64% (8.43)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $150,799 $124,115 $90,742 $90,917 $87,793 $103,622
Ratios to average net assets of:
Expenses, net of fee waivers 1.40%(d) 1.42% 1.48% 1.47% 1.44% 1.34%
Expenses, before fee waivers 1.73%(d) 1.76% 1.74% 1.75% 1.74% 1.75%
Net investment income, net of fee
waivers 4.06%(d) 4.29% 4.73% 4.87% 5.22% 5.06%
Portfolio turnover rate 11% 22% 20% 49% 39% 45%
</TABLE>
See footnote summary on page 51.
48
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
INSURED CALIFORNIA PORTFOLIO
------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $14.25 $13.89 $13.39 $13.32 $11.79 $14.25
INCOME FROM INVESTMENT OPERATIONS
Net investment income .31(b) .64(b) .69(b) .69 .68(a) .69(a)
Net realized and unrealized gain (loss)
on investment transactions (.11) .39 .50 .06 1.54 (1.99)
Net increase (decrease) in net asset
value from operations .20 1.03 1.19 .75 2.22 (1.30)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.32) (.64) (.68) (.68) (.68) (.69)
Distributions in excess of net
investment income -0- (.03) (.01) -0- (.01) -0-
Distributions from net realized gains -0- -0- -0- -0- -0- (.47)
Total dividends and distributions (.32) (.67) (.69) (.68) (.69) (1.16)
Net asset value, end of period $14.13 $14.25 $13.89 $13.39 $13.32 $11.79
TOTAL RETURN
Total investment return based on net
asset value (c) 1.38% 7.60% 9.18% 5.79% 19.29% (9.73)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $117,416 $113,102 $103,647 $101,542 $103,940 $94,857
Ratios to average net assets of:
Expenses, net of fee waivers 1.03%(d) 1.05% 1.11% 1.08% 1.04% .82%
Expenses, before fee waivers 1.03%(d) 1.05% 1.11% 1.08% 1.09% 1.08%
Net investment income, net of fee
waivers 4.38%(d) 4.52% 5.09% 5.19% 5.34% 5.29%
Portfolio turnover rate 4% 0% 35% 118% 103% 100%
</TABLE>
See footnote summary on page 51.
49
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
INSURED CALIFORNIA PORTFOLIO
------------------------------------------------------------------------------
CLASS B
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $14.25 $13.89 $13.39 $13.32 $11.79 $14.25
INCOME FROM INVESTMENT OPERATIONS
Net investment income .26(b) .54(b) .59(b) .60 .58(a) .60(a)
Net realized and unrealized gain (loss)
on investment transactions (.11) .39 .50 .05 1.54 (2.00)
Net increase (decrease) in net asset
value from operations .15 .93 1.09 .65 2.12 (1.40)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.27) (.54) (.59) (.58) (.58) (.59)
Distributions in excess of net
investment income -0- (.03) -0- -0- (.01) -0-
Distributions from net realized gains -0- -0- -0- -0- -0- (.47)
Total dividends and distributions (.27) (.57) (.59) (.58) (.59) (1.06)
Net asset value, end of period $14.13 $14.25 $13.89 $13.39 $13.32 $11.79
TOTAL RETURN
Total investment return based on net
asset value (c) 1.02% 6.84% 8.37% 4.99% 18.35% (10.43)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $27,393 $29,957 $27,976 $26,696 $27,816 $24,591
Ratios to average net assets of:
Expenses, net of fee waivers 1.74%(d) 1.76% 1.81% 1.79% 1.74% 1.53%
Expenses, before fee waivers 1.74%(d) 1.76% 1.81% 1.79% 1.80% 1.78%
Net investment income, net of fee
waivers 3.66%(d) 3.82% 4.39% 4.49% 4.61% 4.60%
Portfolio turnover rate 4% 0% 35% 118% 103% 100%
</TABLE>
See footnote summary on page 51.
50
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
INSURED CALIFORNIA PORTFOLIO
------------------------------------------------------------------------------
CLASS C
------------------------------------------------------------------------------
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $14.25 $13.89 $13.39 $13.32 $11.79 $14.25
INCOME FROM INVESTMENT OPERATIONS
Net investment income .26(b) .54(b) .59(b) .60 .58(a) .60(a)
Net realized and unrealized gain (loss)
on investment transactions (.11) .39 .50 .05 1.54 (2.00)
Net increase (decrease) in net asset
value from operations .15 .93 1.09 .65 2.12 (1.40)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.27) (.54) (.59) (.58) (.58) (.59)
Distributions in excess of net
investment income -0- (.03) -0- -0- (.01) -0-
Distributions from net realized gains -0- -0- -0- -0- -0- (.47)
Total dividends and distributions (.27) (.57) (.59) (.58) (.59) (1.06)
Net asset value, end of period $14.13 $14.25 $13.89 $13.39 $13.32 $11.79
TOTAL RETURN
Total investment return based on net
asset value (c) 1.02% 6.84% 8.37% 4.99% 18.35% (10.43)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $17,624 $16,013 $13,436 $12,826 $14,323 $12,472
Ratios to average net assets of:
Expenses, net of fee waivers 1.73%(d) 1.75% 1.81% 1.78% 1.74% 1.52%
Expenses, before fee waivers 1.73%(d) 1.75% 1.81% 1.78% 1.79% 1.77%
Net investment income, net of fee
waivers 3.67%(d) 3.82% 4.39% 4.49% 4.64% 4.59%
Portfolio turnover rate 4% 0% 35% 118% 103% 100%
</TABLE>
(a) Net of fees waived by the Adviser.
(b) Based on average shares outstanding.
(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. Initial sales charges or contingent
deferred sales charges are not reflected in the calculation of total investment
return. Deferred sales charge is not reflected in the calculation of total
investment return. Total investment return calculated for a period less than
one year is not annualized.
(d) Annualized.
51
ALLIANCE MUNICIPAL INCOME FUND
_______________________________________________________________________________
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
DONALD J. ROBINSON (1)
OFFICERS
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
SUSAN P. KEENAN, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
DAVID M. DOWDEN, VICE PRESIDENT
TERRANCE HULTS, VICE PRESIDENT
WILLIAM E. OLIVER, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JUAN J. RODRIGUEZ, CONTROLLER
CUSTODIAN
STATE STREET BANK & TRUST COMPANY
225 Franklin Street
Boston, MA 02110
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
(1) Member of the Audit Committee.
52
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term U.S. Government Fund
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Environment Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Select Investors Series - Premier Portfolio
GROWTH & INCOME
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Global Small Cap Fund
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance Greater China '97 Fund
Alliance International Fund
Alliance International Premier Growth Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
INSTITUTIONAL
Premier Growth
Quasar
Real Estate Investment
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
Alliance Capital Reserves
Alliance Government Reserves
Alliance Institutional Reserves
Prime Portfolio
Government Portfolio
Tax-Free Portfolio
Treasury Portfolio
Trust Portfolio
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
Massachusetts Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
General Municipal Portfolio
Government Portfolio
53
ALLIANCE MUNICIPAL INCOME FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
MUNISR
