<PAGE>
Alliance Capital Reserves
This is filed pursuant to Rule 497(e).
File Nos. 2-61564 and 811-02835.
<PAGE>
- --------------------------------------------------------------------------------
YIELDS
For current recorded yield information on the Funds, call toll-free
(800) 221-9513.
- --------------------------------------------------------------------------------
The Funds are open-end management investment companies with investment
objectives of safety, liquidity and maximum current income (in the case of
Alliance Municipal Trust-General, exempt from Federal income taxes and, in the
case of the New York, California, Connecticut, New Jersey and Florida
Portfolios, exempt from Federal and state income taxes of the respective states)
to the extent consistent with the first two objectives. Alliance Money Reserves,
Alliance Government Reserves, Alliance Treasury Reserves and the General
Portfolio of Alliance Municipal Trust are diversified. The New York, California,
Connecticut, New Jersey and Florida Portfolios of Alliance Municipal Trust are
non-diversified, and are offered only to residents of New York, California,
Connecticut, New Jersey and Florida, respectively. This prospectus sets forth
the information about each Fund that a prospective investor should know before
investing. Please retain it for future reference.
AN INVESTMENT IN A FUND IS (I) NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT; (II) NOT A DEPOSIT OR OBLIGATION OF, OR GUARANTEED OR ENDORSED BY,
ANY BANK; AND (III) NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. THERE CAN BE NO
ASSURANCE THAT A FUND WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00
PER SHARE.
A "Statement of Additional Information" for each Fund dated November 1, 1995,
which provides a further discussion of certain areas in this prospectus and
other matters which may be of interest to some investors, has been filed with
the Securities and Exchange Commission and is incorporated herein by reference.
A free copy may be obtained by contacting your Account Executive.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<TABLE>
<CAPTION>
- -----------------------------------------------
CONTENTS
--------
<S> <C>
Expense Information.................... 2
Financial Highlights................... 3
Investment Objectives and Policies..... 8
Purchase and Redemption of Shares...... 12
Additional Information................. 13
- -----------------------------------------------
</TABLE>
RAGEN MACKENZIE
INCORPORATED
Introduces . . .
. Alliance Money Reserves
. Alliance Government Reserves
. Alliance Treasury Reserves
. Alliance Municipal Trust--
. General Portfolio
. New York Portfolio
. California Portfolio
. Connecticut Portfolio
. New Jersey Portfolio
. Florida Portfolio
Prospectus
November 1, 1995
Ragen MacKenzie
Incorporated
999 3rd Avenue, Suite 4300
Seattle, WA 98104
Phone (206) 343-5000
MEMBER NEW YORK STOCK EXCHANGE
<PAGE>
- --------------------------------------------------------------------------------
EXPENSE INFORMATION
- --------------------------------------------------------------------------------
SHAREHOLDER TRANSACTION EXPENSES
The Funds have no sales load on purchases or reinvested dividends, deferred
sales load, redemption fee or exchange fee.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING
EXPENSES (as a percentage
of average net assets,
after expense AMR AGR ATR AMT-GEN AMT-NY AMT-CA AMT-CT AMT-NJ AMT-FL
reimbursement) --- ---- ---- ------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees........ .48% .48% .50% .50% .50% .50% .50% .50% .50%
12b-1 Fees............. .25 .23 .20 .25 .25 .25 .25 .25 .25
Other Expenses......... .27 .29 .30 .25 .25 .25 .25 .25 .25
---- ---- ---- ---- ---- ---- ---- ---- ----
Total Fund Operating
Expenses.............. 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
</TABLE>
EXAMPLE
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return (cumulatively through the end of each time period):
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AMR.......................................... $10 $32 $55 $122
AGR.......................................... $10 $32 $55 $122
ATR.......................................... $10 $32 $55 $122
AMT--General................................. $10 $32 $55 $122
AMT--New York................................ $10 $32 $55 $122
AMT--California.............................. $10 $32 $55 $122
AMT--Connecticut............................. $10 $32 $55 $122
AMT--New Jersey.............................. $10 $32 $55 $122
AMT--Florida................................. $10 $32 $55 $122
</TABLE>
The purpose of the foregoing table is to assist the investor in understanding
the various costs and expenses that an investor in the Fund will bear directly
and indirectly. The expenses listed in the table for AGR, ATR and AMT--CT, AMT--
NJ and AMT--FL are net of the contractual reimbursement by the Adviser described
in this prospectus. The expenses of such Portfolios (except for AMT--FL which
did not commence operations until after June 30, 1995), before expense
reimbursements, would be: AGR: Management Fee--.48%, 12b-1 Fees--.25%, Other
Expenses--.29% and Total Operating Expenses--1.02%; ATR: Management Fees--.50%,
12b-1 Fees--.25%, Other Expenses--.30% and Total Operating Expenses--1.05%;
AMT--CT: Management Fees--.50%, 12b-1 Fees--.25%, Other Expenses--.39% and Total
Fund Operating Expenses--1.14%; and AMT--NJ: Management Fees--.50%, 12b-1 Fees--
.25%, Other Expenses--.40% and Total Operating Expenses--1.15%. For AMT--FL,
"Other Expenses" are based on estimated amounts for the current fiscal year. THE
EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES;
ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
2
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS . FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD (AUDITED
EXCEPT WITH RESPECT TO AMT--FLORIDA)
- --------------------------------------------------------------------------------
The following tables, except with respect to AMT--Florida, have been audited
by McGladrey & Pullen LLP, each of the Fund's independent auditors, whose
unqualified report thereon appears in each Statement of Additional
Information. This information should be read in conjunction with the financial
statements and notes thereto included in each Fund's Statement of Additional
Information. Further information about a Fund's performance is contained in
each Fund's annual report, which is available without charge upon request.
<TABLE>
<CAPTION>
FEBRUARY 16,
YEAR ENDED JUNE 30, 1989(A)
ALLIANCE MONEY RESERVES --------------------------------------------- THROUGH
1995 1994 1993 1992 1991 1990 JUNE 30, 1989
------ ------ ------ ------ ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period......... $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------ ----- -----
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.. .045 .025 .027 .044 .066 .079 .033
------ ------ ------ ------ ------ ----- -----
LESS: DISTRIBUTIONS
Dividends from net in-
vestment income....... (.045) (.025) (.027) (.044) (.066) (.079) (.033)
------ ------ ------ ------ ------ ----- -----
Net asset value, end of
period................ $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ====== ===== =====
TOTAL RETURN
Total investment return
based on:
Net asset value(b)..... 4.50% 2.57% 2.71% 4.47% 6.87% 8.26% 9.18%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of pe-
riod (in millions)..... $2,510 $1,795 $1,626 $1,412 $1,262 $993 $563
Ratio to average net as-
sets of:
Expenses, net of waiv-
ers and reimburse-
ments................. 1.00% 1.00% 1.00% 1.00% .97% .89% .99%(c)
Expenses, before waiv-
ers and reimburse-
ments................. 1.04% 1.09% 1.04% 1.04% 1.03% .99% 1.09%(c)
Net investment
income(d)............. 4.53% 2.55% 2.67% 4.33% 6.56% 7.92% 9.16%(c)
</TABLE>
- -------------
(a) Commencement of operations.
(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.
(d) Net of waivers and reimbursements.
<TABLE>
<CAPTION>
ALLIANCE GOVERNMENT YEAR ENDED JUNE 30,
RESERVES ----------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, begin-
ning of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income... .0439 .0244 .0256 .0421 .0640 .0765 .0774 0.0612 0.0541 0.0659
Net realized gain on in-
vestments.............. -0- -0- .0001 -0- -0- .0001 -0- -0- -0- -0-
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net increase in net
assets from operations. .0439 .0244 .0257 .0421 .0640 .0766 .0774 0.0612 0.0541 0.0659
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
LESS: DISTRIBUTIONS
Dividends from net in-
vestment income........ (.0439) (.0244) (.0256) (.0421) (.0640) (.0765) (.0774) (0.0612) (0.0541) (0.0659)
Distributions from net
realized gains......... -0- -0- (.0001) -0- -0- (.0001) -0- -0- -0- -0-
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total dividends and dis-
tributions............. (.0439) (.0244) (.0257) (.0421) (.0640) (.0766) (.0774) (0.0612) (0.0541) (0.0659)
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURNS
Total investment return
based on:
net asset value(a)..... 4.48% 2.48% 2.60% 4.30% 6.61% 7.96% 8.04% 6.31% 5.56% 6.81%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(in millions).......... $2,514 $2,061 $1,783 $1,572 $1,070 $584 $522 $315 $260 $254
Ratio to average net as-
sets of:
Expenses, net of waivers
and reimbursements..... 1.00% 1.00% 1.00% .95% .89% .88% .88% .80% .95% 1.00%
Expenses, before waivers
and reimbursements..... 1.05% 1.04% 1.02% .97% .93% .98% .98% .90% 1.05% 1.10%
Net investment
income(b).............. 4.42% 2.46% 2.55% 4.17% 6.28% 7.65% 7.86% 6.13% 5.41% 6.58%
</TABLE>
- -------
(a) 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.
(b) Net of waivers and reimbursement.
3
<PAGE>
<TABLE>
<CAPTION>
SEPTEMBER 1, 1993(A)
YEAR ENDED THROUGH
JUNE 30, 1995 JUNE 30, 1994
ALLIANCE TREASURY RESERVES ------------- --------------------
<S> <C> <C>
Net asset value, beginning of period........ $ 1.00 $ 1.00
-------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income....................... .0460 .0260
-------- -------
LESS: DISTRIBUTIONS
Dividends from net investment income........ (.0460) (.0260)
-------- -------
Net asset value, end of period.............. $ 1.00 $ 1.00
======== =======
TOTAL RETURNS
Total investment return based on: net asset
value (b).................................. 4.71% 3.18%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in thousands)...... $493,702 $80,720
Ratio to average net assets of:
Expenses, net of waivers and reimburse-
ments..................................... .69% .28%(c)
Expenses, before waivers and reimburse-
ments..................................... 1.05% 1.28%(c)
Net investment income (d).................. 4.86% 3.24%(c)
</TABLE>
- -------
(a) Commencement of operations.
(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.
(d) Net of waivers and reimbursements.
<TABLE>
<CAPTION>
GENERAL PORTFOLIO
ALLIANCE MUNICIPAL TRUST ------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, SIX MONTHS YEAR ENDED DECEMBER 31,
------------------------------------------------- ENDED ------------------------------
1995 1994 1993 1992 1991 1990 JUNE 30, 1989 1988 1987 1986 1985
------ ------ ------ ------ ------ ------ ------------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.. .028 .018 .020 .034 .046 .055 .030 .047 .041 .044 .049
Net realized and
unrealized loss on
investments........... (.003) -0- -0- -0- -0- -0- -0- -0- -0- -0- -0-
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net increase in net
asset value from
operations............ .025 .018 .020 .034 .046 .055 .030 .047 .041 .044 .049
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
ADD: CAPITAL
CONTRIBUTIONS
Capital Contributed by
the Adviser........... .003 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0-
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
LESS: DISTRIBUTIONS
Dividends from net
investment income..... (.028) (.018) (.020) (.034) (.046) (.055) (.030) (.047) (.041) (.044) (.049)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURNS
Total investment return
based on net asset
value(a).............. 2.83%(c) 1.81% 2.05% 3.48% 4.71% 5.65% 6.13%(b) 4.81% 4.18% 4.50% 5.04%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (in millions).. $1,189 $1,134 $1,016 $914 $883 $798 $695 $633 $690 $794 $374
Ratio to average net
assets of:
Expense, net of waivers
and reimbursements.... .94% .92% .92% .92% .89% .83% .84%(b) .83% .80% .80% .85%
Expense, before waivers
and reimbursements.... .95% .94% .94% .95% .95% .93% .94%(b) .93% .90% .90% .95%
Net investment
income(d)............. 2.78% 1.80% 2.02% 3.40% 4.57% 5.50% 5.96%(b) 4.69% 4.08% 4.31% 4.87%
</TABLE>
- -------
(a) 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.
(b) Annualized.
(c) The capital contribution by the Adviser has no effect on total return.
(d) Net of expenses reimbursed or waived by the Adviser.
4
<PAGE>
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
-------------------------------------------------------------------------------------------------------------
YEAR ENDED
YEAR ENDED JUNE 30, SIX MONTHS DECEMBER 31, OCTOBER 6, 1986(A)
-------------------------------------------------------- ENDED ---------------- TO
1995 1994 1993 1992 1991 1990 JUNE 30, 1989 1988 1987 DECEMBER 31, 1986
-------- -------- -------- -------- ------- ------- ------------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
INCOME FROM
INVESTMENT
OPERATIONS
Net investment
income......... .028 .018 .019 .034 .042 .051 .027 .041 .036 .008
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
LESS
DISTRIBUTIONS
Dividends from
net investment
income......... (.028) (.018) (.019) (.034) (.042) (.051) (.027) (.041) (.036) (.008)
-------- -------- -------- -------- ------- ------- ------- ------- ------- -------
Net asset value,
end of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======= ======= ======= ======= ======= =======
TOTAL RETURNS
Total investment
return based on
net asset
value(b)....... 2.84% 1.77% 1.94% 3.47% 4.32% 5.26% 5.61%(c) 4.14% 3.71% 3.46%(c)
RATIOS/SUPPLEMENTAL
DATA
Net assets, end
of period
(000's
omitted)....... $177,254 $162,839 $100,529 $100,476 $71,748 $62,536 $41,910 $41,335 $58,684 $78,462
Ratio to average
net assets of:
Expenses, net of
waivers and
reimbursements. .85% .84% .80% .80% .80% .80% .85%(c) 1.00% .87% .55%(c)
Expenses, before
waivers and
reimbursements. 1.03% 1.08% 1.06% 1.12% 1.15% 1.18% 1.35%(c) 1.33% .97% 1.05%(c)
Net investment
income(d)...... 2.81% 1.77% 1.91% 3.35% 4.20% 5.13% 5.45%(c) 4.03% 3.62% 3.48%(c)
</TABLE>
- -------
(a) Commencement of operations.
(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.
(d) Net of expenses reimbursed or waived by the Adviser.
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
----------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, JUNE 2, 1988(A)
---------------------------------------------------------- SIX MONTHS ENDED THROUGH
1995 1994 1993 1992 1991 1990 JUNE 30, 1989 DECEMBER 31, 1988
-------- -------- -------- -------- -------- -------- ---------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income.. .027 .018 .020 .032 .043 .050 .029 .030
-------- -------- -------- -------- -------- -------- -------- --------
LESS: DISTRIBUTIONS
Dividends from net
investment income..... (.027) (.018) (.020) (.032) (.043) (.050) (.029) (.030)
-------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of
period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ======== ======== ========
TOTAL RETURNS
Total investment return
based on net asset
value(b).............. 2.78% 1.83% 2.05% 3.26% 4.43% 5.17% 6.02%(c) 5.20%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (000's
omitted).............. $236,479 $219,673 $156,200 $121,317 $111,957 $104,097 $242,124 $103,390
Ratio to average net
assets of:
Expenses, net of
waivers and
reimbursements........ .93% .93% .93% .95% 1.00% .99% .92%(c) .89%(c)
Expenses, before
waivers and
reimbursements........ 1.01% 1.02% 1.02% 1.05% 1.10% 1.09% 1.02%(c) 1.10%(c)
Net investment
income(d)............. 2.75% 1.82% 2.01% 3.18% 4.32% 5.03% 5.90%(c) 5.21%(c)
</TABLE>
- -------
(a) Commencement of operations.
(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.
(d) Net of expenses reimbursed or waived by the Adviser.
5
<PAGE>
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO
---------------------------------------------------------------
YEAR ENDED JUNE 30, JANUARY 5, 1990(A)
------------------------------------------- THROUGH
1995 1994 1993 1992 1991 JUNE 30, 1990
------- ------- ------- ------- ------- ------------------
<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.. .028 .017 .020 .033 .045 .026
------- ------- ------- ------- ------- -------
LESS: DISTRIBUTIONS
Dividends from net
investment income..... (.028) (.017) (.020) (.033) (.045) (.026)
------- ------- ------- ------- ------- -------
Net asset value, end of
period................ $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL RETURNS
Total investment return
based on net asset
value(b).............. 2.78% 1.71% 2.00% 3.35% 4.57% 5.53%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (000's omitted). $75,991 $57,314 $56,224 $54,751 $48,482 $27,945
Ratio to net assets of:
Expenses, net of
waivers and........... 80% .77% .70% .58% .44% .19%(c)
Expenses, before
waivers and
reimbursements........ 1.21% 1.21% 1.16% 1.22% 1.16% 1.10%(c)
Net investment
income(d)............. 2.77% 1.69% 1.97% 3.28% 4.39% 5.39%(c)
</TABLE>
- -------
(a) Commencement of operations.
(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.
(d) Net of expenses reimbursed or waived by the Adviser.
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
---------------------------------
FEBRUARY 7, 1994(A)
YEAR ENDED THROUGH
JUNE 30, 1995 JUNE 30, 1994
------------- -------------------
<S> <C> <C>
Net asset value, beginning of period......... $1.00 $ 1.00
------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income....................... .029 .008
------- -------
LESS: DISTRIBUTIONS
Dividends from net investment income........ (.029) (.008)
------- -------
Net asset value, end of period.............. $1.00 $1.00
======= =======
TOTAL RETURNS
Total investment return based on net asset
value(b)................................... 2.93% 2.08%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted).... $74,133 $36,909
Ratio to average net assets of:
Expenses, net of waivers and reimbursements. .74% .70%(c)
Expenses, before waivers and reimbursements. 1.29% 1.93%(c)
Net investment income(d).................... 2.98% 2.07%(c)
</TABLE>
- -------
(a) Commencement of operations.
(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.
(d) Net of expenses reimbursed or waived by the Adviser.
6
<PAGE>
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
-------------------
JULY 28, 1995(A) TO
OCTOBER 17, 1995
(UNAUDITED)
-------------------
<S> <C>
Net asset value, beginning of period........................ $ 1.00
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income....................................... .008
-------
LESS DISTRIBUTIONS
Dividends from net investment income........................ (.008)
-------
Net asset value, end of period.............................. $ 1.00
=======
TAX RETURNS
Total investment return based on net asset value(b)......... 3.67%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................... $18,065
Ratio to average net assets of:
Expenses, net of waivers and reimbursements................ .16%(c)
Expenses, before waivers and reimbursements................ 3.90%(c)
Net investment income(d)................................... 3.73%(c)
</TABLE>
- -------
(a) Commencement of operations.
(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.
(d) Net of expenses reimbursed or waived by the Adviser.
From time to time each Fund advertises its "yield" and "effective yield."
Both yield figures are based on historical earnings and are not intended to
indicate future performance. To calculate the "yield," the amount of dividends
paid on a share during a specified seven-day period is assumed to be paid each
week over a 52-week period and is shown as a percentage of the investment. To
calculate "effective yield," which will be higher than the "yield" because of
compounding, the dividends paid are assumed to be reinvested. For AMR
dividends for the seven days ended June 30, 1995 amounted to an annualized
yield of 5.12%, equivalent to an effective yield of 5.25%. For AGR dividends
for the seven days ended June 30, 1995, after expense reimbursement, amounted
to an annualized yield of 4.97%, equivalent to an effective yield of 5.10%.
Absent such reimbursement, the annualized yield for such period would have
been 4.95%, equivalent to an effective yield of 5.08%. For ATR dividends for
the seven days ended June 30, 1995, after expense reimbursement, amounted to
an annualized yield of 4.97%, equivalent to an effective yield of 5.10%.
Absent such reimbursement, the annualized yield for such period would have
been 4.72%, equivalent to an effective yield of 4.85%. Dividends for AMT--
General for the seven days ended June 30, 1995 amounted to an annualized yield
of 3.25%, equivalent to an effective yield of 3.30%. Dividends for AMT--New
York for the seven days ended June 30, 1995, after expense reimbursement,
amounted to an annualized yield of 3.36%, equivalent to an effective yield of
3.42%. Absent expense reimbursement, the annualized yield for this period
would have been 3.23%, equivalent to an effective yield of 3.29%. Dividends
for AMT--California for the seven days ended June 30, 1995, after expense
reimbursement, amounted to an annualized yield of 3.18%, equivalent to an
effective yield of 3.23%. Absent expense reimbursement, the annualized yield
for this period would have been 3.13%, equivalent to an effective yield of
3.18%. Dividends for AMT--Connecticut for the seven days ended June 30, 1995,
after expense reimbursement, amounted to an annualized yield of 3.19%,
equivalent to an effective yield of 3.24%. Absent expense reimbursement, the
annualized yield for this period would have been 2.85%, equivalent to an
effective yield of 2.90%. Dividends for AMT--New Jersey for the seven days
ended June 30, 1995, after expense reimbursement, amounted to an annualized
yield of 3.23%, equivalent to an effective yield of 3.28%. Absent expense
reimbursement, the annualized yield for this period would have been 2.88%,
equivalent to an effective yield of 2.93%. AMT--Florida did not commence
operations until after June 30, 1995.
7
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INVESTMENT OBJECTIVES AND POLICIES
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The investment objective of Alliance Money Reserves is maximum current income
to the extent consistent with safety of principal and liquidity. The investment
objectives of each of the other Funds are--in the following order of priority--
safety of principal, excellent liquidity and, to the extent consistent with the
first two objectives, maximum current income (exempt from income taxes to the
extent described below in the case of each portfolio of Alliance Municipal
Trust). As a matter of fundamental policy, each Fund, except for AMT--Florida,
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
one year (397 days with respect to ATR and AMT--New Jersey) or less, which
maturities may extend to 397 days. AMT--Florida pursues its objectives by
investing in high quality municipal securities having remaining maturities of
397 days or less (which maturities may extend to such greater length of time as
may be permitted from time to time pursuant to Rule 2a-7 under the Investment
Company Act of 1940 (the "1940 Act"), as amended). While the fundamental
policies described above and the "other fundamental investment policies"
described below may not be changed without shareholder approval, each Fund may,
upon notice to shareholders, but without such approval, change nonfundamental
investment policies or create additional classes of shares in order to establish
portfolios which may have different investment objectives. There can be no
assurance that any Fund's objectives will be achieved.
The Funds will comply with Rule 2a-7 of the 1940 Act as amended from time to
time, including the diversity, quality and maturity limitations imposed by the
Rule. The average maturity of each Fund's portfolio cannot exceed 90 days. A
more detailed description of Rule 2a-7 is set forth in each Fund's Statement
of Additional Information.
ALLIANCE MONEY RESERVES
The money market securities in which Alliance Money Reserves ("AMR") invests
include: (1) marketable obligations of, or guaranteed by, the United States
Government, its agencies or instrumentalities (collectively, the "U.S.
Government"); (2) certificates of deposit and bankers' acceptances issued or
guaranteed by, or time deposits maintained at, banks or savings and loan
associations (including foreign branches of U.S banks or U.S. or foreign
branches of foreign banks) having total assets of more than $500 million; (3)
commercial paper of high quality [i.e., rated A-1 or A-2 by Standard & Poor's
Corporation ("Standard & Poor's"), Prime-1 or Prime-2 by Moody's Investors
Service, Inc. ("Moody's"), Fitch-1 or Fitch-2 by Fitch Investors Service, Inc.,
or Duff 1 or Duff 2 by Duff & Phelps Inc. or, if not rated, issued by U.S. or
foreign companies having outstanding debt securities rated AAA, AA or A by
Standard & Poor's, or Aaa, Aa or A by Moody's] and participation interests in
loans extended by banks to such companies; and (4) repurchase agreements that
are collateralized in full each day by liquid securities of the types listed
above. Repurchase agreements may be entered into only with those banks
(including State Street Bank and Trust Company, AMR's Custodian) or broker-
dealers ("vendors") that are eligible under the procedures adopted by the
Trustees for evaluating and monitoring the creditworthiness of such vendors. A
repurchase agreement would create a loss to AMR if, in the event of a vendor
default, the proceeds from the sale of the collateral were less than the
repurchase price.
To the extent AMR purchases money market instruments issued by foreign
entities, consideration will be given to the domestic marketability of such
instruments, and possible interruptions of, or restrictions on, the flow of
international currency transactions.
AMR may purchase restricted securities that are determined by the Adviser to
be liquid in accordance with procedures adopted by the Trustees of AMR.
Restricted securities are securities subject to contractual or legal
restrictions on resale, such as those arising from an issuer's reliance upon
certain exemp tions from registration under the Securities Act of
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1933 (the "Securities Act"). The Fund may purchase restricted securities
eligible for resale under Rule 144A under the Securities Act and commercial
paper issued in reliance upon the exemption from registration in Section 4(2) of
the Securities Act and, in each case, determined by the Adviser to be liquid in
accordance with procedures adopted by the Trustees of the Fund.
AMR may invest in asset-backed securities that meet its existing
diversification, quality and maturity criteria. Asset-backed securities are
securities issued by special purpose entities whose primary assets consist of
a pool of loans or accounts receivable. The securities may be in the form of a
beneficial interest in a special purpose trust, limited partnership interest,
or commercial paper or other debt securities issued by a special purpose
corporation. Although the securities may have some form of credit or liquidity
enhancement, payments on the securities depend predominately upon collection
of the loans and receivables held by the issuer. It is the Fund's current
intention to limit its investment in such securities to not more than 5% of
its net assets.
Other Fundamental Investment Policies. To maintain portfolio diversification
and reduce investment risk, AMR may not: (1) invest more than 25% of its
assets in the securities of issuers conducting their principal business
activities in any one industry although there is no such limitation with
respect to U.S. Government securities or certificates of deposit, bankers'
acceptances and interest bearing savings deposits; (2) invest more than 5% of
its assets in the securities of any one issuer (except the U.S. Government)
although with respect to one-quarter of its total assets it may invest without
regard to such limitation; (3) invest more than 5% of its assets in the
securities of any issuer (except the U.S. Government) having less than three
years of continuous operation or purchase more than 10% of any class of the
outstanding securities of any issuer (except the U.S. Government); (4) borrow
money except from banks on a temporary basis or via entering into reverse
repurchase agreements in aggregate amounts not exceeding 15% of its assets and
to facilitate the orderly maturation and sale of portfolio securities during
any periods of abnormally heavy redemption requests; or (5) mortgage, pledge
or hypothecate its assets except to secure such borrowings.
As a matter of operating policy, fundamental policy number (2) would give
AMR the ability to invest, with respect to 25% of its assets, more than 5% of
its assets in any one issuer only in the event Rule 2a-7 is amended in the
future.
ALLIANCE GOVERNMENT RESERVES
The securities in which Alliance Government Reserves ("AGR") invests are:
(1) marketable obligations of, or guaranteed by, the United States Government,
its agencies or instrumentalities (collectively, the "U.S. Government"),
including issues of the United States Treasury, such as bills, certificates of
indebtedness, notes and bonds, and issues of agencies and instrumentalities
established under the authority of an act of Congress; and (2) repurchase
agreements that are collateralized in full each day by the types of securities
listed above. These agreements are entered into with "primary dealers" (as
designated by the Federal Reserve Bank of New York) in U.S. Government
securities or State Street Bank and Trust Company, the Fund's Custodian, and
would create a loss to the Fund if, in the event of a dealer default, the
proceeds from the sale of the collateral were less than the repurchase price.
The Fund may commit up to 15% of its net assets to the purchase of when-issued
U.S. Government securities, whose value may fluctuate prior to their settlement,
thereby creating an unrealized gain or loss to the Fund.
Other Fundamental Investment Policies. To maintain portfolio diversification
and reduce investment risk, AGR may not: (1) borrow money except from banks on
a temporary basis or via entering into reverse repurchase agreements in
aggregate amounts not exceeding 10% of its assets and to be used exclusively
to facilitate the orderly maturation and sale of portfolio securities during any
periods of abnormally heavy redemption requests, if they should occur; such
borrowings may not be used to purchase investments and it will not purchase any
investment while any such borrowings exist; or (2) pledge, hypothecate or
9
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in any manner transfer, as security for indebtedness, its assets except to
secure such borrowings.
ALLIANCE TREASURY RESERVES
The securities in which Alliance Treasury Reserves ("ATR") invests are: (1)
issues of the U.S. Treasury, such as bills, certificates of indebtedness,
notes and bonds; and (2) repurchase agreements that are collateralized in full
each day by the types of securities listed above. These agreements are entered
into with "primary dealers" (as designated by the Federal Reserve Bank of New
York) in U.S. Government securities or State Street Bank and Trust Company,
ATR's Custodian. For each repurchase agreement, ATR requires continual
maintenance of the market value of the underlying collateral in amounts equal
to, or in excess of, the agreement amount. In the event of a dealer default, ATR
might suffer a loss to the extent that the proceeds from the sale of the
collateral were less than the repurchase price. ATR may commit up to 15% of its
net assets to the purchase of when-issued U.S. Treasury securities. Delivery and
payment for when-issued securities takes place after the transaction date. The
payment amount and the interest rate that will be received on the securities are
fixed on the transaction date. The value of such securities may fluctuate prior
to their settlement, thereby creating an unrealized gain or loss to ATR.
Other Fundamental Investment Policies. To maintain portfolio diversification
and reduce investment risk, ATR may not: (1) borrow money except from banks on a
temporary basis or via entering into reverse repurchase agreements in aggregate
amounts not exceeding 10% of its assets and to be used exclusively to facilitate
the orderly maturation and sale of portfolio securities during any periods of
abnormally heavy redemption requests, if they should occur; such borrowings may
not be used to purchase investments and it will not purchase any investment
while any such borrowings exist; or (2) pledge, hypothecate or in any manner
transfer, as security for indebtedness, its assets except to secure such
borrowings.
ALLIANCE MUNICIPAL TRUST
The investment objectives of each Portfolio are safety of principal,
liquidity and, to the extent consistent with these objectives, maximum current
income that is exempt from income taxation to the extent described below.
Except when a Portfolio assumes a temporary defensive position, as a matter of
fundamental policy, at least 80% of each Portfolio's total assets will be
invested in municipal securities (as opposed to the taxable investments
described below). Normally, substantially all of each Portfolio's income will
be tax-exempt as described below (e.g., for 1994, 100% of the income of each
Portfolio was exempt from Federal income taxes; the Florida Portfolio had not
yet been established).
The General Portfolio seeks maximum current income that is exempt from
Federal income taxes by investing principally in a diversified portfolio of
high quality municipal securities. Such income may be subject to state or
local income taxes.
The New York Portfolio seeks maximum current income that is exempt from
Federal, New York state and New York City personal income taxes by investing,
as a matter of fundamental policy, not less than 65% of its total assets in a
portfolio of high quality municipal securities issued by New York state or its
political subdivisions.
The California Portfolio seeks maximum current income that is exempt from
Federal and California state personal income taxes by investing, as a matter
of fundamental policy, not less than 65% of its total assets in a portfolio of
high quality municipal securities issued by the State of California or its
political subdivisions.
The Connecticut Portfolio seeks maximum current income that is exempt from
Federal and Connecticut state personal income taxes by investing, as a matter
of fundamental policy, not less than 65% of its total assets in a portfolio of
high quality municipal securities issued by the State of Connecticut or its
political subdivisions.
The New Jersey Portfolio seeks maximum current income that is exempt from
Federal and New Jersey state personal income taxes by investing, as a matter
of fundamental policy, not less than 65% of its total assets in a portfolio of
high quality municipal
10
<PAGE>
securities issued by the State of New Jersey or its political subdivisions.
The New Jersey Portfolio will invest not less than 80% of its net assets in
securities the interest on which is exempt from New Jersey personal income
taxes [i.e. New Jersey municipal securities and obligations of the U.S.
Government, its agencies and instrumentalities ("U.S. Government
Securities")]. In addition, during periods when Alliance Capital Management
L.P. (the "Adviser") believes that New Jersey municipal securities that meet
the New Jersey Portfolio's standards are not available, it may invest a
portion of its assets in securities whose interest payments are only federally
tax-exempt.
The Florida Portfolio seeks maximum current income that is exempt from
Federal income tax and State of Florida intangible tax by investing not less
than 65% of its total assets in a portfolio of high-quality municipal securities
issued by Florida or its political subdivisions.
Each Portfolio of the Fund may invest without limitation in tax-exempt
municipal securities subject to the alternative minimum tax (the "AMT").
Under current Federal income tax law, (1) interest on tax-exempt municipal
securities issued after August 7, 1986 which are "specified private activity
bonds," and the proportionate share of any exempt-interest dividends paid by a
regulated investment company which receives interest from such specified private
activity bonds, will be treated as an item of tax preference for purposes of the
AMT imposed on individuals and corporations, though for regular Federal income
tax purposes such interest will remain fully tax-exempt, and (2) interest on all
tax-exempt obligations will be included in "adjusted current earnings" of
corporations for AMT purposes. Such bonds have provided, and may continue to
provide, somewhat higher yields than other comparable municipal securities. See
below, "Daily Dividends, Other Distributions, Taxes."
There can be no assurance that the Portfolios will achieve their investment
objectives. Potential investors in the New York, California, Connecticut, New
Jersey and Florida Portfolios should consider the greater risk of the
concentration of such Portfolios versus the safety that comes with less
concentrated investments and should compare yields available on portfolios of
the relevant state's issues with those of more diversified portfolios, including
other states' issues, before making an investment decision. The Adviser believes
that by maintaining each Portfolio's investments in liquid, short-term, high
quality investments, each Portfolio is largely insulated from the credit risks
that exist on long-term municipal securities of the relevant state. See the
Statement of Additional Information for a more detailed discussion of the
financial condition of New York, California, Connecticut, New Jersey and
Florida.
Municipal Securities. The municipal securities in which each Portfolio invests
include municipal notes and short-term municipal bonds. Municipal notes are
generally used to provide for short-term capital needs and generally have
maturities of one year or less. Examples include tax anticipation and revenue
anticipation notes, which are generally issued in anticipation of various
seasonal revenues, bond anticipation notes, and tax-exempt commercial paper.
Short-term municipal bonds may include general obligation bonds, which are
secured by the issuer's pledge of its faith, credit and taxing power for payment
of principal and interest, and revenue bonds, which are generally paid from the
revenues of a particular facility or a specific excise or other source.
A Portfolio may invest in variable rate obligations whose interest rates are
adjusted either at predesignated periodic intervals or whenever there is a
change in the market rate to which the security's interest rate is tied. Such
adjustments minimize changes in the market value of the obligation and,
accordingly, enhance the ability of the Portfolio to maintain a stable net asset
value. Variable rate securities purchased may include participation interests in
industrial development bonds backed by letters of credit of Federal Deposit
Insurance Corporation member banks having total assets of more than $1 billion.
The letters of credit of any single bank in respect of all variable rate
obligations will not cover more than 10% of a Portfolio's total assets.
11
<PAGE>
Each Portfolios' municipal securities at the time of purchase are rated
within the two highest quality ratings of Moody's Investors Service, Inc. (Aaa
and Aa, MIG 1 and MIG 2, or VMIG 1 and VMIG 2) or Standard & Poor's Corporation
(AAA and AA or SP-1 and SP-2), or judged by the Adviser to be of comparable
quality. Securities must also meet credit standards applied by the Adviser.
A Portfolio also may invest in stand-by commitments, which may involve certain
expenses and risks, but such commitments are not expected to comprise more than
5% of any Portfolio's net assets. A Portfolio may commit up to 15% of its net
assets to the purchase of when-issued securities. The Fund's custodian will
maintain, in a separate account of the respective Portfolio, liquid high-grade
debt securities having value equal to, or greater than, such when-issued
securities. The price of when-issued securities, which is generally expressed in
yield terms, is fixed at the time the commitment to purchase is made, but
delivery and payment for such securities takes place at a later time. Normally
the settlement date occurs from within ten days to one month after the purchase
of the issue. The value of when-issued securities may fluctuate prior to their
settlement, thereby creating an unrealized gain or loss to a Portfolio.
Taxable Investments. The taxable investments in which each Portfolio may
invest include obligations of the U.S. Government and its agencies, high
quality certificates of deposit and bankers' acceptances, prime commercial
paper, and repurchase agreements.
Other Fundamental Investment Policies. To reduce investment risk, the General
Portfolio may not invest more than 25% of its total assets in municipal
securities whose issuers are located in the same state, and no Portfolio may
invest more than 25% of its total assets in municipal securities the interest
upon which is paid from revenues of similar-type projects; a Portfolio may not
invest more than 5% of its total assets in the securities of any one issuer
except the U.S. Government, although (i) with respect to 25% of its total
assets the General Portfolio may invest up to 10% per issuer, and (ii) the New
York, California, Connecticut, New Jersey and Florida Portfolios may invest
50% of their respective total assets in as few as four issuers (but no more
than 25% of total assets in any one issuer); and a Portfolio may not purchase
more than 10% of any class of the voting securities of any one issuer except
those of the U.S. Government.
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PURCHASE AND REDEMPTION OF SHARES
- --------------------------------------------------------------------------------
OPENING ACCOUNTS
Instruct your Account Executive to use AMR, AGR, ATR, AMT-General, AMT-NY,
AMT-CA, AMT-CT, AMT-NJ or AMT-FL in conjunction with your brokerage account.
There is a $1,000 minimum for initial investment for all Funds. There is a
$100 minimum for subsequent investments.
SUBSEQUENT INVESTMENTS
A. BY CHECK THROUGH RAGEN MACKENZIE
INCORPORATED
Mail or deliver your check or negotiable draft, payable to Ragen MacKenzie
Incorporated ("Ragen MacKenzie") to the Cashiering Department who will deposit
it in into the Fund(s). Please indicate your brokerage account number on the
check or draft.
B. BY SWEEP
Ragen MacKenzie has available a sweep arrangement for the Funds for its
customers' brokerage accounts. When the daily balance in your brokerage account
exceeds $100, excess funds are invested in the Fund of your choice. Balances
above $1.00 are invested weekly.
REDEMPTIONS
A. BY CONTACTING YOUR ACCOUNT EXECUTIVE
Instruct your Account Executive to order a withdrawal from your Fund
account.
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B. BY SWEEP
Ragen MacKenzie's sweep arrangement moves money from your money market
account to cover security purchases in your Ragen MacKenzie brokerage account.
C. BY CHECK-WRITING
With this service, you may write checks made payable to any payee in any
amount of $100 or more. Checks cannot be written for more than the principal
balance (not including any accrued dividends) in your account. First you must
fill out the signature card which you can obtain from your Account Executive.
There is no separate charge for the check-writing service. The check-writing
service enables you to receive the daily dividends declared on the shares to
be redeemed until the day that your check is presented for payment.
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ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------
SHARE PRICE. Shares are sold and redeemed on a continuous basis without
sales or redemption charges at their net asset value which is expected to be
constant at $1.00 per share, although this price is not guaranteed. The net
asset value of each Fund's shares is determined each business day at 12:00
Noon and 4:00 p.m. (New York time). The net asset value per share of a Fund is
calculated by taking the sum of the value of that Fund's investments
(amortized cost value is used for this purpose) and any cash or other assets,
subtracting liabilities, and dividing by the total number of shares of
outstanding. All expenses, including the fees payable to the Adviser, are
accrued daily.
TIMING OF INVESTMENTS AND REDEMPTIONS. The Funds have two transaction times
each business day, 12:00 Noon and 4:00 p.m. (New York time). New investments
represented by Federal funds or bank wire monies received by State Street Bank
at any time during a day prior to 4:00 p.m. are entitled to the full dividend
to be paid to shareholders for that day. Shares do not earn dividends on the
day a redemption is effected regardless of whether the redemption order is
received before or after 12:00 Noon.
During periods of drastic economic or market developments, such as the market
break of October 1987, it is possible that shareholders would have difficulty in
reaching Alliance Fund Services, Inc. by telephone (although no such difficulty
was apparent at any time in connection with the 1987 market break). If a
shareholder were to experience such difficulty, the shareholder should issue
written instructions to Alliance Fund Services, Inc. at the address shown on
page 15 of this prospectus. The Funds reserve the right to suspend or terminate
their telephone redemption service at any time without notice. Neither the Funds
nor the Adviser, or Alliance Fund Services, Inc. will be responsible for the
authenticity of telephone requests for redemptions that the Funds reasonably
believe to be genuine. The Funds will employ reasonable procedures in order to
verify that telephone requests for redemptions are genuine, including among
others, recording such telephone instructions and causing written confirmations
of the resulting transactions to be sent to shareholders. If the Funds did not
employ such procedures, they could be liable for losses arising from
unauthorized or fraudulent telephone instructions. Selected dealers or agents
may charge a commission for handling telephone requests for redemptions.
Redemption proceeds are normally wired or mailed either the same or the next
business day, but in no event later than seven days, unless redemptions have
been suspended or postponed due to the determination of an "emergency" by the
Securities and Exchange Commission or to certain other unusual conditions.
DAILY DIVIDENDS, OTHER DISTRIBUTIONS, TAXES. All net income of each Fund is
determined each business day at 4:00 p.m. (New York time) and is paid
immediately thereafter pro rata to shareholders of that
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Fund of record via automatic investment in additional full and fractional
shares of that Fund in each shareholder's account. As such additional shares
are entitled to dividends on following days, a compounding growth of income
occurs.
Net income consists of all accrued interest income on Fund assets less the
Fund's expenses applicable to that dividend period. Realized gains and losses
of a Fund are reflected in its net asset value and are not included in net
income.
Distributions to you out of tax-exempt interest income earned by AMT-General,
AMT-NY, AMT-CA, AMT-CT, AMT-NJ and AMT-FL are not subject to Federal income tax
(other than the AMT), but, in the case of the General Portfolio, may be subject
to state or local income taxes. Any exempt-interest dividends derived from
interest on municipal securities subject to the AMT will be a specific
preference item for purposes of the Federal individual and corporate AMT.
Distributions to residents of New York out of income earned by the New York
Portfolio from New York municipal securities are exempt from New York state and
New York City personal income taxes. Distributions to residents of California
out of income earned by the California Portfolio from California municipal
securities are exempt from California personal income taxes. Distributions to
individuals who are residents of Connecticut out of income earned by the
Connecticut Portfolio from Connecticut municipal securities are exempt from
Connecticut personal income taxes. Distributions to residents of New Jersey out
of income earned by the New Jersey Portfolio from New Jersey municipal
securities or U.S. Government Securities are exempt from New Jersey state
personal income taxes. Distributions from the New Jersey Portfolio are, however,
subject to the New Jersey Corporation Business (Franchise) Tax and the New
Jersey Corporation Income Tax payable by corporate shareholders. Dividends paid
by the Florida Portfolio to individual Florida shareholders will not be subject
to Florida income tax, which is imposed only on corporations. However, Florida
currently imposes an "intangible tax" at the rate of $2.00 per $1,000 taxable
value of certain securities, such as shares of the Portfolio, and other
intangible assets owned by Florida residents. U.S. Government securities and
Florida municipal securities are exempt from this intangible tax. It is
anticipated that the Florida Portfolio shares will qualify for exemption from
the Florida intangible tax. In order to so qualify, the Florida Portfolio must,
among other things, have its entire portfolio invested in U.S. Government
securities and Florida municipal securities on December 31 of any year. Exempt-
interest dividends paid by the Florida Portfolio to corporate share-holders will
be subject to Florida corporate income tax. Distributions out of taxable
interest income, other investment income, and short-term capital gains are
taxable to you as ordinary income and distributions of long-term capital gains,
if any, are taxable as long-term capital gains irrespective of the length of
time you may have held your shares. Distributions of short and long-term capital
gains, if any, are normally made near year-end. Each year shortly after December
31, the Funds will send you tax information stating the amount and type of all
its distributions for the year just ended.
THE ADVISER. Each Fund retains Alliance Capital Management L. P., 1345 Avenue
of the Americas, New York, NY 10105 under separate Advisory Agreements to
provide investment advice and, in general, to supervise its management and
investment program, subject to the general control of the Trustees of each Fund.
For the fiscal year ended June 30, 1995, AMR, AGR, ATR, AMT-General, AMT-NY,
AMT-CA, AMT-CT and AMT-NJ each paid the Adviser an advisory fee at an annual
rate of .49, .46, .38, .50, .42, .50, .19 and .05 of 1%, respectively, of the
average daily value of the respective Portfolio's net assets. AMT-FL pays an
advisory fee at an annual rate of .50 of 1% of up to $1.25 billion of the
average daily value of its net assets, .49 of 1% of the next $.25 billion of
such assets, .48 of 1% of the next $.25 billion of such assets, .47 of 1% of the
next $.25 billion of such assets, .46 of 1% of the next $1 billion of such
assets and .45 of 1% of its average daily net assets in excess of $3 billion.
The fee is accrued daily and paid monthly.
Under a Distribution Services Agreement (the "Agreement"), each Fund pays
the Adviser at a
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maximum annual rate of .25 of 1% of the Fund's aggregate average daily net
assets. For the fiscal year ended June 30, 1995, AMR, AGR, AMT-General, AMT-NY,
AMT-CA, AMT-CT and AMT-NJ each paid the Adviser a distribution services fee at
an annual rate of .21, .23, .24, .15, .17, .15 and .15 of 1%, respectively, of
the average daily value of the net assets of each Portfolio. For the period June
30, 1995, the Adviser waived the distribution fee for ATR. AMT-FL did not
commence operations until after June 30, 1995. Substantially all such monies
(together with significant amounts from the Adviser's own resources) are paid by
the Adviser to broker-dealers and other financial intermediaries for their
distribution assistance and to banks and other depository institutions for
administrative and accounting services provided to the Funds, with any remaining
amounts being used to partially defray other expenses incurred by the Adviser in
distributing the Funds' shares. The Funds believe that the administrative
services provided by depository institutions are permissible activities under
present banking laws and regulations and will take appropriate actions (which
should not adversely affect the Funds or their shareholders) in the future to
maintain such legal conformity should any changes in, or interpretations of,
such laws or regulations occur.
The Adviser will reimburse each Fund to the extent that aggregate operating
expenses of that Fund (including the Adviser's fee and expenses incurred under
the Agreement) exceed 1% of its average daily net assets for any fiscal year.
CUSTODIAN, TRANSFER AGENT AND DISTRIBUTOR. State Street Bank and Trust
Company, P.O. Box 1912, Boston, MA 02105, is the Funds' Custodian. Alliance Fund
Services, Inc., P.O. Box 1520, Secaucus, NJ 07096-1520 and Alliance Fund
Distributors, Inc., 1345 Avenue of the Americas, New York, NY 10105, are the
Funds' Transfer Agent and Distributor, respectively.
FUND ORGANIZATION. AGR and ATR are series of Alliance Government Reserves
which is a diversified open-end management investment company registered under
the 1940 Act. The Fund was reorganized as a Massachusetts business trust in
October 1984, having previously been a Maryland corporation since its formation
in December 1978. ACR and AMR are series of Alliance Capital Reserves, a
diversified open-end management investment company registered under the 1940
Act. The Fund was reorganized as a Massachusetts business trust in October 1984,
having previously been a Maryland corporation since its formation in April 1978.
AMT-General is a diversified, and AMT-NY, AMT-CA, AMT-CT, AMT-NJ and AMT-FL are
non-diversified series of Alliance Municipal Trust, which is also an open-end
management investment company registered under the 1940 Act. The Fund was
reorganized as a Massachusetts business trust in April 1985, having previously
been a Maryland corporation since its formation in January 1983. Each such
investment company is organized as a Massachusetts business trust. Each Fund's
activities are supervised by its Trustees. Normally, shares of each series of
Alliance Municipal Trust, Alliance Government Reserves and Alliance Capital
Reserves are entitled to one vote per share, and vote as a single series, on
matters that affect each series in substantially the same manner. Massachusetts
law does not require annual meetings of shareholders and it is anticipated that
shareholder meetings will be held only when required by Federal law.
Shareholders have available certain procedures for the removal of Trustees.
REPORTS. You receive semi-annual and annual reports for your Fund.
MANAGED ASSETS PLAN ("MAP"). The Funds offer their customers MAP, which is a
special cash management service linked to the Funds. Among various features of
MAP, the shareholder has direct access to his Fund balance (1) with a Visa Gold
Card that is accepted worldwide by participating merchants, banks and automated
teller machines and (2) by MAP checks which can be written for any amount up to
the balance in the account, with no restriction on the number of checks. Details
of MAP, including its annual fee, are available by contacting your Account
Executive.
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Since this prospectus sets forth information about all the Funds, it is
theoretically possible that a Fund might be liable for any materially inaccurate
or incomplete disclosure in this prospectus concerning another Fund. Based on
the advice of counsel, however, the Funds believe that the potential liability
of each Fund with respect to the disclosure in this prospectus extends only to
the disclosure relating to that Fund.
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