<PAGE>
This is filed pursuant to Rule 497(e)
File No. 2-66315 and 811-02889
<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, Connecticut and New Jersey Portfolios, exempt from
Federal and state income taxes of the respective states) to the extent
consistent with the first two objectives. Alliance Capital Reserves, Alliance
Gov ernment Reserves, Alliance TreasuryReserves and the General Portfolio of
Alliance Municipal Trust are diversified. The New York, Connecticut and New
Jersey Portfolios of Alliance Municipal Trust are non-diversified, and are
offered only to residents of New York, Connecticut and New Jerseyrespectively.
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 Registered Representative.
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.
CONTENTS
<TABLE>
<S> <C>
Expense Information....................................................... 2
Financial Highlights...................................................... 3
Investment Objectives and Policies........................................ 7
Purchase and Redemption of Shares......................................... 10
Additional Information.................................................... 11
</TABLE>
[LOGO OF HALPERT AND COMPANY INC. APPEARS HERE]
Alliance Capital Reserves
Alliance Government Reserves
Alliance Treasury Reserves
Alliance Municipal Trust-
.General Portfolio
.Connecticut Portfolio
.New Jersey Portfolio
.New York Portfolio
Prospectus
November 1, 1995
Halpert and Company Inc.
Corporate Headquarters
NEW JERSEY
284 Millburn Avenue, Millburn, NJ 07041
201-379-6000.212-964-6800.800-847-2227
Branch Offices
PENNSYLVANIA
1818 Market Street, Philadelphia, PA 19103
215-751-9000.800-964-3339
WASHINGTON, D.C.
2000 L. Street, NW, Suite 715, Washington, D.C. 20036
202-457-1000.800-964-5559
MEMBERS NYSE,NASD,SIPS,NMBDA
<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 ACR AGR ATR AMT-GEN AMT-NY AMT-CT AMT-NJ
reimbursement) --- ---- ---- ------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Management Fees............... .48% .48% .50% .50% .50% .50% .50%
12b-1 Fees.................... .25 .23 .20 .25 .25 .25 .25
Other Expenses................ .27 .29 .30 .25 .25 .25 .25
---- ---- ---- ---- ---- ---- ----
Total Fund Operating
Expenses..................... 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>
ACR.......................................... $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--Connecticut............................. $10 $32 $55 $122
AMT--New Jersey.............................. $10 $32 $55 $122
</TABLE>
The purpose of the foregoing table is to assist the investor in understand-
ing the various costs and expenses that an investor in the Fund will bear di-
rectly and indirectly. The expenses listed in the table for AGR, ATR, AMT-CT
and AMT-NJ are net of the contractual reimbursement by the Adviser described
in this prospectus. The expenses of such Portfolios, before expense reimburse-
ments, 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%. 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
The following tables 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>
Year Ended June 30,
Alliance Capital 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,
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.... .0447 .0255 .0266 .0438 .0662 .0782 .0788 0.0625 0.0549 0.0685
Net realized gain on
investments............. -0- -0- .0003 .0013 -0- -0- -0- -0- -0- -0-
------ ------ ------ ------ ------ ------ ------ ------- ------- -------
Net increase in net
assets from operations.. .0447 .0255 .0269 .0451 .0662 .0782 .0788 0.0625 0.0549 0.0685
------ ------ ------ ------ ------ ------ ------ ------- ------- -------
LESS: DISTRIBUTIONS
Dividends from net
investment income....... (.0447) (.0255) (.0266) (.0438) (.0662) (.0782) (.0788) (0.0625) (0.0549) (0.0685)
Distributions from net
realized gains.......... -0- -0- (.0003) (.0013) -0- -0- -0- -0- -0- -0-
------ ------ ------ ------ ------ ------ ------ ------- ------- -------
Total dividends and
distributions........... (.0447) (.0255) (.0269) (.0451) (.0662) (.0782) (.0788) (0.0625) (0.0549) (0.0685)
------ ------ ------ ------ ------ ------ ------ ------- ------- -------
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)...... 4.57% 2.58% 2.73% 4.61% 6.84% 8.14% 8.20% 6.45% 5.64% 7.09%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(in millions)........... $3,024 $2,417 $2,112 $1,947 $1,937 $1,891 $1,536 $1,392 $1,458 $1,198
Ratio to average net
assets of:
Expenses, net of waivers
and reimbursements..... 1.00% 1.00% 1.00% 1.00% .97% .88% .95% .95% .99% 1.01%
Expenses, before waivers
and reimbursements..... 1.03% 1.03% 1.00% 1.00% .97% .98% 1.05% 1.05% 1.09% 1.11%
Net investment
income(b).............. 4.51% 2.57% 2.65% 4.37% 6.62% 7.82% 7.87% 6.26% 5.50% 6.85%
</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 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, Sis 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>
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.
5
<PAGE>
<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.
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 ACR
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-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%.
6
<PAGE>
INVESTMENT OBJECTIVES AND POLICIES
The investment objectives of each of the 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 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. 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 share-
holders, 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 under the Investment Company Act of
1940 (the "1940 Act"), as amended, 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 Capital Reserves
The money market securities in which Alliance Capital Reserves ("ACR")
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, bankers' acceptances and interest
bearing savings deposits issued or guaranteed by banks or savings and loan
associations having total assets of more than $1 billion and which are members
of the Federal Deposit Insurance Corporation and certificates of deposit and
bankers' acceptances denominated in U.S. dollars and issued by U.S. branches
of foreign banks having total assets of at least $1 billion that are believed
by the Adviser to be of quality equivalent to that of other such instruments
in which the Fund may invest; (3) commercial paper of prime quality [i.e.,
rated A-1+ or A-1 by Standard & Poor's Corporation ("Standard & Poor's") or
Prime-1 by Moody's Investors Service, Inc. ("Moody's") or, if not rated,
issued by companies having outstanding debt securities rated AAA or AA by
Standard & Poor's, or Aaa or Aa 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. 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, ACR'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. ACR may also invest in
certificates of deposit issued by, and time deposits maintained at, foreign
branches of domestic banks described in (2) above and prime quality dollar-
denominated commercial paper issued by foreign companies meeting the criteria
specified in (3) above.
ACR may purchase restricted securities that are determined by the Adviser
to be liquid in accordance with procedures adopted by the Trustees of ACR.
Restricted securities are securities subject to contractual or legal restric-
tions on resale, such as those arising from an issuer's reliance upon certain
exemptions from registration under the Securities Act of 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.
ACR may invest in asset-backed securities that meet its existing diversifi-
cation, 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 benefi-
cial interest in a special purpose trust, limited partnership interest, or
commercial paper or other debt securities issued by a special purpose corpora-
tion. 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 ACR'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, ACR may not: (1) invest more than 25% of its as-
sets in the securities of issuers conducting their principal business activi-
ties 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%
7
<PAGE>
of its assets in 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
ACR 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"), in-
cluding 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 securi-
ties 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 aggre-
gate amounts not exceeding 10% of its assets and to be used exclusively to fa-
cilitate 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 se-
cure 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 mainte-
nance 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 col-
lateral 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 securi-
ties are fixed on the transaction date. The value of such securities may fluc-
tuate 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 aggre-
gate amounts not exceeding 10% of its assets and to be used exclusively to fa-
cilitate 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 se-
cure 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. As a
matter of fundamental policy, each Portfolio pursues its objectives by
investing in high quality municipal securities having remaining maturities of
one year (397 days with respect to the New Jersey) or less, which maturities
may extend to 397 days and, except when a Portfolio assumes a temporary
defensive position, at least 80% of each such Portfolio's total assets will be
invested in such securities (as opposed to the taxable
8
<PAGE>
investments described below). While the fundamental policies described above
and the "other fundamental investment policies" identified below may not be
changed for a Portfolio without the approval of its shareholders, the other
investment policies set forth in this prospectus may be changed upon notice
but without such approval. 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 average weighted maturity of each
Portfolio cannot exceed 90 days. The Fund may in the future establish
additional portfolios which may have different investment objectives.
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 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 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.
Each Portfolio of the Fund may invest without limitation in tax-exempt mu-
nicipal 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 pri-
vate 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) inter-
est on all tax-exempt obligations will be included in "adjusted current earn-
ings" of corporations for AMT purposes. Such bonds have provided, and may con-
tinue to provide, somewhat higher yields than other comparable municipal secu-
rities. 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, Connecticut and New Jersey
Portfolios should consider the greater risk of the concentration of such Port-
folios 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, be-
fore 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 Addi-
tional Information for a more detailed discussion of the financial condition
of New York, Connecticut and New Jersey.
Municipal Securities. The municipal securities in which each Portfolio in-
vests 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 sea-
sonal revenues, bond anticipation notes, and tax-exempt commercial paper.
Short-term municipal bonds may include general obligation bonds, which are se-
cured 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, ac-
cordingly, enhance the ability of the Portfolio to maintain a stable net asset
value. Variable rate securities purchased may include participation inter-
9
<PAGE>
ests 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.
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 Corpora-
tion (AAA and AA or SP-1 and SP-2), or judged by the Adviser to be of compara-
ble quality. Securities must also meet credit standards applied by the Advis-
er.
A Portfolio also may invest in stand-by commitments, which may involve cer-
tain 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 custo-
dian 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 ex-
pressed 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 fluc-
tuate 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 Gen-
eral 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 as-
sets the General Portfolio may invest up to 10% per issuer, and (ii) the New
York, Connecticut and New Jersey 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.
PURCHASE AND REDEMPTION OF SHARES
Opening Accounts
Instruct your Registered Representative to use ACR, AGR, ATR, AMT-General,
AMT-CT, AMT-NJ or AMT-NY in conjunction with your brokerage account.
Subsequent Investments
A. By Check Through Halpert and Company Inc.
Mail your check made payable to Pershing & Co. to: Pershing & Co., P.O. Box
2061, Jersey City, NJ 07303-2061 who will deposit it into the Fund(s). Please
indicate your Pershing account number on the check.
B. By Sweep
Automatic Sweep--All cash management products have available an Automatic
Sweep Service. With the automatic sweep each time money accumulates in your
Pershing account--whether through dividends or interest payments, deposits, or
sale of securities--an automatic sweep is triggered. All free credit balances
are moved into your fund account on a daily basis on the business day follow-
ing posting to your brokerage account. We will, however, hold back sufficient
funds to pay for security purchases which have not yet settled. For informa-
tion on the terms of the Automatic Sweep, contact your Registered Representa-
tive.
C. By Contacting Your Registered Representative
Available credit balances in your brokerage account from proceeds of your
securities sales or from any other source can be moved into your Fund account
by contacting your Registered Representative specifically each time that you
know there is a cash balance.
Redemptions
A. By Contacting Your Registered Representative
Instruct your Registered Representative to make a withdrawal from your Fund
account and to make payment to you with a Halpert and Company Inc. check.
B. By Sweep
The sweep automatically moves money from your Fund account to cover invest-
ment purchases made in your cash account.
10
<PAGE>
C. By Check-Writing
With the 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. You must first
fill out the Signature Card which you can obtain from your Registered Repre-
sentative. 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 pay-
ment.
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 (amor-
tized cost value is used for this purpose) and any cash or other assets, sub-
tracting liabilities, and dividing by the total number of shares of outstand-
ing. All expenses, including the fees payable to the Adviser, are accrued dai-
ly.
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 re-
ceived before or after 12:00 Noon. However, if you wish to have Federal funds
wired the same day of your telephone redemption request, make sure that your
request will be received by the Fund prior to 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 12 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 immedi-
ately thereafter pro rata to shareholders of that 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 in-
come.
Distributions to you out of tax-exempt interest income earned by AMT-Gener-
al, AMT-NY, AMT-CT and AMT-NJ 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 inter-
est 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 individuals who are residents of Con-
necticut out of income earned by the Connecticut Portfolio from Connecticut
municipal securities are exempt from Connecticut personal income taxes. Dis-
tributions to residents of New Jersey out of income earned by the New Jersey
Portfolio
11
<PAGE>
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 (Fran-
chise) Tax and the New Jersey Corporation Income Tax payable by corporate
shareholders. 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 nor-
mally 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 Ave-
nue of the Americas, New York, NY 10105 under separate Advisory Agreements to
provide investment advice and, in general, to supervise its management and in-
vestment program, subject to the general control of the Trustees of each Fund.
For the fiscal year ended June 30, 1995, ACR, AGR, ATR, AMT-General, AMT-NY,
AMT-CT and AMT-NJ each paid the Adviser an advisory fee at an annual rate of
.46, .46, .38, .50, .42, .19 and .05 of 1%, respectively, of the average daily
value of the respective Fund's (or Portfolio's) net assets.
Under a Distribution Services Agreement (the "Agreement"), each Fund pays
the Adviser at a maximum annual rate of .25 of 1% of the Fund's aggregate av-
erage daily net assets. For the fiscal year ended June 30, 1995, ACR, AGR,
AMT-General, AMT-NY, AMT-CT and AMT-NJ each paid the Adviser a distribution
services fee at an annual rate of .25, .23, .24, .15, .15 and .15 of 1%, re-
spectively, of the average daily value of the net assets of each Fund (or
Portfolio). For the period June 30, 1995, the Adviser waived the distribution
fee for ATR. 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 par-
tially 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 regula-
tions 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 Com-
pany, 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 Dis-
tributors, 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 forma-
tion in December 1978. ACR and Alliance Money Reserves (not offered by this
prospectus) are series of Alliance Capital Reserves, a diversified open-end
management investment company registered under the 1940 Act. The Fund was re-
organized 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-CT and AMT-NJ are non-diversified series of Al-
liance Municipal Trust, which is also an open-end management investment com-
pany registered under the 1940 Act consisting of three other series not of-
fered by this prospectus. 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 Mas-
sachusetts business trust. Each Fund's activities are supervised by its Trust-
ees. 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 sub-
stantially 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 proce-
dures for the removal of Trustees.
Reports. You receive semi-annual and annual reports for your Fund as well as
a monthly summary of your account. You can arrange for a copy of each of your
account statements to be sent to other parties.
Since this prospectus sets forth information about all the Funds, it is the-
oretically 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.
12
