ALLIANCE MUNICIPAL TRUST
-NEW JERSEY PORTFOLIO
ALLIANCECAPITAL
ANNUAL REPORT
JUNE 30, 1995
LETTER TO SHAREHOLDERS ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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 Jersey's assets have grown 100% to over $74 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 Jersey Portfolio's 30 day
net yield as of June 30, 1995 was 3.04% vs. 2.10% 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 JERSEY PORTFOLIO
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PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
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MUNICIPAL BONDS-81.5%
ILLINOIS-1.8%
SOUTHWESTERN ILLINOIS DEVELOPMENT AUTHORITY
(Shell Oil-Wood River Project)
Series '91 AMT VRDN*
$ 1,300 8/01/21 4.35% $1,300,000
LOUISIANA-2.3%
ST. CHARLES PARISH PCR
(Shell Oil Company ) AMT VRDN*
1,700 11/01/21 4.35 1,700,000
NEW JERSEY-67.0%
BURLINGTON COUNTY GO BOND
700 10/15/95 4.30 700,087
ESSEX COUNTY GO
Series B MBIA
375 12/15/95 3.50 380,379
ESSEX COUNTY TAN
Series '95C
3,000 11/22/95 3.55 3,008,144
GLOUCESTER COUNTY PCR
(Mobil Oil) VRDN*
2,000 12/01/13 3.80 2,000,000
HUNTERDON COUNTY BAN
3,500 5/24/96 3.94 3,500,282
MIDDLESEX COUNTY SEWER REVENUE
BT-95 MBIA
800 2/15/03 4.05 800,000
MONMOUTH COUNTY GO BAN
2,000 8/31/95 4.75 2,002,416
MONTGOMERY TOWNSHIP BAN
School District Series '95
1,000 3/01/96 4.70 1,001,905
MORRIS COUNTY BOND
County College Series '95
1,000 7/15/96 3.62 1,018,960
MORRIS COUNTY BOND
General Improvement Series '95
1,226 7/15/96 3.62% $1,249,245
MORRIS COUNTY GO BAN
3,000 12/15/95 4.60 3,001,304
NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY
(Epitaxx, Inc.) Series '91 VRDN*
2,000 8/01/16 4.25 2,000,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY IDR
(Economic Growth) Series B AMT VRDN*
1,600 8/01/04 4.00 1,600,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY IDR
(Sound Design Corp.) Series '84 VRDN*
2,822 12/31/99 5.85 2,821,500
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY IDR
Stp Company 2 through 4 Project 1992 VRDN*
2,885 7/01/06 3.90 2,885,000
NEW JERSEY GO BOND
625 8/01/95 3.40 626,218
NEW JERSEY HEALTH CARE HOSPITAL REVENUE
(South Jersey Hospital)
1,625 7/01/95 4.50 1,625,000
NEW JERSEY HFA MFHR
(Statewide Mortgage) Series 1 PPB*
990 9/29/95 4.20 990,000
NEW JERSEY HFA SFMR
Eagle Trust (Home Owner Mtg.)
Series C-D MBIA VRDN*
5,900 10/01/15 4.25 5,900,000
2
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
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PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
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NEW JERSEY SPORTS & EXPOSITION AUTHORITY
Series '92C MBIA VRDN*
$ 2,600 9/01/24 3.90% $ 2,600,000
NEW JERSEY STATE TURNPIKE AUTHORITY
(Turnpike Revenue) Series '91A MBIA VRDN*
900 1/01/00 4.05 900,000
NEW JERSEY STATE TURNPIKE AUTHORITY
(Turnpike Revenue) Series '91A MBIA VRDN*
1,000 1/01/01 4.05 1,000,000
NEW JERSEY STATE TURNPIKE AUTHORITY
(Turnpike Revenue) Series D FGIC VRDN*
1,000 1/01/18 3.85 1,000,000
NEW JERSEY TRANSPORTATION
TRUST FUND AUTHORITY
(Transportation Systems) Series '94A
3,000 12/15/95 3.60 3,012,085
OCEAN COUNTY UTILITIES AUTHORITY
(Wastewater Revenue) Pre-Refunded FGIC
1,000 1/01/96 4.30 1,013,087
PORT AUTHORITY OF NEW YORK AND NEW JERSEY
Series 3 Util Rev:
(KIAC Partners Project) AMT VRDN*
3,000 10/01/14 3.25 3,000,000
49,635,612
TEXAS-2.4%
DALLAS COUNTY IDR
(Crane CR/PL, Inc.) Series '85 VRDN*
700 5/01/10 4.35% 700,000
HARRIS COUNTY
(Exxon Project) Series '87 AMT VRDN*
1,100 8/15/27 4.35 1,100,000
1,800,000
VIRGINIA-4.0%
ALEXANDRIA VIRGINIA
Res. Rec.:
(Alexandria/Arlington) AMT VRDN*
3,000 12/01/16 4.45 3,000,000
PUERTO RICO-4.0%
PUERTO RICO HIGHWAY &
TRANSPORTATION AUTHORITY
Series X VRDN*
3,000 7/01/99 3.80 3,000,000
Total Municipal Bonds
(amortized cost $60,435,612) 60,435,612
COMMERCIAL PAPER-16.0%
NEW JERSEY-10.6%
NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY
(Chambers Cogeneration) Series '91 AMT
1,000 8/15/95 4.00 1,000,000
PORT AUTHORITY OF NEW YORK AND NEW JERSEY
Series B
3,335 9/07/95 4.05 3,335,000
3
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
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PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
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PORT AUTHORITY OF NEW YORK AND
NEW JERSEY AMT
Series B
$ 3,500 7/17/95 3.35% $ 3,500,000
7,835,000
PUERTO RICO-5.4%
PUERTO RICO GOVERNMENT DEVELOPMENT BANK
1,000 7/18/95 2.80 1,000,000
PUERTO RICO GOVERNMENT DEVELOPMENT BANK
3,000 7/14/95 4.10 3,000,000
4,000,000
Total Commercial Paper
(amortized cost $11,835,000) $11,835,000
TOTAL INVESTMENTS-97.5%
(amortized cost $72,270,612) 72,270,612
Other assets less liabilities-2.5% 1,862,092
NET ASSETS-100%
(offering and redemption price of $1.00
per share; 74,133,955 shares outstanding) $74,132,704
+ 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:
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
FGIC Financial Guaranty Insurance Company
GO General Obligation
HFA Housing Finance Agency/Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
PPB Private Placement Bond
SFMR Single Family Mortgage Revenue
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 JERSEY PORTFOLIO
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INVESTMENT INCOME
Interest $2,170,496
EXPENSES
Advisory fee (Note B) $ 291,779
Distribution assistance and administrative
service (Note C) 242,255
Transfer agency 95,229
Custodian fees 51,585
Registration fees 33,902
Audit and legal fees 20,836
Printing 9,421
Trustees' fees 2,871
Amortization of organization expense 2,720
Miscellaneous 3,160
Total expenses 753,758
Less: expense reimbursement and fee waiver (319,746)
434,012
Net investment income 1,736,484
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments (1,251)
NET INCREASE IN NET ASSETS FROM OPERATIONS $1,735,233
STATEMENTS OF CHANGES IN NET ASSETS
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FEBRUARY 7,
YEAR ENDED 1994* TO
JUNE 30,1995 JUNE 30,1994
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INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,736,484 $ 270,045
Net realized loss on investments (1,251) -0-
Net increase in net assets from operations 1,735,233 270,045
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,736,484) (270,045)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase 37,225,371 36,908,584
Total increase 37,224,120 36,908,584
NET ASSETS
Beginning of period 36,908,584 -0-
End of period $74,132,704 $36,908,584
* Commencement of operations.
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995 ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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, Alliance Municipal Trust-California
Portfolio, Alliance Municipal Trust-Connecticut Portfolio, Alliance Municipal
Trust-New Jersey Portfolio (the '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. ORGANIZATION EXPENSES
The organization expenses of the Portfolio are being amortized against income
on a straight-line basis through February 7, 1999.
3. 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.
4. 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).
5. 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. The Adviser also voluntarily agreed to reimburse the Portfolio
from July 1, 1994 to February 28, 1995 for expenses exceeding .70 of 1% of its
average daily net assets and from March 1, 1995 to June 30, 1995 for expenses
exceeding .80 of 1% of its average daily net assets. For the year ended June
30, 1995, the reimbursement amounted to $261,389. 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 $54,641 for the year ended June 30,
1995.
6
ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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 amounted to $145,891 of
which $58,357 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
$96,364 of which $91,500 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 $1,251 which expires in 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1995, capital paid-in aggregated $74,133,955. Transactions, all at $1.00 per
share, were as follows:
FEB. 7,1994(A)
YEAR ENDED THROUGH
JUNE 30, 1995 JUNE 30, 1994
------------- --------------
Shares sold 365,818,445 93,355,382
Shares issued on reinvestments of dividends 1,736,484 269,901
Shares redeemed (330,329,558) (56,716,699)
Net increase 37,225,371 36,908,584
7
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
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NOTE F: FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each period.
FEBRUARY 7,
1994(A)
YEAR ENDED THROUGH
JUNE 30,1995 JUNE 30,1994
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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)(c) 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 2.98% 2.07%(c)
(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.
8
INDEPENDENT AUDITOR'S REPORT ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
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TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
We have audited the accompanying statement of net assets of the New Jersey
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 securiies 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 Jersey 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.
McGladrey &Pullen LLP
New York, New York
August 8, 1995
9
ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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
10
ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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 # 9 2 #
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.
ALC507076
ANJAR
