LETTER TO SHAREHOLDERS ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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August 3, 1995
Dear Shareholder:
On December 31, 1994, James P. Syrett retired as President of Alliance Cash
Management. His seven years as President were very productive and saw Alliance
become the dominant provider of money funds sold through regional brokerage
firms. On January 1, 1995, it was with great pride that I assumed Jim's
responsibilities, and I look forward to maintaining the high standard of
excellence to which you have grown accustomed.
Money fund assets continue to grow despite volatility in the stock and bond
markets. AMT-New York's assets have grown 8.9% to over $177 million in the past
year, in large part because of the effects of T+3-the accelerated settlement of
most security transactions.
Weakness in the fixed income markets has meant significantly higher yields for
money fund investors. Alliance Municipal Trust - New York Portfolio's 30 day
net yield as of June 30, 1995 was 3.05% vs. 1.84% for the same period ending
June 30, 1994.
Alliance has once again demonstrated its dependability. When Orange County
filed for bankruptcy protection last year, Alliance took action to protect the
$1.00 per share net asset value of the two Alliance tax-free money market funds
holding positions in Orange County securities: Alliance Municipal Trust -
General Portfolio and ACM Institutional Reserves - Tax Free Portfolio. Alliance
arranged for the issuance of a letter of credit from an unaffiliated bank
assuring the payment in full of principal and interest due to the Funds, to the
extent Orange County defaulted on the payments. Thereafter, on July 19, 1995,
in view of continuing uncertainty regarding Orange County's performance of its
financial obligations, Alliance purchased approximately $21 million of Orange
County securities from the two Alliance money market funds, thus eliminating
all Orange County securities from our Alliance money fund portfolios.
Speaking for myself and the entire division, we at Alliance look forward to
serving you with continued diligence in the future.
Very truly yours,
Ronald M. Whitehill
President
1
STATEMENT OF NET ASSETS
JUNE 30, 1995 ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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Principal
Amount
(000) Security+ Yield Value
----------------------------------------------------------------------
MUNICIPAL BONDS-82.3%
NEW YORK-80.8%
BABYLON IDA
Res. Rec.: (Babylon Project) AMT VRDN*
$ 1,100 12/01/24 4.40% $1,100,000
BATTERY PARK CITY FHA
Apt. Dev.: Marina Towers VRDN*
3,760 6/01/23 4.00 3,760,000
BATTERY PARK CITY FHA
Apt. Dev.: Marina Towers VRDN*
3,100 6/01/23 4.00 3,100,000
BROOKHAVEN IDR
(Di-Anna Realty Co.) VRDN*
341 12/01/95 5.85 341,122
DUTCHESS COUNTY IDR
(Toys 'R' Us/NYTEX) Series '84 VRDN*
1,000 11/01/19 4.13 1,000,000
ERIE COUNTY GO RAN
1,500 8/15/95 4.75 1,501,333
FRANKLIN COUNTY IDR
(McCadam Cheese Co., Inc. Project)
Series '90 VRDN*
2,500 2/01/03 4.15 2,500,000
HEMPSTEAD GO BAN
Series '94D
5,000 8/17/95 4.50 5,003,219
ISLIP IDR
(Erin Associates) Series '85 VRDN*
651 8/01/02 5.85 651,189
NEW YORK CITY CULTURAL RES.
(The Jewish Museum) Series '92 VRDN*
7,100 12/01/21 4.00 7,100,000
NEW YORK CITY HOUSING DEVELOPMENT CORP.
(Upper Fifth Avenue Project)
Series A VRDN*
3,000 1/01/16 4.05 3,000,000
NEW YORK CITY HOUSING
DEVELOPMENT CORP. MFHR
(Columbus Gardens Project)
Series '93A VRDN*
7,400 2/01/17 4.00% $7,400,000
NEW YORK CITY HOUSING
DEVELOPMENT CORP. MFHR
(Queenswood Apartments)
Series '89A VRDN*
2,200 2/01/07 4.00 2,200,000
NEW YORK GO
Series '95B-2 VRDN*
6,800 8/15/03 4.25 6,800,000
NEW YORK GO
Series '95F-3 VRDN*
3,000 2/15/13 4.25 3,000,000
NEW YORK GO
Series '95F-5 VRDN*
8,000 2/15/16 4.20 8,000,000
NEW YORK GO
Series '95F-7 VRDN*
3,300 2/15/12 4.15 3,300,000
NEW YORK IDR
(ACME Metal Co.) VRDN*
619 4/01/01 5.85 618,709
NEW YORK IDR
(Madelaine Chocolate Novelties)
Series '86 VRDN*
273 6/10/99 5.85 273,119
NEW YORK IDR
(Monadnock Construction) VRDN*
247 12/01/95 5.85 247,485
NEW YORK IDR
(Western Carpet & Linoleum) VRDN*
825 6/10/00 5.85 824,987
NEW YORK STATE
ENVIRONMENTAL FACILITIES CORP. PCR
(New York City Water Finance Auth.)
Series '94A VRDN*
8,000 6/15/12 4.25 8,000,000
2
ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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Principal
Amount
(000) Security+ Yield Value
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NEW YORK STATE ERDA UTIL. REV.
(Long Island Lighting Co.)
Series B AMT VRDN*
$ 1,000 11/01/23 3.90% $1,000,000
NEW YORK STATE ERDA UTIL. REV.
(Rochester Gas & Electric)
Series '85 PPB*
5,000 11/15/95 4.40 5,000,000
NEW YORK STATE HFA
(Normandie Court II) Series '87A VRDN*
8,000 11/01/02 3.85 8,000,000
NEW YORK STATE HFA MFHR
(Wood Creek Meadows)
Series A AMT VRDN* AMBAC
4,650 11/01/28 3.85 4,650,000
NEW YORK STATE JOB DEV. AUTH.
Series '86A-1 AMT VRDN*
2,055 3/01/00 3.70 2,055,000
NEW YORK STATE JOB DEV. AUTH.
Series '86C-1 AMT VRDN*
895 3/01/00 3.70 895,000
NEW YORK STATE MEDICAL
CARE FACILITIES AUTH.
Eagle Trust (New York Hospital)
Series 953202 VRDN* AMBAC
13,000 8/15/24 4.25 13,000,000
NEW YORK STATE MEDICAL CARE
FACILITIES FINANCE AGENCY FHA
(St. Lukes Hosp.) Series '93 VRDN*
10,000 5/12/05 4.25 10,000,000
ROCHESTER GO BAN
Series I
5,000 3/12/96 4.45 5,026,340
ROCKLAND COUNTY IDR
(Bendix Mouldings, Inc.)
Series '85 VRDN*
1,200 12/01/01 5.40 1,200,000
SMITHTOWN CENTRAL SCHOOL DISTRTICT TAN
Series '95
3,700 6/27/96 3.70% $3,719,392
ST. LAWRENCE COUNTY IDA
(Reynolds Metal Project)
Series '95 AMT VRDN*
3,000 5/01/25 4.00 3,000,000
TRIBOROUGH BRIDGE & TUNNEL AUTHORITY
(General Purpose)
Series I Pre-Refunded
4,500 1/01/96 4.20 4,663,167
TRIBOROUGH BRIDGE & TUNNEL AUTHORITY
(Special Obligation) MBIA VRDN*
6,100 1/01/04 4.05 6,100,000
TRIBOROUGH BRIDGE & TUNNEL AUTHORITY
FGIC VRDN*
2,000 1/01/05 4.05 2,000,000
WESTCHESTER COUNTY IDR
(Hitachi America) VRDN*
3,200 7/01/98 3.90 3,200,000
143,230,062
PUERTO RICO-1.5%
PUERTO RICO HIGHWAY & TRANSPORTATION AUTHORITY
Series X VRDN*
2,700 7/01/99 3.80 2,700,000
Total Municipal Bonds
(amortized cost $145,930,062) 145,930,062
COMMERCIAL PAPER-15.5%
NEW YORK-10.9%
NEW YORK MUNICIPAL WATER AUTHORITY
Series '94
3,400 7/12/95 4.15 3,400,000
NEW YORK MUNICIPAL WATER AUTHORITY
Series 3
1,700 8/14/95 4.20 1,700,000
NEW YORK MUNICIPAL WATER AUTHORITY
Series 3
1,000 9/13/95 4.20 1,000,000
3
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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Principal
Amount
(000) Security+ Yield Value
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NEW YORK STATE DORMITORY AUTHORITY
(Sloan-Kettering Memorial)
$ 3,750 8/24/95 4.00% $3,750,000
NEW YORK STATE ENVIRONMENTAL FACILITY
(General Electric Co.) Series '92A
1,900 8/03/95 4.00 1,900,000
PORT AUTHORITY OF NEW YORK AND
NEW JERSEY AMT
840 8/29/95 3.90 840,000
PORT AUTHORITY OF NEW YORK AND
NEW JERSEY AMT
1,975 8/08/95 4.05 1,975,000
PORT AUTHORITY OF NEW YORK AND
NEW JERSEY AMT
4,780 8/21/95 4.05 4,780,000
19,345,000
PUERTO RICO-4.6%
PUERTO RICO GOVERNMENT DEVELOPMENT BANK
8,100 8/10/95 4.10% $8,100,000
Total Commercial Paper
(amortized cost $27,445,000) 27,445,000
TOTAL INVESTMENTS-97.8%
(amortized cost $173,375,062) 173,375,062
Other assets less liabilities-2.2% 3,878,777
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 177,318,144
shares outstanding) $177,253,839
+ All securities either mature or their interest rate changes in one year or
less.
* Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as the
prime interest rate). These instruments are payable on demand and are secured
by letters of credit or other credit support agreements from major banks.
Periodic Put Bonds (PPB) are payable on demand quarterly, semi-annually or
annually and their interest rates change less frequently than rates on Variable
Rate Demand Notes.
Glossary of Terms:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
ERDA Energy Research & Development Authority
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Agency/Authority
GO General Obligation
HFA Housing Finance Agency/Authority
IDR Industrial Development Revenue
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
PPB Periodic Put Bond
RAN Revenue Anticipation Note
TAN Tax Anticipation Note
VRDN Variable Rate Demand Note
See notes to financial statements.
4
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1995 ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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INVESTMENT INCOME
Interest $6,050,312
EXPENSES
Advisory fee (Note B) $ 826,178
Distribution assistance and administrative
service (Note C) 539,654
Transfer agency 168,515
Custodian fees 66,729
Audit and legal fees 33,630
Printing 24,503
Registration fees 20,784
Trustees' fees 4,140
Miscellaneous 12,590
Total expenses 1,696,723
Less: expense reimbursement and fee waiver (292,221)
1,404,502
Net investment income 4,645,810
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on investments (13,089)
Net change in unrealized appreciation of investments (4,676)
Net loss on investments (17,765)
NET INCREASE IN NET ASSETS FROM OPERATIONS $4,628,045
See notes to financial statements.
5
STATEMENT OF CHANGES
IN NET ASSETS ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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YEAR ENDED YEAR ENDED
JUNE 30,1995 JUNE 30,1994
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $4,645,810 $2,384,824
Net realized loss on investments (13,089) (7,816)
Net change in unrealized appreciation
of investments (4,676) 4,676
Net increase in net assets from operations 4,628,045 2,381,684
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (4,645,810) (2,384,824)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase 14,432,230 62,313,218
Total increase 14,414,465 62,310,078
NET ASSETS
Beginning of year 162,839,374 100,529,296
End of year $177,253,839 $162,839,374
See notes to financial statements.
6
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995 ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Municipal Trust (the 'Fund') is registered under the Investment
Company Act of 1940, as amended, as an open-end investment company. The Fund
operates as a series company currently issuing six classes of shares of
beneficial interest: Alliance Municipal Trust-General Portfolio, Alliance
Municipal Trust-New York Portfolio (the 'Portfolio'), Alliance Municipal Trust
California Portfolio, Alliance Municipal Trust Connecticut Portfolio, Alliance
Municipal Trust-New Jersey Portfolio and Alliance Municipal Trust-Virginia
Portfolio. Each series is considered to be a separate entity for financial
reporting and tax purposes. The following is a summary of significant
accounting policies followed by the Portfolio.
1. VALUATION OF SECURITIES
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity. Amortization of premium is charged to income.
Accretion of market discount is credited to unrealized gains.
2. TAXES
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if applicable,
to its shareholders. Therefore, no provisions for federal income or excise
taxes are required.
3. DIVIDENDS
The Portfolio declares dividends daily from net investment income and
automatically reinvests such dividends in additional shares at net asset value.
Net realized capital gains on investments, if any, are expected to be
distributed near year end. Dividends paid from net investment income for the
year ended June 30, 1995, are exempt from federal income taxes. However,
certain shareholders may be subject to the alternative minimum tax (AMT).
4. GENERAL
Interest income is accrued daily. Security transactions are recorded on the
date securities are purchased or sold. Realized gain (loss) from security
transactions is recorded on the identified cost basis.
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50 of 1% on the first $1.25 billion of average daily
net assets; .49 of 1% on the next $.25 billion; .48 of 1% on the next $.25
billion; .47 of 1% on the next $.25 billion; .46 of 1% on the next $1 billion;
and .45 of 1% in excess of $3 billion. The Adviser has agreed, pursuant to the
advisory agreement, to reimburse the Portfolio to the extent that its annual
aggregate expenses (excluding taxes, brokerage, interest and, where permitted,
extraordinary expenses) exceed 1% of its average daily net assets for any
fiscal year. For the year ended June 30, 1995, the Adviser also voluntarily
agreed to reimburse the Portfolio for expenses exceeding .85 of 1% of its
average daily net assets. For the year ended June 30, 1995, the reimbursement
amounted to $126,985. The Portfolio compensates Alliance Fund Services, Inc. (a
wholly-owned subsidiary of the Adviser) for providing personnel and facilities
to perform transfer agency services for the Portfolio. Such compensation
amounted to $97,115 for the year ended June 30, 1995.
7
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this Plan, the Portfolio pays a distribution fee to the Adviser at an
annual rate of up to .25% of 1% of the Portfolio's average daily net assets.
The Plan provides that the Adviser will use such payments in their entirety for
distribution assistance and promotional activities.
For the year ended June 30, 1995, the distribution fee amounted to $413,089 of
which $165,236 was waived. In addition, the Portfolio reimbursed certain
broker-dealers for administrative costs incurred in connection with providing
shareholder services, accounting, bookkeeping, legal and compliance support.
For the year ended June 30, 1995, such payments by the Portfolio amounted to
$126,565 of which $93,400 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1995, the cost of securities for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1995, the
Portfolio had a capital loss carryforward of $20,905, of which $7,816 expires
in the year 2002 and $13,089 expires in the year 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1995, capital paid-in aggregated $177,318,144. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30,1995 JUNE 30,1994
------------- -------------
Shares sold 660,452,860 453,679,312
Shares issued on reinvestments of dividends 4,645,810 2,386,594
Shares redeemed (650,666,440) (393,752,688)
Net increase 14,432,230 62,313,218
8
ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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NOTE F: FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each period.
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
-----------------------------------------------------
1995 1994 1993 1992 1991
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .028 .018 .019 .034 .042
LESS DISTRIBUTIONS
Dividends from net investment income (.028) (.018) (.019) (.034) (.042)
Net asset value, end of period $ 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%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $177,254 $162,839 $100,529 $100,476 $71,748
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .85% .84% .80% .80% .80%
Expenses, before waivers and reimbursements 1.03% 1.08% 1.06% 1.12% 1.15%
Net investment income 2.81% 1.77% 1.91% 3.35% 4.20%
</TABLE>
(a) Net of expenses reimbursed or waived by the Adviser.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
9
INDEPENDENT AUDITOR'S REPORT ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
We have audited the accompanying statement of net assets of the New York
Portfolio of Alliance Municipal Trust as of June 30, 1995 and the related
statements of operations, changes in net assets, and financial highlights for
the periods indicated in the accompanying financial statements. These financial
statements and financial highlights are the responsibility of the Portfolio's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1995, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
New York Portfolio of Alliance Municipal Trust as of June 30, 1995, and the
results of its operations, changes in its net assets, and its financial
highlights for the periods indicated, in conformity with generally accepted
accounting principles.
New York, New York
August 8, 1995
10
ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
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TRUSTEES
DAVE H. WILLIAMS, CHAIRMAN
JOHN D. CARIFA
SAM Y. CROSS
CHARLES H.P. DUELL
WILLIAM H. FOULK, JR.
ELIZABETH J. MCCORMACK
DAVID K. STORRS
SHELBY WHITE
JOHN WINTHROP
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
JOHN R. BONCZEK, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
ROBERT I. KURZWEIL, SENIOR VICE PRESIDENT
PATRICIA NETTER, SENIOR VICE PRESIDENT
RONALD R. VALEGGIA, SENIOR VICE PRESIDENT
DREW BIEGEL, VICE PRESIDENT
DORIS T. CILIBERTI, VICE PRESIDENT
WILLIAM E. OLIVER, VICE PRESIDENT
RAYMOND J. PAPERA, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JOSEPH J. MANTINEO, CONTROLLER
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. BOX 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
AUDITORS
MCGLADREY & PULLEN, LLP
555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
ALLIANCE MUNICIPAL TRUST-NEW YORK PORTFOLIO
ALLIANCECAPITAL
ANNUAL REPORT
JUNE 30, 1995
ALLIANCE MUNICIPAL TRUST - NEW YORK PORTFOLIO
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
Yields. For current recorded yield information on Alliance
Municipal Trust, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
1 # 1 # 4 9 #
FOR NON-TOUCH-TONE TELEPHONES, CALL TOLL-FREE (800) 221-9513
ALLIANCECAPITAL
DISTRIBUTION OF THIS REPORT OTHER THAN TO SHAREHOLDERS MUST
BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS,
WHICH CONTAINS FURTHER INFORMATION ABOUT THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM
THE OWNER, ALLIANCE CAPITAL MANAGEMENT L.P.
ALC507073
ANYAR
