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Alliance
Municipal
Trust
- New Jersey 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 - New Jersey Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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MUNICIPAL BONDS-82.6%
ARKANSAS-2.3%
Blytheville IDR
(Nucor Corp. Project)
Series '98 AMT
VRDN
$ 4,500 6/01/28 (b)............. 4.20% $ 4,500,000
---------------
DELAWARE-2.1%
Delaware Economic
Development Authority
IDR
(Delaware Clean Power
Project) Series '97A
AMT VRDN
4,000 8/01/29 (b)............. 4.20 4,000,000
---------------
NEW JERSEY-71.2%
Cumberland County
GO BAN
Series '98
1,000 7/22/99 ................ 3.65 1,000,533
Essex County
Improvement Authority
(County Asset Sale
Project) Series '95
AMBAC VRDN
8,000 12/01/25 (b)............ 4.00 8,000,000
Essex County
Improvement Authority
SFMR (Pooled Govt.
Loan Prog.)
Series '86 VRDN
6,700 7/01/26 (b)............. 3.75 6,700,000
Gloucester County PCR
(Mobil Oil Co.)
VRDN
2,000 12/01/03 (b)............ 3.70 2,000,000
Jefferson Township
GO BAN
Series '98B
4,272 7/16/99 ................ 3.65 4,274,938
Jersey City BAN
Series '98
6,000 9/17/99 ................ 3.44 6,023,438
Monmouth County
Improvement Authority
(Capital Equipment
Pooled Lease) Series '97
2,000 10/01/99 ............... 3.05 2,028,484
Monmouth County
Improvement Authority
(Pooled Govt. Loan Prog.)
VRDN
7,150 8/01/16 (b)............. 3.75 7,150,000
New Jersey Economic
Development Authority
(Bergen Community
Blood Center)
Series '97 VRDN
2,070 12/01/12 (b)............ 3.90 2,070,000
New Jersey Economic
Development Authority
(Colonial Wire & Cable)
Series B-1 AMT
VRDN
1,825 10/01/00 (b)............ 3.80 1,825,000
New Jersey Economic
Development Authority
(Curtiss Wright Flight)
VRDN
2,047 1/01/02 (b)............. 3.60 2,047,000
New Jersey Economic
Development Authority
(Dow Chemical)
VRDN
1,000 5/01/01 (b)............. 5.00 1,000,000
New Jersey Economic
Development Authority
(Economic Growth E-1)
Series '94E AMT
VRDN
1,680 8/01/14 (b)............. 3.80 1,680,000
New Jersey Economic
Development Authority
(Economic Growth)
Series '94 F VRDN
650 8/01/14 (b)............. 3.75 650,000
New Jersey Economic
Development Authority
(Economic Growth)
Series '96C VRDN
2,695 11/01/11 (b)............ 3.80 2,695,000
New Jersey Economic
Development Authority
(Economic Growth)
Series B AMT VRDN
1,075 8/01/04 (b)............. 3.80 1,075,000
1
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - New Jersey Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
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New Jersey Economic
Development Authority
(Economic Growth-Kirker)
Series '96 AMT
VRDN
$ 1,750 1/01/05 (b)............. 3.90% $ 1,750,000
New Jersey Economic
Development Authority
(Economic Growth-Mona
Industries) Series '96
AMT VRDN
2,600 1/01/16 (b)............. 3.90 2,600,000
New Jersey Economic
Development Authority
(Fujinon Inc. Project)
Series '86 VRDN
2,000 3/01/01 (b)............. 5.00 2,000,000
New Jersey Economic
Development Authority
(Job Haines Home
Project)
Series '98 VRDN
4,000 2/01/28 (b)............. 3.75 4,000,000
New Jersey Economic
Development Authority
(Kinder-Care Learning
Centers)
Series D VRDN
390 10/01/00 (b)............ 4.30 390,000
New Jersey Economic
Development Authority
(Market Transition
Facilities Revenue)
Series '94A MBIA
5,000 7/01/99 ................ 3.60 5,033,737
New Jersey Economic
Development Authority
(Merck & Co.)
Series '82 VRDN
1,300 10/01/22 (b)............ 4.25 1,300,000
New Jersey Economic
Development Authority
(Multi-Modal Church &
Dwight)
Series '91 VRDN
1,365 12/01/08 (b)............ 3.75 1,365,000
New Jersey Economic
Development Authority
(Newark Recycling)
Series '97 PPB
4,400 12/01/22 (b)............ 3.00 4,400,000
New Jersey Economic
Development Authority
(Russ Berrie & Co., Inc.)
Series '83 VRDN
1,000 12/01/13 (b)............ 3.50 1,000,000
New Jersey Economic
Development Authority
(Thermal Energy Ltd.)
AMT VRDN
4,500 12/01/31 (b)............ 3.90 4,500,000
New Jersey Economic
Development Authority
(United Water New
Jersey Project)
Series '96A AMBAC
VRDN
2,100 11/01/26 (b)............ 5.00 2,100,000
New Jersey Economic
Development Authority
PCR
(Hoffman-LA Roche Inc.)
VRDN
2,800 2/01/05 (b)............. 4.00 2,800,000
New Jersey GO
Pre-Refunded
Series '89C
1,000 1/15/99 ................ 3.71 1,001,296
New Jersey Health
Care Facilities
(Atlantic City Medical
Center)
Series '98A-1 VRDN
7,500 7/01/28 (b)............. 3.68 7,500,000
New Jersey Health
Care Facilities
(Christ Hospital)
Series '98A-2 VRDN
7,400 7/01/13 (b)............. 3.68 7,400,000
New Jersey Health
Care Facilities
(Community Medical
Center) Series '98 FSA
1,100 7/01/99 ................ 3.10 1,107,526
2
<PAGE>
Alliance Municipal Trust - New Jersey Portfolio
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Principal
Amount
(000) Security(a) Yield Value
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New Jersey Health
Care Facilities
(Hospital Capital Asset
Financing)
Series '85B VRDN
$ 8,000 7/01/35 (b)............. 3.70% $ 8,000,000
New Jersey Health
Care Facilities
(Hospital Capital Asset
Financing)
Series '85D VRDN
2,000 7/01/35 (b)............. 3.70 2,000,000
New Jersey Health
Care Facilities
(St. Barnabas Medical
Center)
Series '98A MBIA
2,010 7/01/99 ................ 3.50 2,017,276
New Jersey State
Turnpike Authority
(Turnpike Revenue)
Series '91D FGIC
VRDN
9,400 1/01/18 (b)............. 3.75 9,400,000
New Jersey
Transportation Trust
Fund
Series '95B
2,080 6/15/99 ................ 2.96 2,099,020
Salem County PCR
(Dupont Corp.)
Series '82A VRDN
2,400 3/01/12 (b)............. 3.40 2,400,000
Sparta Township
GO BAN
Series '98
5,548 6/11/99 ................ 3.75 5,551,033
Westwood GO BAN
Series '98A
821 2/17/99 ................ 3.71 821,308
Westwood GO BAN
Series '98B
3,727 8/16/99 ................ 3.60 3,731,463
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136,487,052
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PUERTO RICO-2.6%
Puerto Rico Industrial,
Medical, Higher
Education & Environment
(Ana G. Mendez Educ.
Foundation Project)
VRDN
4,900 12/01/15 (b)............ 3.80 4,900,000
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SOUTH CAROLINA-1.3%
Berkeley County IDA
(Nucor Corp. Project)
Series '97 AMT
VRDN
2,000 4/01/30 (b)............. 4.20 2,000,000
Berkeley County IDA
PCR
(Amoco Chemical Co.
Project) Series '98
AMT VRDN
400 4/01/28 (b)............. 5.20 400,000
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2,400,000
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TENNESSEE-3.1%
Volunteer State
Student Loan
(Student Funding Corp.)
Series '87A-3 AMT
VRDN
6,000 12/01/17 (b)............ 4.50 6,000,000
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Total Municipal Bonds
(amortized cost
$158,287,052)........... 158,287,052
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COMMERCIAL PAPER-15.6%
NEW JERSEY-15.6%
New Jersey
(Princeton University)
Series '97A
2,000 4/08/99 ................ 2.90 2,000,000
New Jersey Economic
Development Authority
(Chamber Cogeneration)
Series '91 AMT
3,000 4/09/99 ................ 2.90 3,000,000
New Jersey Economic
Development Authority
(Chamber Cogeneration)
Series '91 AMT
3,700 3/01/99 ................ 3.25 3,700,000
3
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - New Jersey Portfolio
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Principal
Amount
(000) Security(a) Yield Value
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New Jersey Economic
Development Authority
(Chambers Cogeneration)
Series '91 AMT
VRDN
$ 3,200 7/01/21 (b)............. 2.90% $ 3,200,000
New Jersey Economic
Development Authority
(Keystone Project)
Series '92
3,700 3/10/99 ................ 2.80 3,700,000
New Jersey Educational
Facilities Authority
(Princeton University)
Series '97A
1,500 2/25/99 ................ 3.10 1,500,000
New Jersey GO TRAN
Series '99A
4,000 4/07/99 ................ 2.95 4,000,000
New Jersey GO TRAN
Series '99A
4,000 4/09/99 ................ 3.00 4,000,000
Port Authority of New
York and New Jersey
AMT
4,840 2/23/99 ................ 3.05 4,840,000
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Total Commercial Paper
(amortized cost
$29,940,000)............ 29,940,000
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TOTAL INVESTMENTS-98.2%
(amortized cost
$188,227,052)........... 188,227,052
Other assets less
liabilities-1.8%........ 3,390,843
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NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
191,619,177 shares
outstanding)............ $ 191,617,895
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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
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance
GO General Obligation
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended
December 31, 1998 (unaudited) Alliance Municipal Trust - New Jersey Portfolio
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<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest............................................................. $ 2,991,423
EXPENSES
Advisory fee (Note B)................................................ $ 454,418
Distribution assistance and administrative service (Note C).......... 404,151
Transfer agency (Note B)............................................. 53,364
Custodian fees....................................................... 36,982
Printing............................................................. 10,888
Registration fees.................................................... 8,590
Audit and legal fees................................................. 4,736
Trustees' fees....................................................... 1,197
Amortization of organization expense................................. 1,021
Miscellaneous........................................................ 1,226
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Total expenses....................................................... 976,573
Less: expense reimbursement.......................................... (67,737)
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Net expenses......................................................... 908,836
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NET INCREASE IN NET ASSETS FROM OPERATIONS.............................. $ 2,082,587
==============
</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
---------------- ----------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income................................................ $ 2,082,587 $ 3,736,914
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................ (2,082,587) (3,736,914)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E)................................................ 40,000,530 28,038,111
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Total increase....................................................... 40,000,530 28,038,111
NET ASSETS
Beginning of year.................................................... 151,617,365 123,579,254
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End of period........................................................ $ 191,617,895 $ 151,617,365
============== ==============
</TABLE>
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See notes to financial statements.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 (unaudited) Alliance Municipal Trust - New Jersey 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 (the "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. Organization Expenses
The organization expenses of the Portfolio are being amortized against income on
a straight-line basis through February 7, 1999.
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
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 $67,737.
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 $23,838 for the six months ended December 31,
1998.
6
<PAGE>
Alliance Municipal Trust - New Jersey 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 $227,209. 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 $176,942, 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 carryforward of $1,283, of which $1,032 expires in
2003, $219 expires in 2004 and $32 expires in the year 2005.
- --------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1998, capital paid-in aggregated $191,619,177. 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............................................................. 232,532,279 580,716,424
Shares issued on reinvestments of dividends............................. 2,082,587 3,736,914
Shares redeemed......................................................... (194,614,336) (556,415,227)
------------ ------------
Net increase ........................................................... 40,000,530 28,038,111
============ ============
</TABLE>
7
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - New Jersey Portfolio
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Six Months February 7,
Ended 1994(a)
December 31, Year Ended June 30, through
1998 ------------------------------------------ June 30,
(unaudited) 1998 1997 1996 1995 1994
----------- ------ ------ ------ ------ -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (b) .................. .012 .026 .027 .028 .029 .008
------ ------ ------ ------ ------ ------
Less: Dividends
Dividends from net investment income ....... (.012) (.026) (.027) (.028) (.029) (.008)
------ ------ ------ ------ ------ ------
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 (c) ......................... 2.31%(d) 2.67% 2.72% 2.89% 2.93% 2.08%(d)
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .. $191,618 $151,617 $123,579 $98,098 $74,133 $36,909
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ........................ 1.00%(d) .94% .85% .82% .74% .70%(d)
Expenses, before waivers and
reimbursements ........................ 1.07%(d) 1.07% 1.12% 1.19% 1.29% 1.93%(d)
Net investment income (b) ............... 2.29%(d) 2.63% 2.68% 2.84% 2.98% 2.07%(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.
8
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-----------------
BULK RATE
Alliance Municipal Trust - New Jersey 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| |#| |9| |2| |#|
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.
ANJSR
