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Alliance
Municipal
Trust
- Florida Portfolio
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AllianceCapital [LOGO](R)
Semi-Annual Report
December 31, 1998
(unaudited)
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<PAGE>
PORTFOLIO OF INVESTMENTS
December 31, 1998 (unaudited) Alliance Municipal Trust - Florida Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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MUNICIPAL BONDS-69.5%
FLORIDA-69.5%
Alachua City IDA
(Sabine Inc. Project)
Series '95 AMT
VRDN
$ 1,930 9/01/15 (b)............. 4.10% $ 1,930,000
Alachua County IDR
(Florida Rock
Industries Inc.)
AMT VRDN
7,500 11/01/22 (b)............ 4.05 7,500,000
Broward County HFA
MFHR
(Harbour Town
Jacaranda Project)
Series '95B VRDN
3,400 12/01/25 (b)............ 3.75 3,400,000
Broward County HFA
MFHR
(Jacaranda Village
Apartments)
Series '97 VRDN
3,450 9/01/22 (b)............. 3.75 3,450,000
Broward County HFA
MFHR
(Margate Investments
Project)
VRDN
5,900 11/01/05 (b)............ 3.75 5,900,000
Broward County IDR
(Education Resident and
Training Authority)
Series '97 VRDN
3,000 8/01/04 (b)............. 4.10 3,000,000
Citrus Park Community
Development Authority
Series '96 VRDN
4,800 11/01/16 (b)............ 3.75 4,800,000
Dade County
(Aviation Facilities)
Series '84A VRDN
9,600 10/01/09 (b)............ 3.75 9,600,000
Dade County
(Capital Asset)
Series '90 VRDN
2,400 10/01/10 (b)............ 5.20 2,400,000
Dade County
(School Board
Certificate Participation)
Series B AMBAC
1,000 8/01/99 ................ 3.12 1,009,268
Dade County
(School District)
2,000 7/01/99 ................ 3.61 2,073,959
Dade County
(Water & Sewer Systems)
Series '94 FGIC
VRDN
1,600 10/05/22 (b)............ 3.40 1,600,000
Dade County IDA
(Florida Convalescent
Association Project)
Series '86 AMT
VRDN
2,070 12/01/11 (b)............ 5.10 2,070,000
Dade County IDA
(Florida Power & Light)
Series '93 VRDN
1,500 6/01/21 (b)............. 3.90 1,500,000
Florida State GO
(Board of Education
Capital Outlay)
Series '89B
3,165 6/01/09 ................ 3.00 3,277,855
Florida State GO
2,000 7/01/99 ................ 3.61 2,075,655
Florida HFA MFHR
(Ashley Lake ll)
Series '89J AMT
VRDN
3,000 12/01/11 (b)............ 4.05 3,000,000
Florida HFA MFHR
(Banyan Bay Apts.)
Series '95L AMT
VRDN
5,275 12/01/25 (b)............ 4.15 5,275,000
Florida HFA MFHR
(EEE-Carlton Arms II)
VRDN
4,475 12/01/08 (b)............ 3.90 4,475,000
1
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
Alliance Municipal Trust - Florida Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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Florida HFA MFHR
(Homeowner Mortgage)
Series 98-5 PPB
$ 5,000 7/01/17 (b)............. 3.80% $ 5,000,000
Florida HFA MFHR
(Lakes of Northdale
Project)
Series '84D VRDN
1,000 6/01/07 (b)............. 3.95 1,000,000
Florida HFA MFHR
(Oaks at Orange Park
Project)
Series '90 VRDN
7,240 7/01/07 (b)............. 4.05 7,240,000
Highlands County
Health Facilities
(Adventist/Sunbelt)
Series A VRDN
6,900 11/15/26 (b)............ 3.95 6,900,000
Hillsborough County
HFA
(Brandon Crossing)
Series '98A AMT VRDN
2,700 12/01/29 (b)............ 3.85 2,700,000
Hillsborough County
IDA
(Seaboard System)
Series '83 VRDN
100 10/15/99 (b)............ 3.50 100,000
Hillsborough County
IDA
(Seaboard Tampa)
AMT VRDN
4,800 12/01/16 (b)............ 4.05 4,800,000
Hillsborough County
IDA PCR
(Tampa Electric Project)
VRDN
1,500 5/15/18 (b)............. 4.00 1,500,000
Hillsborough County
IDA PCR
(Tampa Electric Project)
VRDN
1,000 9/01/25 (b)............. 4.00 1,000,000
Hillsborough County
PCR
(Tampa Electric Project)
Series '93 AMT
VRDN
7,300 11/01/20 (b)............ 5.20 7,300,000
Jacksonville Hospital
Revenue
(Genesis Rehabilitation)
Series '96 VRDN
3,650 5/01/21 (b)............. 4.75 3,650,000
Jacksonville IDR
(Pavilion Associates
Project)
Series '96 VRDN
900 1/01/15 (b)............. 3.75 900,000
Jacksonville IDR
(St. John's Medical
Investors)
Series '96 VRDN
1,930 1/01/15 (b)............. 3.75 1,930,000
Jacksonville IDR
(University of Florida
Health Science Center)
Series '89 VRDN
900 7/01/19 (b)............. 3.75 900,000
Lee County Healthcare
Facilities IDA
(Hope Hospice)
Series '96 VRDN
3,000 6/01/16 (b)............. 4.10 3,000,000
Lee County IDA
(Christian & Missionary
Project)
VRDN
2,400 4/01/10 (b)............. 3.63 2,400,000
Lee County IDA
(Cypress Cove
Healthpark)
Series '97C VRDN
6,700 10/01/04 (b)............ 3.45 6,700,000
Manatee County HFA
MFHR
(Harbour Project)
Series '90B VRDN
1,800 12/01/07 (b)............ 4.20 1,800,000
Marion County HFA
MFHR
(Summer Trace Project)
Series '85D VRDN
2,300 12/01/07 (b)............ 3.75 2,300,000
2
<PAGE>
Alliance Municipal Trust - Florida Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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Miami Dade County
Educational Facility
Authority
(Florida Memorial
College) Series '98
VRDN
$ 3,000 10/01/18 (b)............ 4.10% $ 3,000,000
Miami Dade County
HFA SFMR
Series '98B AMT PPB
1,000 10/01/31 (b)............ 3.45 1,000,000
Miami HFA
(Mercy Hospital)
Series '98 VRDN
2,690 8/01/20 (b)............. 3.45 2,690,000
Orange County HFA
MFHR
(Sundown Assoc. II)
Series B VRDN
1,000 6/01/04 (b)............. 4.05 1,000,000
Orange County Tourist
Development Tax
Revenue
Series B AMBAC
3,110 10/01/99 ............... 3.00 3,109,212
Palm Beach County
(Water & Sewer
Revenue)
VRDN
12,395 10/01/11 (b)............ 5.40 12,395,000
Palm Beach County
Education Facility
Authority Revenue
(Lynn University Project)
Series '98 VRDN
2,500 11/01/18 (b)............ 3.55 2,500,000
Palm Beach County
HFA MFHR
(Haverhill)
Series '97A VRDN
9,100 10/01/27 (b)............ 3.75 9,100,000
Palm Beach County
HFA MFHR
(Village Crossing
Project)
Series '97B VRDN
7,000 10/01/27 (b)............ 3.75 7,000,000
Palm Beach County
SFMR
Series '98B AMT PPB
3,000 4/01/29 (b)............. 3.75 3,000,000
Palm Beach IDR
(Florida Convalescent
Center Project)
AMT VRDN
2,475 11/01/11 (b)............ 5.10 2,475,000
Pinellas County Health
Facilities
(Mease Manor Inc.)
Series '95 VRDN
4,015 11/01/15 (b)............ 4.05 4,015,000
St. Lucie PCR
(Florida Power & Light)
Series '93 AMT
VRDN
5,500 1/01/27 (b)............. 4.00 5,500,000
Tampa Bay Water
Utility System Revenue
Series '98A FGIC
2,745 10/01/99 ............... 3.44 2,756,394
Volusia County HFA
MFHR
(Arbors Apartments)
Series A VRDN
2,500 10/01/27 (b)............ 3.75 2,500,000
Volusia County HFA
MFHR
(Ocean Oaks Apartments)
Series '97B VRDN
5,795 10/01/27 (b)............ 3.75 5,795,000
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Total Municipal Bonds
(amortized cost
$197,292,343)........... 197,292,343
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COMMERCIAL PAPER-11.8%
FLORIDA-11.8%
Florida Local
Government Finance
Commission
Series B
3,000 2/24/99 ................ 2.95 3,000,000
Florida Local
Government Finance
Committee
Series B AMT
2,000 3/12/99 ................ 3.00 2,000,000
3
<PAGE>
PORTFOLIO OF INVESTMENTS (continued)
Alliance Municipal Trust - Florida Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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Florida Municipal
Power Agency
(Initial Pooled Loan
Project) Series A
$ 1,300 1/07/99 ................ 3.35% $ 1,300,000
Indian River Hospital
District
Series '90
4,000 2/01/99 ................ 3.40 4,000,000
Jacksonville City
2,900 4/06/99 ................ 2.90 2,900,000
Jacksonville City PCR
(Florida Power &
Light Co.) Series '92
2,900 2/24/99 ................ 3.05 2,900,000
Orange County Local
Transport Authority
Revenue
3,000 4/08/99 ................ 2.90 3,000,000
Sarasota Public
Hospital Revenue
(Sarasota Memorial
Hospital) Series B
3,050 1/08/99 ................ 3.25 3,050,000
Sarasota Public
Hospital Revenue
(Sarasota Memorial
Hospital) Series C
3,150 4/07/99 ................ 2.90 3,150,000
St. Lucie PCR
(Florida Power & Light
Co.) Series '94A
5,000 1/21/99 ................ 3.10 5,000,000
West Orange Memorial
Hospital
(Tax District Revenue
Bonds) Series '91A-1
1,100 4/01/99 ................ 2.95 1,100,000
West Orange Memorial
Hospital
(Tax District Revenue
Bonds) Series '91A-2
2,000 1/20/99 ................ 3.05 2,000,000
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Total Commercial Paper
(amortized cost
$33,400,000)............ 33,400,000
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TOTAL INVESTMENTS-81.3%
(amortized cost
$230,692,343)........... 230,692,343
Other assets less
liabilities-18.7%....... 53,030,373
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NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
283,722,820 shares
outstanding)............ $ 283,722,716
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(a) All securities either mature or their interest rate changes in one year or
less.
(b) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as
the prime interest rate). These instruments are payable on demand and are
secured by letters of credit or other credit support agreements from major
banks. Periodic Put Bonds (PPB) are payable on demand quarterly,
semi-annually or annually and their interest rates change less frequently
than rates on Variable Rate Demand Notes.
Glossary of Terms:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Financial Guaranty Insurance Co.
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
See notes to financial statements.
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1998 (unaudited) Alliance Municipal Trust - Florida Portfolio
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ASSETS
Investments in securities, at value (cost $230,692,343)..... $ 230,692,343
Cash ....................................................... 49,750,714
Receivable for investments sold............................. 2,255,772
Interest receivable......................................... 1,068,222
Receivable for capital stock sold........................... 86,060
Deferred organization expense............................... 6,804
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Total assets................................................ 283,859,915
LIABILITIES
Advisory fee payable........................................ 65,811
Distribution fee payable.................................... 34,666
Accrued expenses............................................ 36,722
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Total liabilities........................................... 137,199
NET ASSETS..................................................... $ 283,722,716
===============
COMPOSITION OF NET ASSETS
Capital shares.............................................. $ 283,722,820
Accumulated net realized loss on investment transactions.... (104)
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$ 283,722,716
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See notes to financial statements.
5
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended December 31, 1998 (unaudited)
Alliance Municipal Trust - Florida Portfolio
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest............................................................. $ 2,236,768
EXPENSES
Advisory fee (Note B)................................................ $ 322,964
Distribution assistance and administrative service (Note C).......... 280,565
Custodian fees....................................................... 34,909
Transfer agency (Note B)............................................. 21,865
Registration fees.................................................... 9,321
Printing............................................................. 7,604
Audit and legal fees................................................. 6,125
Amortization of organization expense................................. 2,182
Trustees' fees............................... 1,197
Miscellaneous........................................................ 1,560
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Total expenses....................................................... 688,292
Less: expense reimbursement.......................................... (42,363)
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Net expenses......................................................... 645,929
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NET INCREASE IN NET ASSETS FROM OPERATIONS.............................. $ 1,590,839
==============
</TABLE>
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See notes to financial statements.
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
Alliance Municipal Trust - Florida Portfolio
================================================================================
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1998 Year Ended
(unaudited) June 30, 1998
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income................................................ $ 1,590,839 $ 3,174,513
Net realized gain on investment transactions......................... -0- 1,873
Net change in unrealized appreciation of investments................. -0- (791)
-------------- --------------
Net increase in net assets from operations........................... 1,590,839 3,175,595
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................ (1,590,839) (3,174,513)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E)................................................ 170,627,720 23,944,984
-------------- --------------
Total increase....................................................... 170,627,720 23,946,066
NET ASSETS
Beginning of year.................................................... 113,094,996 89,148,930
-------------- --------------
End of period........................................................ $ 283,722,716 $ 113,094,996
============== ==============
</TABLE>
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See notes to financial statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 (unaudited) Alliance Municipal Trust - Florida Portfolio
================================================================================
NOTE A: Significant Accounting Policies
Alliance Municipal Trust (the "Fund") is registered under the Investment Company
Act of 1940 as an open-end investment company. The Fund operates as a series
company currently consisting of: Alliance Municipal Trust-General Portfolio,
Alliance Municipal Trust-New York Portfolio, Alliance Municipal Trust-California
Portfolio, Alliance Municipal Trust-Connecticut Portfolio, Alliance Municipal
Trust-New Jersey Portfolio, Alliance Municipal Trust-Virginia Portfolio,
Alliance Municipal Trust-Florida Portfolio (the "Portfolio") and Alliance
Municipal Trust-Massachusetts Portfolio. Each series is considered to be a
separate entity for financial reporting and tax purposes. The Portfolio pursues
its objectives by maintaining a portfolio of high-quality money market
securities all of which, at the time of investment, have remaining maturities of
397 days or less. The financial statements have been prepared in conformity with
generally accepted accounting principles which require management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Portfolio.
1. Valuation of Securities
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity. Amortization of premium is charged to income.
Accretion of market discount is credited to unrealized gains.
2. Organization Expenses
The organization expenses of the Portfolio are being amortized against income on
a straight-line basis through July, 2000.
3. Taxes
It is the policy of the Portfolio to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if any, to its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Dividends
The Portfolio declares dividends daily from net investment income and
automatically reinvests such dividends in additional shares at net asset value.
Net realized capital gains on investments, if any, are expected to be
distributed near year end. Dividends paid from net investment income for the six
months ended December 31, 1998, are exempt from federal income taxes. However,
certain shareholders may be subject to the alternative minimum tax.
5. Investment Income and Investment Transactions
Interest income is accrued as earned. Investment transactions are recorded on a
trade date basis. Realized gain (loss) from investment transactions is recorded
on the identified cost basis.
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NOTE B: Advisory Fee and Transactions with an Affiliate of the Adviser
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50% on the first $1.25 billion of average daily net
assets; .49% on the next $.25 billion; .48% on the next $.25 billion; .47% on
the next $.25 billion; .46% on the next $1 billion; and .45% in excess of $3
billion. The Adviser has agreed, pursuant to the advisory agreement, to
reimburse the Portfolio to the extent that its annual aggregate expenses
(excluding taxes, brokerage, interest and, where permitted, extraordinary
expenses) exceed 1% of its average daily net assets for any fiscal year. For the
six months ended December 31, 1998, the reimbursement amounted to $42,363.
The Portfolio compensates Alliance Fund Services, Inc., a wholly-owned
subsidiary of the Adviser, under a Transfer Agency Agreement for providing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amounted to $11,848 for the six months ended December 31,
1998.
8
<PAGE>
Alliance Municipal Trust - Florida Portfolio
================================================================================
NOTE C: Distribution Assistance and Administrative Services Plan
Under this Plan, the Portfolio pays Alliance Fund Distributors, Inc., (the
"Distributor"), a wholly-owned subsidiary of the Adviser, a distribution fee at
the annual rate of up to .25% of the average daily value of the Portfolio's net
assets. The Plan provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. For the six
months ended December 31, 1998, the distribution fee amounted to $161,482. In
addition, the Portfolio may reimburse certain broker-dealers for administrative
costs incurred in connection with providing shareholder services, and may
reimburse the Adviser for accounting and bookkeeping, and legal and compliance
support. For the six months ended December 31, 1998, such payments by the
Portfolio amounted to $119,083, of which $46,000 was paid to the Adviser.
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NOTE D: Investment Transactions
At December 31, 1998, the cost of investments for federal income tax purposes
was the same as the cost for financial reporting purposes. At June 30, 1998, the
Portfolio had a capital loss carry forward of $104 which expires in the year
2005.
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NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1998, capital paid-in aggregated $283,722,820. Transactions, all at $1.00 per
share, were as follows:
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1998 June 30,
(unaudited) 1998
---------------- ----------------
<S> <C> <C>
Shares sold............................................................. 362,561,567 542,347,808
Shares issued on reinvestments of dividends............................. 1,590,839 3,174,513
Shares redeemed......................................................... (193,524,686) (521,577,337)
------------ ------------
Net increase............................................................ 170,627,720 23,944,984
============ ============
</TABLE>
9
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - Florida Portfolio
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
July 28, 1995(a)
Six Months Ended Year Ended June 30, through
December 31, 1998 -------------------- June 30,
(unaudited) 1998 1997 1996
-------------- -------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------
Income From Investment Operations
Net investment income (b) .................... .012(c) .028 .030 .030
------ ------ ------ ------
Less: Dividends
Dividends from net investment income ......... (.012) (.028) (.030) (.030)
------ ------ ------ ------
Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ======
Total Return
Total investment return based on net asset
value (d) ................................. 2.49%(e) 2.87% 3.03% 3.32%(e)
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .... $283,723 $113,095 $89,149 $91,179
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .......................... 1.00%(e) .93% .65% .58%(e)
Expenses, before waivers and
reimbursements .......................... 1.07%(e) 1.06% 1.10% 1.24%(e)
Net investment income (b) ................. 2.46%(e) 2.82% 2.97% 3.12%(e)
</TABLE>
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(a) Commencement of operations.
(b) Net of expenses reimbursed or waived by the Adviser.
(c) Based on average shares outstanding.
(d) 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.
(e) Annualized.
10
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-----------------
BULK RATE
Alliance Municipal Trust - Florida Portfolio U.S. POSTAGE
1345 Avenue of the Americas, New York, NY 10105 PAID
Toll free 1 (800) 221-5672 New York, NY
Permit No. 7131
-----------------
Yields. For current recorded yield information on Alliance Municipal Trust,
call on a touch-tone telephone toll-free (800) 251-0539 and press the following
sequence of keys:
|1| |#| |1| |#| |6| |6| |#|
For non-touch-tone telephones, call toll-free (800) 221-9513
- ------------------------------------------------------------
AllianceCapital [LOGO](R)
Distribution of this report other than to shareholders must be preceded or
accompanied by the Fund's current prospectus, which contains further information
about the Fund.
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
AFLSR
