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Alliance
Municipal
Trust
- Massachusetts
Portfolio
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AllianceCapital [LOGO](R)
Semi-Annual Report
December 31, 1998
(unaudited)
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<PAGE>
STATEMENT OF NET ASSETS
December 31, 1998 (unaudited)
Alliance Municipal Trust - Massachusetts Portfolio
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Principal
Amount
(000) Security(a) Yield Value
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MUNICIPAL BONDS-92.4%
ARKANSAS-1.7%
Blytheville IDR
(Nucor Corp. Project)
Series '98
AMT VRDN
$ 600 6/01/28 (b)............. 4.20% $ 600,000
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MASSACHUSETTS-75.3%
Andover GO
Series '98
800 12/15/99 ............... 3.13 823,618
Ayer GO BAN
Series '98 AMBAC
419 4/01/99 ................ 3.90 422,113
Brookline GO
Series '98
777 6/01/99 ................ 3.77 783,960
Chatham GO
Series '98 FGIC
875 7/15/99 ................ 3.77 887,401
Dudley GO BAN
Series '98 FSA
235 3/15/99 ................ 3.69 236,285
Georgetown GO
Series '98 MBIA
375 5/01/99 ................ 3.80 376,077
Harwich GO
Series '98 FSA
450 10/15/99 ............... 3.21 457,940
Hingham GO
Series '98
320 2/15/99 ................ 3.71 320,876
Massachusetts AMBAC
Series '89C
300 6/01/99 ................ 3.90 309,629
Massachusetts Health &
Education Facility
(Amherst College)
VRDN
1,800 11/01/26 (b)............ 3.90 1,800,000
Massachusetts Health &
Education Facility
(Brigham & Women's
Hospital)
Series '85A VRDN
1,000 7/01/17 (b)............. 3.90 1,000,000
Massachusetts Health &
Education Facility
(Falmouth Assisted
Living)
Series '95A VRDN
500 11/01/26 (b)............ 3.85 500,000
Massachusetts Health &
Education Facility
(Harvard University)
Series '85 VRDN
600 2/01/16 (b)............. 3.95 600,000
Massachusetts IFA
(ADP Inc. Project)
Series '97 VRDN
1,000 12/01/19 (b)............ 5.35 1,000,000
Massachusetts IFA
(Berkshire Project)
Series '90 VRDN
2,200 9/01/20 (b)............. 4.05 2,200,000
Massachusetts IFA
(Carand Realty Trust)
AMT VRDN
925 5/01/17 (b)............. 4.00 925,000
Massachusetts IFA
(Gordon College Project)
Series '97 VRDN
1,100 12/01/27 (b)............ 3.90 1,100,000
Massachusetts IFA
(Lasell Village)
Series '98C VRDN
1,500 12/01/08 (b)............ 4.20 1,500,000
Massachusetts IFA
(Mount Ida College
Project)
Series '97
AMT VRDN
1,470 12/01/27 (b)............ 3.90 1,470,000
Massachusetts IFA
(Newbury College
Project)
Series '96 VRDN
691 6/01/21 (b)............. 3.85 691,000
Massachusetts IFA
(Prevention of Cruelty
to Animals)
Series '97 VRDN
300 8/01/27 (b)............. 3.90 300,000
1
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Municipal Trust - Massachusetts Portfolio
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Principal
Amount
(000) Security(a) Yield Value
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Massachusetts IFA
(S-N Bedding Co., Inc.)
Series '98B
AMT VRDN
$ 1,500 11/01/23 (b)............ 3.85% $ 1,500,000
Massachusetts IFA
(Showa Womens
Institute, Inc.)
Series '94 VRDN
900 3/15/04 (b)............. 5.00 900,000
Massachusetts IFA
(Tamasi Family
Development)
VRDN
1,000 5/01/13 (b)............. 4.00 1,000,000
Massachusetts IFA
(Techprint Issue)
Series '97
AMT VRDN
872 6/01/17 (b)............. 4.05 872,000
Massachusetts IFA PCR
(Holyoke Water &
Power Co.)
Series '90
AMT VRDN
2,000 12/01/20 (b)............ 3.75 2,000,000
Watertown GO
Series '98 MBIA
890 10/15/99 ............... 3.00 906,414
Westfield GO
Series '98 FSA
873 8/01/99 ................ 3.77 883,992
Westford GO
Series '98 FGIC
630 5/15/99 ................ 3.85 635,280
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26,401,585
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NEW YORK-4.3%
Long Island Power
Authority
(Electric System
Revenue)
Series '98-5 VRDN
500 5/01/33 (b)............. 5.10 500,000
New York ERDA PCR
(Niagara Mohawk Corp.)
Series '86A
AMT VRDN
1,000 12/01/26 (b)............ 5.10 1,000,000
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1,500,000
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OREGON-3.1%
Oregon Economic
Development Authority
(Kyotaru Oregon Project)
Series '89 AMT VRDN
1,100 12/01/99 (b)............ 4.38 1,100,000
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PUERTO RICO-5.7%
Puerto Rico Industrial,
Medical, Higher
Education &
Environment
(Ana G. Mendez Educ.
Foundation Project)
VRDN
2,000 12/01/15 (b)............ 3.80 2,000,000
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SOUTH CAROLINA-1.4%
Berkeley County IDA
(Nucor Corp. Project)
Series '95
AMT VRDN
500 9/01/28 (b)............. 4.20 500,000
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TEXAS-0.9%
Brazos River Harbor
Navigation District
(Dow Chemical Co.
Project)
Series '96
AMT VRDN
300 4/01/26 (b)............. 5.30 300,000
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Total Municipal Bonds
(amortized cost
$32,401,585)............ 32,401,585
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2
<PAGE>
Alliance Municipal Trust - Massachusetts Portfolio
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Principal
Amount
(000) Security(a) Yield Value
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COMMERCIAL PAPER-8.6%
MASSACHUSETTS-8.6%
Massachusetts Bay
Transportation Authority
Series B
$ 1,500 2/12/99 ................ 3.00% $ 1,500,000
Massachusetts Finance
Agency Pollution Control
(New England Power)
Series '93B
1,500 1/12/99 ................ 3.25 1,500,000
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Total Commercial Paper
(amortized cost
$3,000,000)............. 3,000,000
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TOTAL INVESTMENTS-101.0%
(amortized cost
$35,401,585)............ $ 35,401,585
Other assets less
liabilities-(1.0%)...... (346,289)
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NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
35,055,296 shares
outstanding)............ $ 35,055,296
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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
BAN Bond Anticipation Note
ERDA Energy Research & Development Authority
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance
GO General Obligation
IDA Industrial Development Authority
IDR Industrial Development Revenue
IFA Industrial Finance Authority
MBIA Municipal Bond Investors Assurance
PCR Pollution Control Revenue
See notes to financial statements.
3
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended December 31, 1998
(unaudited) Alliance Municipal Trust - Massachusetts Portfolio
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<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest............................................................. $ 582,542
EXPENSES
Advisory fee (Note B)................................................ $ 86,071
Distribution assistance and administrative service (Note C).......... 113,658
Custodian fees....................................................... 34,282
Transfer agency (Note B)............................................. 12,388
Audit and legal fees................................................. 6,064
Printing............................................................. 4,324
Registration fees.................................................... 3,833
Trustees' fees....................................................... 1,165
Amortization of organization expense................................. 937
Miscellaneous........................................................ 1,287
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Total expenses....................................................... 264,009
Less: expense reimbursement.......................................... (91,867)
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Net expenses......................................................... 172,142
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NET INCREASE IN NET ASSETS FROM OPERATIONS.............................. $ 410,400
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</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
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<TABLE>
<CAPTION>
Six Months Ended
December 31, 1998 Year Ended
(unaudited) June 30, 1998
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<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income................................................ $ 410,400 $ 707,293
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................ (410,400) (707,293)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E)................................................ 7,222,896 12,786,301
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Total increase....................................................... 7,222,896 12,786,301
NET ASSETS
Beginning of year.................................................... 27,832,400 15,046,099
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End of period........................................................ $ 35,055,296 $ 27,832,400
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</TABLE>
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See notes to financial statements.
4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 (unaudited)
Alliance Municipal Trust - Massachusetts 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 and Alliance Municipal
Trust-Massachusetts Portfolio (the "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, 2002.
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 $91,867.
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 $9,000 for the six months ended December 31, 1998.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - Massachusetts 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 $43,035. 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 $70,623, of which $46,000 was paid to the Adviser.
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NOTE D: Investment Transactions
At December 31, 1998, the cost of investments for federal income tax purposes
was the same as the cost for financial reporting purposes.
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NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1998, capital paid-in aggregated $35,055,296. 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............................................................. 65,501,040 134,199,946
Shares issued on reinvestments of dividends............................. 410,400 707,293
Shares redeemed......................................................... (58,688,544) (122,120,938)
----------- ------------
Net increase ........................................................... 7,222,896 12,786,301
=========== ============
</TABLE>
6
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - Massachusetts Portfolio
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Six Months Ended Year Ended April 17, 1997(a)
December 31, 1998 June 30, through
(unaudited) 1998 June 30, 1997
---------------- ---------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of period .................. $ 1.00 $ 1.00 $ 1.00
------ ------ ------
Income From Investment Operations
Net investment income (b) ............................. .012 .028 .007
------ ------ ------
Less: Dividends
Dividends from net investment income .................. (.012) (.028) (.007)
------ ------ ------
Net asset value, end of period ........................ $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total Return
Total investment return based on net asset value (c) .. 2.40%(d) 2.83% 3.53%(d)
Ratios/Supplemental Data
Net assets, end of period (000's omitted) ............. $35,055 $27,832 $15,046
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ........ 1.00%(d) .85% .50%(d)
Expenses, before waivers and reimbursements ........ 1.53%(d) 1.37% 2.99%(d)
Net investment income (b) .......................... 2.38%(d) 2.80% 3.47%(d)
</TABLE>
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(a) Commencement of operations.
(b) Net of expenses reimbursed or waived by the Adviser.
(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.
(d) Annualized.
7
<PAGE>
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BULK RATE
Alliance Municipal Trust - Massachusetts 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| |#| |1| |5| |#|
For non-touch-tone telephones, call toll-free (800) 221-9513
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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.
AMASR
