- --------------------------------------------------------------------------------
Alliance
Municipal
Trust
- California Portfolio
- --------------------------------------------------------------------------------
AllianceCapital [LOGO](R)
Semi-Annual Report
December 31, 1998
(unaudited)
- --------------------------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS
December 31, 1998 (unaudited) Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-89.2%
CALIFORNIA-86.1%
ABAG Finance
Authority COP
(Harker School
Foundation) Series
'98 VRDN
$ 3,000 1/01/23 (b) ............ 3.80% $ 3,000,000
Alameda County IDA
(Heat & Control Inc.
Project)
Series '95A
AMT VRDN
4,900 11/01/25 (b) ........... 3.85 4,900,000
Alameda County IDA
(JMS Family Partnership
Project)
Series '95A
AMT VRDN
2,930 10/01/25 (b) ........... 3.85 2,930,000
Alameda County IDA
(Ream Enterprises
Project)
Series A AMT VRDN
1,925 11/01/20 (b) ........... 3.85 1,925,000
Berkeley Unified
School District TRAN
4,000 6/30/99 ................ 4.00 4,008,189
California County IDR
(S&P Investment
Project)
AMT VRDN
1,050 9/01/08 (b) ............ 3.95 1,050,000
California Economic
Development Authority
(Marko Foam Products
Inc.)
Series '96 AMT
VRDN
2,855 10/01/26 (b) ........... 4.40 2,855,000
California Economic
Development Finance
Authority
(Inland Empire Venture
L.L.C.)
Series '95 AMT
VRDN
2,300 7/01/25 (b) ............ 4.00 2,300,000
California Economic
Development Finance
Authority
(Valley Plating Works Inc.)
Series '95 AMT
VRDN
5,735 10/01/20 (b) ........... 4.40 5,735,000
California Educational
Facilities Authority
Revenue
(University of Judaism)
Series A VRDN
4,500 12/01/28 (b) ........... 3.55 4,500,000
California GO RAN
Series '98
21,500 6/30/99 ................ 3.15 21,587,929
California Health
Facilities
(Adventist Health
System)
Series '91A VRDN
9,800 8/01/21 (b) ............ 3.70 9,800,000
California Pollution
Control Finance
Authority
(Athens Disposal Co.,
Inc. Project)
Series '95A AMT
VRDN
4,600 1/01/16 (b) ............ 3.85 4,600,000
California Pollution
Control Finance
Authority
(Burrtec Waste Industries)
Series '98A AMT
VRDN
2,000 5/01/05 (b) ............ 3.85 2,000,000
California Pollution
Control Finance
Authority
(Burrtec Waste Project)
Series '97B AMT
VRDN
2,000 7/01/12 (b) ............ 3.85 2,000,000
California Pollution
Control Finance
Authority
(Burrtec Waste Project)
Series A AMT VRDN
2,300 10/01/02 (b) ........... 3.85 2,300,000
1
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
California Pollution
Control Finance
Authority
(Calsan Inc. Project)
Series '96A AMT
VRDN
$ 4,515 12/01/11 (b) ........... 3.85% $ 4,515,000
California Pollution
Control Finance
Authority
(Colmac Energy Project)
Series B AMT VRDN
500 12/01/16 (b) ........... 3.75 500,000
California Pollution
Control Finance
Authority
(Contra Costa Waste
Services)
Series A AMT VRDN
3,975 12/01/10 (b) ........... 3.80 3,975,000
California Pollution
Control Finance
Authority
(CR & R Inc. Project)
Series '95A AMT
VRDN
2,040 10/01/10 (b) ........... 3.85 2,040,000
California Pollution
Control Finance
Authority
(Edco Disposal Corp.
Project)
Series '96A AMT
VRDN
2,885 10/01/16 (b) ........... 3.85 2,885,000
California Pollution
Control Finance
Authority
(Escondido/Jemco
Equipment)
Series '98A AMT
VRDN
3,000 7/01/13 (b) ............ 3.85 3,000,000
California Pollution
Control Finance
Authority
(Gilton Solid Waste
Management)
Series '95A AMT
VRDN
2,100 12/01/05 (b) ........... 3.70 2,100,000
California Pollution
Control Finance
Authority
(Greenteam of San Jose
Project)
Series '97A AMT
VRDN
4,215 8/01/12 (b) ............ 3.85 4,215,000
California Pollution
Control Finance
Authority
(Homestake Mining)
Series '84B VRDN
3,100 5/01/04 (b) ............ 3.90 3,100,000
California Pollution
Control Finance
Authority
(New United Motor
Manufacturing)
Series '98A AMT
VRDN
2,000 4/01/18 (b) ............ 5.75 2,000,000
California Pollution
Control Finance
Authority
(Pacific Electric & Gas)
Series '97B AMT
VRDN
3,900 11/01/26 (b) ........... 5.05 3,900,000
California Pollution
Control Finance
Authority
(Pacific Electric & Gas)
Series '97C AMT
VRDN
11,800 11/01/26 (b) ........... 5.10 11,800,000
California Pollution
Control Finance
Authority
(Sanger Project)
Series A AMT VRDN
8,400 9/01/20 (b) ............ 3.75 8,400,000
2
<PAGE>
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
California Pollution
Control Finance
Authority
(Santa Clara Valley
Industries)
Series '98A VRDN
$ 2,000 3/01/18 (b) ............ 3.85% $ 2,000,000
California Pollution
Control Finance
Authority
(Santa Fe Geothermal Inc.)
Series '83 VRDN
2,400 9/01/13 (b) ............ 3.25 2,400,000
California Pollution
Control Finance
Authority
(Shell Martinez Refining)
AMT VRDN
3,000 10/01/31 (b) ........... 5.00 3,000,000
California Pollution
Control Finance
Authority
(Taormina Industries,
Inc. Project)
Series '94A AMT
VRDN
3,160 8/01/14 (b) ............ 5.30 3,160,000
California Pollution
Control Finance
Authority
(Western Waste Project)
Series '94A AMT
VRDN
1,400 10/01/06 (b) ........... 4.20 1,400,000
California Pollution
Control Finance
Authority
Res. Rec. : (Colmac
Energy Project)
Series '90A AMT
VRDN
2,300 12/01/16 (b) ........... 3.75 2,300,000
California Pollution
Control Finance
Authority PCR
(Pacific Electric & Gas)
Series '96G VRDN
6,000 2/01/16 (b) ............ 5.05 6,000,000
California Pollution
Control Finance
Authority PCR
(Shell Oil Co.)
Series '94 AMT
VRDN
5,000 10/01/24 (b) ........... 5.00 5,000,000
California School
Cash Reserve Program
Authority
Series '98A
10,000 7/02/99 ................ 3.75 10,036,500
California Statewide
Community
Development Authority
(Artefex Project)
Series '97E AMT
VRDN
2,475 7/01/17 (b) ............ 4.80 2,475,000
California Statewide
Community
Development Authority
(Chino Basin Municipal
Water Project)
Series '90 AMT
VRDN
3,750 8/01/10 (b) ............ 3.85 3,750,000
California Statewide
Community
Development Authority
(Contech Construction)
Series '89 AMT
VRDN
1,320 5/01/09 (b) ............ 3.95 1,320,000
California Statewide
Community
Development Authority
(Kennerly-Spratling
Project)
Series '95A AMT
VRDN
2,760 6/01/20 (b) ............ 3.90 2,760,000
California Statewide
Community
Development Authority
(Lance Camper Project)
Series '94B AMT
VRDN
3,225 12/01/14 (b) ........... 3.90 3,225,000
3
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
California Statewide
Community
Development Authority
(Lesaint Limited Partners)
Series '98B VRDN
$ 2,800 3/01/18 (b) ............ 3.95% $ 2,800,000
California Statewide
Community
Development Authority
(Pacific Bearings Co.
Project)
Series '96L AMT
VRDN
2,050 10/01/06 (b) ........... 4.80 2,050,000
California Statewide
Community
Development Authority
(Primary Color Project)
Series '97F AMT
VRDN
2,315 7/01/17 (b) ............ 4.80 2,315,000
California Statewide
Community
Development Authority
(S.V.D.P. Management
Inc. Project)
VRDN
5,000 2/01/28 (b) ............ 4.20 5,000,000
California Statewide
Community
Development Authority
(Tri-Valley Growers
Project)
Series '95E AMT
VRDN
5,500 12/01/10 (b) ........... 3.85 5,500,000
California Statewide
Economic
Development Authority
(Pioneer Converting Inc.)
AMT VRDN
1,970 4/01/16 (b) ............ 3.85 1,970,000
Chula Vista IDR
(Sutherland/Palumbo
Project)
AMT VRDN
2,915 12/01/21 (b) ........... 4.40 2,915,000
City of West Hollywood
Public Facilities Corp.
COP
Series '98 VRDN
3,360 2/01/25 (b) ............ 4.50 3,360,000
Commerce Joint Powers
(Precision Wire
Productions)
AMT VRDN
2,265 11/01/14 (b) ........... 3.85 2,265,000
Contra Costa County
MFHR
(Park Regency Partners)
Series '92A AMT
VRDN
7,400 8/01/32 (b) ............ 4.00 7,400,000
Fairfield IDA
(Aitchison Family
Partnership)
VRDN
1,700 4/01/12 (b) ............ 3.85 1,700,000
Foothill Eastern
Transportation
Authority
(California Toll Road
Revenue)
Series Y VRDN
5,100 1/02/35 (b) ............ 3.75 5,100,000
Gilroy Unified School
District TRAN
5,000 6/30/99 ................ 3.57 5,010,236
Huntington Park
Community
Redevelopment Agency
(Personal Storage I)
VRDN
140 11/15/17 (b) ........... 4.55 140,000
Indio Housing
Authority MFHR
(Olive Courts Apts.)
Series '96 AMT
VRDN
500 12/01/26 (b) ........... 3.80 500,000
Indio Housing
Authority MFHR
(Smoketree Apts.)
Series A VRDN
9,325 12/01/07 (b) ........... 3.60 9,325,000
4
<PAGE>
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Irvine Assessment
District
Series '85-7 VRDN
$ 7,000 9/02/11 (b) ............ 3.70% $ 7,000,000
Los Angeles County
COP
(Belmont Learning
Complex)
Series '97A VRDN
1,450 12/01/17(b) ............ 3.80 1,450,000
Los Angeles County
Housing Authority
MFHR
(Canyon Country Villas)
Series '85H VRDN
10,000 12/01/07 (b) ........... 3.75 10,000,000
Los Angeles County
Housing Authority
MFHR
(Diamond Park Apts.
Project)
Series '87A AMT
VRDN
9,200 2/01/09 (b) ............ 3.85 9,200,000
Los Angeles County
Housing Authority
MFHR
(Valencia Village Project)
Series '84 VRDN
10,000 10/01/14 (b) ........... 3.35 10,000,000
Monrovia
Redevelopment Agency
(Holiday Inn Hotel
Project)
Series '84 VRDN
4,300 12/01/14 (b) ........... 3.85 4,300,000
Northern California
Power Agency
(Geothermal Project)
Series B AMBAC
5,905 7/01/99 ................ 5.00 5,945,761
Oceanside Housing
Authority MFHR
(Riverview Springs Apts.)
Series '90A AMT
VRDN
16,800 7/01/20 (b) ............ 4.50 16,800,000
Orange County
(Foothill/Eastern
Corridor Agency)
Series '95D VRDN
6,000 1/02/35 (b) ............ 3.90 6,000,000
Panama-Buena Vista
(Unified School District
Capital Improvement
Financing Project)
VRDN
5,000 6/01/24 (b) ............ 4.40 5,000,000
Petaluma Housing
Authority HFA MFHR
(Oakmont at Petaluma)
Series '96A AMT
VRDN
900 4/01/26 (b) ............ 4.00 900,000
Pleasant Hill
Redevelopment
Agency MFHR
(Chateau III Project)
Series '96A AMT
VRDN
2,260 8/01/26 (b) ............ 4.00 2,260,000
Redondo Beach
Redevelopment
Agency MFHR
(McCandless Housing
Project)
Series '95A VRDN
3,635 12/01/25 (b) ........... 3.85 3,635,000
Riverside County IDR
(Advanced Business
Forms)
Series '89 AMT
VRDN
1,400 4/05/14 (b) ............ 3.75 1,400,000
Riverside County IDR
(Cryogenic Partners)
Series '89 AMT
VRDN
1,400 7/05/14 (b) ............ 3.75 1,400,000
Riverside County IDR
(Riverfront Cresteel
Project)
Series '89 AMT
VRDN
2,750 4/01/09 (b) ............ 3.75 2,750,000
5
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Roseville County High
School District COP
(Northwest Roseville
Land Project)
Series '91 VRDN
$ 2,935 8/01/06 (b) ............ 4.60% $ 2,935,000
Sacramento County
Airport Facility
(Cessna Aircraft Co.)
Series '98 AMT VRDN
3,700 11/01/28 (b) ........... 3.90 3,700,000
Sacramento County
COP
(Administration Center
& Courthouse Project)
Series '90 VRDN
6,000 6/01/20 (b) ............ 3.70 6,000,000
Sacramento County
HFA MFHR
(Grouse Run Apts.)
Series '90 VRDN
6,500 6/01/10 (b) ............ 3.65 6,500,000
San Bernardino
Housing County HFA
MFHR
(Mountain View Apts.)
Series '97A VRDN
6,000 3/01/27 (b) ............ 3.90 6,000,000
San Diego HFA MFHR
(Paseo Point Apts.)
Series A VRDN
6,000 8/01/15 (b) ............ 3.90 6,000,000
San Dimas Community
Redevelopment Agency
(San Dimas Commerce
Center)
Series '83 VRDN
110 12/01/13 (b) ........... 3.30 110,000
San Jose HFA MFHR
(Timberwood Apts.)
VRDN
2,300 2/01/20 (b) ............ 3.80 2,300,000
San Jose Redevelopment
Agency MFHR
(San Fernando Apts.)
Series '98A AMT
VRDN
8,000 12/01/28 (b) ........... 3.30 8,000,000
San Luis Obispo
County TRAN
10,500 7/07/99 ................ 4.25 10,535,818
Santa Fe Springs IDR
(Metal Center Inc.
Project)
Series '89A AMT
VRDN
2,500 7/01/14 (b) ............ 3.70 2,500,000
Simi Valley Housing
Authority MFHR
(Shadowridge Apts.)
Series '89 VRDN
5,000 9/01/19 (b) ............ 3.70 5,000,000
South Coast Local
Education TRAN
Series '98A MBIA
20,075 6/30/99 ................ 3.60 20,160,604
Triunfo County
Sanitation District
Revenue
VRDN
900 6/01/19 (b) ............ 3.70 900,000
Upland Community
Redevelopment Agency
MFHR
(Northwoods 156)
Series A VRDN
5,850 3/01/14 (b) ............ 3.90 5,850,000
Upland Community
Redevelopment Agency
MFHR
(Northwoods 168)
Series B VRDN
3,235 3/01/14 (b) ............ 3.90 3,235,000
--------------
411,865,037
--------------
PUERTO RICO-3.1%
Puerto Rico Government
Development Bank
Series '85 MBIA
VRDN
7,000 12/01/15 (b) ........... 3.60 7,000,000
Puerto Rico Highway &
Transportation
Series '98A AMBAC
VRDN
8,000 7/01/28 (b) ............ 3.50 8,000,000
--------------
15,000,000
--------------
Total Municipal Bonds
(amortized cost
$426,865,037)........... 426,865,037
--------------
6
<PAGE>
Alliance Municipal Trust - California Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER-8.7%
CALIFORNIA-8.7%
California GO
$ 10,000 2/26/99 ................ 2.80% $ 10,000,000
Riverside County
Teeter Obligation
Series B
2,537 4/07/99 ................ 3.10 2,537,000
San Francisco Bay
Area Rapid Transit
10,000 3/01/99 ................ 2.85 10,000,000
San Francisco Bay
Area Rapid Transit
4,000 3/08/99 ................ 2.85 4,000,000
University of California
Board of Regents
Series A
5,000 2/25/99 ................ 2.85 5,000,000
University of California
Board of Regents
Series A
10,000 1/12/99 ................ 3.15 10,000,000
---------------
Total Commercial Paper
(amortized cost
$41,537,000)............ 41,537,000
---------------
TOTAL INVESTMENTS-97.9%
(amortized cost
$468,402,037)........... 468,402,037
Other assets less
liabilities-2.1%........ 10,250,868
---------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
478,676,902 shares
outstanding)............ $ 478,652,905
===============
- --------------------------------------------------------------------------------
(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
COP Certificate of Participation
GO General Obligation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
7
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended December 31, 1998 (unaudited)
Alliance Municipal Trust - California Portfolio
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest............................................................. $ 7,753,247
EXPENSES
Advisory fee (Note B)................................................ $ 1,196,808
Distribution assistance and administrative service (Note C).......... 963,566
Transfer agency (Note B)............................................. 79,879
Custodian fees....................................................... 50,381
Registration fees....... 17,950
Printing............................................................. 15,192
Audit and legal fees................................................. 7,303
Trustees' fees....................................................... 1,319
Miscellaneous........................................................ 955
--------------
Total expenses....................................................... 2,333,353
--------------
Net investment income................................................ 5,419,894
--------------
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions......................... 3
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS.............................. $ 5,419,897
==============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
================================================================================
<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................................................ $ 5,419,894 $ 10,913,939
Net realized gain on investment transactions......................... 3 -0-
-------------- --------------
Net increase in net assets from operations........................... 5,419,897 10,913,939
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................ (5,419,894) (10,913,939)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E)................................................ 56,188,711 65,315,989
-------------- --------------
Total increase....................................................... 56,188,714 65,315,989
NET ASSETS
Beginning of year.................................................... 422,464,191 357,148,202
-------------- --------------
End of period........................................................ $ 478,652,905 $ 422,464,191
============== ==============
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 (unaudited) Alliance Municipal Trust - California Portfolio
================================================================================
NOTE A: Significant Accounting Policies
Alliance Municipal Trust (the "Fund") is registered under the Investment Company
Act of 1940 as an open-end investment company. The Fund operates as a series
company currently consisting of: Alliance Municipal Trust-General Portfolio,
Alliance Municipal Trust-New York Portfolio, Alliance Municipal Trust-California
Portfolio (the "Portfolio"), Alliance Municipal Trust-Connecticut Portfolio,
Alliance Municipal Trust-New Jersey Portfolio, Alliance Municipal Trust-Virginia
Portfolio, Alliance Municipal Trust-Florida Portfolio and Alliance Municipal
Trust-Massachusetts Portfolio. Each series is considered to be a separate entity
for financial reporting and tax purposes. The Portfolio pursues its objectives
by maintaining a portfolio of high-quality money market securities all of which,
at the time of investment, have remaining maturities of 397 days or less. The
financial statements have been prepared in conformity with 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. Taxes
It is the policy of the Portfolio to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. Dividends
The Portfolio declares dividends daily from net investment income and
automatically reinvests such dividends in additional shares at net asset value.
Net realized capital gains on investments, if any, are expected to be
distributed near year end. Dividends paid from net 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.
4. Investment Income and Investment Transactions
Interest income is accrued as earned. Investment transactions are recorded on a
trade date basis. Realized gain (loss) from investment transactions is recorded
on the identified cost basis.
- --------------------------------------------------------------------------------
NOTE B: Advisory Fee and Transactions with an Affiliate of the Adviser
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50% on the first $1.25 billion of average daily net
assets; .49% on the next $.25 billion; .48% on the next $.25 billion; .47% on
the next $.25 billion; .46% on the next $1 billion; and .45% in excess of $3
billion. The Adviser has agreed, pursuant to the advisory agreement, to
reimburse the Portfolio to the extent that its annual aggregate expenses
(excluding taxes, brokerage, interest and, where permitted, extraordinary
expenses) exceed 1% of its average daily net assets for any fiscal year. No
reimbursement was required for the six months ended December 31, 1998.
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 $42,124 for the six months ended December 31,
1998.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - California Portfolio
================================================================================
NOTE C: Distribution Assistance and Administrative Services Plan
Under this Plan, the Portfolio pays Alliance Fund Distributors, Inc., (the
"Distributor"), a wholly-owned subsidiary of the Adviser, a distribution fee at
the annual rate of 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 $598,404. 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 $365,162, of which $47,500 was paid to the Adviser.
- --------------------------------------------------------------------------------
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 carryforward of $24,000, of which $6,135 expires in
2000, $13,804 expires in 2002, $3,239 expires in 2003 and $822 expires in the
year 2004.
- --------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1998, capital paid-in aggregated $478,676,902. 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............................................................. 612,315,235 1,649,193,927
Shares issued on reinvestments of dividends............................. 5,419,894 10,913,939
Shares redeemed......................................................... (561,546,418) (1,594,791,877)
------------- --------------
Net increase............................................................ 56,188,711 65,315,989
============ ==============
</TABLE>
10
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - California Portfolio
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Six Months
Ended
December 31, Year Ended June 30,
1998 ------------------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income ...................... .011 .027(a) .027(a) .029(a) .027(a) .018(a)
------ ------ ------ ------ ------ ------
Less: Dividends
Dividends from net investment income ....... (.011) (.027) (.027) (.029) (.027) (.018)
------ ------ ------ ------ ------ ------
Net asset value, end of period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net
asset value (b) ......................... 2.28%(c) 2.74% 2.76% 2.91% 2.78% 1.83%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)... $478,653 $422,464 $357,148 $297,862 $236,479 $219,673
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ........................ .97%(c) .96% .93% .93% .93% .93%
Expenses, before waivers and
reimbursements ........................ .97%(c) .97% .96% .94% 1.01% 1.02%
Net investment income ................... 2.26%(c) 2.71%(a) 2.73%(a) 2.86%(a) 2.75%(a) 1.82%(a)
</TABLE>
- --------------------------------------------------------------------------------
(a) Net of expenses reimbursed or waived by the Adviser.
(b) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(c) Annualized.
11
<PAGE>
-----------------
BULK RATE
Alliance Municipal Trust - California 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| |#| |3| |0| |#|
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.
ACASR
