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Alliance
Municipal
Trust
- New York Portfolio
- --------------------------------------------------------------------------------
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 York Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-80.0%
NEW YORK-80.0%
Albany IDA
(Davies Office
Refurbishing Inc.)
Series '95 AMT
VRDN
$ 2,310 9/01/15 (b)............. 3.90% $ 2,310,000
Albany IDA
(Davies Office
Refurbishing Inc.)
Series '97 AMT
VRDN
1,265 2/01/17 (b)............. 3.90 1,265,000
Albany IDA
(United Cerebal Palsy)
Series '97B VRDN
12,775 12/01/19 (b)............ 3.80 12,775,000
Amityville Unified
School District TAN
Series '98
1,000 6/25/99 ................ 3.63 1,000,784
Bolton Central School
District BAN
Series '98
3,785 6/16/99 ................ 3.73 3,789,664
Franklin County IDA
(KES Chateaugay LP.)
Series '91A AMT
VRDN
17,900 7/01/21 (b)............. 5.50 17,900,000
Fulton City School
District RAN
Series '98
4,000 6/30/99 ................ 3.73 4,005,346
Long Island Power
Authority
Electric System Revenue
Series '98-1 VRDN
5,000 5/01/33 (b)............. 4.15 5,000,000
Long Island Power
Authority
Electric System Revenue
Series '98-2 VRDN
10,000 5/01/33 (b)............. 3.80 10,000,000
Long Island Power
Authority
Electric System Revenue
Series '98-5 VRDN
4,300 5/01/33 (b)............. 5.10 4,300,000
Lyons Central School
District RAN
Series '98
3,100 6/25/99 ................ 3.69 3,102,999
Malone Central School
District RAN
Series '98
4,455 6/29/99 ................ 3.67 4,457,736
New York City GO
Series '92D VRDN
12,000 2/01/20 (b)............. 4.05 12,000,000
New York City GO
Series '94C VRDN
5,900 10/01/23 (b)............ 5.00 5,900,000
New York City GO
Series '95F-4 VRDN
14,650 2/15/20 (b)............. 4.00 14,650,000
New York City GO
Series F-2 VRDN
8,350 2/15/12 (b)............. 4.05 8,350,000
New York City Health &
Hospital Corp.
(Health System)
Series '97A VRDN
17,900 2/15/26 (b)............. 3.90 17,900,000
New York City Housing
Development Corp. MFHR
(2111 Hughes Ave.
Project)
Series '97A VRDN
4,900 12/01/29 (b)............ 4.30 4,900,000
New York City Housing
Development Corp. MFHR
(2nd Avenue Project)
Series '98A AMT
VRDN
3,800 9/01/30 (b)............. 4.30 3,800,000
New York City Housing
Development Corp. MFHR
(Crotona Avenue Project)
Series '98A AMT
VRDN
2,100 9/01/30 (b)............. 4.25 2,100,000
New York City Housing
Development Corp. MFHR
(Queenswood Apts. Project)
Series '89A VRDN
2,000 2/01/17 (b)............. 4.00 2,000,000
1
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - New York Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
New York City Housing
Development Corp. MFHR
(Vermont School Project)
Series '97A VRDN
$ 5,000 12/01/29 (b)............ 4.30% $ 5,000,000
New York City Housing
Development Corp. MFHR
(West 89th Street Project)
Series '96A AMT
VRDN
8,100 12/01/29 (b)............ 3.75 8,100,000
New York City IDA
(American Civil
Liberties Union)
Series '97 VRDN
967 6/01/12 (b)............. 3.80 967,000
New York City Trust
Cultural Resources
(Carnegie Hall)
VRDN
11,325 12/01/15 (b)............ 3.75 11,325,000
New York State
Dormitory Authority
(NY Foundling Charitable
Project) VRDN
10,260 7/01/12 (b)............. 3.80 10,260,000
New York State ERDA
(Long Island Lighting Co.)
Series '94A AMT
VRDN
900 10/01/24 (b)............ 4.10 900,000
New York State ERDA
PCR
(Long Island Lighting Co.)
Series A PPB
6,000 3/01/16 (b)............. 3.58 6,000,000
New York State ERDA
PCR
(Niagara Mohawk Corp.)
Series '86A AMT
VRDN
14,900 12/01/26 (b)............ 5.10 14,900,000
New York State GO
Series '98D
4,085 7/15/99 ................ 3.63 4,095,504
New York State HFA
MFHR
(101 West End Avenue
Project) Series '98A
AMT VRDN
18,000 11/01/31 (b)............ 3.85 18,000,000
New York State HFA
MFHR
(250 West 50th Street)
Series '97A AMT
VRDN
3,000 5/01/30 (b)............. 3.75 3,000,000
New York State HFA
MFHR
(345 East 94th Street
Housing) Series '98A
AMT VRDN
8,700 11/01/31 (b)............ 3.85 8,700,000
New York State HFA
MFHR
(East 84th Street)
Series '95A AMT
VRDN
19,000 11/01/28 (b)............ 3.85 19,000,000
New York State HFA
MFHR
(Normandie Court II)
Series '87A AMT
VRDN
7,000 11/01/02 (b)............ 4.10 7,000,000
New York State HFA
MFHR
(Saxony Apartments)
Series '97A AMT
VRDN
18,700 11/01/30 (b)............ 4.20 18,700,000
New York State HFA
MFHR
(Tribeca Park) Series '97A
AMT VRDN
14,800 11/01/30 (b)............ 3.90 14,800,000
New York State HFA
MFHR
(Union Square South
Housing) Series '96 AMT
VRDN
2,100 11/01/24 (b)............ 3.75 2,100,000
New York State Local
Government Assistance
Corp.
Series '94B VRDN
18,000 4/01/23 (b)............. 3.85 18,000,000
New York State Local
Government Assistance
Corp.
Series '95D VRDN
15,600 4/01/25 (b)............. 4.10 15,600,000
2
<PAGE>
Alliance Municipal Trust - New York Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Newfane Central
School District BAN
$ 4,500 6/10/99 ................ 3.85% $ 4,502,841
Niagara County IDA
(American Ref-Fuel)
Series '94C AMT VRDN
28,200 11/15/24 (b)............ 4.15 28,200,000
Niagara County IDA
(American Ref-Fuel)
Series '96D AMT
VRDN
3,100 11/15/26 (b)............ 4.15 3,100,000
Niagara County IDA
(Pyron Corp. Project)
Series '89 AMT VRDN
1,825 11/01/04 (b)............ 4.00 1,825,000
Ontario County IDA
(Ultrafab Inc.) Series '95
AMT VRDN
2,000 12/01/15 (b)............ 3.95 2,000,000
Plainedge Unified
School District TAN
Series '98
1,000 6/30/99 ................ 3.63 1,000,805
Plainview-Old
Bethpage Central
School District TAN
Series '98
3,000 6/30/99 ................ 3.63 3,002,414
Plainview-Old
Bethpage Central
School District TAN
Series '98
1,000 6/30/99 ................ 3.63 1,001,284
Plainview-Old
Bethpage Central
School District TAN
Series '98
7,000 6/30/99 ................ 3.65 7,011,661
Port Authority of New
York & New Jersey
(Versatile Structure)
Series '94-2 VRDN
1,700 5/01/19 (b)............. 5.05 1,700,000
Port Authority of New
York & New Jersey
(Versatile Structure)
Series '97 1-R AMT
VRDN
200 8/01/28 (b)............. 5.25 200,000
Poughkeepsie Central
School District TAN
Series '98
4,900 6/30/99 ... 3.65 4,903,497
Rensselaer County IDA
(Rensselaer Polytechnic
Institute Project)
Series '97A VRDN
4,400 2/01/22 (b)............. 3.85 4,400,000
Sachem Central School
District TAN
Series '98
11,700 6/25/99 ................ 3.65 11,708,634
Sayville Unified School
District TAN
Series '98
8,000 6/29/99 ................ 3.63 8,006,418
Smithtown Central
School District TAN
Series '98
3,000 6/25/99 ................ 3.63 3,002,357
Southeast IDA
(The Rawplug Project)
Series '96 AMT
VRDN
2,200 5/01/21 (b)............. 4.05 2,200,000
Suffolk County IDA
(ADP Inc. Project)
Series '97 VRDN
3,785 4/01/18 (b)............. 5.35 3,785,000
Taconic Hills Central
School District BAN
Series '98
10,000 6/16/99 ................ 3.44 10,024,868
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Total Municipal Bonds
(amortized cost
$429,528,812)........... 429,528,812
---------------
COMMERCIAL PAPER-18.9%
NEW YORK-18.9%
Long Island Power
Authority
Electric System Revenue
Series '98
10,000 4/07/99 ................ 3.00 10,000,000
Metropolitan Transit
Authority BAN
(Transit Facility Special
Obligation) Series CP-1 A
5,000 4/08/99 ................ 2.80 5,000,000
3
<PAGE>
STATEMENT OF NET ASSETS (continued)
Alliance Municipal Trust - New York Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Metropolitan Transit
Authority BAN
(Transit Facility Special
Obligation) Series CP-1 A
$ 6,500 4/06/99 ................ 2.90% $ 6,500,000
Metropolitan Transit
Authority BAN
(Transit Facility Special
Obligation) Series CP-1 A
5,000 4/06/99 ................ 2.96 5,000,000
Metropolitan Transit
Authority BAN
(Transit Facility Special
Obligation) Series CP-1 A
10,000 1/15/99 ................ 3.15 10,000,000
New York City GO
Series '96J-3
7,700 2/01/99 ................ 3.10 7,700,000
New York State
Dormitory Authority
(Memorial Sloan-Kettering
Cancer Center) Series '89A
10,000 4/05/99 ................ 2.90 10,000,000
New York State
Dormitory Authority
(Memorial Sloan-Kettering
Cancer Center) Series '89A
4,100 4/12/99 ................ 2.90 4,100,000
New York State
Dormitory Authority
(Memorial Sloan-Kettering
Cancer Center) Series '89A
3,500 4/07/99 ................ 2.95 3,500,000
New York State
Environmental Facilities
(General Electric Co.)
Series '97A AMT
8,000 1/14/99 ................ 3.10 8,000,000
New York State GO
(Environmental Quality 86)
Series '97A
9,350 4/01/99 ................ 3.00 9,350,000
New York State GO BAN
Series U
10,000 3/01/99 ................ 3.05 10,000,000
New York State GO BAN
Series U
7,500 2/18/99 ................ 3.10 7,500,000
Port Authority of New
York and New Jersey
AMT
4,985 3/10/99 ................ 2.85 4,985,000
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Total Commercial Paper
(amortized cost
$101,635,000)........... 101,635,000
---------------
TOTAL INVESTMENTS-98.9%
(amortized cost
$531,163,812)........... 531,163,812
Other assets less
liabilities-1.1%........ 5,655,206
---------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
536,882,964 shares
outstanding)............ $ 536,819,018
===============
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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:
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
ERDA Energy Research & Development Authority
GO General Obligation
HFA Housing Financing Agency/Authority
IDA Industrial Development Authority
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
TAN Tax Anticipation Note
See notes to financial statements.
4
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended
December 31, 1998 (unaudited) Alliance Municipal Trust - New York Portfolio
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest............................................................. $ 9,168,035
EXPENSES
Advisory fee (Note B)................................................ $ 1,376,177
Distribution assistance and administrative service (Note C).......... 1,077,317
Transfer agency (Note B)............................................. 252,015
Custodian fees....................................................... 64,146
Printing............................................................. 29,788
Registration fees.................................................... 25,839
Audit and legal fees................................................. 6,499
Trustees' fees....................................................... 1,410
Miscellaneous........................................................ 1,712
--------------
Total expenses....................................................... 2,834,903
Less: expense reimbursement.......................................... (82,548)
--------------
Net expenses......................................................... 2,752,355
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS.............................. $ 6,415,680
==============
</TABLE>
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See notes to financial statements.
5
<PAGE>
STATEMENT OF CHANGES
IN NET ASSETS Alliance Municipal Trust - New York 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................................................ $ 6,415,680 $ 12,056,052
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................ (6,415,680) (12,056,052)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E)................................................ 16,257,464 165,101,028
-------------- --------------
Total increase....................................................... 16,257,464 165,101,028
NET ASSETS
Beginning of year.................................................... 520,561,554 355,460,526
-------------- --------------
End of period........................................................ $ 536,819,018 $ 520,561,554
============== ==============
</TABLE>
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See notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 (unaudited) Alliance Municipal Trust - New York 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 (the "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. 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. For the
six months ended December 31, 1998, the reimbursement amounted to $82,548.
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 $131,062 for the six months ended December 31,
1998.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Municipal Trust - New York 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 $688,089. 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 $389,228 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 $20,548, of which $7,459 expires in
2002 and $13,089 expires in the year 2003.
- --------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1998, capital paid-in aggregated $536,882,964. 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............................................................. 621,211,582 1,778,864,407
Shares issued on reinvestments of dividends............................. 6,415,680 12,056,052
Shares redeemed......................................................... (611,369,798) (1,625,819,431)
------------ --------------
Net increase ........................................................... 16,257,464 165,101,028
============ ==============
</TABLE>
8
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - New York 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 (a) .................. .012 .027 .027 .028 .028 .018
------ ------ ------ ------ ------ ------
Less: Dividends
Dividends from net investment income ....... (.012) (.027) (.027) (.028) (.028) (.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) ......................... 2.34%(c) 2.74% 2.77% 2.87% 2.84% 1.77%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .. $536,819 $520,562 $355,461 $330,984 $177,254 $162,839
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ........................ 1.00%(c) .93% .85% .85% .85% .84%
Expenses, before waivers and
reimbursements ........................ 1.03%(c) 1.01% 1.04% 1.03% 1.03% 1.08%
Net investment income (a) ............... 2.33%(c) 2.69% 2.73% 2.82% 2.81% 1.77%
</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.
9
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-----------------
BULK RATE
Alliance Municipal Trust - New York 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| |#| |4| |9| |#|
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.
ANYSR
