-----------------
TAX-EXEMPT INCOME
-----------------
Alliance Municipal
Income Fund
Semi-Annual Report
April 30, 2000
AllianceCapital [LOGO](R)
The Investment Professional's Choice
<PAGE>
Investment Products Offered
---------------------------
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
---------------------------
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
LETTER TO SHAREHOLDERS
June 12, 2000
Dear Shareholder:
We are pleased to report municipal market activity and investment results for
Alliance Municipal Income Fund's semi-annual reporting period ended April 30,
2000.
Investment Objectives and Policies
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.
INVESTMENT RESULTS*
Periods ended April 30, 2000
---------------------
Total Returns
---------------------
Portfolio 6 Months 12 Months
--------------------------------------------------------------------------------
California 1.42% -2.15%
--------------------------------------------------------------------------------
Insured
California 2.44% -2.73%
--------------------------------------------------------------------------------
Insured
National 1.71% -5.14%
--------------------------------------------------------------------------------
National 0.97% -4.96%
--------------------------------------------------------------------------------
New York 2.47% -2.70%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index 2.63% -0.92%
--------------------------------------------------------------------------------
----------------------------------------
Lipper Rankings
----------------------------------------
Within each Lipper Municipal Debt Funds Average
Periods ended April 30, 2000
1 Year** 3 Year** 5 Year** 10 Year**
--------------------------------------------------------------------------------
California 26/110 1/95 2/83 4/39
--------------------------------------------------------------------------------
Insured California 10/23 4/23 3/21 5/7
--------------------------------------------------------------------------------
Insured National 43/49 26/47 7/40 3/18
--------------------------------------------------------------------------------
National 229/274 114/223 29/182 19/84
--------------------------------------------------------------------------------
New York 29/105 6/92 1/80 10/33
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* The Fund's investment results are based on the net asset values of Class A
shares as of April 30, 2000. 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.
The Lehman Brothers Municipal Bond Index is a total return performance
benchmark for the long-term, investment-grade tax-exempt bond market. An
investor cannot invest directly in an index, and its results are not
indicative of any specific investment, including Alliance Municipal Income
Fund. Past performance is no guarantee of future results.
** Lipper Rankings are based on the portfolio's return among the returns of
its peer group of funds, as represented by the respective state specific
or national Lipper Municipal Debt Funds Average. Funds in the Lipper
averages generally have similar investment objectives to the Fund,
although some may have different investment
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 1
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
policies. An investor cannot invest directly in an index or average, and
its results are not indicative of any specific investment, including
Alliance Municipal Income Fund. SEC average annual total returns can be
found on page 11.
Additional performance information can be found on pages 5-12.
Investment Results
Each Portfolio's Class A share total returns at net asset value (NAV) for the
six- and 12-month periods ended April 30, 2000 are shown on the previous page
along with the Fund's benchmark, the Lehman Brothers Municipal Bond Index. The
Lehman Brothers Municipal Bond Index is a total return performance benchmark for
the long-term, investment-grade tax-exempt bond market. The Fund's Lipper
Rankings are also shown. Lipper Rankings are based on each portfolio's return
among the returns of its peer group of funds.
Recently, Fund performance has lagged benchmark performance. This is
attributable to the aggressive repositioning strategy that we employ during
periods of rising interest rates. Our focus, as we will discuss later in this
report, is to capture more coupon income and to improve call protection by
extending portfolio duration. This extending does increase portfolio Price
sensitivity in the near term, but allows us to maximize income and maximize call
protection over the next phase of the interest rate cycle.
Market Overview
For the period ended April 30, 2000, municipal bonds continued to deliver strong
after-tax performance versus other fixed-income sectors. Overall prices in the
municipal bond market declined in late 1999 and early 2000, but have recently
retraced much of this decline to generate positive total returns. This recovery
was driven by reduced municipal new issue supply coupled with strong demand for
municipal bonds and the overall rally in fixed income markets in late March.
However, municipal yields are still significantly greater on an after-tax basis
compared to comparable Treasury bonds and corporate bonds.
Actions of the Federal Reserve and the U.S. Treasury Department have weighed in
on the municipal market since the beginning of the year. To combat the risk of
higher inflation in the future, the Federal Reserve raised the Federal Funds
rate four times in recent months to 6.50%. Uncertainty regarding future policy
decisions has led to some volatility in the market. We have viewed these periods
of volatility as opportunities to reposition the Fund's portfolios. At the
beginning of the year, the Treasury Department announced that continued
improvement of the U.S. budget reduced the need for borrowing. As a result, the
Treasury has instituted a Treasury bond buyback program targeted at Longer-term
maturities leading to a substantial rise in Treasury bond prices. Municipal bond
prices tend to trade in the same direction as Treasury bond prices and have
therefore risen as well.
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2 o ALLIANCE MUNICIPAL INCOME FUND
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----------------------
LETTER TO SHAREHOLDERS
----------------------
In addition to the overall rise in interest rates, we believe that much of the
market decline in both late fall 1999 and late January 2000 was driven by
technical factors. First, last fall Y2K liquidity demand prompted investors to
shorten maturities and move to cash-equivalent investments in portfolios,
leading to sales of long term bonds. Second, tax-driven trading activity before
the close of 1999 exacerbated the supply imbalance, with investors taking losses
to offset gains in their portfolios in order to limit tax liabilities. Finally,
the market sold off in late January as investors set aside cash in anticipation
of their April 15th tax bills.
The strength in the municipal market was in direct response to the rise in
Treasury bond prices after the announcement of the government buyback program.
Municipal investors finally began moving out of short-term investments into
higher yielding long-term bonds. Market strength was also attributable to a
dramatic decline in new issue volume (down 38% in the first quarter compared to
the same period one year earlier) and strong demand from individual investors.
Most of the decline in volume was the result of higher interest rates and a
higher cost of borrowing for issuers. We expect that once the market settles
into a trading range, new issuance will pick up again. Wealthy investors
continue to have a strong appetite for municipals, as they look for ways to
shelter income from taxes.
Investment Strategy
We viewed the decline in municipal bond prices during the period under review as
an opportunity to achieve several longer term goals for your portfolios
including maximizing current income, reducing the risk of early redemption and
generating tax losses to offset future gains. In 2000, we believe that periods
of market volatility should be viewed as opportunities for further
repositioning. Going forward, this repositioning program should help us to
maintain the highest possible distribution rates, minimize future tax
liabilities as well as minimize long-term reinvestment risk consistent with the
objectives and guidelines of the Fund.
The strong domestic economy continues to enhance the credit fundamentals of
state and local governments. In fact, April 2000 represents the 17th consecutive
month of upgrades exceeding downgrades according to both Moody's and Standard
and Poor's.
This has resulted in better-than-projected sales tax and personal income tax
collection -- the largest source of revenues for most states. In addition,
rating agencies continue to reward governmental entities with higher bond
ratings for implementing better forecasting and planning models as well as rainy
day funds. This is because rating agencies believe these measures will preserve
strong credit quality through future economic Downturns.
Market Outlook
In our view, municipal market levels are attractive on both a relative and
absolute basis. The Treasury bond buyback program should continue to depress
Treasury yields placing them at levels equivalent to municipal bond yields
before taking into account the
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ALLIANCE MUNICIPAL INCOME FUND o 3
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
impact of taxes. This should generate additional demand for municipal bonds as
investors recognize the substantial yield spread afforded to municipal bonds on
an after-tax basis. While new issue supply may pick up as the year progresses,
we believe that it will not satisfy the level of demand. This should lead to
strong relative price performance for municipal bonds. In addition, we expect to
see further tightening by the Federal Reserve in the near term. Until market
participants believe that the Federal Reserve has achieved a neutral bias toward
inflation, there should be more periods of volatility in the market. We view
those periods as opportunities to continue our repositioning strategy.
The Alliance Municipal Income team is proud of our excellent long-term
investment record. We look forward to the opportunity to serve our shareholders
over the next year.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Susan P. Keenan
Susan P. Keenan
Senior Vice President
[PHOTO] John D.
Carifa
[PHOTO] Susan P.
Keenan
Portfolio Manager, Susan P. Keenan, also heads the Municipal Bond Department.
She has over 20 years of investment experience.
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4 o ALLIANCE MUNICIPAL INCOME FUND
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PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE MUNICIPAL INCOME FUND
GROWTH OF A $10,000 INVESTMENT
[The following tables were depicted as mountain charts in the printed
material.]
National Portfolio
4/30/90 to 4/30/00
National Portfolio
Class A at NAV: $19,489
Lipper General
Muni Funds
Average: $18,896
National Portfolio
Class A at offering:
$18,654
Insured National Portfolio
4/30/90 to 4/30/00
Insured National
Portfolio Class A
at NAV: $19,265
Lipper Insured Muni
Funds Average:
$18,498
Insured National
Portfolio Class A
at offering:
$18,445
California Portfolio
4/30/90 to 4/30/00
California Portfolio
Class A at NAV: $19,967
California Portfolio
Class A at offering:
$19,115
Lipper CA Muni
Funds Average:
$18,782
Please see mountain chart footnotes on page 6.
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ALLIANCE MUNICIPAL INCOME FUND o 5
<PAGE>
------------------
PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE MUNICIPAL INCOME FUND
GROWTH OF A $10,000 INVESTMENT
[The following tables were depicted as mountain charts in the printed
material.]
Insured California Portfolio
4/30/90 to 4/30/00
Lipper Insured CA
Muni Funds
Average: $19,549
Insured California
Portfolio Class A at
NAV: $19,251
Insured California
Portfolio Class A at
offering: $18,435
New York Portfolio
4/30/90 to 4/30/00
New York Portfolio
Class A at NAV:
$19,668
Lipper NY Muni
Funds Average:
$18,907
New York Portfolio
Class A at offering:
$18,832
Each chart illustrates the total value of an assumed $10,000 investment in each
of Alliance Municipal Income Fund's Class A shares (from 4/30/90 to 4/30/00).
The charts reflect the deduction of the maximum 4.25% sales charges from initial
$10,000 investments in the Portfolios and assume the reinvestment of dividends
and capital gains. Performance at NAV (net asset value) does not reflect sales
charges, which reduce total return figures. Performance for Class B and Class C
shares will vary from the results shown in these illustrations due to
differences in expenses charged to these classes. Past performance is not
indicative of future results, and is not representative of future gain or loss
in capital value or dividend income.
The Lipper General Municipal Debt Funds Average reflects performance of 84
funds; the Lipper Insured Municipal Debt Funds Average reflects performance of
18 funds; the Lipper California Municipal Debt Funds Average reflects
performance of 39 funds; the Lipper Insured California Municipal Debt Funds
Average reflects performance of 7 funds; the Lipper New York Municipal Debt
Funds Average reflects performance of 33 funds. The funds tracked by Lipper Inc.
have generally similar investment objectives to the applicable Alliance
Municipal Income Fund Portfolios, although some of the funds may have investment
policies that are somewhat different than those of Alliance Municipal Income
Fund.
When comparing an Alliance Municipal Income Fund Portfolio to the corresponding
Lipper Average, you should note that no sales charges are reflected in the
performance of the Lipper Averages.
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6 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
-----------------
PORTFOLIO SUMMARY
-----------------
PORTFOLIO SUMMARY
April 30, 2000 (unaudited)
[The following tables were depicted as pie charts in the printed material.]
CALIFORNIA PORTFOLIO
BOND QUALITY RATING
40.18% AAA [GRAPHIC OMITTED]
24.05% AA
6.21% A
7.15% BBB
22.41% NR
INCEPTION DATE
(Class A shares)
12/29/86
INSURED CALIFORNIA PORTFOLIO
BOND QUALITY RATING
96.34% AA [GRAPHIC OMITTED]
3.66% A
INCEPTION DATE
(Class A shares)
11/21/85
NATIONAL PORTFOLIO
BOND QUALITY RATING
37.97% AAA [GRAPHIC OMITTED]
20.10% AA
3.62% A
26.23% BBB
12.08% NR
INCEPTION DATE
(Class A shares)
12/29/86
All data as of April 30, 2000. Each portfolio's quality breakdown is expressed
as a percentage of the portfolio's total investments and may vary over time.
N/R: Non-Rated.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 7
<PAGE>
-----------------
PORTFOLIO SUMMARY
-----------------
PORTFOLIO SUMMARY
April 30, 2000 (unaudited)
[The following tables were depicted as pie charts in the printed material.]
INSURED NATIONAL PORTFOLIO
BOND QUALITY RATING
69.69% AAA [GRAPHIC OMITTED]
22.15% AA
8.16% A
INCEPTION DATE
(Class A shares)
12/29/86
NEW YORK PORTFOLIO
BOND QUALITY RATING
27.29% AAA [GRAPHIC OMITTED]
24.73% AA
39.87% A
7.40% BBB
0.71% NR
INCEPTION DATE
(Class A shares)
12/29/86
All data as of April 30, 2000. Each portfolio's quality breakdown is expressed
as a percentage of the portfolio's total investments and may vary over time.
N/R: Non-Rated.
--------------------------------------------------------------------------------
8 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------
INVESTMENT RESULTS
------------------
INVESTMENT RESULTS
As of April 30, 2000
MORNINGSTAR RATINGS
Periods Ended April 30, 2000
Morningstar Morningstar Morningstar Morningstar
Ratings Ratings Ratings Ratings
Portfolio 3 Years* 5 Years* 10 Years * Overall*
========= =========== =========== =========== ===========
California 4 4 4 4
Insured California 3 3 2 3
Insured National 2 2 1 2
National 3 3 3 3
New York 4 4 3 4
Number of Funds in
Morningstar
Municipal Bond
Fund Category 1,692 1,438 405 1,692
* Morningstar proprietary ratings reflect historical risk-adjusted
performance as of April 30, 2000. Ratings may change monthly and are
calculated from each Portfolio's overall, 3-, 5- and 10-year 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 page 11.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 9
<PAGE>
------------------
INVESTMENT RESULTS
------------------
INVESTMENT RESULTS
As of April 30, 2000
LIPPER MUNICIPAL DEBT FUNDS AVERAGES
Periods Ended April 30, 2000
Lipper Lipper Lipper Lipper Lipper
Average Average Average Average Average
6 Months* 12 Months* 3 Years* 5 Years* 10 Years*
========= ========== ======== ======== =========
California 2.33 -3.49 3.81 5.00 6.47
Insured California 2.89 -2.77 4.02 5.16 6.93
Insured National 2.50 -3.12 3.67 4.66 6.33
National 2.05 -3.31 3.69 4.79 6.56
New York 2.36 -3.38 3.71 4.73 6.52
* Funds in the Lipper averages generally have similar investment objectives
to the applicable Alliance Municipal Income Fund portfolios, although some
may have different investment policies. Past performance is no guarantee
of future results. An investor cannot invest directly in an average and
its results are not indicative of any specific investment, including
Alliance Municipal Income Fund.
--------------------------------------------------------------------------------
10 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------
INVESTMENT RESULTS
------------------
INVESTMENT RESULTS
As of April 30, 2000
ALLIANCE MUNICIPAL INCOME FUND
NAV AND SEC TOTAL RETURNS
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
Without Sales Charges With Sales Charges
-------------------------------------------------------------------------------------------------------
Since Since
1 Year 5 Year 10 Year Inception* 1 Year 5 Year 10 Year Inception
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
National Portfolio
Class A -4.96% 5.44% 6.90% 6.97% -9.04% 4.54% 6.43% 6.62%
Class B -5.53% 4.74% N/A 4.71%(a) -8.23% 4.74% N/A 4.71%(a)
Class C -5.53% 4.74% N/A 4.14% -6.43% 4.74% N/A 4.14%
California Portfolio
Class A -2.15% 6.40% 7.16% 7.16% -6.32% 5.49% 6.69% 6.81%
Class B -2.86% 5.65% N/A 5.24%(a) -5.64% 5.65% N/A 5.24%(a)
Class C -2.86% 5.65% N/A 4.86% -3.79% 5.65% N/A 4.86%
New York Portfolio
Class A -2.70% 6.01% 7.00% 6.47% -6.80% 5.09% 6.53% 6.12%
Class B -3.41% 5.25% N/A 4.87%(a) -6.18% 5.25% N/A 4.87%(a)
Class C -3.32% 5.27% N/A 4.30% -4.24% 5.27% N/A 4.30%
Insured National
Portfolio
Class A -5.14% 5.20% 6.78% 6.60% -9.12% 4.29% 6.31% 6.25%
Class B -5.89% 4.48% N/A 4.66%(a) -8.61% 4.48% N/A 4.66%(a)
Class C -5.79% 4.50% N/A 4.07% -6.70% 4.50% N/A 4.07%
Insured California
Portfolio
Class A -2.73% 5.65% 6.77% 6.99% -6.89% 4.73% 6.31% 6.67%
Class B -3.40% 4.89% N/A 4.71%(a) -6.18% 4.89% N/A 4.71%(a)
Class C -3.40% 4.89% N/A 4.14% -4.32% 4.89% N/A 4.14%
</TABLE>
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.
Please see page 12 for the latest quarter-end SEC returns.
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.
* The Portfolio's inception dates are: National Portfolio 12/29/86,
California Portfolio 12/29/86, New York Portfolio 12/29/86, Insured
National Portfolio 12/29/86, Insured California Portfolio 11/21/85.
(a) Assumes conversion of Class B shares into Class A shares after six years.
N/A: Not applicable.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 11
<PAGE>
------------------
INVESTMENT RESULTS
------------------
INVESTMENT RESULTS
As of April 30, 2000
ALLIANCE MUNICIPAL INCOME FUND
--------------------------------------------------------------------------------
Taxable-Equivalent Yield in
Portfolio 30 Day SEC Yield* 36% Tax Bracket (at NAV)**
--------------------------------------------------------------------------------
National Portfolio
Class A 5.54% 8.73%
Class B 5.09% 7.64%
Class C 5.11% 7.64%
California Portfolio
Class A 5.39% 9.15%
Class B 4.90% 7.89%
Class C 4.91% 7.89%
New York Portfolio
Class A 5.49% 9.66%
Class B 5.01% 8.34%
Class C 5.02% 8.33%
Insured National Portfolio
Class A 4.80% 7.36%
Class B 4.30% 6.25%
Class C 4.31% 6.25%
Insured California Portfolio
Class A 4.87% 8.65%
Class B 4.37% 7.30%
Class C 4.37% 7.30%
ALLIANCE MUNICIPAL INCOME FUND
SEC TOTAL RETURNS
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2000)
--------------------------------------------------------------------------------
Since
Portfolio 1 Year 5 Years 10 Years Inception
--------------------------------------------------------------------------------
National Portfolio
Class A -8.12 4.74 6.41 6.73
Class B -7.48 4.91 N/A 4.88
Class C -5.66 4.92 N/A 4.31
California Portfolio
Class A -5.42 5.62 6.70 6.96
Class B -4.74 5.79 N/A 5.41
Class C -2.86 5.79 N/A 5.04
New York
Class A -5.82 5.32 6.49 6.24
Class B -5.30 5.43 N/A 5.04
Class C -3.34 5.45 N/A 4.47
Insured National
Class A -8.25 4.43 6.26 6.35
Class B -7.63 4.63 N/A 4.83
Class C -5.80 4.63 N/A 4.26
Insured California
Class A -6.12 4.85 6.26 6.77
Class B -5.56 4.99 N/A 4.88
Class C -3.61 5.00 N/A 4.31
* SEC yields are based on SEC guidelines and are calculated on 30 days ended
April 30, 2000.
** The taxable-equivalent yield is based on NAV and a 36% marginal Federal
income tax rate and maximum state, city and local taxes, where applicable.
--------------------------------------------------------------------------------
12 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000 (unaudited)
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Municipal Bonds - 101.2%
Long Term Municipal Bonds - 99.5%
Arizona - 1.5%
NR Goodyear Asses Dist #1 (Palm Valley)
Ser 96C
7.25%, 7/01/16 ...................... $ 1,588 $ 1,673,609
AA- Mohave Cnty IDR
(Cargill/No Star Steel Proj)
Ser 95A AMT
6.70%, 3/01/20....................... 7,250 7,706,315
------------
9,379,924
------------
California - 3.0%
NR Encinitas Comm Fac Dist #1
(Encinitas Ranch)
Ser 98A
6.00%, 9/01/30....................... 21,170 18,989,490
------------
Colorado - 0.9%
BBB- Colorado Hwy Auth (E-470 Hwy Rev Tolls)
Ser 00
Zero coupon, 9/01/35................. 10,000 672,200
BB Lower Co River Auth
(Samsung Corp.)
6.95%, 4/01/30....................... 5,000 4,931,450
------------
5,603,650
------------
Connecticut - 1.5%
BB+ Connecticut Dev Auth PCR
(Ct Light & Pwr Co Proj)
Ser 93 AMT
5.95%, 9/01/28....................... 11,000 9,755,460
------------
Florida - 15.3%
NR Collier Cnty Comm Dev Dist
(Heritage Greens)
Ser 96
8.25%, 5/01/18....................... 3,170 3,274,769
NR Collier Cnty Comm Fac Dist
(Fiddlers Creek)
Ser 96
7.50%, 5/01/18....................... 15,355 16,009,430
NR Collier Cnty Comm Fac Dist
(Fiddlers Creek)
Ser 99A
5.875%, 5/01/21...................... 9,305 8,216,315
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 13
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
A Collier Cnty HFA MFHR
(Whistlers Grn Apts Proj)
Ser 99A AMT
5.40%, 12/01/27...................... $1,890 $ 1,690,151
NR Collier Cnty IDR
(Southern St Util)
Ser 96 AMT
6.50%, 10/01/25...................... 4,605 4,593,303
AAA Dade Cnty Arpt Rev
(Miami Int'l)
MBIA Ser 95B AMT
6.00%, 10/01/24...................... 9,730 9,729,416
Baa1 Escambia Cnty PCR (Champion Intl Corp)
Ser 96 AMT
6.40%, 9/01/30(a).................... 5,000 4,812,100
AAA Florida HFA (Hsg Logans Pointe Apts)
Ser 99 AMT
6.00%, 6/01/39....................... 6,630 6,635,105
AAA Florida HFA (Hsg Turtle Creek Apts Proj)
AMBAC Ser 96C AMT
6.20%, 5/01/36....................... 3,245 3,257,137
AAA Florida HFA SFMR (Home Mtg)
Ser 95A AMT
6.65%, 1/01/24....................... 6,575 6,730,170
AAA Florida HFC MFHR (Crossing at Univ Apt)
AMBAC Ser 98Q-1 AMT
5.25%, 12/01/38...................... 6,545 5,697,946
NR Lee Cnty Comm Fac (Stoneybrook)
Ser 98
5.70%, 5/01/08....................... 3,000 2,875,470
NR Lee Cnty Comm Fac Dist (Herons Glen)
Ser 99
5.90%, 5/01/19....................... 5,380 4,792,127
Aaa Manatee Cnty HFA SFMR (Mtg Rev)
GNMA Ser 99 AMT
6.25%, 11/01/28(a)................... 1,000 1,027,030
NR Northern Palm Beach Cnty Imp Dist #9A
(ABACOA)
Ser 96A
7.20%, 8/01/16....................... 1,950 2,023,203
7.30%, 8/01/27....................... 9,600 10,020,672
NR Orlando Asses Dist (Conroy Rd Proj)
Ser 98A
5.80%, 5/01/26....................... 3,250 2,792,563
Baa2 Volusia Cnty Ed Fac
(Embry-Riddle Aero Univ)
Ser A
5.75%, 10/15/29(a)................... 2,000 1,850,900
------------
96,027,807
------------
--------------------------------------------------------------------------------
14 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Georgia - 2.7%
AAA Atlanta Arpt Fac Rev
MBIA AMT
Zero coupon, 1/01/10................. $30,535 $ 17,282,505
------------
Illinois - 1.5%
Aaa Chicago HFA SFMR (Mtg Rev)
GNMA/FNMA Ser 99A AMT
6.35%, 10/01/30(a)................... 2,500 2,536,775
Aaa Chicago SFMR (Mtg Rev)
GNMA/FNMA Ser 99C AMT
7.05%, 10/01/30(a)................... 2,140 2,277,752
Aaa Chicago SFMR
GNMA/FNMA Ser 98A-1 AMT
6.45%, 9/01/29(a).................... 2,565 2,660,059
Aaa Chicago SFMR
GNMA/FNMA Ser 98C-1 AMT
6.30%, 9/01/29(a).................... 1,990 2,036,685
------------
9,511,271
------------
Indiana - 1.6%
BBB Indianapolis Arpt Auth Spec Fac
(Federal Express)
Ser 98 AMT
5.50%, 5/01/29....................... 3,500 2,912,245
AA Warrick Cnty PCR
(So Indiana Gas & Elec Co)
Ser 93B AMT
6.00%, 5/01/23....................... 7,290 7,112,561
------------
10,024,806
------------
Maryland - 0.2%
NR Maryland IDA Eco Dev (Med Waste Assoc)
Ser 89 AMT
8.75%, 11/15/10(b)................... 1,365 1,023,750
------------
Massachusetts - 9.5%
BBB- Massachusetts Dev Fin Agy Ed Fac
(Regis College)
Ser 98
5.50%, 10/01/28...................... 5,865 4,989,414
AAA Massachusetts HFA SFMR
(Residential Mtg)
FSA Ser 71 AMT
5.65%, 6/01/31....................... 11,050 10,118,706
AAA Massachusetts HFA MFHR (Rental Hsg)
AMBAC Ser 99B AMT
5.55%, 7/01/40....................... 7,895 7,137,870
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 15
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
AAA Massachusetts HFA MFHR (Rental Hsg)
MBIA Ser 99H AMT
6.65%, 7/01/41....................... $18,480 $ 18,640,591
AAA Massachusetts Ind Fin Auth MFHR
(Heights Crossing)
FHA Ser 95 AMT
6.15%, 2/01/35....................... 2,000 1,949,420
AA- Massachusetts Port Auth
Ser 99D AMT
6.00%, 7/01/29....................... 2,100 2,060,121
AAA Massachusetts Port Auth Spec Fac
(Boston Fuel Corp)
MBIA Ser 97 AMT
6.00%, 7/01/36....................... 15,360 15,135,283
------------
60,031,405
------------
Michigan - 4.0%
BB- Detroit Tax Increment (Daimler/Chrysler
Jefferson No Assembly Plant)
Ser 98A
5.50%, 5/01/21....................... 1,000 880,000
AAA Michigan HDA MFHR (Rental Hsg Rev)
AMBAC Ser 97A AMT
6.10%, 10/01/33...................... 8,400 8,351,952
AAA Michigan HDA MFHR (Rental Hsg Rev)
MBIA Ser 99A AMT
5.30%, 10/01/37...................... 14,520 12,662,892
AA+ Michigan HDA SFMR (Mtg Rev)
Ser 96B AMT
6.20%, 6/01/27....................... 3,255 3,237,879
AAA Michigan Strategic Fund PCR
(Detroit Edison)
MBIA Ser 95AA
6.40%, 9/01/25....................... 245 252,470
------------
25,385,193
------------
Minnesota - 6.1%
A Bass Brook PCR (Minn Pwr & Light)
Ser 92
6.00%, 7/01/22....................... 450 418,257
AAA Brooklyn Park MFHR (Brooks Landing)
FNMA Ser 99A AMT
5.50%, 7/01/19....................... 1,355 1,277,155
5.60%, 7/01/24....................... 1,370 1,275,073
AAA Duluth Arpt Lease Rev ST Secured GO
Ser 95C AMT
6.25%, 8/01/14....................... 3,540 3,647,793
--------------------------------------------------------------------------------
16 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
A- Minneapolis
(Common Bond Fund Cmty Dev Agy)
Ser 97-2
6.20%, 6/01/17......................... $1,795 $ 1,821,548
AAA Minneapolis MFHR (Riverside Plaza Proj)
GNMA Ser 98 AMT
5.20%, 12/20/30........................ 4,400 3,857,348
AAA Minneapolis-St Paul Metropolitan Arpt Rev
FGIC Ser 99B AMT
5.625%, 1/01/16........................ 7,920 7,777,915
A Minnesota Agricultural & Eco Dev Auth
(Fairview Hlth Care)
Series 00A
6.375%, 11/15/29....................... 3,220 3,062,252
NR Minnesota Agricultural & Eco Dev Auth
(Minn Small Bus Dev Loan Lot 1)
Ser 96A AMT
6.75%, 8/01/16......................... 1,450 1,498,807
NR Minnesota Agricultural & Eco Dev Auth
(Minn Small Bus Dev Loan Lot 1)
Ser 96B AMT
7.00%, 8/01/16......................... 750 767,955
AA+ Minnesota HFA SFMR (Home Mtg)
Ser 96F AMT
6.30%, 1/01/28......................... 4,015 4,041,218
AA+ Minnesota HFA SFMR (Home Mtg)
Ser 93-C2 AMT
6.15%, 7/01/23......................... 2,090 2,077,021
AA+ Minnesota HFA SFMR (Home Mtg)
Ser 96G AMT
6.25%, 7/01/26......................... 5,400 5,412,420
Baa1 Minnesota Higher Ed Fac Auth
(Hamline Univ)
Ser 99-5B
6.00%, 10/01/29(a)..................... 1,250 1,232,925
------------
38,167,687
------------
Mississippi - 1.2%
BBB+ Adams Cnty Envirn Impt PCR
(Intl Paper Co)
Ser 99A AMT
6.25%, 9/01/23......................... 6,000 5,785,620
BBB+ Warren Cnty Envirn Impt PCR (Intl Paper)
Ser 99A AMT
6.25%, 9/01/23......................... 1,800 1,735,686
------------
7,521,306
------------
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 17
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
New Hampshire - 1.5%
BB+ New Hampshire PCR
(Conn Pwr & Light Co Proj)
Ser 86 AMT
5.90%, 11/01/16...................... $10,000 $ 9,180,600
------------
New Jersey - 8.6%
BBB New Jersey Eco Dev Auth PCR (NUI Corp)
Ser 98A AMT
5.25%, 11/01/33...................... 7,000 5,722,080
AAA New Jersey Eco Dev Auth PCR
(Pub Svc Elec & Gas)
MBIA Ser 94A AMT
6.40%, 5/01/32....................... 5,000 5,152,600
BB New Jersey Eco Dev Auth Spec Fac
(Continental Airlines)
Ser 99 AMT
6.40%, 9/15/23....................... 25,000 23,529,500
6.625%, 9/15/12...................... 2,000 2,029,300
A+ New Jersey Hsg & Mtg Fin Agy MFHR
(Sect 8 Assist)
Ser 1
6.70%, 11/01/28...................... 2,765 2,854,503
AAA New Jersey Hsg & Mtg Fin MFHR
(Pooled Loan)
AMBAC Ser 96A AMT
6.25%, 5/01/28....................... 5,000 5,046,850
AAA New Jersey Hsg & Mtg Fin Rev SFMR
(Home Buyer Rev)
MBIA AMT
5.90%, 10/01/29...................... 10,350 9,931,653
------------
54,266,486
------------
New York - 12.4%
AAA Islip Res Rec Agy
AMBAC Ser 94B AMT
6.125%, 7/01/12...................... 2,020 2,078,661
A New York (Tobacco Settlement)
TSASC
Ser 99-1
6.375%, 7/15/39...................... 37,400 37,208,512
A- New York GO
Ser 97A
6.25%, 8/01/17....................... 11,850 12,241,287
AA NYS Dorm Auth Rev (Long Island Univ)
Ser 99
5.25%, 9/01/28....................... 1,400 1,213,744
--------------------------------------------------------------------------------
18 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
AAA NYS Energy Res & Dev Auth PCR
(NYS Elec & Gas Sec)
MBIA Ser 88A AMT
5.95%, 12/01/27...................... $ 5,700 $ 5,593,695
AAA NYS Energy Res & Dev Auth PCR
(NYS Elec & Gas)
MBIA Ser 87A AMT
6.15%, 7/01/26....................... 5,900 5,988,028
Aa1 NYS Mtg Agy SFMR (Home Mtg)
Ser 82 AMT
5.65%, 4/01/30(a).................... 15,200 13,889,000
------------
78,212,927
------------
Ohio - 5.9%
AAA Cleveland Arpt Rev (Cleveland Int'l)
FGIC Ser 94A AMT
6.25%, 1/01/20....................... 6,500 6,604,390
AAA Ohio Air Quality Dev Auth PCR (JMG Co)
AMBAC Ser 94B AMT
6.375%, 4/01/29...................... 5,700 5,815,026
AAA Ohio HFA AGY SFMR (Residental Dev)
GNMA Ser 97 AMT
6.15%, 3/01/29....................... 4,000 3,941,160
AAA Ohio HFA SFMR (Residential Mtg)
GNMA Ser 94B-2 AMT
6.70%, 3/01/25....................... 4,265 4,368,042
AAA Ohio HFA SFMR (Residential Mtg)
GNMA Ser 99C AMT
5.75%, 9/01/30....................... 8,595 8,112,907
A+ Ohio Wtr Dev Auth Swr Rev
(Anheuser-Busch Proj)
Ser 99 AMT
6.00%, 8/01/29....................... 1,000 967,800
BB+ Ohio Wtr Dev Auth PCR (Cleveland Elec)
Ser 97A AMT
6.10%, 8/01/20....................... 2,000 1,818,500
Baa2 Toledo Lucas Cnty Port Fac (CSX Transp)
Ser 92
6.45%, 12/15/21(a)................... 5,350 5,263,811
------------
36,891,636
------------
Pennsylvania - 9.1%
AAA Allegheny Cnty Arpt Rev
(Gtr Pittsburgh Int'l)
FSA
Ser 92B AMT
6.625%, 1/01/22...................... 3,315 3,431,025
BBB- Allegheny Cnty IDA PCR (USX Corp)
Ser 98
5.50%, 12/01/29...................... 14,000 11,724,860
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 19
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Aaa Allegheny Cnty MFHR
(Green Meadow Apts)
GNMA Ser 98A-1 AMT
5.125%, 10/20/40(a).................. $ 2,100 $ 1,773,744
BBB+ Bradford Cnty IDA Solid Waste (Intl Paper)
Ser 95A AMT
6.60%, 3/01/19....................... 2,500 2,511,950
BB- New Morgan IDA Solid Waste
(Browning Ferris)
Ser 94 AMT
6.50%, 4/01/19....................... 4,000 3,643,840
AA+ Pennsylvania HFA SFMR (Home Mtg)
Ser 99-66A AMT
5.65%, 4/01/29....................... 15,950 14,648,321
AA+ Pennsylvania HFA SFMR (Home Mtg)
Ser 99-67A AMT
5.90%, 10/01/30...................... 9,020 8,592,001
AA+ Pennsylvania HFA SFMR (Home Mtg)
Ser 99-68A AMT
6.15%, 10/01/30...................... 7,000 6,914,110
AAA Philadelphia Aprt Sys Rev
AMBAC Ser 95A AMT
6.10%, 6/15/25....................... 4,000 4,017,960
------------
57,257,811
------------
Tennessee - 1.3%
BBB Memphis Shelby Cnty Spec Fac
(Federal Express)
Ser 93 AMT
6.20%, 7/01/14....................... 8,000 7,924,960
------------
Texas - 8.2%
BBB Alliance Arpt Auth Spec Fac
(Federal Express)
Ser 96 AMT
6.375%, 4/01/21...................... 10,300 9,981,730
BBB- Alliance Arpt Auth Fac Imp
(American Airlines)
Ser 90 AMT
7.50%, 12/01/29...................... 6,890 7,035,861
BBB- Dallas Fort Wrth Texas Arpt Fac Imp
(American Airlines)
Ser 99 AMT
6.375%, 5/01/35...................... 15,000 14,095,950
BB Harris Cnty Arpt Rev (Continental Airlines)
Ser 98 AMT
5.375%, 7/01/19...................... 3,155 2,600,950
BB Houston Arpt Fac Rev (Continental Airlines)
Ser 97B AMT
6.125%, 7/15/27...................... 8,000 7,021,760
--------------------------------------------------------------------------------
20 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
BB Houston Arpt Rev (Continental Airlines)
Ser C AMT
5.70%, 7/15/29....................... $5,000 $ 4,079,450
AAA Houston Arpt Sys Rev
FGIC Ser 98B AMT
5.00%, 7/01/25....................... 7,750 6,553,013
------------
51,368,714
------------
Virginia - 3.1%
Baa2 Bedford Cnty IDA
(Nekoosa Pkg/GA-Pacific)
Ser 99 AMT
6.55%, 12/01/25(a)................... 9,300 9,253,686
AA- Metro Washington Arpt Auth Rev
Ser 97B AMT
5.50%, 10/01/23...................... 4,710 4,382,043
AA+ Virginia HDA MFHR (Rental Hsg)
Ser 99F AMT
5.25%, 5/01/22....................... 5,165 4,600,155
AA+ Virginia HDA SFMR (Commonwealth Mtg)
Ser 96B AMT
6.375%, 1/01/26...................... 1,540 1,551,997
------------
19,787,881
------------
Wisconsin - 0.4%
AA Wisconsin GO (Veterans Hsg)
Ser 99-1 AMT
5.30%, 5/01/20....................... 2,505 2,284,685
------------
Total Long Term Municipal Bonds
(cost $623,488,827)................ 625,879,954
------------
Short Term Municipal Notes(c) - 1.7%
Pennsylvania - 0.3%
A-1 Northampton GO (Citizens Util Co Proj)
Ser 98 AMT
5.05%, 9/01/18....................... 1,800 1,800,000
------------
Tennessee - 0.5%
A-1+ Wilson Cnty IDB (Briskin Mfg Co Proj)
Ser 99 AMT
5.20%, 7/01/29....................... 3,300 3,300,000
------------
Texas - 0.1%
A-1+ WestSide Calhoun PCR (BP Chem Proj)
Ser 00 AMT
6.20%, 10/01/30...................... 600 600,000
------------
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 21
<PAGE>
------------------------
NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Utah - 0.6%
A-1+ Salt Lake Cnty PCR (BP Oil Proj)
Ser 94B
5.80%, 8/01/07....................... $4,000 $ 4,000,000
------------
Washington - 0.2%
Aa3 Port Seattle (Sub Lien)
Ser 97 AMT
5.25%, 9/01/22(a).................... 1,000 1,000,000
------------
Total Short Term Municipal Notes
(cost $10,700,000)................. 10,700,000
------------
Total Investments - 101.2%
(cost $634,188,827)................ 636,579,954
Other assets less liabilities - (1.2%) (7,788,654)
------------
Net Assets - 100%.................... $ 628,791,300
=============
See footnote summary on page 44.
See Glossary of Terms on page 44.
See notes to financial statements.
--------------------------------------------------------------------------------
22 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------------
INSURED NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
INSURED NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000 (unaudited)
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Municipal Bonds - 103.3%
Long Term Municipal Bonds - 101.8%
Alaska - 17.3%
AAA Alaska Hsg Fin Corp MFHR (Mtg Rev)
MBIA Ser 96A
6.05%, 12/01/17...................... $ 1,400 $ 1,416,842
AAA Alaska Hsg Fin Corp SFMR (Mtg Rev)
MBIA Ser 97A
6.00%, 6/01/27....................... 25,000 24,442,500
6.10%, 12/01/37...................... 10,000 9,825,800
------------
35,685,142
------------
Arizona - 2.2%
AAA Mesa IDA Hlth Fac (Discovery Hlth Sys)
MBIA Ser 99A
5.75%, 1/01/25....................... 3,570 3,491,460
AAA Tempe MFHR (Quadrangles)
FHA Ser 93A
6.25%, 6/01/26....................... 1,110 1,121,444
------------
4,612,904
------------
California - 2.5%
NR Corona Comm Fac Dist #97-2 (Eagle Glen)
Ser 98
5.75%, 9/01/16....................... 2,505 2,295,156
NR Los Angeles Cnty Comm Fac Dist #92-1
(Castaic Union SD/Northlake Proj)
Ser 92
9.00%, 10/01/19...................... 2,710 2,920,892
------------
5,216,048
------------
Colorado - 3.0%
AAA Denver City & Cnty (Arpt Sys Rev)
MBIA Ser 95A
5.70%, 11/15/25...................... 6,375 6,086,531
------------
Florida - 5.1%
A Miami Dade Cnty HFA MFHR
(Country Club Villas Apts)
Ser 99A
6.20%, 10/01/39...................... 5,145 4,997,287
AA- Orlando Util Comm (Wtr & Elec)
Ser 93B
6.759%, 10/06/17..................... 4,550 4,449,855
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 23
<PAGE>
--------------------------
INSURED NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
A Suwannee Cnty Hlth Fac (Advent Christian)
ACA Ser 99
5.25%, 4/01/24....................... $ 1,300 $ 1,098,591
------------
10,545,733
------------
Illinois - 6.9%
AAA Chicago Parking Rev (Lakefront Facs)
MBIA Ser 98
5.125%, 1/01/28...................... 4,500 3,931,245
AAA Illinois Hlth Fac Auth (Alexian Brothers Hlth)
FSA Ser 99
5.125%, 1/01/28...................... 6,145 5,258,399
AAA Metro Pier & Expo Auth
(McCormick Place Expo)
FGIC Ser 93A
Zero coupon, 6/15/19................. 15,850 5,016,050
------------
14,205,694
------------
Massachusetts - 10.9%
AAA Massachusetts HFA MFHR
(Residential Dev)
AMBAC Ser 93A
6.15%, 10/01/15...................... 3,500 3,544,030
AA+ Massachusetts Hlth & Ed Fac
(Wellesley College)
Series 99F
5.125%, 7/01/39...................... 15,000 12,893,100
AA+ Massachusetts IDA (Groton School)
Ser A
5.00%, 3/01/28....................... 3,440 2,972,539
AAA Massachusetts Muni Wholesale Elec
(Pwr Supply Sys)
MBIA Ser 92A
6.00%, 7/01/18....................... 1,000 1,004,520
A Massachusetts Trpk Auth
(Metro Highway System)
AMBAC Ser 99A
5.00%, 1/01/39....................... 2,345 1,960,373
------------
22,374,562
------------
Michigan - 7.1%
AAA Detroit Swr Sys Rev
FGIC Ser 93A
6.857%, 7/01/23(d)................... 8,400 9,019,500
AAA Michigan Strategic Fund
(Detroit Edison Co)
MBIA Ser 95AA
6.40%, 9/01/25....................... 3,075 3,168,757
--------------------------------------------------------------------------------
24 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------------
INSURED NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
A Michigan Strategic Fund PCR
(General Motors Corp)
Ser 95
6.20%, 9/01/20....................... $ 1,700 $ 1,726,792
AA Troy Downtown Dev Auth
Ser 95A
6.375%, 11/01/18..................... 700 723,324
------------
14,638,373
------------
Minnesota - 15.6%
Aaa Eagan MFHR (Woodridge Apts)
GNMA Ser 97A
5.95%, 2/01/32(a).................... 1,000 985,850
Aaa Little Canada MFHR
(Cedars Lakeside Apt)
GNMA Ser 97A
5.95%, 2/01/32(a).................... 2,650 2,612,502
AAA Minneapolis COP (Spec School Dist 1)
MBIA Ser 96A
5.90%, 2/01/17....................... 5,000 5,045,450
AAA Minnesota Agric & Econ Dev Brd Hlth Fac
(Benedictine Hlth Sys)
MBIA Ser 99
5.125%, 2/15/29...................... 4,000 3,476,240
AAA Minnesota HFA MFHR (Rental Hsg)
MBIA Ser 95D
6.00%, 2/01/22....................... 3,620 3,589,230
Aaa Saint Paul MFHR (Wellington Proj)
FHMLC Ser 99A
5.10%, 2/01/24(a).................... 2,150 1,924,014
AA Waconia Hlth Fac (Ridgeview Med Ctr)
Asset Gty Ser 99A
6.125%, 1/01/29...................... 14,510 14,498,827
------------
32,132,113
------------
Nebraska - 1.6%
AAA Nebraska Inv Fin Auth Hosp Rev
(Bishop Clarkson Mem)
MBIA Ser 91
8.879%, 12/08/16(d).................. 3,000 3,235,770
------------
New York - 4.7%
A- New York City GO
Ser 97A
6.25%, 8/01/17....................... 9,400 9,710,388
------------
Ohio - 2.2%
AAA Ohio Air Quality Dev Auth (Ohio Pwr)
AMBAC Ser 99C
5.15%, 5/01/26....................... 5,000 4,431,000
------------
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 25
<PAGE>
--------------------------
INSURED NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Pennsylvania - 12.7%
AAA Montgomery Cnty Hlth Fac
(Holy Redeemer)
AMBAC Ser 97A
5.25%, 10/01/23...................... $ 4,315 $ 3,853,467
AAA Pennsylvania Gas Rev
FSA 16th Ser
5.25%, 7/01/29....................... 2,900 2,605,563
AA Potter Cnty Hosp Auth Hosp Rev
(Charles Cole Mem Hosp)
Asset Gty Ser 96
6.05%, 8/01/24....................... 4,340 4,328,586
AAA Washington Cnty Auth (Capital Funding)
AMBAC
6.15%, 12/01/29...................... 15,000 15,329,850
------------
26,117,466
------------
Rhode Island - 3.8%
AA Rhode Island Eco Dev Auth
(Providence Place Mall)
6.125%, 7/01/20...................... 8,000 7,734,400
------------
Tennessee - 1.6%
AAA Met Govt Nashville/Davidson
Cnty Wtr Sys Rev
AMBAC Ser 92
7.628%, 1/01/22...................... 3,000 3,220,200
------------
Texas - 1.7%
AAA Amarillo RIBS Hosp Rev
(High Plains Baptist)
FSA Ser 92B
8.774%, 1/03/22...................... 3,200 3,497,088
------------
Virginia - 0.5%
AAA Harrisonburg Redev & Hsg Auth MFHR
(Battery Heights Assoc)
GNMA Ser 96A
6.25%, 4/20/36....................... 1,000 1,011,200
------------
West Virginia - 2.4%
AAA West Virginia Eco Dev (Parkway Proj)
FGIC Ser 93
7.129%, 5/16/19(d)................... 5,100 4,971,429
------------
Total Long Term Municipal Bonds
(cost $209,131,949)................ 209,426,041
------------
--------------------------------------------------------------------------------
26 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------------
INSURED NATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Short Term Municipal Notes - 1.5%
Indiana - 1.5%
A-1 City of Indianapolis
(Visiting Nurse Service Foundation)
Ser 98
5.15%, 3/01/13(c)
(cost $3,100,000).................. $3,100 $ 3,100,000
------------
Total Investments - 103.3%
(cost $212,231,949)................ 212,526,041
Other assets less liabilities - (3.3%) (6,714,358)
------------
Net Assets - 100%.................... $ 205,811,683
=============
See footnote summary on page 44.
See Glossary of Terms on page 44.
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 27
<PAGE>
--------------------------
NEW YORK PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
NEW YORK PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000(unaudited)
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
BBB+ Essex Cnty IDR (Int'l Paper)
Ser 95A AMT
5.80%, 12/01/19...................... $ 7,000 $ 6,424,810
Aaa Glen Cove IDR
(The Regency at Glen Cove)
Ser 92B ETM
Zero coupon, 10/15/19(a)............. 35,010 10,146,598
Aaa Horseheads NY GNMA CCRC
(Appleridge Retrmt Comm Proj)
Ser 99
5.75%, 9/01/41(a).................... 4,000 3,783,520
Aa1 Monroe Cnty IDA (Southview Towers Proj)
6.25%, 2/01/31(a).................... 1,130 1,117,683
AA Monroe Cnty IDA Hgr Ed
(St John Fisher Coll Asset Gty )
Ser 99
5.375%, 6/01/24...................... 3,070 2,783,661
A- Nassau Cnty (Tobacco Settlement Bonds)
Ser 99-1
6.60%, 7/15/39....................... 39,900 39,839,352
AAA Nassau Cnty NY FSA Hlth Fac
(Nassau Hlth Sys Rev)
Ser 99
5.75%, 8/01/29....................... 10,000 9,589,800
A- New York City GO
Ser 93D
8.31%, 8/01/14....................... 10,000 10,376,100
A- New York City GO
Ser 96-J
6.00%, 2/15/24....................... 11,200 11,114,656
Baa1 New York City IDR (American Airlines)
Ser 90 AMT
5.40%, 7/01/20(a).................... 3,500 3,014,025
BBB- New York City IDR (American Airlines)
Ser 94 AMT
6.90%, 8/01/24....................... 12,000 12,297,120
BBB+ New York City IDR (British Airways)
Ser 98 AMT
5.25%, 12/01/32...................... 27,805 23,147,662
A New York City IDR (Terminal One LP)
Ser 94 AMT
6.125%, 1/01/24...................... 36,500 35,584,580
AA New York City Trans Fin Auth
Ser 2000B
6.00%, 11/15/29...................... 6,000 6,051,000
--------------------------------------------------------------------------------
28 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------------
NEW YORK PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
AAA Niagara Frontier Trans Arpt Rev
(Gtr Buffalo Int'l)
AMBAC Ser 94A AMT
6.25%, 4/01/24....................... $16,125 $ 16,418,314
AAA Niagara Frontier Trans Rev
(Buffalo Niagara)
MBIA AMT
5.625%, 4/01/29...................... 3,900 3,649,542
Aaa NYS Dorm Auth Rev (Brooklyn Hosp Ctr)
FHA Ser 99
5.20%, 2/01/39(a).................... 3,000 2,580,120
AA NYS Dorm Auth Rev Asset 6th
(Long Island Univ)
Ser 99
5.125%, 9/01/23...................... 1,750 1,509,060
AAA NYS Energy Res & Dev Auth
(Brooklyn Union Gas)
MBIA Ser 89B AMT
6.75%, 2/01/24....................... 7,500 7,759,050
A+ NYS Energy Res & Dev Auth
(Consolidated Edison)
Ser 94A AMT
7.125%, 12/01/29..................... 17,000 18,412,020
A- NYS Energy Res & Dev Auth
(Long Island Ltg Co)
Ser 95A
5.30%, 8/01/25....................... 7,500 6,629,850
AAA NYS Energy Res & Dev Auth
(Rochester Gas & Elec)
MBIA AMT
6.50%, 5/15/32....................... 6,460 6,639,007
AAA NYS Energy Res & Dev Auth PCR
(NYS Elec & Gas)
MBIA Ser 87A AMT
6.15%, 7/01/26....................... 9,100 9,235,772
AAA NYS Energy Res & Dev Auth PCR
(NYS Elec & Gas)
MBIA Ser 88A AMT
5.95%, 12/01/27...................... 1,000 981,350
BBB- NYS Envir Fac Auth IDR
(Occidental Petroleum)
Ser 93A AMT
5.70%, 9/01/28....................... 6,950 6,018,214
AAA NYS Envir Fac Corp Wtr Fac
(Spring Valley Wtr)
AMBAC Ser 94A AMT
6.30%, 8/01/24....................... 11,800 12,054,526
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 29
<PAGE>
--------------------------
NEW YORK PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Aa1 NYS HFA MFHR
(Westchester/Onondaga/ Rockland Proj)
Ser 92F AMT
6.70%, 8/15/25(a).................... $ 6,000 $ 6,151,680
Aa1 NYS Mtg Agy SFMR (Homeowner Mtg)
Ser 84 AMT
5.95%, 4/01/30(a).................... 27,995 26,972,343
Aa1 NYS Mtg Agy SFMR
Ser 46 AMT
6.65%, 10/01/25(a)................... 18,280 18,719,999
A Oneida County IDA (Mohawk Valley Proj)
ACA Ser 99
5.35%, 3/15/29....................... 1,000 884,520
A+ Onondaga Cnty IDA
(Anheuser Busch Swr Rev)
Ser 99 AMT
6.25%, 12/01/34...................... 3,500 3,507,280
AAA Onondaga Cnty PCR
(Bristol-Myers Squibb)
AMT
5.75%, 3/01/24....................... 4,000 3,849,200
AAA Port Auth of NY & NJ (JFK Int'l Proj)
MBIA Ser 97-6 AMT
5.75%, 12/01/22...................... 10,685 10,356,436
AA- Port Auth of NY & NJ Cons Rev (95th Ser)
AMT
6.125%, 7/15/29...................... 16,075 16,200,867
AAA Port Auth of NY & NJ Cons Rev (96th Ser)
FGIC AMT
6.60%, 10/01/23...................... 1,000 1,041,610
NR Suffolk County IDR
(Nissequogue Cogen Fac)
Ser 98 AMT
5.50%, 1/01/23....................... 3,000 2,656,950
A New York (Tobacco Settlement)
TSASC Ser 99-1
6.375%, 7/15/39...................... 13,300 13,231,904
AAA Yonkers IDA Hlth Fac (Malotz Pavil Proj)
MBIA Ser 99
5.65%, 2/01/39....................... 4,500 4,225,185
------------
--------------------------------------------------------------------------------
30 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------------
NEW YORK PORTFOLIO
PORTFOLIO OF INVESTMENTS
--------------------------
Standard & Principal
Poor's Amount
Ratings (000) Value
--------------------------------------------------------------------------------
Total Investments - 98.9%
(cost $366,330,837)................ $ 374,955,366
Other assets less liabilities - 1.1%. 4,125,290
------------
Net Assets - 100%.................... $ 379,080,656
=============
See footnote summary on page 44.
See Glossary of Terms on page 44.
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 31
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Municipal Bonds - 95.9%
Long Term Municipal Bonds - 94.6%
California - 89.5%
NR Alameda Assess Dist
(Harbor Bay Bus Park)
Ser 98
5.00%, 9/02/05..................................... $ 1,870 $ 1,807,953
5.50%, 9/02/12..................................... 9,830 9,294,757
AAA Assoc Bay Area Gov MFHR
(Civic Cntr Dr Apt)
Ser 99-A AMT
5.875%, 3/01/32.................................... 16,880 16,416,982
NR Calabasas Comm Fac Dist
98-1 Spec Tax
5.75%, 9/01/28..................................... 1,000 866,260
NR California Comm Dev Auth COP
(Windward Sch)
6.90%, 9/01/23..................................... 2,000 2,014,820
BB+ California Comm Dev Auth Spec Fac
(United Airlines)
Ser A AMT
5.70%, 10/01/33.................................... 5,000 4,280,200
AAA California GO (Veterans Hsg)
AMBAC Ser 95 AMT
6.20%, 12/01/32.................................... 3,000 3,054,180
AA- California GO (Veterans Hsg)
Ser 00BJ9/10 AMT
6.00%, 12/01/24.................................... 7,000 7,013,090
6.05%, 12/01/32.................................... 8,000 7,954,400
AAA California GO (Veterans Hsg)
Ser 95 AMT
6.375%, 2/01/27.................................... 4,835 4,840,125
6.40%, 2/01/20..................................... 21,000 21,018,270
AAA California HFA MFHR (Home Mtg Rev)
AMBAC Ser 96H AMT
6.20%, 2/01/27..................................... 8,000 8,034,880
AAA California HFA MFHR (Home Mtg Rev)
MBIA Ser 91A AMT
7.20%, 2/01/26..................................... 3,450 3,565,955
AAA California HFA MFHR (Home Mtg Rev)
MBIA Ser 91C AMT
7.00%, 8/01/23..................................... 1,475 1,515,681
AAA California HFA MFHR (Home Mtg Rev)
MBIA Ser 97I AMT
5.75%, 2/01/29..................................... 14,075 13,427,831
</TABLE>
--------------------------------------------------------------------------------
32 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
A+ California HFA MFHR
(Multi-Unit Rental Hsg)
Ser 92A AMT
6.50%, 2/01/14..................................... $ 4,865 $ 4,965,997
AA- California HFA SFMR (Home Mtg Rev)
Ser 94E AMT
6.70%, 8/01/25..................................... 6,395 6,575,339
AAA California HFA SFMR (Home Mtg Rev)
Ser 95A-2 AMT
6.45%, 8/01/25..................................... 10,865 11,066,546
AA California HFA SFMR (Home Mtg Rev)
Ser 99A-2 AMT
5.25%, 8/01/26..................................... 7,450 6,571,123
AAA California HFA SFMR (Home Mtg Rev)
Ser R AMT
6.15%, 8/01/27..................................... 3,285 3,289,205
AAA California HFA SFMR (Mtg Rev)
Ser 97M AMT
5.60%, 8/01/29..................................... 4,350 4,043,325
A California Infr & Eco Dev Bank
(American Ctr/Wine Food & Art)
Ser 99 ACA
5.75%, 12/01/24.................................... 3,000 2,848,740
A California Poll Ctl Fin Auth
(Tracy Material Recovery)
Ser 99A ACA AMT
5.70%, 8/01/14..................................... 3,670 3,672,019
BB- California Poll Ctl Fin Auth PCR
(Keller Canyon/Browning-Ferris Ind)
Asset Gty Ser 92 AMT
6.875%, 11/01/27................................... 5,000 4,812,300
AA- California Poll Ctl Fin Auth PCR
(Pacific Gas & Elec)
Ser 93A AMT
5.875%, 6/01/23.................................... 45,345 43,492,657
AA- California Poll Ctl Fin Auth PCR
(Pacific Gas & Elec)
Ser 93B AMT
5.85%, 12/01/23.................................... 56,000 53,518,080
AA- California Poll Ctl Fin Auth PCR
(San Diego Gas & Elec)
Ser 93A-C AMT
5.85%, 6/01/21..................................... 32,335 31,719,341
AAA California Poll Ctl Fin Auth PCR
(So Calif Edison)
MBIA Ser 99C AMT
5.55%, 9/01/31..................................... 7,950 7,393,818
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 33
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
A+ California Poll Ctl Fin Auth PCR
(So Calif Edison)
Ser 92B AMT
6.40%, 12/01/24.................................... $21,030 $21,521,261
AAA California Rural MFA SFMR (Mtg Rev)
GNMA/FNMA Ser 99A AMT
5.40%, 12/01/30.................................... 5,000 4,478,150
AAA California Rural SFMR (Mtg Rev)
GNMA/FNMA Ser B AMT
6.25%, 12/01/31.................................... 2,500 2,508,250
NR California Statewide Comm Dev Auth
(San Diego Space & Science Fndt)
Ser 96
7.50%, 12/01/16.................................... 3,315 3,624,488
NR California Statewide Comm Dev Auth
(Sonoma Cntry Day Sch)
Ser 99
6.00%, 1/01/29..................................... 14,000 13,025,320
BB+ California Statewide Comm Dev Auth
(United Airlines)
Ser 97 AMT
5.625%, 10/01/34................................... 26,000 21,962,720
AAA California Statewide Comm Dev Auth
MFHR (Santa Paula VLG Apt)
FNMA Ser 98D AMT
5.43%, 5/01/28..................................... 2,090 1,893,812
NR Capistrano Sch Dist Comm Fac #98-2
(Ladera)
Ser 99
5.70%, 9/01/20..................................... 9,500 8,394,580
AAA Castaic Lake Water Agy (Wtr Sys Imp Proj)
AMBAC Ser 99A
Zero coupon, 8/01/29............................... 10,445 1,776,590
NR Chino Comm Fac Dist #99-1
(Spectrum West)
6.35%, 9/01/29..................................... 3,000 2,876,730
A-1+ Chula Vista PCR (San Diego Gas & Elec)
Ser 92A AMT
6.40%, 12/01/27.................................... 28,240 29,416,761
Aaa Contra Costa Cnty MFHR
(Byron Park Proj)
GNMA Ser 93A AMT
6.40%, 1/20/31(a).................................. 11,860 12,093,523
NR Corona Comm Fac Dist #97-2
(Eagle Glen)
5.875%, 9/01/23.................................... 3,260 2,918,972
NR Corona Comm Fac Dist #97-2
(Eagle Run)
5.875%, 9/01/23.................................... 3,345 2,998,993
</TABLE>
--------------------------------------------------------------------------------
34 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NR Encinitas Comm Fac Dist #1
(Encinitas Ranch)
Ser 98A
5.30%, 9/01/07..................................... $ 1,295 $ 1,257,341
5.70%, 9/01/12..................................... 4,270 4,075,800
5.875%, 9/01/20.................................... 10,020 9,070,906
NR Encinitas Rec Rev
(Encinitas Ranch Golf Course)
Ser 96A
7.75%, 9/01/26..................................... 10,660 11,315,270
NR Fairfield Assess Dist
(No Cordelia Imp Dist)
Ser 93
7.375%, 9/02/18.................................... 2,355 2,436,836
NR Fontana Comm Fac Dist #11
(Heritage West End)
Ser 99A
6.50%, 9/01/27..................................... 2,350 2,221,079
6.50%, 9/01/28..................................... 8,150 7,678,278
NR Fontana Comm Fac Dist #12 Spec Tax
6.625%, 9/01/30.................................... 7,250 7,005,965
NR La Verne Comm Fac Dist #88-1 Spec Tax
Ser 98
5.875%, 3/01/14 ................................... 6,710 6,424,355
Aa Lancaster Redev Agy FHA MFHR
(High Valley Apts)
Ser 96A
6.00%, 6/01/27(a).................................. 4,170 4,125,715
AA- Long Beach Port Fac (Harbor Rev)
Ser 93 AMT
5.125%, 5/15/18.................................... 17,325 15,705,459
AAA Los Angeles Cnty Arpt (Ontario Int'l Arpt)
FGIC Ser 96A AMT
6.00%, 5/15/22..................................... 12,780 12,779,617
NR Los Angeles Cnty Comm Fac Dist #92-1
(Castaic Union SD/Northlake)
Ser 92
9.00%, 10/01/19.................................... 1,500 1,616,730
AAA Los Angeles Cnty Comm Redev
(Bunker Hill Proj)
FSA Ser 93H
5.60%, 12/01/28.................................... 9,000 8,688,960
AAA Los Angeles Cnty Trans Comm
FGIC Series 91B
6.50%, 7/01/15..................................... 4,000 4,149,000
BB Los Angeles Comm Redev MFHR
(Grand Ctrl Proj)
Ser 93A AMT
5.85%, 12/01/26.................................... 4,030 3,664,600
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 35
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Los Angeles Harbor Rev
MBIA Ser 96B AMT
6.20%, 8/01/25..................................... $10,000 $ 10,238,400
AA Los Angeles Harbor Rev
Ser 95B AMT
6.625%, 8/01/25.................................... 24,000 24,705,600
AA Los Angeles Harbor Rev
Ser 96B AMT
5.375%, 11/01/23................................... 13,250 12,167,077
AAA No Calif Trans Agy Elec Rev
(Calif-Oregon Trans)
MBIA Ser 93A
6.559%, 4/29/24.................................... 21,750 19,425,577
NR Novato Comm Fac Dist #94-1
(Hamilton Field)
Ser 95 ETM
7.375%, 9/01/25.................................... 12,400 13,104,320
AAA Orange Cnty Arpt Rev (John Wayne Int'l)
MBIA Ser 93 AMT
5.50%, 7/01/18..................................... 4,500 4,310,325
NR Orange Cnty Comm Fac Dist #99-1
Spec Tax (Ladera Ranch)
Ser A
6.70%, 8/15/29..................................... 3,000 2,946,750
NR Orange Cnty Comm Fac Dist #87-2
(Portola Hills)
Ser 91A Pre-refunded
9.30%, 8/15/16..................................... 8,750 9,425,412
Aaa Orange Cnty Sr Lien
(Foothill/Eastern Corr Agy)
Ser 95A
Zero coupon, 1/01/24(a)............................ 10,255 2,520,269
Aaa Orange Cnty Sr Lien
(Foothill/Eastern Corr)
Ser 95A ETM
Zero coupon, 1/01/15(a)............................ 18,500 8,138,705
Zero coupon, 1/01/25(a)............................ 15,000 3,465,900
Zero coupon, 1/01/27(a)............................ 10,000 2,046,400
Zero coupon, 1/01/28(a)............................ 10,000 1,928,200
Aaa Orange Cnty Sr Lien
(Foothill/Eastern Transp Corr Agy)
Ser 95A ETM
Zero coupon, 1/01/30(a)............................ 27,935 4,768,225
</TABLE>
--------------------------------------------------------------------------------
36 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Orange Cnty Sr Lien
(San Joaquin Hills Transp Corr)
Ser 93 ETM
Zero coupon, 1/01/17............................... $16,000 $ 6,181,760
Zero coupon, 1/01/19............................... 20,000 6,733,000
Zero coupon, 1/01/20............................... 20,000 6,315,200
Zero coupon, 1/01/21............................... 20,000 5,931,800
Zero coupon, 1/01/23............................... 35,000 9,147,600
Zero coupon, 1/01/25............................... 18,100 4,182,186
AAA Palm Springs COP
Ser 91B ETM
Zero coupon, 4/15/21............................... 41,500 9,999,010
AAA Palm Springs Fin Auth Arpt Rev
(Palm Springs Regional Arpt)
MBIA Ser 92 AMT
6.00%, 1/01/22..................................... 6,860 6,859,314
A- Placer Cnty Res Rec
(Wtrn Placer Wst Mgmt)
Ser 94 AMT
6.75%, 7/01/14..................................... 5,800 6,069,236
AAA Port of Oakland
MBIA Ser 92E AMT
6.40%, 11/01/22.................................... 23,370 23,917,793
BBB+ Port of Oakland Spec Fac
(Mitsui OSK Lines)
Ser 92A AMT
6.80%, 1/01/19..................................... 3,700 3,837,455
NR Riverside Cnty Asses Dist #161
(Winchester Prop)
Ser 94C
10.00%, 9/02/14.................................... 4,890 5,243,156
NR Riverside Comm Fac Dist #90-1
(Highlander Proj)
Ser 91A
8.50%, 9/01/15..................................... 2,000 2,106,980
NR Roseville Comm Fac Dist #1
(Highland Reserve)
Ser 99
6.30%, 9/01/25..................................... 10,000 9,433,200
NR Roseville Comm Fac Dist #1
(No Central Roseville)
Ser 99
5.00%, 9/01/04..................................... 1,015 992,883
5.80%, 9/01/17..................................... 15,250 14,274,000
AAA Sacramento Cnty Arpt Sys Rev
MBIA Ser 96A AMT
5.90%, 7/01/24..................................... 5,050 4,972,886
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 37
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NR Sacramento Comm Fac Dist #97-01
(No Natomas Proj)
Ser 97A
6.70%, 9/01/17..................................... $ 6,615 $ 6,682,671
6.75%, 9/01/27..................................... 9,370 9,465,668
NR Sacramento Comm Fac Lease Rev
(No Natomas Proj)
Ser 99A
6.25%, 9/01/23..................................... 6,435 6,073,289
NR Sacramento Con Ctr Hotel
(Sheraton Grand)
Ser 99A
6.25%, 1/01/30..................................... 13,000 11,805,950
NR San Clemente Asses Dist 98-1
Ser 99
6.05%, 9/02/28..................................... 1,250 1,128,338
AAA San Diego HFA MFHR (Rental Hsg Rev)
Ser 98C AMT
5.25%, 1/20/40..................................... 6,380 5,567,762
AAA San Francisco City & Cnty Int'l Arpt
AMBAC Ser 94 II-6 AMT
6.60%, 5/01/24..................................... 5,000 5,218,050
AAA San Francisco City & Cnty Int'l Arpt
FGIC Ser 94 II-5 AMT
6.50%, 5/01/24..................................... 11,000 11,424,600
AAA San Francisco City & Cnty Int'l Arpt
FGIC Ser 96-II AMT
6.25%, 5/01/26..................................... 7,000 7,143,360
AAA San Francisco City & Cnty Int'l Arpt
MBIA Ser 10A AMT
5.70%, 5/01/26..................................... 9,385 8,969,151
AAA San Francisco Cty & Cnty Int'l Arpt
MBIA Ser 93 AMT
6.20%, 5/01/20..................................... 5,580 5,661,077
A San Francisco Univ Ed Fac
(Student Hsg Rev)
ACA Ser 99
5.25%, 7/01/32..................................... 18,000 15,423,660
AAA San Jose Arpt Rev (San Jose Arpts)
FGIC Ser 93 AMT
5.70%, 3/01/18..................................... 8,825 8,650,177
NR Santa Margarita Wtr Fac Dist #99-1
(Talega)
Ser 99
6.20%, 9/01/20..................................... 5,330 5,052,787
6.25%, 9/01/29..................................... 27,545 25,748,156
AAA So Calif HFA SFMR
GNMA/FNMA Ser 91B AMT
6.90%, 10/01/24.................................... 1,290 1,320,057
</TABLE>
--------------------------------------------------------------------------------
38 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA So Calif HFA SFMR
GNMA/FNMA Ser 92A AMT
6.75%, 9/01/22..................................... $ 1,020 $ 1,038,391
AAA So Tahoe Joint Pwr Fin Auth
Ser 95A CAP MAC
5.75%, 10/01/25.................................... 3,000 2,964,300
AAA Stockton Asses Dist (West 8th St Proj)
Ser 99
6.30%, 9/02/21..................................... 4,200 4,028,598
A- Vacaville MFHR (Vacaville Comm Hsg)
Ser 94A
7.85%, 11/01/24.................................... 4,625 4,824,892
BBB+ Westminster Redev Agy MFHR
(Rose Garden Apt)
Ser 93A AMT
6.75%, 8/01/24..................................... 4,300 4,351,686
NR Winchester Hills Comm Fac Dist 98-1
(Winchester Hills)
Ser 98A
6.30%, 9/01/18..................................... 4,555 4,401,041
6.375%, 9/01/28.................................... 6,700 6,399,974
------------
929,512,189
------------
Indiana - 2.9%
BB+ Indianapolis Arpt Auth
(United Airlines Maint Ctr Proj)
Ser 95A AMT
6.50%, 11/15/31.................................... 32,170 30,523,540
------------
Puerto Rico - 2.2%
AAA Puerto Rico HFC SFMR (Home Mtg Rev)
GNMA Ser 98 AMT
5.20%, 12/01/32.................................... 20,040 17,402,135
BBB- Puerto Rico Port Auth
(American Airlines)
Series 96A AMT
6.25%, 6/01/26..................................... 5,475 5,323,835
------------
22,725,970
------------
Total Long Term Municipal Bonds
(cost $962,646,438)............................. 982,761,699
------------
Short Term Municipal Notes(c) - 1.3%
California - 1.3%
A-1+ Alameda Cnty IDR (Bat Pptys Llc)
Ser 98 AMT
5.20%, 3/01/28..................................... 3,000 3,000,000
A-1+ Alameda Cnty MFHR (Berkeleyan Project)
Ser 98A
3.40%, 4/01/28..................................... 4,500 4,500,000
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 39
<PAGE>
------------------------
CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
A-1+ California Pol Ctl PCR
(Pacific Gas & Electric)
Ser 97C
5.80%, 11/01/26.................................... $5,800 $ 5,800,000
--------------
Total Short Term Municipal Notes
(cost $13,300,000).............................. 13,300,000
--------------
Total Investments - 95.9%
(cost $975,946,438)............................. 996,061,699
Other assets less liabilities - 4.1%............... 42,355,402
--------------
Net Assets - 100%.................................. $1,038,417,101
==============
</TABLE>
See footnote summary on page 44.
See Glossary of Terms on page 44.
See notes to financial statements.
--------------------------------------------------------------------------------
40 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
----------------------------
INSURED CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
----------------------------
INSURED CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
California Municipal Bonds - 99.0%
Long Term Municipal Bonds - 90.3%
AAA California HFA MFHR (Home Mtg Rev)
AMBAC Ser 95A
6.25%, 2/01/37..................................... $ 5,000 $ 5,048,250
A California Infra & Eco Dev Bank
(American Ctr/Wine Food & Arts)
Ser 99 ACA
5.80%, 12/01/29.................................... 6,000 5,683,920
AAA Capistrano Sch Dist GO
FGIC Ser 2000A
6.00%, 8/01/24..................................... 1,550 1,571,344
AAA Castaic Lake Wtr Agy (Wtr Sys Imp Proj)
AMBAC Ser 99A
Zero coupon, 8/01/28............................... 10,445 1,892,738
AAA Coronado Comm Dev Proj
Tax Alloc FSA Ser 96
6.00%, 9/01/26..................................... 8,700 8,784,216
AAA Fontana Pub Fin Auth Tax Alloc
(No Fontana)
MBIA Ser 93A
5.625%, 9/01/24.................................... 8,805 8,571,051
AAA Glendale Hlth Fac (Glendale Mem Hosp)
CONNIE LEE Ser 95A
5.60%, 11/15/25.................................... 2,000 1,911,160
AAA La Mirada Tax Alloc (Commercial Redev)
FSA Ser 95B
5.90%, 8/15/24..................................... 5,000 5,020,000
AAA Los Angeles Cnty Metro Trans Auth
MBIA Ser 93A
5.625%, 7/01/18.................................... 3,000 2,977,830
NR Los Angeles Cnty Comm Fac Dist #3
(Valencia/Newhall Area)
Ser 95A
7.125%, 9/01/20.................................... 5,500 5,746,015
NR Los Angeles Cnty Comm Fac Dist #92-1
(Castaic Union SD Northlake Proj)
Ser 92
9.00%, 10/01/19.................................... 4,500 4,850,190
AAA Mojave Wtr Agy Imp Dist M
(Morongo Basin Pipeline)
FGIC Ser 96
5.80%, 9/01/22..................................... 10,000 9,986,600
AAA Orange Cnty (Foothill/Eastern Corr Agy)
MBIA Ser 99
5.00%, 1/15/16..................................... 15,000 14,096,700
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 41
<PAGE>
----------------------------
INSURED CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
----------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AAA Orange Cnty (Saddleback Valley USD)
FSA Ser 95A
5.65%, 9/01/17..................................... $ 2,000 $ 2,003,380
NR Orange Cnty Comm Fac Dist #92-1
(Las Flores/Capistrano USD)
Ser 97 Pre-refunded
7.10%, 9/01/21..................................... 3,200 3,539,392
AAA Orange Cnty COP
(Loma Ridge Data Ctr Proj)
AMBAC
6.00%, 6/01/21..................................... 1,000 1,002,960
AAA Orange Cnty Recovery Certificates
MBIA Ser 96A
6.00%, 7/01/26..................................... 3,000 3,028,590
AAA Palm Springs COP
(Escrowed in Ref Corp Strips)
Ser 91B
Zero coupon, 4/15/21............................... 29,000 6,987,260
AAA Rancho Wtr Dist Fin Auth
AMBAC Ser 91 Pre-refunded
8.824%, 8/17/21.................................... 3,000 3,251,670
AAA Redding COP (Elec Sys Rev)
MBIA Ser 92A
8.548%, 7/01/22.................................... 2,000 2,284,420
AAA Sacramento Muni Util Dist
FGIC Ser 92A
8.767%, 8/15/18(c)................................. 2,500 2,674,550
AAA Sacramento Muni Util Dist
MBIA Ser 93E
5.75%, 5/15/22..................................... 5,000 4,962,850
AAA San Bernardino Cnty Redev
(Ontario Proj #1)
ETM MBIA Ser 93
5.80%, 8/01/23..................................... 10,000 9,923,300
AAA San Bernardino Tax Alloc
(Joint Pwr Fin Auth)
FSA Ser 95A
5.75%, 10/01/25.................................... 5,000 4,940,500
AAA Shasta Lake COP (Elec Sys Rev)
FSA Ser 96-2
6.00%, 4/01/16..................................... 2,895 2,975,452
AAA So Tahoe (Joint Pwr Fin Auth)
CAP MAC Ser 95A
5.75%, 10/01/25.................................... 1,500 1,482,150
AAA Univ of California Regents Hosp Rev
(UCLA Med Ctr)
MBIA Ser 94
5.50%, 12/01/20.................................... 1,685 1,610,995
-----------
</TABLE>
--------------------------------------------------------------------------------
42 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
----------------------------
INSURED CALIFORNIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
----------------------------
<TABLE>
<CAPTION>
Standard & Principal
Poor's Amount
Ratings (000) Value
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Total Long Term Municipal Bonds
(cost $124,708,884)............................. $126,807,483
------------
Short Term Municipal Notes - 8.7%
NR Azusa MFHR (Pacific Glen Apts Proj)
Ser 94
5.10%, 7/15/15(c).................................. $7,000 7,000,000
A-1+ California Poll Ctl Fin Auth PCR
(Pacific G&E)
Ser 96F
5.75%, 11/01/26.................................... 5,300 5,300,000
-----------
Total Short Term Municipal Notes
(cost $12,300,000).............................. 12,300,000
-----------
Total Investments - 99.0%
(cost $137,008,884)............................. 139,107,483
Other assets less liabilities - 1.0%............... 1,344,644
-----------
Net Assets - 100%.................................. $140,452,127
============
</TABLE>
See footnote summary on page 44.
See Glossary of Terms on page 44.
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 43
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
(a) Moody's or Fitch Rating.
(b) Illiquid security, valued at fair value (see Note A).
(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.
(d) Inverse floater security - security with variable or floating interest
rate that moves in opposite direction of short-term interest rates.
Glossary of Terms:
ACA - American Capital Access Financial Guaranty Corporation
AMBAC - American Municipal Bond Assurance Corporation
AMT - Alternative Minimum Tax
CAP MAC - Capital Markets Assurance Corporation
CONNIE LEE - Connie Lee Insurance Company
COP - Certificate of Participation
CCRC - Congregate Care Retirement Center
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
HFC - Home Finance Corporation
IDA - Industrial Development Authority
IDB - Industrial Development Board
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
TSASC - Tobacco Settlement Asset Securitization Corporatization
See notes to financial statements.
--------------------------------------------------------------------------------
44 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
April 30, 2000 (unaudited)
Insured
National National
============= =============
Assets
Investments in securities, at value
(cost: $634,188,827 and $212,231,949,
respectively) ............................. $ 636,579,954 $ 212,526,041
Cash ......................................... 224,558 554,229
Receivable for investment securities sold .... 34,001,819 4,783,375
Interest receivable .......................... 11,192,236 3,447,197
Receivable for capital stock sold ............ 306,800 38,100
------------- -------------
Total assets ................................. 682,305,367 221,348,942
------------- -------------
Liabilities
Payable for investment securities
purchased ................................. 51,469,787 14,937,100
Dividends payable ............................ 946,558 260,631
Payable for capital stock redeemed ........... 384,449 24,919
Distribution fee payable ..................... 284,981 77,495
Advisory fee payable ......................... 104,479 85,813
Unclaimed dividends .......................... 78,007 0
Accrued expenses ............................. 245,806 151,301
------------- -------------
Total liabilities ............................ 53,514,067 15,537,259
------------- -------------
Net Assets ................................... $ 628,791,300 $ 205,811,683
============= =============
Composition of Net Assets
Capital stock, at par ........................ $ 63,912 $ 22,217
Additional paid-in capital ................... 678,411,220 218,978,625
Distributions in excess of net
investment income ......................... (1,235,994) (28,787)
Accumulated net realized loss on
investment transactions ................... (50,839,735) (13,454,464)
Net unrealized appreciation of investments ... 2,391,897 294,092
------------- -------------
$ 628,791,300 $ 205,811,683
============= =============
Class A Shares
Net assets ................................... $ 408,729,666 $ 161,227,753
============= =============
Shares of capital stock outstanding .......... 41,524,643 17,398,157
============= =============
Class B Shares
Net assets ................................... $ 124,230,762 $ 26,376,305
============= =============
Shares of capital stock outstanding .......... 12,638,002 2,851,503
============= =============
Class C Shares
Net assets ................................... $ 95,830,872 $ 18,207,625
============= =============
Shares of capital stock outstanding .......... 9,748,959 1,967,288
============= =============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price
per share ................................. $ 9.84 $ 9.27
Sales charge--4.25% of public
offering price ............................ .44 .41
------------- -------------
Maximum offering price ....................... $ 10.28 $ 9.68
============= =============
Class B Shares
Net asset value and offering price
per share ................................. $ 9.83 $ 9.25
============= =============
Class C Shares
Net asset value and offering price
per share ................................. $ 9.83 $ 9.26
============= =============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 45
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
New York California
=============== ===============
Assets
Investments in securities, at value
(cost: $366,330,837 and $975,946,438,
respectively) .......................... $ 374,955,366 $ 996,061,699
Cash ...................................... 14,691 143,311
Interest receivable ....................... 6,497,317 18,032,222
Receivable for capital stock sold ......... 372,513 1,562,734
Receivable for investment securities sold . -0- 44,821,800
--------------- ---------------
Total assets .............................. 381,839,887 1,060,621,766
=============== ===============
Liabilities
Payable for investment securities purchased 1,136,474 18,374,942
Dividends payable ......................... 551,875 1,458,746
Payable for capital stock redeemed ........ 405,262 887,307
Distribution fee payable .................. 177,383 463,545
Advisory fee payable ...................... 47,169 258,411
Unclaimed dividends ....................... -0- 90,989
Accrued expenses .......................... 441,068 670,725
--------------- ---------------
Total liabilities ......................... 2,759,231 22,204,665
--------------- ---------------
Net Assets ................................ $ 379,080,656 $ 1,038,417,101
=============== ===============
Composition of Net Assets
Capital stock, at par ..................... $ 40,232 $ 99,364
Additional paid-in capital ................ 389,649,846 1,056,238,297
Distributions in excess of net
investment income ...................... (602,177) (1,404,685)
Accumulated net realized loss on
investment transactions ................ (18,631,774) (36,631,136)
Net unrealized appreciation of investments 8,624,529 20,115,261
--------------- ---------------
$ 379,080,656 $ 1,038,417,101
=============== ===============
Class A Shares
Net assets ................................ $ 236,309,071 $ 685,343,047
=============== ===============
Shares of capital stock outstanding ....... 25,080,152 65,575,092
=============== ===============
Class B Shares
Net assets ................................ $ 100,914,367 $ 207,381,513
=============== ===============
Shares of capital stock outstanding ....... 10,711,170 19,846,741
=============== ===============
Class C Shares
Net assets ................................ $ 41,857,218 $ 145,692,541
=============== ===============
Shares of capital stock outstanding ....... 4,441,057 13,942,293
=============== ===============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price
per share .............................. $ 9.42 $ 10.45
Sales charge--4.25% of public
offering price ......................... .42 .46
--------------- ---------------
Maximum offering price .................... $ 9.84 $ 10.91
=============== ===============
Class B Shares
Net asset value and offering price
per share .............................. $ 9.42 $ 10.45
=============== ===============
Class C Shares
Net asset value and offering price
per share .............................. $ 9.43 $ 10.45
=============== ===============
See notes to financial statements.
--------------------------------------------------------------------------------
46 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
Insured
California
=============
Assets
Investments in securities, at value (cost: $137,008,884) ..... $ 139,107,483
Cash ......................................................... 297,684
Interest receivable .......................................... 1,567,094
Receivable for capital stock sold ............................ 7,009
-------------
Total assets ................................................. 140,979,270
-------------
Liabilities
Dividends payable ............................................ 187,379
Unclaimed dividends .......................................... 90,989
Advisory fee payable ......................................... 63,768
Payable for capital stock redeemed ........................... 55,427
Distribution fee payable ..................................... 54,655
Accrued expenses ............................................. 74,925
-------------
Total liabilities ............................................ 527,143
-------------
Net Assets ................................................... $ 140,452,127
=============
Composition of Net Assets
Capital stock, at par ........................................ $ 10,713
Additional paid-in capital ................................... 141,919,996
Undistributed net investment income .......................... 9,502
Accumulated net realized loss on investment transactions ..... (3,586,683)
Net unrealized appreciation of investments ................... 2,098,599
-------------
$ 140,452,127
=============
Class A Shares
Net assets ................................................... $ 106,256,119
=============
Shares of capital stock outstanding .......................... 8,105,575
=============
Class B Shares
Net assets ................................................... $ 19,718,083
=============
Shares of capital stock outstanding .......................... 1,503,420
=============
Class C Shares
Net assets ................................................... $ 14,477,925
=============
Shares of capital stock outstanding .......................... 1,103,664
=============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share ............... $ 13.11
Sales charge--4.25% of public offering price ................ .58
-------------
Maximum offering price ....................................... $ 13.69
=============
Class B Shares
Net asset value and offering price per share ................. $ 13.12
=============
Class C Shares
Net asset value and offering price per share ................. $ 13.12
=============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 47
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (unaudited)
Insured
National National
============ ============
Investment Income
Interest ................................... $ 20,231,079 $ 6,472,802
------------ ------------
Expenses
Advisory fee ............................... 2,031,112 656,596
Distribution fee - Class A ................. 611,417 245,530
Distribution fee - Class B ................. 699,746 149,176
Distribution fee - Class C ................. 511,975 96,945
Transfer agency ............................ 294,148 88,377
Custodian .................................. 97,115 53,655
Registration ............................... 82,677 20,776
Printing ................................... 76,494 18,489
Audit and legal ............................ 53,777 21,868
Administrative ............................. 46,000 46,000
Directors' fees ............................ 3,000 3,000
Miscellaneous .............................. 15,525 5,651
------------ ------------
Total expenses ............................. 4,522,986 1,406,063
------------ ------------
Less: advisory fee waived (see note B) ..... (1,381,156) (41,667)
------------ ------------
Net expenses ............................... 3,141,830 1,364,396
------------ ------------
Net investment income ...................... 17,089,249 5,108,406
------------ ------------
Realized and Unrealized Gain (Loss)
on Investments
Net realized loss on investment
transactions ............................ (19,548,798) (3,441,170)
Net change in unrealized appreciation/
depreciation of investments ............. 7,756,731 1,624,231
------------ ------------
Net loss on investments .................... (11,792,067) (1,816,939)
------------ ------------
Net Increase in Net Assets
from Operations ......................... $ 5,297,182 $ 3,291,467
============ ============
See notes to financial statements.
--------------------------------------------------------------------------------
48 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
New York California
============ ============
Investment Income
Interest ................................... $ 12,266,395 $ 32,167,561
------------ ------------
Expenses
Advisory fee ............................... 1,210,176 3,268,240
Distribution fee - Class A ................. 354,230 1,021,492
Distribution fee - Class B ................. 534,051 1,073,526
Distribution fee - Class C ................. 221,464 750,686
Transfer agency ............................ 147,968 256,448
Custodian .................................. 58,250 101,341
Administrative ............................. 46,000 46,000
Printing ................................... 37,135 62,024
Audit and legal ............................ 32,411 59,149
Registration ............................... 7,373 24,668
Directors' fees ............................ 3,000 3,000
Miscellaneous .............................. 1,715 10,962
------------ ------------
Total expenses ............................. 2,653,773 6,677,536
------------ ------------
Less: advisory fee waived (see note B) ..... (535,796) (1,133,509)
------------ ------------
Net expenses ............................... 2,117,977 5,544,027
------------ ------------
Net investment income ...................... 10,148,418 26,623,534
------------ ------------
Realized and Unrealized Gain (Loss)
on Investments
Net realized loss on investment
transactions ............................ (8,912,112) (9,838,169)
Net change in unrealized appreciation/
depreciation of investments ............. 7,391,734 (3,837,250)
------------ ------------
Net loss on investments .................... (1,520,378) (13,675,419)
------------ ------------
Net Increase in Net Assets
from Operations ......................... $ 8,628,040 $ 12,948,115
============ ============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 49
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
Insured
California
===========
Investment Income
Interest ..................................................... $ 4,386,123
-----------
Expenses
Advisory fee ................................................. 398,662
Distribution fee - Class A ................................... 162,601
Distribution fee - Class B ................................... 105,719
Distribution fee - Class C ................................... 77,118
Custodian .................................................... 48,551
Administrative ............................................... 46,000
Transfer agency .............................................. 36,404
Audit and legal .............................................. 22,346
Printing ..................................................... 11,430
Registration ................................................. 3,173
Directors' fees .............................................. 3,000
Miscellaneous ................................................ 4,905
-----------
Total expenses ............................................... 919,909
-----------
Net investment income ........................................ 3,466,214
-----------
Realized and Unrealized Gain (Loss) on Investments
Net realized gain on investment transactions ................. 559,273
Net change in unrealized appreciation/depreciation
of investments ............................................ (738,137)
-----------
Net loss on investments ...................................... (178,864)
-----------
Net Increase in Net Assets from Operations ................... $ 3,287,350
===========
See notes to financial statements.
--------------------------------------------------------------------------------
50 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
STATEMENT OF CHANGES
IN NET ASSETS
National
===============================
Six Months
Ended Year Ended
April 30, 2000 October 31,
(unaudited) 1999
============== =============
Increase (Decrease) in Net Assets
from Operations
Net investment income ........................ $ 17,089,249 $ 31,639,813
Net realized loss on investment
transactions .............................. (19,548,798) (31,290,937)
Net change in unrealized appreciation/
depreciation of investments ............... 7,756,731 (31,236,200)
------------- -------------
Net increase (decrease) in net assets from
operations ................................ 5,297,182 (30,887,324)
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ................................... (11,269,183) (18,867,293)
Class B ................................... (3,352,350) (7,943,915)
Class C ................................... (2,467,716) (4,828,605)
Distributions in excess of net
investment income
Class A ................................... (112,135) (1,721,256)
Class B ................................... (48,674) (724,721)
Class C ................................... (42,000) (440,512)
Net realized gain on investments
Class A ................................... -0- (3,219,099)
Class B ................................... -0- (1,765,332)
Class C ................................... -0- (974,028)
Capital Stock Transactions
Net increase (decrease) ...................... (30,965,671) 72,852,855
------------- -------------
Total increase (decrease) .................... (42,960,547) 1,480,770
Net Assets
Beginning of year ............................ 671,751,847 670,271,077
------------- -------------
End of period ................................ $ 628,791,300 $ 671,751,847
============= =============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 51
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
Insured National
===============================
Six Months
Ended Year Ended
April 30, 2000 October 31,
(unaudited) 1999
============== =============
Increase (Decrease) in Net Assets
from Operations
Net investment income ........................ $ 5,108,406 $ 9,825,923
Net realized loss on investment
transactions .............................. (3,441,170) (10,013,294)
Net change in unrealized appreciation/
depreciation of investments ............... 1,624,231 (12,859,783)
------------- -------------
Net increase (decrease) in net assets from
operations ................................ 3,291,467 (13,047,154)
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ................................... (3,859,137) (7,389,653)
Class B ................................... (594,970) (1,629,052)
Class C ................................... (389,339) (807,218)
Distributions in excess of net
investment income
Class A ................................... -0- (328,139)
Class B ................................... -0- (72,338)
Class C ................................... -0- (35,845)
Net realized gain on investments
Class A ................................... -0- (3,797,073)
Class B ................................... -0- (1,065,551)
Class C ................................... -0- (476,055)
Capital Stock Transactions
Net decrease ................................. (13,471,576) (261,978)
------------- -------------
Total decrease ............................... (15,023,555) (28,910,056)
Net Assets
Beginning of year ............................ 220,835,238 249,745,294
------------- -------------
End of period ................................ $ 205,811,683 $ 220,835,238
============= =============
See notes to financial statements.
--------------------------------------------------------------------------------
52 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
New York
===============================
Six Months
Ended Year Ended
April 30, 2000 October 31,
(unaudited) 1999
============== =============
Increase (Decrease) in Net Assets
from Operations
Net investment income ........................ $ 10,148,418 $ 18,706,703
Net realized loss on investment
transactions .............................. (8,912,112) (8,256,144)
Net change in unrealized appreciation/
depreciation of investments ............... 7,391,734 (25,161,193)
------------- -------------
Net increase (decrease) in net assets from
operations ................................ 8,628,040 (14,710,634)
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ................................... (6,542,763) (11,259,004)
Class B ................................... (2,545,401) (5,262,517)
Class C ................................... (1,057,591) (2,185,182)
Distributions in excess of net
investment income
Class A ................................... -0- (141,491)
Class B ................................... -0- (66,134)
Class C ................................... -0- (27,461)
Capital Stock Transactions
Net increase (decrease) ...................... (13,725,026) 61,469,975
------------- -------------
Total increase (decrease) .................... (15,242,741) 27,817,552
Net Assets
Beginning of year ............................ 394,323,397 366,505,845
------------- -------------
End of period ................................ $ 379,080,656 $ 394,323,397
============= =============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 53
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
California
===============================
Six Months
Ended Year Ended
April 30, 2000 October 31,
(unaudited) 1999
============== =============
Increase (Decrease) in Net Assets
from Operations
Net investment income .................... $ 26,623,534 $ 46,553,020
Net realized loss on investment
transactions .......................... (9,838,169) (20,431,904)
Net change in unrealized appreciation/
depreciation of investments ........... (3,837,250) (49,987,983)
--------------- ---------------
Net increase (decrease) in net assets from
operations ............................ 12,948,115 (23,866,867)
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ............................... (18,105,177) (30,803,448)
Class B ............................... (4,906,561) (9,555,417)
Class C ............................... (3,438,693) (6,194,155)
Distributions in excess of net
investment income
Class A ............................... -0- (1,624,504)
Class B ............................... -0- (503,931)
Class C ............................... -0- (326,665)
Capital Stock Transactions
Net increase (decrease) .................. (16,627,163) 258,928,720
--------------- ---------------
Total increase (decrease) ................ (30,129,479) 186,053,733
Net Assets
Beginning of year ........................ 1,068,546,580 882,492,847
--------------- ---------------
End of period ............................ $ 1,038,417,101 $ 1,068,546,580
=============== ===============
See notes to financial statements.
--------------------------------------------------------------------------------
54 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
Insured California
===============================
Six Months
Ended Year Ended
April 30, 2000 October 31,
(unaudited) 1999
============== =============
Increase (Decrease) in Net Assets
from Operations
Net investment income ........................ $ 3,466,214 $ 6,985,691
Net realized gain (loss) on investment
transactions .............................. 559,273 (3,924,423)
Net change in unrealized appreciation/
depreciation of investments ............... (738,137) (9,384,578)
------------- -------------
Net increase (decrease) in net assets from
operations ................................ 3,287,350 (6,323,310)
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ................................... (2,642,193) (5,199,011)
Class B ................................... (431,518) (1,008,516)
Class C ................................... (315,336) (644,427)
Capital Stock Transactions
Net increase (decrease) ...................... (9,000,316) 3,657,065
------------- -------------
Total decrease ............................... (9,102,013) (9,518,199)
Net Assets
Beginning of year ............................ 149,554,140 159,072,339
------------- -------------
End of period (including undistributed net
investment income of $9,502
at April 30, 2000) ........................ $ 140,452,127 $ 149,554,140
============= =============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 55
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTES TO FINANCIAL STATEMENTS
April 20, 2000 (unaudited)
NOTE A
Significant Accounting Policies
Alliance Municipal Income Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as an 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.
--------------------------------------------------------------------------------
56 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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.
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, 2000, the Adviser has agreed to waive
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 57
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
part of its advisory fee for the National, Insured National, New York, and
California Portfolios. The aggregate amounts of such fee waivers were:
$1,381,156, $41,667, $535,796 and $1,133,509, respectively. Pursuant to the
advisory agreement, the Fund paid $230,000 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, $202,743; Insured National
Portfolio, $54,514; New York Portfolio, $108,226; California Portfolio, $189,390
and Insured California Portfolio, $25,809 for the six months ended April 30,
2000.
In addition, for the six months ended April 30, 2000, the Fund's expenses were
reduced by: National Portfolio $12,243; Insured National Portfolio $3,403; New
York Portfolio $6,523; California Portfolio $11,400 and Insured California
Portfolio, $1,525 under an expense offset arrangement with Alliance Fund
Services, Inc.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of the Fund's shares. The Distributor
has advised the Fund that it has received front-end sales charges from sales of
Class A shares and contingent deferred sales charges imposed upon redemptions by
shareholders of Class A, Class B and Class C shares for the six months ended
April 30, 2000 as follows:
<TABLE>
<CAPTION>
Front End Contingent Deferred Sales Charges
Sales Charges -----------------------------------------------
Portfolio Class A Class A Class B Class C
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
National $21,775 $14,334 $170,440 $25,246
Insured National 8,827 36 27,144 4,805
New York 4,080 34,047 125,667 35,460
California 1,389 22,917 282,562 57,885
Insured California 7,725 16,800 18,312 13,154
</TABLE>
--------------------------------------------------------------------------------
58 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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 distribution and servicing fees 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 Agreement provides that the
Distributor will use such payments in their entirety for distribution assistance
and promotional activities. The Distributor has advised the Fund that it has
incurred expenses in excess of the distribution costs reimbursed by each
Portfolio as follows:
Portfolio Class B Class C
========== ==========
National ............................. $4,290,364 $3,644,372
Insured National ..................... 2,560,598 1,230,322
New York ............................. 4,722,679 1,826,227
California ........................... 7,813,645 3,588,315
Insured California ................... 2,001,519 938,493
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, 2000 were as
follows:
Portfolio Purchases Sales
============== ==============
National ......................... $1,800,997,309 $1,793,302,459
Insured National ................. 371,230,646 355,012,014
New York ......................... 512,515,665 525,488,733
California ....................... 773,856,352 766,036,938
Insured California ............... 96,743,046 117,208,407
There were no purchases or sales of U.S. government and government agency
obligations for the six months ended April 30, 2000.
At April 30, 2000, the cost of investments for federal income tax purposes,
gross unrealized appreciation, gross unrealized depreciation and net unrealized
appreciation/depreciation
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 59
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
of investments for each Portfolio were as follows:
Gross Unrealized Net
=========================== Unrealized
Tax Cost Appreciation (Depreciation) Appreciation
============ ============ ============== ============
National ........... $634,188,827 $ 5,993,146 $ (3,602,019) $ 2,391,127
Insured National ... 212,231,949 1,471,349 (1,177,257) 294,092
New York ........... 366,330,837 9,214,211 (589,682) 8,624,529
California ......... 975,946,438 26,100,585 (5,985,324) 20,115,261
Insured California . 137,008,884 2,438,739 (340,140) 2,098,599
NOTE E
Taxes
For Federal income tax purposes at October 31, 1999, the Fund had capital loss
carryforwards for the following Portfolios: $27,730,378 expiring in 2007 for the
National Portfolio; $8,885,723 expiring in 2007 for the Insured National
Portfolio; $1,444,926 expiring in 2003 and $7,273,675 expiring in 2007 for the
New York Portfolio; $4,309,001 expiring in 2003, $2,052,062 expiring in 2004 and
$14,469,769 expiring in 2007 for the California Portfolio; $221,533 expiring in
2002 and $3,020,363 expiring in 2007 for the Insured California Portfolio.
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:
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
National Portfolio (unaudited) 1999 (unaudited) 1999
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 5,705,505 8,506,866 $ 56,230,745 $ 91,581,471
----------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 665,287 1,335,920 6,559,142 14,384,705
----------------------------------------------------------------------------------------
Shares converted
from Class B 2,362,745 5,270,047 23,219,109 56,148,358
----------------------------------------------------------------------------------------
Shares redeemed (7,437,999) (7,742,184) (72,982,709) (82,450,186)
----------------------------------------------------------------------------------------
Net increase 1,295,538 7,370,649 $ 13,026,287 $ 79,664,348
========================================================================================
</TABLE>
--------------------------------------------------------------------------------
60 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
National Portfolio (unaudited) 1999 (unaudited) 1999
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B
Shares sold 1,700,356 5,776,146 $ 16,825,285 $ 62,149,399
----------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 194,948 652,921 1,920,845 7,053,644
----------------------------------------------------------------------------------------
Shares converted
to Class A (2,366,391) (5,270,047) (23,219,109) (56,148,358)
----------------------------------------------------------------------------------------
Shares redeemed (2,598,058) (3,274,019) (25,555,280) (35,084,961)
----------------------------------------------------------------------------------------
Net decrease (3,069,145) (2,114,999) $(30,028,259) $(22,030,276)
========================================================================================
Class C
Shares sold 1,375,612 3,122,435 $ 13,600,927 $ 33,601,967
----------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 150,153 492,277 1,479,144 5,318,617
----------------------------------------------------------------------------------------
Shares redeemed (2,948,560) (2,217,831) (29,043,770) (23,701,801)
----------------------------------------------------------------------------------------
Net increase
(decrease) (1,422,795) 1,396,881 $(13,963,699) $ 15,218,783
========================================================================================
</TABLE>
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
Insured National Portfolio (unaudited) 1999 (unaudited) 1999
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 548,786 1,460,910 $ 5,080,160 $ 14,626,498
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 233,508 735,233 2,165,074 7,458,642
------------------------------------------------------------------------------------------------
Shares converted
from Class B 592,088 1,461,900 5,465,521 14,407,154
------------------------------------------------------------------------------------------------
Shares redeemed (2,041,554) (2,601,120) (18,904,779) (26,087,146)
------------------------------------------------------------------------------------------------
Net increase
(decrease) (667,172) 1,056,923 $ (6,194,024) $ 10,405,148
================================================================================================
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 61
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
Insured National Portfolio (unaudited) 1999 (unaudited) 1999
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B
Shares sold 520,777 1,130,671 $ 4,816,042 $ 11,487,371
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 29,857 203,847 276,465 2,072,901
------------------------------------------------------------------------------------------------
Shares converted
to Class A (592,996) (1,461,900) (5,465,521) (14,407,154)
------------------------------------------------------------------------------------------------
Shares redeemed (604,514) (1,010,373) (5,581,187) (10,137,552)
------------------------------------------------------------------------------------------------
Net decrease (646,876) (1,137,755) $ (5,954,201) $(10,984,434)
================================================================================================
Class C
Shares sold 328,271 532,822 $ 3,055,068 $ 5,412,387
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 11,889 118,257 110,031 1,203,366
------------------------------------------------------------------------------------------------
Shares redeemed (484,705) (630,452) (4,488,450) (6,298,445)
------------------------------------------------------------------------------------------------
Net increase
(decrease) (144,545) 20,627 $ (1,323,351) $ 317,308
================================================================================================
</TABLE>
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
New York Portfolio (unaudited) 1999 (unaudited) 1999
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 3,089,671 6,028,955 $ 29,081,616 $ 59,952,589
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 357,808 692,717 3,363,801 6,951,513
------------------------------------------------------------------------------------------------
Shares converted
from Class B 1,060,117 2,262,106 9,966,119 22,454,536
------------------------------------------------------------------------------------------------
Shares redeemed (4,267,256) (4,256,586) (40,054,243) (42,415,433)
------------------------------------------------------------------------------------------------
Net increase 240,340 4,727,192 $ 2,357,293 $ 46,943,205
================================================================================================
</TABLE>
--------------------------------------------------------------------------------
62 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
New York Portfolio (unaudited) 1999 (unaudited) 1999
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B
Shares sold 1,625,418 4,452,853 $ 15,324,238 $ 44,805,273
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 153,483 369,247 1,442,486 3,709,916
------------------------------------------------------------------------------------------------
Shares converted
to Class A (1,060,534) (2,262,106) (9,966,119) (22,454,536)
------------------------------------------------------------------------------------------------
Shares redeemed (1,781,735) (1,932,939) (16,733,404) (19,340,640)
------------------------------------------------------------------------------------------------
Net increase
(decrease) (1,063,368) 627,055 $ (9,932,799) $ 6,720,013
================================================================================================
Class C
Shares sold 518,990 1,772,374 $ 4,897,033 $ 18,029,331
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 44,094 179,795 414,812 1,811,071
------------------------------------------------------------------------------------------------
Shares redeemed (1,220,513) (1,199,740) (11,461,365) (12,033,645)
------------------------------------------------------------------------------------------------
Net increase
(decrease) (657,429) 752,429 $ (6,149,520) $ 7,806,757
================================================================================================
</TABLE>
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
California Portfolio (unaudited) 1999 (unaudited) 1999
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 7,972,946 19,207,355 $ 83,338,443 $ 214,251,881
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 737,958 1,409,134 7,716,564 15,636,654
------------------------------------------------------------------------------------------------
Shares converted
from Class B 1,904,970 4,408,895 19,864,280 48,518,625
------------------------------------------------------------------------------------------------
Shares redeemed (9,700,930) (8,938,147) (101,402,163) (98,544,498)
------------------------------------------------------------------------------------------------
Net increase 914,944 16,087,237 $ 9,517,124 $ 179,862,662
================================================================================================
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 63
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
California Portfolio (unaudited) 1999 (unaudited) 1999
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B
Shares sold 3,222,236 9,703,601 $ 33,755,481 $ 107,880,190
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 201,442 540,254 2,105,264 6,008,232
------------------------------------------------------------------------------------------------
Shares converted
to Class A (1,905,293) (4,408,895) (19,864,280) (48,518,625)
------------------------------------------------------------------------------------------------
Shares redeemed (2,928,504) (2,905,493) (30,605,328) (32,206,885)
------------------------------------------------------------------------------------------------
Net increase
(decrease) (1,410,119) 2,929,467 $ (14,608,863) $ 33,162,912
================================================================================================
Class C
Shares sold 1,500,347 6,358,649 $ 15,689,409 $ 70,880,631
------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 121,054 479,445 1,265,469 5,335,024
------------------------------------------------------------------------------------------------
Shares redeemed (2,726,255) (2,740,920) (28,490,302) (30,312,509)
------------------------------------------------------------------------------------------------
Net increase
(decrease) (1,104,854) 4,097,174 $ (11,535,424) $ 45,903,146
================================================================================================
</TABLE>
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
Insured California Portfolio (unaudited) 1999 (unaudited) 1999
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 577,164 1,336,511 $ 7,580,046 $ 18,648,962
--------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 95,264 175,146 1,242,886 2,430,609
--------------------------------------------------------------------------------------------------------
Shares converted
from Class B 166,711 395,355 2,166,950 5,457,034
--------------------------------------------------------------------------------------------------------
Shares redeemed (1,244,314) (1,334,892) (16,183,494) (18,418,230)
--------------------------------------------------------------------------------------------------------
Net increase
(decrease) (405,175) 572,120 $ (5,193,612) $ 8,118,375
========================================================================================================
</TABLE>
--------------------------------------------------------------------------------
64 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
Shares Amount
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
Insured California Portfolio (unaudited) 1999 (unaudited) 1999
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B
Shares sold 246,305 395,432 $ 3,213,252 $ 5,504,873
--------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 16,448 53,821 214,632 752,744
--------------------------------------------------------------------------------------------------------
Shares converted
to Class A (166,677) (395,355) (2,166,950) (5,457,034)
--------------------------------------------------------------------------------------------------------
Shares redeemed (242,741) (506,189) (3,161,971) (7,072,654)
--------------------------------------------------------------------------------------------------------
Net decrease (146,665) (452,291) $(1,901,037) $(6,272,071)
========================================================================================================
Class C
Shares sold 84,625 369,407 $ 1,106,454 $ 5,117,248
--------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends 15,695 39,344 $ 204,893 547,906
--------------------------------------------------------------------------------------------------------
Shares redeemed (246,987) (282,163) (3,217,014) (3,854,393)
--------------------------------------------------------------------------------------------------------
Net increase
(decrease) (146,667) 126,588 $(1,905,667) $ 1,810,761
========================================================================================================
</TABLE>
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")
intended 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
miscellaneous expenses in the statement of operations. The Fund did not utilize
the Facility during the six months ended April 30, 2000.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 65
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
FINANCIAL HIGHLIGHTS
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,
2000 --------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $10.02 $11.09 $10.94 $10.51 $10.45 $9.41
-----------------------------------------------------------------------------------------------
Income from Investment
Operations
Net investment income(a) ....... .27(b) .52(b) .55(b) .57(b) .58 .58
Net realized and unrealized
gain (loss) on investment
transactions ................ (.18) (.93) .18 .44 .06 1.04
-----------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .09 (.41) .73 1.01 .64 1.62
-----------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.27) (.52) (.55) (.58) (.58) (.58)
Distributions in excess of net
investment income ........... -0- (.04) (.03) -0- -0- -0-
Distributions from net
realized gains .............. -0- (.10) -0- -0- -0- -0-
-----------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.27) (.66) (.58) (.58) (.58) (.58)
-----------------------------------------------------------------------------------------------
Net asset value, end of period . $9.84 $10.02 $11.09 $10.94 $10.51 $10.45
===============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... .97% (3.93)% 6.82% 9.88% 6.32% 17.73%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $408,730 $402,922 $364,429 $329,540 $325,288 $338,311
Ratios to average net assets of:
Expenses, net of fee waivers .70%(d) .66% .66% .69% .69% .71%
Expenses, before fee waivers 1.12%(d) 1.12% 1.08% 1.11% 1.10% 1.09%
Net investment income,
net of fee waivers ........ 5.53%(d) 4.86% 4.98% 5.40% 5.55% 5.84%
Portfolio turnover rate ........ 280% 393% 56% 72% 137% 118%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
66 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 ------------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $10.00 $11.08 $10.94 $10.51 $10.45 $9.41
------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .24(b) .44(b) .46(b) .50(b) .51 .51
Net realized and unrealized
gain (loss) on investment
transactions ................ (.17) (.93) .19 .44 .06 1.04
------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .07 (.49) .65 .94 .57 1.55
------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.24) (.44) (.46) (.50) (.51) (.51)
Distributions in excess of net
investment income ........... -0- (.05) (.05) (.01) -0- -0-
Distributions from net
realized gains .............. -0- (.10) -0- -0- -0- -0-
------------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.24) (.59) (.51) (.51) (.51) (.51)
------------------------------------------------------------------------------------------------
Net asset value, end of period . $9.83 $10.00 $11.08 $10.94 $10.51 $10.45
================================================================================================
Total Return
Total investment return based
on net asset value(c) ....... .72% (4.65)% 6.05% 9.16% 5.61% 16.91%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $124,231 $157,090 $197,517 $190,530 $214,994 $252,357
Ratios to average net assets of:
Expenses, net of fee waivers 1.42%(d) 1.37% 1.37% 1.40% 1.40% 1.42%
Expenses, before fee waivers 1.84%(d) 1.74% 1.79% 1.79% 1.81% 1.80%
Net investment income,
net of fee waivers ........ 4.79%(d) 4.12% 4.28% 4.69% 4.85% 5.13%
Portfolio turnover rate ........ 280% 393% 56% 72% 137% 118%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 67
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 -------------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $10.00 $11.08 $10.94 $10.51 $10.45 $9.41
------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .24(b) .45(b) .47(b) .50(b) .51 .51
Net realized and unrealized
gain (loss) on investment
transactions ................ (.17) (.94) .18 .44 .06 1.04
------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .07 (.49) .65 .94 .57 1.55
------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.24) (.45) (.47) (.50) (.51) (.51)
Distributions in excess of net
investment income ........... -0- (.04) (.04) (.01) -0- -0-
Distributions from net
realized gains .............. -0- (.10) -0- -0- -0- -0-
------------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.24) (.59) (.51) (.51) (.51) (.51)
------------------------------------------------------------------------------------------------
Net asset value, end of period . $9.83 $10.00 $11.08 $10.94 $10.51 $10.45
================================================================================================
Total Return
Total investment return based
on net asset value(c) ....... .72% (4.65)% 6.06% 9.18% 5.62% 16.93%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $95,831 $111,740 $108,325 $89,792 $96,134 $108,068
Ratios to average net assets of:
Expenses, net of fee waivers 1.41%(d) 1.36% 1.36% 1.39% 1.39% 1.41%
Expenses, before fee waivers 1.83%(d) 1.79% 1.82% 1.81% 1.80% 1.78%
Net investment income,
net of fee waivers ........ 4.82%(d) 4.15% 4.28% 4.70% 4.85% 5.16%
Portfolio turnover rate ........ 280% 393% 56% 72% 137% 118%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
68 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 -------------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $9.33 $10.52 $10.49 $10.28 $10.07 $8.96
------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .23(b) .43(b) .44(b) .50(b) .51 .51
Net realized and unrealized
gain (loss) on investment
transactions ................ (.07) (.95) .28 .37 .22 1.13
------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .16 (.52) .72 .87 .73 1.64
------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.22) (.43) (.44) (.50) (.52) (.51)
Distributions in excess of net
investment income ........... -0- (.02) (.05) (.02) -0- (.02)
Distributions from net
realized gains .............. -0- (.22) (.20) (.14) -0- -0-
------------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.22) (.67) (.69) (.66) (.52) (.53)
------------------------------------------------------------------------------------------------
Net asset value, end of period . $9.27 $9.33 $10.52 $10.49 $10.28 $10.07
================================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 1.71% (5.28)% 7.15% 8.77% 7.43% 18.72%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $161,228 $168,572 $179,003 $170,631 $160,425 $165,548
Ratios to average net assets of:
Expenses, net of fee waivers 1.12%(d) .99% 1.00% 1.02% 1.02% 1.01%
Expenses, before fee waivers 1.16%(d) 1.10% 1.12% 1.15% 1.12% 1.12%
Net investment income,
net of fee waivers ........ 4.96%(d) 4.25% 4.21% 4.85% 5.04% 5.37%
Portfolio turnover rate ........ 175% 322% 27% 98% 157% 171%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 69
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 -----------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $9.31 $10.52 $10.49 $10.28 $10.07 $8.96
------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .19(b) .36(b) .37(b) .42(b) .44 .45
Net realized and unrealized
gain (loss) on investment
transactions ................ (.06) (.97) .28 .38 .22 1.12
------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .13 (.61) .65 .80 .66 1.57
------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.19) (.36) (.37) (.42) (.45) (.45)
Distributions in excess of net
investment income ........... -0- (.02) (.05) (.03) -0- (.01)
Distributions from net
realized gains .............. -0- (.22) (.20) (.14) -0- -0-
------------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.19) (.60) (.62) (.59) (.45) (.46)
------------------------------------------------------------------------------------------------
Net asset value, end of period . $9.25 $9.31 $10.52 $10.49 $10.28 $10.07
================================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 1.35% (6.10)% 6.48% 8.07% 6.74% 17.91%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $26,376 $32,585 $48,751 $45,542 $52,156 $58,990
Ratios to average net assets of:
Expenses, net of fee waivers 1.83%(d) 1.70% 1.71% 1.75% 1.73% 1.72%
Expenses, before fee waivers 1.87%(d) 1.79% 1.87% 1.86% 1.83% 1.83%
Net investment income,
net of fee waivers ........ 4.23%(d) 3.52% 3.49% 4.12% 4.32% 4.65%
Portfolio turnover rate ........ 175% 322% 27% 98% 157% 171%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
70 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 ------------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $9.32 $10.52 $10.49 $10.28 $10.07 $8.96
------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .20(b) .36(b) .37(b) .42(b) .44 .45
Net realized and unrealized
gain (loss) on investment
transactions ................ (.07) (.96) .28 .38 .22 1.12
------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .13 (.60) .65 .80 .66 1.57
------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.19) (.36) (.37) (.42) (.45) (.45)
Distributions in excess of net
investment income ........... -0- (.02) (.05) (.03) -0- (.01)
Distributions from net
realized gains .............. -0- (.22) (.20) (.14) -0- -0-
------------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.19) (.60) (.62) (.59) (.45) (.46)
------------------------------------------------------------------------------------------------
Net asset value, end of period . $9.26 $9.32 $10.52 $10.49 $10.28 $10.07
================================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 1.35% (6.00)% 6.48% 8.07% 6.74% 17.91%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $18,208 $19,679 $21,992 $19,057 $22,763 $22,265
Ratios to average net assets of:
Expenses, net of fee waivers 1.82%(d) 1.70% 1.70% 1.72% 1.72% 1.71%
Expenses, before fee waivers 1.86%(d) 1.80% 1.83% 1.84% 1.82% 1.82%
Net investment income,
net of fee waivers ........ 4.27%(d) 3.55% 3.51% 4.15% 4.34% 4.69%
Portfolio turnover rate ........ 175% 322% 27% 98% 157% 171%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 71
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 --------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $9.45 $10.29 $10.10 $9.66 $9.62 $8.72
--------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .26(b) .51(b) .51(b) .53(b) .55 .55
Net realized and unrealized
gain (loss) on investment
transactions ................ (.03) (.83) .21 .46 .04 .90
--------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .23 (.32) .72 .99 .59 1.45
--------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.26) (.51) (.51) (.54) (.55) (.55)
Distributions in excess of net
investment income ........... -0- (.01) (.02) (.01) -0- -0-
--------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.26) (.52) (.53) (.55) (.55) (.55)
--------------------------------------------------------------------------------------------
Net asset value, end of period . $9.42 $9.45 $10.29 $10.10 $9.66 $9.62
============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 2.47% (3.27)% 7.31% 10.52% 6.30% 17.10%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $236,309 $234,835 $207,031 $181,745 $179,452 $183,987
Ratios to average net assets of:
Expenses, net of fee waivers .82%(d) .61% .61% .65% .64% .75%
Expenses, before fee waivers 1.10%(d) 1.11% 1.08% 1.12% 1.11% 1.12%
Net investment income,
net of fee waivers ........ 5.52%(d) 5.12% 5.04% 5.45% 5.66% 5.93%
Portfolio turnover rate ........ 135% 134% 18% 34% 64% 69%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
72 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 ---------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $9.45 $10.29 $10.10 $9.66 $9.62 $8.72
--------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .22(b) .44(b) .44(b) .46(b) .48 .48
Net realized and unrealized
gain (loss) on investment
transactions ................ (.03) (.83) .21 .46 .04 .90
--------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .19 (.39) .65 .92 .52 1.38
--------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.22) (.44) (.44) (.47) (.48) (.48)
Distributions in excess of net
investment income ........... -0- (.01) (.02) (.01) -0- -0-
--------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.22) (.45) (.46) (.48) (.48) (.48)
--------------------------------------------------------------------------------------------
Net asset value, end of period . $9.42 $9.45 $10.29 $10.10 $9.66 $9.62
============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 2.08% (3.96)% 6.57% 9.72% 5.52% 16.19%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $100,914 $111,283 $114,739 $96,119 $96,959 $94,400
Ratios to average net assets of:
Expenses, net of fee waivers 1.53%(d) 1.32% 1.32% 1.35% 1.35% 1.45%
Expenses, before fee waivers 1.78%(d) 1.76% 1.80% 1.84% 1.82% 1.83%
Net investment income,
net of fee waivers ........ 4.80%(d) 4.38% 4.34% 4.75% 4.95% 5.21%
Portfolio turnover rate ........ 135% 134% 18% 34% 64% 69%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 73
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 --------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $9.45 $10.29 $10.10 $9.66 $9.62 $8.72
-----------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .23(b) .44(b) .44(b) .46(b) .48 .48
Net realized and unrealized
gain (loss) on investment
transactions ................ (.03) (.83) .21 .46 .04 .90
-----------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .20 (.39) .65 .92 .52 1.38
-----------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.22) (.44) (.44) (.47) (.48) (.48)
Distributions in excess of net
investment income ........... -0- (.01) (.02) (.01) -0- -0-
-----------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.22) (.45) (.46) (.48) (.48) (.48)
-----------------------------------------------------------------------------------------------
Net asset value, end of period . $9.43 $9.45 $10.29 $10.10 $9.66 $9.62
===============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 2.19% (3.96)% 6.57% 9.72% 5.52% 16.19%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $41,857 $48,205 $44,736 $38,890 $34,562 $32,259
Ratios to average net assets of:
Expenses, net of fee waivers 1.52%(d) 1.31% 1.31% 1.35% 1.34% 1.44%
Expenses, before fee waivers 1.77%(d) 1.77% 1.82% 1.82% 1.81% 1.82%
Net investment income,
net of fee waivers ........ 4.81%(d) 4.41% 4.33% 4.75% 4.95% 5.24%
Portfolio turnover rate ........ 135% 134% 18% 34% 64% 69%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
74 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 ----------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $10.58 $11.34 $11.04 $10.59 $10.45 $9.43
---------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .28(b) .54(b) .56(b) .58(b) .58 .59
Net realized and unrealized
gain (loss) on investment
transactions ................ (.13) (.73) .32 .45 .14 1.02
---------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .15 (.19) .88 1.03 .72 1.61
---------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.28) (.54) (.56) (.58) (.58) (.59)
Distributions in excess of net
investment income ........... -0- (.03) (.02) -0- -0- -0-
---------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.28) (.57) (.58) (.58) (.58) (.59)
---------------------------------------------------------------------------------------------
Net asset value, end of period . $10.45 $10.58 $11.34 $11.04 $10.59 $10.45
=============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 1.42% (1.80)% 8.20% 10.07% 7.15% 17.55%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $685,343 $684,403 $550,626 $470,444 $460,444 $478,535
Ratios to average net assets of:
Expenses, net of fee waivers .81%(d) .71% .72% .78% .77% .74%
Expenses, before fee waivers 1.04%(d) 1.04% 1.04% 1.05% 1.05% 1.04%
Net investment income,
net of fee waivers ........ 5.33%(d) 4.88% 4.99% 5.43% 5.57% 5.90%
Portfolio turnover rate ........ 75% 88% 22% 20% 49% 39%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 75
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 --------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $10.58 $11.34 $11.04 $10.59 $10.45 $9.43
--------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .24(b) .46(b) .48(b) .51(b) .51 .51
Net realized and unrealized
gain (loss) on investment
transactions ................ (.13) (.73) .33 .45 .14 1.02
--------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .11 (.27) .81 .96 .65 1.53
--------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.24) (.46) (.48) (.51) (.51) (.51)
Distributions in excess of net
investment income ........... -0- (.03) (.03) -0- -0- -0-
--------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.24) (.49) (.51) (.51) (.51) (.51)
--------------------------------------------------------------------------------------------
Net asset value, end of period . $10.45 $10.58 $11.34 $11.04 $10.59 $10.45
============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 1.05% (2.47)% 7.46% 9.29% 6.37% 16.64%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $207,382 $224,924 $207,751 $166,672 $164,895 $166,759
Ratios to average net assets of:
Expenses, net of fee waivers 1.52%(d) 1.41% 1.43% 1.48% 1.47% 1.45%
Expenses, before fee waivers 1.73%(d) 1.72% 1.75% 1.76% 1.75% 1.75%
Net investment income,
net of fee waivers ........ 4.64%(d) 4.14% 4.30% 4.72% 4.87% 5.19%
Portfolio turnover rate ........ 75% 88% 22% 20% 49% 39%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
76 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 ------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $10.58 $11.33 $11.04 $10.59 $10.45 $9.43
------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(a) ....... .24(b) .46(b) .48(b) .51(b) .51 .51
Net realized and unrealized
gain (loss) on investment
transactions ................ (.13) (.72) .32 .45 .14 1.02
------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .11 (.26) .80 .96 .65 1.53
------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.24) (.46) (.48) (.51) (.51) (.51)
Distributions in excess of net
investment income ........... -0- (.03) (.03) -0- -0- -0-
------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.24) (.49) (.51) (.51) (.51) (.51)
------------------------------------------------------------------------------------------
Net asset value, end of period . $10.45 $10.58 $11.33 $11.04 $10.59 $10.45
==========================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 1.05% (2.39)% 7.46% 9.29% 6.38% 16.64%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $145,693 $159,219 $124,115 $90,742 $90,917 $87,793
Ratios to average net assets of:
Expenses, net of fee waivers 1.51%(d) 1.41% 1.42% 1.48% 1.47% 1.44%
Expenses, before fee waivers 1.72%(d) 1.74% 1.76% 1.74% 1.75% 1.74%
Net investment income,
net of fee waivers ........ 4.64%(d) 4.17% 4.29% 4.73% 4.87% 5.22%
Portfolio turnover rate ........ 75% 88% 22% 20% 49% 39%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 77
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 ------------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $13.11 $14.25 $13.89 $13.39 $13.32 $11.79
----------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income .......... .32(b) .64(b) .64(b) .69(b) .69 .68(a)
Net realized and unrealized
gain (loss) on investment
transactions ................ (.01) (1.15) .39 .50 .06 1.54
----------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .31 (.51) 1.03 1.19 .75 2.22
----------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.31) (.63) (.64) (.68) (.68) (.68)
Distributions in excess of net
investment income ........... -0- -0- (.03) (.01) -0- (.01)
----------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.31) (.63) (.67) (.69) (.68) (.69)
----------------------------------------------------------------------------------------------
Net asset value, end of period . $13.11 $13.11 $14.25 $13.89 $13.39 $13.32
==============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 2.44% (3.74)% 7.60% 9.18% 5.79% 19.29%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $106,256 $111,535 $113,102 $103,647 $101,542 $103,940
Ratios to average net assets of:
Expenses, net of fee waivers 1.09%(d) 1.05% 1.05% 1.11% 1.08% 1.04%
Expenses, before fee waivers 1.09%(d) 1.05% 1.05% 1.11% 1.08% 1.09%
Net investment income,
net of fee waivers ........ 4.96%(d) 4.59% 4.52% 5.09% 5.19% 5.34%
Portfolio turnover rate ........ 68% 100% 0% 35% 118% 103%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
78 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 --------------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $13.11 $14.25 $13.89 $13.39 $13.32 $11.79
-------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income .......... .27(b) .53(b) .54(b) .59(b) .60 .58(a)
Net realized and unrealized
gain (loss) on investment
transactions ................ -0- (1.14) .39 .50 .05 1.54
-------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .27 (.61) .93 1.09 .65 2.12
-------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.26) (.53) (.54) (.59) (.58) (.58)
Distributions in excess of net
investment income ........... -0- -0- (.03) -0- -0- (.01)
-------------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.26) (.53) (.57) (.59) (.58) (.59)
-------------------------------------------------------------------------------------------------
Net asset value, end of period . $13.12 $13.11 $14.25 $13.89 $13.39 $13.32
=================================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 2.12% (4.44)% 6.84% 8.37% 4.99% 18.35%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $19,718 $21,628 $29,957 $27,976 $26,696 $27,816
Ratios to average net assets of:
Expenses, net of fee waivers 1.80%(d) 1.76% 1.76% 1.81% 1.79% 1.74%
Expenses, before fee waivers 1.80%(d) 1.76% 1.76% 1.81% 1.79% 1.80%
Net investment income,
net of fee waivers ........ 4.24%(d) 3.85% 3.82% 4.39% 4.49% 4.61%
Portfolio turnover rate ........ 68% 100% 0% 35% 118% 103%
</TABLE>
See footnote summary on page 80.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 79
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
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,
2000 ---------------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ........... $13.11 $14.25 $13.89 $13.39 $13.32 $11.79
-------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income .......... .28(b) .54(b) .54(b) .59(b) .60 .58(a)
Net realized and unrealized
gain (loss) on investment
transactions ................ (.01) (1.15) .39 .50 .05 1.54
-------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .27 (.61) .93 1.09 .65 2.12
-------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.26) (.53) (.54) (.59) (.58) (.58)
Distributions in excess of net
investment income ........... -0- -0- (.03) -0- -0- (.01)
-------------------------------------------------------------------------------------------------
Total dividends and
distributions ............... (.26) (.53) (.57) (.59) (.58) (.59)
-------------------------------------------------------------------------------------------------
Net asset value, end of period . $13.12 $13.11 $14.25 $13.89 $13.39 $13.32
=================================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 2.12% (4.44)% 6.84% 8.37% 4.99% 18.35%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $14,478 $16,391 $16,013 $13,436 $12,826 $14,323
Ratios to average net assets of:
Expenses, net of fee waivers 1.79%(d) 1.75% 1.75% 1.81% 1.78% 1.74%
Expenses, before fee waivers 1.79%(d) 1.75% 1.75% 1.81% 1.78% 1.79%
Net investment income,
net of fee waivers ........ 4.26%(d) 3.89% 3.82% 4.39% 4.49% 4.64%
Portfolio turnover rate ........ 68% 100% 0% 35% 118% 103%
</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 of less than one year is not annualized.
(d) Annualized.
--------------------------------------------------------------------------------
80 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
----------------------------
GLOSSARY OF INVESTMENT TERMS
----------------------------
GLOSSARY OF INVESTMENT TERMS
basis point (bp)
One basis point equals 0.01%.
benchmark
A standard by which a fund's performance can be measured. A benchmark is usually
an unmanaged index, such as the Standard & Poor's 500 Stock Index or the Lehman
Brothers Aggregate Bond Index.
bond
Bonds are issued by governments or corporations when they need to raise cash.
Bonds are sold, or issued, to investors and have a maturity date, which is the
date the issuer is obligated to repay the investor for the principal, or face
amount, of the bond. Bonds also pay interest until maturity. Bonds are also
called fixed-income securities.
common stock
A type of security that represents ownership in a public company.
credit rating
Credit ratings are issued by independent organizations, such as Standard &
Poor's Ratings group or Moody's Investors Services. These groups attempt to
assess the likelihood that the issuer of the bond will be able to make timely
payments of principal and interest on the bond, based on such factors as the
issuer's financial condition and any collateral securing these obligations.
Ratings typically range from AAA which is the highest rating, to D, which is the
lowest rating.
current yield
The ratio of interest to the current market price of the bond, expressed as a
percentage.
A common measurement of a stock's performance, calculated by taking a company's
net income and dividing it by the number of shares the company has outstanding.
equity
Another term for stock.
Federal Reserve Board
The seven-member board that oversees Federal Reserve Banks, establishes monetary
policy and monitors the country's economic state.
fixed-income security
A bond.
fixed rate
The interest rate does not change during the entire term of the loan.
index
A compilation of securities of similar types of companies that is used to
measure the investment performance of securities within that specific market. An
index is often used as a benchmark for a mutual fund. An investor cannot invest
directly in an index.
net asset value (NAV)
The value of a mutual fund's total assets, minus its liabilities, divided by the
number of shares outstanding.
portfolio
The collection of securities that make up a fund's or an investor's investments.
sector
This refers to a distinct part of the economy, for example, the technology
sector.
Treasuries
Negotiable U.S. Government debt obligations, backed by the full faith and credit
of the U.S. Government. Treasuries are issued either as bills, notes or bonds,
depending on the maturity. Treasuries are exempt from state and local taxes.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 81
<PAGE>
----------------
ALLIANCE CAPITAL
----------------
ALLIANCE CAPITAL
The Investment Professional's Choice
Alliance Capital is a leading global investment management firm with over $394
billion in assets under management. In recognition of our far-reaching
investment capabilities, Alliance Capital has been selected by employee benefit
plans for 28 of the FORTUNE 100 companies and public retirement funds in 33
states as well as by hundreds of foundations, endowments and foreign
institutions. By sharing this institutional money management experience with
millions of mutual fund investors as well, Alliance stands out as a "manager of
choice" for thousands of investment professionals around the world.
At Alliance Capital, we place a premium on investment research. We carefully
select securities based on our proprietary research, conducted by over 276
investment professionals in 22 investment offices worldwide. Our commitment to
this process means that our mutual fund shareholders have their portfolios
managed by the same experienced analysts and portfolio managers who manage the
pension funds of some of America's largest institutional investors.
All information on Alliance Capital is as of 3/31/00.
--------------------------------------------------------------------------------
82 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------------------
ALLIANCE CAPITAL AT YOUR SERVICE
--------------------------------
ALLIANCE CAPITAL AT YOUR SERVICE
At Alliance Capital, shareholder satisfaction is among our top priorities.
That's why we provide our shareholders with a wide variety of products and
time-saving services to meet their needs.
o Low Minimum Investments
You can begin investing in Alliance Capital funds with as little as $250
(except for Alliance Select Investor Series Premier Portfolio and Alliance
Select Investor Series Technology Portfolio, which generally have a
$10,000 minimum initial investment) and may make subsequent investments of
$50 or more.
o Automatic Reinvestment
You may choose to reinvest fund dividend and capital-gains distributions
automatically at no charge.
o Automatic Investment Program
Build your investment account by having money automatically transferred
from your bank account on a regular basis.
o Dividend Direction Plans
You may cross-invest dividends from one fund into the same class of shares
in any other fund without incurring a sales charge. This can be a good way
to diversify your assets.
o The Alliance Advance
A quarterly newsletter discussing investment strategies, economic news and
other matters that could affect your mutual fund investment.
o Auto Exchange
You may choose to automatically exchange money from one Alliance Capital
fund to another on a regular basis. This can be a good way to dollar cost
average*, helping you to invest with discipline.
o Systematic Withdrawals
Regular checks for specified amounts can be sent to you or to your
brokerage or bank account.
o A Choice of Purchase Plans
Most funds are available in A, B, and C Class shares. Many funds are also
available in Advisor Class shares.
o Telephone Transaction
Purchases, transfers and redemptions can be made by calling (800)
221-5672. Our knowledgeable representatives are available to assist you
Monday through Friday from 8:30 a.m. to 8:00 p.m. Eastern Standard Time.
o Alliance Answer: 24-Hour Information
For your convenience, our computerized audio response system is available
to you 24-hours a day by calling (800) 251-0539. Using any touch tone
phone, you can hear share prices, get account balances, review details of
your last transaction, obtain dividend information, order
statements/checkbooks, review fund objectives, literature and Watchlist
information, order additional copies of statements and request additional
year-end tax forms (available from February 1 to May 31).
o Alliance Capital on the World Wide Web at www.alliancecapital.com. Here,
you can access updated account information, make additional investments,
request more information, exchange between Alliance funds and view fund
performance, press releases and articles.
* Dollar cost averaging does not assure a profit nor protect against loss in
a declining market. Since this strategy involves continuous investments in
securities, regardless of fluctuating prices, investors should consider
their financial ability to invest during periods of low price levels.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 83
<PAGE>
------------------
BOARD OF DIRECTORS
------------------
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 LLP
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.
--------------------------------------------------------------------------------
84 o ALLIANCE MUNICIPAL INCOME FUND
<PAGE>
--------------------------------
ALLIANCE CAPITAL FAMILY OF FUNDS
--------------------------------
ALLIANCE CAPITAL FAMILY OF FUNDS
Domestic Equity Funds
Balanced Shares
Conservative Investors Fund
Disciplined Value Fund
Growth & Income Fund
Growth Fund
Growth Investors Fund
Health Care Fund
Premier Growth Fund
Quasar Fund
Real Estate Investment Fund
Technology Fund
The Alliance Fund
Utility Income Fund
Global & International Equity Funds
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Premier Portfolio
Technology Portfolio
Fixed Income Funds
Corporate Bond Portfolio
Global Dollar Government Fund
Global Strategic Income Trust
High Yield Fund
Limited Maturity Government Fund
Mortgage Securities Income Fund
Multi-Market Strategy Trust
North American Government Income Trust
Quality Bond Portfolio
U.S. Government Portfolio
Municipal Income Funds
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
Alliance also offers AFD Exchange Reserves, which serves as the money market
fund exchange vehicle for the Alliance mutual funds.
To obtain a prospectus for any Alliance Capital fund, call your investment
professional, or call Alliance at (800) 227-4618.
--------------------------------------------------------------------------------
ALLIANCE MUNICIPAL INCOME FUND o 85
<PAGE>
Alliance Municipal Income Fund ---------------
1345 Avenue of the Americas BULK RATE
New York, NY 10105 U.S. POSTAGE
(800) 221-5672 PAID
New York, NY
Permit No. 7131
---------------
AllianceCapital[LOGO](R)
The Investment Professional's Choice
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
MUNISR400
