UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-10573
ALLIANCE NATIONAL MUNICIPAL INCOME FUND, INC.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
Mark R. Manley
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, New York 10105
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 221-5672
Date of fiscal year end: October 31, 2005
Date of reporting period: January 31, 2005
ITEM 1. SCHEDULE OF INVESTMENTS.
ALLIANCE NATIONAL MUNICIPAL INCOME FUND
PORTFOLIO OF INVESTMENTS
January 31, 2005 (unaudited)
Principal
Amount
Company (000) Value
MUNICIPAL BONDS-159.2%
Long-Term Municipal Bonds-159.0%
Alabama-9.9%
Huntsville Hlth Care Auth
(Huntsville Hosp Sys) Ser 02B
5.75%, 6/01/32 $ 8,000 $ 8,550,080
Jefferson Cnty
Ltd Oblig Sch Warrants Ser 04A
5.25%, 1/01/23 1,275 1,351,232
Jefferson Cnty Swr Rev
FGIC Ser 99A
5.375%, 2/01/36 12,405 13,755,036
Marshall Cnty Hlth Care Auth
(Marshall Cnty Med Ctr) Ser 02A
5.75%, 1/01/32 2,500 2,617,825
(Marshall Cnty Med Ctr) Ser 02D
5.75%, 1/01/32 3,000 3,143,370
Montgomery Spl Care Facs Fin Auth Rev
(Baptist Health) Ser 04C
5.125%, 11/15/24 1,500 1,539,960
5.25%, 11/15/29 810 821,697
--------------
31,779,200
--------------
Alaska-1.5%
Alaska Intl Arpt Rev
MBIA Ser 03B
5.00%, 10/01/26 1,000 1,044,960
Alaska Mun Bd Bk Auth
MBIA Ser 04G
5.00%, 2/15/24 1,345 1,427,247
Four Dam Pool Elec Rev
Ser 04
5.00%, 7/01/24 1,035 1,067,095
5.25%, 7/01/26 1,385 1,432,755
--------------
4,972,057
--------------
Arkansas-1.8%
Arkansas Dev Fin Auth SFMR
(Mtg Rev) GNMA Ser 02A
5.30%, 7/01/34 5,695 5,850,758
--------------
California-9.4%
California GO
Ser 02
5.25%, 4/01/30 1,000 1,054,810
Ser 03
5.25%, 2/01/24 2,500 2,697,025
Ser 04
5.25%, 4/01/29 2,000 2,131,580
Chula Vista IDR
(San Diego Gas) Ser 96A
5.30%, 7/01/21 4,000 4,278,320
Coachella Valley Uni Sch Dist
MBIA Ser 03
5.00%, 9/01/31 1,000 1,046,090
Hartnell Comm College
MBIA Ser 03A
5.00%, 8/01/27 1,155 1,219,599
La Quinta Fin Auth Loc Agy Rev
AMBAC Ser 04A
5.25%, 9/01/24 2,000 2,200,580
Lincoln Special Tax
(CFD No 2003-1) Ser 04
5.95%, 9/01/28 1,000 1,016,420
Los Angeles Cmnty Redev Agy
Ser 04L
5.00%, 3/01/18 1,715 1,754,977
Los Angeles Regl Arpts
(Laxfuel Corp) AMBAC Ser 01 AMT
5.50%, 1/01/32 9,500 9,995,140
San Rafael Elem Sch Dist
FSA Ser 03A
5.00%, 8/01/28 2,820 2,950,848
--------------
30,345,389
--------------
Colorado-3.1%
Avon Hsg Auth MFHR
(Buffalo Ridge II Proj) GNMA Ser 02A AMT
5.70%, 10/20/43 4,950 5,165,869
Colorado Hlth Facs Auth Rev
(Parkview Med Ctr) Ser 04
5.00%, 9/01/25 1,800 1,823,742
Denver City & Cnty MFHR
(Clyburn Stapleton Proj) GNMA Ser 02 AMT
5.50%, 12/20/43 2,155 2,212,668
Todd Creek Farms Metro District No 1 Wtr Rev
(Ref & Impt) Ser 04
6.125%, 12/01/19 780 779,548
--------------
9,981,827
--------------
Connecticut-0.3%
Mohegan Tribe Indians Gaming Auth
Ser 03
5.125%, 1/01/23 1,000 1,002,780
--------------
District of Columbia-1.2%
District of Columbia Special Tax Rev
(Gallery Place Proj) Ser 02 FSA
5.40%, 7/01/31 3,500 3,739,680
--------------
Florida-24.9%
Beacon Tradeport Cmnty Dev Dist
Ser 02B
7.25%, 5/01/33 7,350 7,887,873
Brevard Cnty HFA SFMR
(Mtg Rev) GNMA Ser 02C AMT
5.40%, 3/01/33 2,040 2,081,698
Collier Cnty CFD
(Fiddler's Creek) Ser 02A
6.875%, 5/01/33 3,015 3,197,438
(Fiddler's Creek) Ser 02B
6.625%, 5/01/33 2,270 2,374,352
Dade Cnty Arpt Rev
(Miami Int'l Arpt) FGIC Ser 02 AMT
5.375%, 10/01/32 6,040 6,362,898
Florida Educ & Athletic Fac
(FSU Finl Assist) AMBAC Ser 02
5.00%, 10/01/31 5,000 5,206,250
Florida Hsg Fin Corp MFHR
(Westminster Apts) FSA Ser 02E-1 AMT
5.40%, 4/01/42 3,000 3,131,070
Hamal Cmnty Dev Dist
(Hamal) Ser 01
6.75%, 5/01/31 2,460 2,618,350
Jacksonville Wtr & Swr Sys Rev
(Jacksonville Elec) MBIA Ser 02A
5.50%, 10/01/41 (a)(b) 20,000 21,149,800
Lee Cnty Arpt Rev
(Southwest FL Intl) FSA Ser 00A AMT
5.75%, 10/01/22 - 10/01/25 9,500 10,520,800
Lee Cnty Cmnty Dev Dist
(Miromar Lakes) Ser 00A
7.25%, 5/01/12 1,595 1,697,877
Lee Cnty IDA Hlth Fac
(Shell Point Village) Ser 99A
5.50%, 11/15/29 2,500 2,499,125
Miami Beach Hlth Facs Hosp Rev
(Mount Sinai Med Ctr) Ser 04
6.75%, 11/15/24 2,000 2,158,400
Midtown Miami CDD
Ser 04A
6.00%, 5/01/24 2,500 2,583,150
Orange Cnty Hlth Facs Hosp Rev
(Orlando Regional) Ser 02
5.75%, 12/01/32 1,400 1,510,460
Parkway Center CDD
Ser 04A
6.125%, 5/01/24 3,075 3,150,522
Pinellas Cnty HFA SFMR
(Mtg Rev) GNMA/FNMA Ser 02A AMT
5.40%, 3/01/32 1,165 1,192,436
Village Cmnty Dev Dist
Ser 03A
6.00%, 5/01/22 1,000 1,045,060
--------------
80,367,559
--------------
Georgia-2.4%
Cartersville Dev Auth
(Anheuser Busch Proj) Ser 02 AMT
5.95%, 2/01/32 2,510 2,702,919
Georgia HFA SFMR
(Mtg Rev) Ser 02A-2 AMT
5.60%, 12/01/32 4,940 4,998,736
--------------
7,701,655
--------------
Hawaii-0.7%
Hawaii St Elec Rev
XLCA Ser 03B AMT
5.00%, 12/01/22 2,000 2,099,600
--------------
Illinois-18.6%
Bolingbrook GO
FGIC Ser 02A
5.375%, 1/01/38 5,000 5,352,150
Chicago Arpt Rev
(O'Hare Int'l Arpt) MBIA Ser 02A AMT
5.375%, 1/01/32 15,000 15,644,850
(O'Hare Int'l Arpt) XLCA Ser 03B-1
5.25%, 1/01/34 1,760 1,859,915
Chicago GO
FGIC Ser 00
5.50%, 1/01/40 14,585 15,935,863
FSA Ser 04A
5.00%, 1/01/25 1,000 1,059,680
Chicago Parking Rev
(Lakefront Millennium) MBIA Ser 98
5.125%, 1/01/28 8,600 9,036,192
Chicago Sales Tax Rev
FGIC Ser 98
5.25%, 1/01/28 5,710 6,014,400
Cook Cnty Sch Dist
FSA Ser 04
4.60%, 12/01/20 (c) 1,000 924,200
Met Pier & Expo Auth
(McCormick Place) MBIA Ser 02A
5.25%, 6/15/42 3,750 3,965,513
--------------
59,792,763
--------------
Indiana-4.6%
Hendricks Cnty Ind Bldg Facs Corp
(First Mtg) Ser 04
5.50%, 7/15/22 1,105 1,232,694
Indiana HFA SFMR
(Mtg Rev) GNMA/FNMA Ser 02 AMT
5.55%, 7/01/32 2,900 2,990,393
Indianapolis Pub Improv Bond
MBIA Ser 02A
5.25%, 7/01/33 10,000 10,577,500
--------------
14,800,587
--------------
Iowa-0.3%
Iowa Fin Auth SFMR
(Mtg Rev) GNMA/FNMA Ser 02A AMT
5.40%, 7/01/32 895 913,893
--------------
Louisiana-0.9%
Calcasieu Parish SFMR
(Mtg Rev) GNMA/FNMA Ser 02A
6.05%, 4/01/33 410 429,028
Louisiana HFA SFMR
(Mtg Rev) GNMA Ser 02C AMT
5.60%, 6/01/33 2,505 2,573,787
--------------
3,002,815
--------------
Massachusetts-3.1%
Massachusetts GO
Ser 02C
5.25%, 11/01/30 1,780 1,997,320
Ser 02C Prerefunded
5.25%, 11/01/30 3,220 3,613,130
Massachusetts Hlth & Ed Fac Hosp Rev
(Berkshire Hlth Sys) Asset Gty Ser 01E Radian
5.70%, 10/01/25 2,000 2,207,400
(Cape Cod Healthcare) Asset Gty Ser 01C Radian
5.25%, 11/15/31 2,100 2,215,395
--------------
10,033,245
--------------
Michigan-3.6%
Detroit Dev Fin Auth
(Daimler/Chrysler Plant) Ser 98A
5.50%, 5/01/21 1,665 1,443,855
Michigan Strategic
(Detroit Edison Co Proj) XLCA Ser 02 AMT
5.45%, 12/15/32 5,000 5,352,500
Saginaw Hosp Fin Auth Hosp Rev
(Covenant Med Ctr) Ser 00F
6.50%, 7/01/30 4,410 4,890,778
--------------
11,687,133
--------------
Missouri-0.7%
Missouri SFMR
(Mtg Rev) GNMA/FNMA Ser 02A-1 AMT
5.58%, 9/01/32 2,035 2,102,094
--------------
Nevada-15.6%
Carson City Hosp Rev
(Carson-Tahoe Hosp Proj) Radian Ser 03A
5.00%, 9/01/23 2,600 2,700,958
Clark Cnty Arpt Rev
FGIC Ser 01B
5.25%, 7/01/34 11,920 12,500,504
Nevada Dept Bus & Ind
(Las Vegas Monorail Proj) AMBAC Ser 00
5.625%, 1/01/32 11,720 13,119,251
Reno Special Tax
(Retrac Transp Proj) AMBAC Ser 02
5.25%, 6/01/41 1,000 1,055,250
Reno Special Tax
FGIC Ser 02
5.375%, 6/01/32 7,500 8,060,250
Truckee Meadows Wtr Auth
FSA Ser 01A
5.25%, 7/01/34 12,000 12,715,080
--------------
50,151,293
--------------
New Hampshire-1.4%
New Hampshire Hlth & Ed Fac Hosp Rev
(Covenant Med Ctr) Ser 02
6.125%, 7/01/31 4,200 4,482,576
--------------
New Jersey-3.0%
Morris Union Jointure Commn COP
Ser 04 Radian
5.00%, 5/01/24 5,185 5,434,658
New Jersey Eco Dev Auth Rev
(Cigarette Tax) Ser 04 FGIC
5.00%, 6/15/12 4,000 4,397,400
--------------
9,832,058
--------------
New York-4.9%
Erie Cnty IDA
(City of Buffalo Proj) FSA Ser 04
5.75%, 5/01/23 4,100 4,756,205
New York City GO
Ser 04G
5.00%, 12/01/23 1,600 1,684,976
Ser 04I
5.00%, 8/01/21 8,850 9,378,345
--------------
15,819,526
--------------
North Carolina-0.6%
Charlotte Arpt Rev
MBIA Ser 04A
5.25%, 7/01/24 1,895 2,052,891
--------------
North Dakota-0.7%
North Dakota HFA SFMR
(Mtg Rev) Ser 02A AMT
5.65%, 1/01/34 2,325 2,398,586
--------------
Ohio-4.1%
Cleveland-Cuyahoga Cnty
Port Auth Rev Ser 01
7.35%, 12/01/31 5,000 5,310,400
Fairfield Cnty Hosp Rev
(Fairfield Med Ctr Proj) Radian Ser 03
5.00%, 6/15/22 - 6/15/24 3,955 4,113,132
Ohio HFA SFMR
(Mtg Rev) GNMA Ser 00D AMT
6.05%, 3/01/31 2,260 2,369,361
Port Auth of Columbiana Cnty SWR
(Apex Environmental Llc) Ser 04A AMT
7.125%, 8/01/25 1,340 1,354,472
--------------
13,147,365
--------------
Pennsylvania-2.5%
Montgomery Cnty IDA Rev
(Whitemarsh Con Care Proj) Ser 05
6.00%, 2/01/21 875 882,639
Pennsylvania Parking Fac
(30th St Station Garage Proj) ACA Ser 02A AMT
5.875%, 6/01/33 2,050 2,185,402
Pennsylvania Trpk Transp Rev
AMBAC Ser 01
5.00%, 7/15/41 2,000 2,077,240
Philadelphia Hosp Rev
(Temple Univ Hosp) Ser 93A
6.625%, 11/15/23 3,000 3,048,150
--------------
8,193,431
--------------
Rhode Island-1.3%
Rhode Island Hlth & Ed Bldg Corp
(Times2 Academy) Ser 04
5.00%, 12/15/24 4,100 4,179,745
--------------
South Carolina-0.2%
Richland Lexington Arpt Rev
(Columbia Met Arpt) FSA Ser 04 AMT
5.125%, 1/01/25 500 521,495
--------------
Texas-22.0%
Bexar Cnty Hsg Fin Corp MFHR
(Doral Club & Sutton House Apts) MBIA Ser 01A
5.55%, 10/01/36 15,000 14,874,900
Dallas-Fort Worth Arpt Rev
(Int'l Arpt) FGIC Ser 01 AMT
5.50%, 11/01/35 10,000 10,480,600
Gulf Coast Waste Disp Auth
(Anheuser-Busch Proj) Ser 02 AMT
5.90%, 4/01/36 9,000 9,677,970
Harris Cnty
(Flood Ctl) Ser 03B
5.00%, 10/01/23 2,600 2,770,950
Harris Cnty Toll Road Rev
FSA Ser 02
5.125%, 8/15/32 2,500 2,623,275
Hidalgo Cnty Hlth Svcs
(Mission Hosp Inc Proj) Ser 05
5.00%, 8/15/14 - 8/15/19 765 786,195
Houston
(Northeast Wtr Purification Proj) FGIC Ser 02
5.125%, 3/01/32 7,000 7,327,180
Matagorda Cnty Util Rev
(Centerpoint Energy Proj) Ser 04
5.60%, 3/01/27 1,000 1,053,420
Richardson Hosp Auth Rev
(Richardson Regional) Ser 04
5.875%, 12/01/24 2,310 2,450,956
6.00%, 12/01/19 1,830 2,015,416
San Antonio Arpt Rev
FGIC Ser 02A AMT
5.25%, 7/01/27 5,250 5,475,435
Seguin High Ed Fac Rev
(Texas Lutheran University Proj) Ser 04
5.25%, 9/01/33 1,250 1,250,875
Texas GO
Ser 02A AMT
5.50%, 8/01/41 9,470 10,054,393
--------------
70,841,565
--------------
Utah-0.8%
Davis Cnty Sales Tax Rev
AMBAC Ser 03B
5.25%, 10/01/23 1,000 1,099,060
Utah Hsg Corp MFHR
(Bluffs Apts Proj) GNMA Ser 02A AMT
5.60%, 7/20/30 1,480 1,562,258
--------------
2,661,318
--------------
Virginia-2.8%
Fauquier Cnty IDA Hosp Rev
(Fauquier Hospital) Asset Gty Ser 02
5.25%, 10/01/31 8,500 9,015,015
--------------
Washington-4.2%
King Cnty Swr Rev
FSA Ser 02A
5.25%, 1/01/32 3,000 3,177,930
Twenty-Fifth Ave Pptys
(University of WA) MBIA Ser 02
5.25%, 6/01/33 9,750 10,351,478
--------------
13,529,408
--------------
Wisconsin-7.9%
Wisconsin Hlth & Ed Fac Auth Rev
(Bell Tower Residence Proj) Ser 05
5.00%, 7/01/20 485 504,555
5.00%, 7/01/25 1,000 1,011,290
Wisconsin Hlth & Ed Fac Hosp Rev
(Ministry Hlth Care) MBIA Ser 02A
5.25%, 2/15/32 13,615 14,390,783
Wisconsin Hsg Auth SFMR
(Mtg Rev) MBIA Ser 02A AMT
5.60%, 5/01/33 4,885 5,232,421
(Mtg Rev) Ser 02A AMT
5.50%, 9/01/32 4,360 4,400,941
--------------
25,539,990
--------------
Total Long-Term Municipal Bonds
(cost $482,007,376) 512,539,297
--------------
Short Term Municipal Note (d)-0.2%
South Carolina-0.2%
Florence Cnty Solid Waste Disp & Wastewtr Treatment
(Roche Carolina Inc Proj) Ser 98 AMT
2.02%, 4/01/28 500 500,000
--------------
Total Short Term Municipal Note
(cost $500,000) 500,000
--------------
Total Investments-159.2%
(cost $482,507,376) 513,039,297
Other assets less liabilities-1.3% 4,233,883
Preferred Stock at redemption value-(60.5%) (195,000,000)
--------------
Net Assets Applicable to Common Shareholders-100%(e) $ 322,273,180
--------------
INTEREST RATE SWAP TRANSACTIONS
Rate Type
---------------------------
Payments Payments
Notional made by received Unrealized
Swap Amount Termination the by the Appreciation/
Counterparty (000) Date Portfolio Portfolio (Depreciation)
------------------------------------------------------------------------------------------------------
Goldman Sachs $26,700 02/03/06 76.48% of BMA* $ (28,823)
1 Month LIBOR**
Merrill Lynch 26,700 02/03/06 BMA* 85.10% of 123,019
1 Month LIBOR**
Merrill Lynch + 9,000 11/01/19 3.90 BMA* (125,406)
JP Morgan ++ 3,300 11/05/24 4.15 BMA* (91,674)
* BMA (Bond Market Association)
** LIBOR (London Interbank Offered Rate)
+ Represents a forward interest rate swap whose effective date for the
exchange of cash flows is May 1, 2005.
++ Represents a forward interest rate swap whose effective date for the
exchange of cash flows is May 5, 2005.
FINANCIAL FUTURES CONTRACTS SOLD
Value at
Number of Expiration Original January 31, Unrealized
Type Contracts Month Value 2005 Depreciation
---------------------------------------------------------------------------------------
U.S. T-Note
10 Yr Future 84 March $9,308,591 $9,430,313 $ (121,722)
2005
Swap 10 Yr
Future 64 March 6,998,260 7,138,000 (139,740)
2005
-----------
$ (261,462)
-----------
(a) Positions, or portions thereof, with a market value of $576,332 have been
segregated to collateralize margin requirements for open futures
contracts.
(b) Represents entire or partial position as collateral for interest rate
swaps.
(c) Indicates a security that has a zero coupon that remains in effect until a
predetermined date at which time the stated coupon rate becomes effective
until final maturity.
(d) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specific 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). This instrument is payable on demand and is
secured by letters of credit or other credit support agreements from major
banks.
(e) Portfolio percentages are calculated based on net assets applicable to
common shareholders.
Glossary of Terms:
ACA -American Capital Access Financial Guaranty Corporation
AMBAC -American Municipal Bond Assurance Corporation
AMT -Alternative Minimum Tax- (subject to)
CDD -Community Development District
CFD -Communities Facilities District
COP -Certificate of Participation
FGIC -Financial Guaranty Insurance Company
FNMA -Federal National Mortgage Association
FSA -Financial Security Assurance, Inc.
GNMA -Government National Mortgage Association
GO -General Obligation
HFA -Housing Finance Authority
IDA -Industrial Development Authority
IDR -Industrial Development Revenue
MBIA -Municipal Bond Investors Assurance
MFHR -Multi-Family Housing Revenue
SFMR -Single Family Mortgage Revenue
SWR -Solid Waste Revenue
XLCA -XL Capital Assurance
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended)
are effective at the reasonable assurance level based on their evaluation of
these controls and procedures as of a date within 90 days of the filing date of
this document.
(b) There were no significant changes in the registrant's internal controls that
could significantly affect these controls subsequent to the date of their
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
ITEM 3. EXHIBITS.
The following exhibits are attached to this Form N-Q:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
11(a)(1) Certification of Principal Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
11(a)(2) Certification of Principal Financial Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): Alliance National Municipal Income Fund, Inc.
By: /s/ Marc O. Mayer
-----------------
Marc O. Mayer
President
Date: March 31, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Marc O. Mayer
-----------------
Marc O. Mayer
President
Date: March 31, 2005
By: /s/ Mark D. Gersten
-------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: March 31, 2005