ALLIANCE
MUNICIPAL TRUST
- -FLORIDA PORTFOLIO
ALLIANCE CAPITAL
PROSPECTUS
JUNE 12, 1995
EXPENSE INFORMATION
SHAREHOLDER TRANSACTION EXPENSES
The Fund has no sales load on purchases or reinvested dividends, deferred sales
load, redemption fee or exchange fee.
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Management Fees .50%
12b-1 Fees .25%
Other Expenses .25%
Total Fund Operating Expenses 1.00%
EXAMPLE
1 YEAR 3 YEARS
------ -------
You would pay the following expenses on a $1,000
investment, assuming a 5% annual return
(cumulatively through the end of each time period): $10 $32
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. 'Other Expenses' are based on estimated amounts for the Fund's
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.
From time to time the 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.
INVESTMENT OBJECTIVES AND POLICIES
INVESTMENT OBJECTIVES
The investment objectives of the Fund 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. The Fund 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, as amended (the 'Act')) and, except
when the Fund assumes a temporary defensive position, at least 80% of the
Fund's total assets will be invested in municipal securities (as opposed to the
taxable investments described below). Normally, substantially all of the Fund's
income will be tax-exempt as described below. The average weighted maturity of
the Fund cannot exceed 90 days. The Fund is a series of Alliance Municipal
Trust which currently consists of six other series not offered by this
prospectus. Alliance Municipal Trust may in the future establish additional
portfolios which may have different investment objectives.
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The Fund 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.
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 Fund will achieve its investment objectives.
Potential investors should consider the greater risk of the concentration of
the Fund versus the safety that comes with less concentrated investments and
should compare yields available on portfolios of Florida's issues with those of
more diversified portfolios, including other states' issues, before making an
investment decision. Alliance Capital Management L.P., the Fund's investment
adviser (the 'Adviser') believes that by maintaining the Fund's investments in
liquid, short-term, high quality investments, the Fund is largely insulated
from the credit risks that exist on long-term municipal securities of Florida.
See the Statement of Additional Information for a more detailed discussion of
the financial condition of Florida.
MUNICIPAL SECURITIES
The municipal securities in which the Fund 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.
The Fund 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 Fund 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 the Fund's total assets.
All of the Fund's 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.
TAXABLE INVESTMENTS
The Fund may invest in taxable investments including obligations of the U.S.
Government and its agencies, high quality certificates of deposit and bankers'
acceptances, prime commercial paper, and repurchase agreements.
GENERAL
The Fund will comply with Rule 2a-7 under the Act including the diversity,
quality and maturity limitations imposed by the Rule. A more detailed
description of Rule 2a-7 is set forth in the Fund's Statement of Additional
Information.
The Fund 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 the
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Fund's net assets. The Fund 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 Fund, 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 the Fund.
The Fund will not invest more than 10% of its net assets in illiquid
securities, which include 'restricted securities' subject to legal restrictions
on resale arising from an issuer's reliance upon certain exemption from
registration under the Securities Act of 1933, as amended (the 'Securities
Act'). The Fund may also purchase restricted securities determined by the
Adviser to be liquid.
FUNDAMENTAL INVESTMENT POLICIES
While the Fund's policy of normally investing at least 80% of its assets in
municipal securities and the investment policies identified below in this
paragraph may not be changed for the Fund without the approval of its
shareholders, the other investment policies set forth in this prospectus may be
changed upon notice but without such approval. To reduce investment risk, the
Fund may not invest more than 25% of its total assets in municipal securities
the interest upon which is paid from revenues of similar-type projects. The
Fund may not invest more than 5% of its total assets in the securities of any
one issuer except the U.S. Government, although it may invest 50% of its total
assets in as few as four issuers (but no more than 25% of total assets in any
one issuer). The Fund 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-NEW INVESTMENTS
A. WHEN FUNDS ARE SENT BY WIRE (the wire method permits immediate credit)
1) Telephone the Fund toll-free at (800) 824-1916. The Fund will ask for the
(a) name of the account as you wish it to be registered, (b) address of the
account and (c) taxpayer identification number-social security number for
an individual. The Fund will then provide you with an account number.
2) Instruct your bank to wire Federal funds (minimum $1,000) exactly as
follows:
ABA 0110 00028
State Street Bank and Trust Company
Boston, MA 02101
Alliance Municipal Trust
-Florida Portfolio
DDA 9903-279-9
Your account name as registered
Your account number with the Fund
3) Mail a completed Application Form to:
Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, New Jersey 07096-1520
B. WHEN FUNDS ARE SENT BY CHECK
1) Fill out an Application Form.
2) Mail the completed Application Form along with your check or negotiable
bank draft (minimum $1,000), payable to Alliance Municipal Trust-Florida
Portfolio, to Alliance Fund Services, Inc. as in A(3).
SUBSEQUENT INVESTMENTS
A. INVESTMENTS BY WIRE (to obtain immediate credit)
Instruct your bank to wire Federal funds (minimum $100) to State Street Bank
and Trust Company ('State Street Bank') as in A(2) above.
B. INVESTMENTS BY CHECK
Mail your check or negotiable bank draft (minimum $100), payable to Alliance
Municipal Trust-Florida
4
Portfolio to Alliance Fund Services, Inc. as in A(3) above.
Include with the check or draft the 'next investment' stub from one of your
previous monthly or interim account statements. For added identification, place
your Fund account number on the check or draft.
INVESTMENTS MADE BY CHECK
Money transmitted by a check drawn on a member of the Federal Reserve System is
converted to Federal funds in one business day following receipt and, thus, is
then invested in the Fund. Checks drawn on banks which are not members of the
Federal Reserve System may take longer to be converted and invested. All
payments must be in United States dollars.
PROCEEDS FROM ANY SUBSEQUENT REDEMPTION BY YOU OF FUND SHARES THAT WERE
PURCHASED BY CHECK OR ELECTRONIC FUNDS TRANSFER WILL NOT BE FORWARDED TO YOU
UNTIL THE FUND IS REASONABLY ASSURED THAT YOUR CHECK OR ELECTRONIC FUNDS
TRANSFER HAS CLEARED, UP TO FIFTEEN DAYS FOLLOWING THE PURCHASE DATE. If the
redemption request during such period is in the form of a Fund check, the check
will be marked 'insufficient funds' and be returned unpaid to the presenting
bank.
REDEMPTIONS
A. BY TELEPHONE
You may withdraw any amount from your account on any Fund business day (i.e.,
any weekday exclusive of days on which the New York Stock Exchange or State
Street Bank is closed) between 9:00 a.m. and 5:00 p.m. (New York time) via
orders given to Alliance Fund Services, Inc. by telephone toll-free (800)
824-1916. Redemption orders must include your account name as registered with
the Fund and the account number.
If your telephone redemption order is received by Alliance Fund Services, Inc.
prior to 12:00 Noon (New York time), we will send the proceeds in Federal funds
by wire to your designated bank account that day. The minimum amount for a wire
is $1,000. If your telephone redemption order is received by Alliance Fund
Services, Inc. after 12:00 Noon and before 4:00 p.m., we will wire the proceeds
the next business day. You also may request that proceeds be sent by check to
your designated bank. Redemptions are made without any charge to you.
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 the cover of this prospectus. The Fund reserves the right to suspend or
terminate its telephone redemption service at any time without notice. Neither
the Fund nor the Adviser, or Alliance Fund Services, Inc. will be responsible
for the authenticity of telephone requests for redemptions that the Fund
reasonably believes to be genuine. The Fund 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 Fund did not employ such procedures, it 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.
B. BY CHECK-WRITING
Under 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 is with the Application Form. If you wish to
establish this check-writing service subsequent to the opening of your Fund
account, contact the Fund by telephone or mail. There is no separate charge for
the check-writing service, except that State Street Bank will impose its normal
charges for checks which are returned unpaid because of insufficient funds or
for checks upon which you have placed a stop order. 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 to State Street Bank for
payment.
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C. BY MAIL
You may withdraw any amount from your account at any time by mail. Written
orders for withdrawal, accompanied by duly endorsed certificates, if issued,
should be mailed to Alliance Fund Services, Inc., P.O. Box 1520, Secaucus, New
Jersey 07096-1520. Such orders must include the account name as registered with
the Fund and the account number. All written orders for redemption and
accompanying certificates, if any, must be signed by all owners of the account
with the signatures guaranteed by an institution which is an 'eligible
guarantor' as defined in Rule 17 Ad-15 under the Securities Exchange Act of
1934, as amended.
OBTAINING AN APPLICATION FORM-ASSISTANCE. If you wish to obtain an Application
Form, or you have questions about the Form, purchasing shares, or other Fund
procedures, please telephone the Fund toll-free at (800) 221-5672.
If your account with the Fund is to be established and maintained through a
brokerage firm, investment adviser, bank, or other institution, your account
will be opened for you. In this case, do not fill out the Application Form or
the Signature Card. For purchases and redemptions, contact your account
representative at such institution. Institutions may charge a fee for providing
such assistance.
ADDITIONAL INFORMATION
ARRANGEMENTS FOR TELEPHONE REDEMPTIONS. If you wish to use the telephone
redemption procedure, indicate this on your Application Form and designate a
bank and account number to receive the proceeds of your withdrawals. If you
decide later that you wish to use this procedure, or to change instructions
already given, send a written notice to Alliance Municipal Trust, P.O. Box
1520, Secaucus, New Jersey 07096-1520, with your signature guaranteed by an
institution which is an eligible guarantor. For joint accounts, all owners must
sign and have their signatures guaranteed.
AUTOMATIC INVESTMENT PROGRAM. A shareholder may purchase shares of the Fund
through an automatic investment program through a bank that is a member of the
National Automated Clearing House Association. Purchases can be made on a Fund
business day each month designated by the shareholder. Shareholders wishing to
establish an automatic investment program should write or telephone the Fund or
Alliance Fund Services, Inc. at (800) 221-5672.
SHARE PRICE. Shares of the Fund 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 the 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 the Fund
is calculated by taking the sum of the value of its 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 outstanding. All
expenses, including the fees payable to the Adviser, are accrued daily.
TIMING OF INVESTMENTS AND REDEMPTIONS. The Fund has 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. 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.
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.
MINIMUMS. The Fund has minimums of $1,000 for initial investments, $100 for
subsequent investments, and $500 for account balances. These minimums do not
apply to shareholder accounts maintained through brokerage firms or other
financial institutions, as such financial intermediaries may maintain their own
minimums for their customers' invest-
6
ments in the Fund. However, the Fund imposes service charges upon financial
intermediaries to reflect the relatively higher costs of small accounts and
small transactions. These intermediaries may in turn pass on such charges to
affected accounts.
A shareholder subject to the minimum account balance requirement must increase
his account balance to at least $500 within sixty days after notice has been
mailed by the Fund of a deficient balance, or the Fund will close the account
and mail a check for the proceeds to the shareholder. The Fund intends at least
once each six months to review its shareholder balances in regard to the $500
minimum and to send appropriate notices to shareholders with deficient
accounts. The Fund imposes no minimums for redemptions by mail or for
redemptions made on an account's behalf by brokerage firms or other financial
institutions. However, such firms may have internal procedures that include
minimums.
DAILY DIVIDENDS, OTHER DISTRIBUTIONS, TAXES. All net income of the Fund is
determined each business day at 4:00 p.m. (New York time) and is paid
immediately thereafter pro rata to shareholders of record via automatic
investment in additional full and fractional shares in each shareholder's
account. As such additional shares are entitled to dividends on following days,
a compounding growth of income occurs.
The Fund's net income consists of all accrued interest income on its assets
less its expenses applicable to that dividend period. Realized gains and losses
of the 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 the Fund are
not subject to Federal income tax (other than the AMT). 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 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. Dividends paid by the Fund 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 Fund, 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 Fund's shares will qualify for
exemption from the Florida intangible tax. In order to so qualify, the Fund
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 Fund to corporate shareholders will be
subject to Florida corporate income tax. Each year shortly after December 31,
the Fund will send you tax information stating the amount and type of all its
distributions for the year just ended.
THE ADVISER. The Fund retains Alliance Capital Management L.P. under an
Advisory Agreement to provide investment advice and, in general, to supervise
the Fund's management and investment program, subject to the general control of
the Trustees of the Fund. The Fund 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'), the Fund pays the
Adviser at a maximum annual rate of .25 of 1% of the Fund's aggregate average
daily net assets. 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 Fund, with any remaining amounts being
used to partially defray other expenses incurred by the Adviser in distributing
Fund shares. The Fund believes 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 Fund or its 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 the Fund to the extent that the combined net
expenses of the Fund (including the
7
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 Fund's 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
Fund's Transfer Agent and Distributor, respectively. The transfer agent charges
a fee for its services.
FUND ORGANIZATION. Alliance Municipal Trust (the 'Trust') is an open-end
management investment company registered under the Act. The Trust is organized
as a Massachusetts business trust. The Trust's activities are supervised by its
Trustees. Normally, shares of each series of the Trust are entitled to one
vote, and vote as a single series on matters that affect the 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.
MANAGED ASSETS PLAN ('MAP'). Certain brokerage firms offer their customers MAP,
which is a special cash management service linked to the Fund or to its
companion money market funds. Among various features of MAP, the customer 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 from participating brokerage firms.
8
SHAREHOLDER SERVICES
Our specially trained shareholder representatives are committed to providing
you with ongoing, responsive service. They are available to answer your
questions about the status of your account or other Fund matters. Call
toll-free (800) 221-5672 or write the Fund, P.O. Box 1520, Secaucus, New
Jersey, 07096-1520, whenever you need fast, efficient, and friendly service.
YIELDS. For current recorded yield information on Alliance Municipal
Trust-Florida Portfolio, call on a touch-tone telephone toll-free (800)
251-0539 and press the following sequence of keys: 1#1#66# For non-touch-tone
telephones, call toll-free (800) 221-9513.
Alliance Municipal Trust-Florida Portfolio (the 'Fund') is a non-diversified,
open-end investment company with investment objectives of 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.
Shares of the Fund are offered only to residents of Florida. This prospectus
sets forth the information about the Fund that a prospective investor should
know before investing. Please retain it for future reference.
AN INVESTMENT IN THE 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 THE FUND WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF
$1.00 PER SHARE.
A 'Statement of Additional Information,' dated June 12, 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. For a free copy,
call or write the Fund at the telephone number or address shown above.
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.
R This registered service mark used under license from the owner, Alliance
Capital Management L.P.
CONTENTS
Expense Information 2
Investment Objectives and Policies 2
Purchase and Redemption of Shares 4
Additional Information 6
