ALLIANCE
MUNICIPAL
TRUST
- -CONNECTICUT PORTFOLIO
ALLIANCECAPITAL
ANNUAL REPORT
JUNE 30, 1996
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
MUNICIPAL BONDS-83.3%
CONNECTICUT-74.6%
BRANFORD GO BAN
$ 4,000 8/22/96 3.28% $4,000,219
CONNECTICUT DEVELOPMENT
AUTHORITY
(Bridgeport Hydraulic Co.
Project)
Series '95 AMT VRDN*
1,000 4/01/35 3.00 1,000,000
CONNECTICUT DEVELOPMENT
AUTHORITY
(Independent Living)
Series'90 VRDN*
8,075 7/01/15 3.35 8,075,000
CONNECTICUT DEVELOPMENT
AUTHORITY
(Rand Whitney Project)
Series '93 AMT VRDN*
1,500 8/01/23 3.10 1,500,000
CONNECTICUT DEVELOPMENT
AUTHORITY
Res. Rec.: (Exeter Energy
Project)
Series '89B
AMT VRDN*
3,700 12/01/19 3.45 3,700,000
CONNECTICUT DEVELOPMENT
AUTHORITY IDR
(International Ice Cream
Project)
Series '86 AMT VRDN*
1,300 12/01/06 3.95 1,300,000
CONNECTICUT DEVELOPMENT
AUTHORITY IDR
(Shelton Inn Ltd. Partnership)
Series '86 AMT VRDN*
3,600 12/01/11 3.80 3,600,000
CONNECTICUT DEVELOPMENT
AUTHORITY IDR
(Zotos International Project)
Series '84 VRDN*
2,985 12/01/04 3.90 2,985,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Central Vermont Public
Service) Series '85 VRDN*
1,000 12/01/15 3.40 1,000,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Connecticut Light and
Power Co.)
Series '93A VRDN*
$ 2,800 9/01/28 3.35% $2,800,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Connecticut Light and
Power Co.)
Series '93B AMT VRDN*
800 9/01/28 3.25 800,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Connecticut Light and
Power Co.)
Series '96A AMT VRDN*
600 5/01/31 3.25 600,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Western Mass. Elec. Co.)
Series '93A VRDN*
3,100 9/01/28 3.10 3,100,000
CONNECTICUT GO
Economic Recovery Note
Series '95
1,000 12/15/96 3.70 1,002,433
CONNECTICUT HEFA
(Pomfret School Issue)
Series '95A VRDN*
1,000 7/01/24 3.05 1,000,000
CONNECTICUT SPECIAL
ASSESSMENT UNEMPLOYMENT
COMPENSATION
Series '93C FGIC PPB*
4,000 7/01/96 3.90 4,000,000
CONNECTICUT SPECIAL
ASSESSMENT UNEMPLOYMENT
COMPENSATION
Series '93C FGIC PPB*
5,000 7/01/97 3.90 5,000,000
CONNECTICUT SPECIAL
ASSESSMENT UNEMPLOYMENT
COMPENSATION
Series A
3,000 5/15/97 3.80-3.88 3,008,716
1
PORTFOLIO OF INVESTMENTS (CONT.)
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
CONNECTICUT SPECIAL TAX
OBLIGATION
Series '90-1 VRDN*
$ 4,000 12/01/10 3.20% $4,000,000
DANBURY BAN
2,413 7/08/96 3.48 2,413,100
DANBURY GO BAN
3,000 1/08/97 3.47 3,007,800
EAST LYME GO BAN
Series '95
900 7/30/96 3.80 900,138
EAST LYME GO BOND
Series '95 MBIA
660 8/01/96 3.65 661,142
FAIRFIELD GO BOND
Series '96
860 1/15/97 3.45 871,560
MANCHESTER GO BAN
Series '95
724 7/11/96 3.60 724,006
STAMFORD HFA MFHR
(Morgan Street Project)
Series '94 AMT VRDN*
1,600 8/01/24 3.35 1,600,000
STRATFORD BOND
Series '93 FGIC
2,000 11/01/96 3.60 1,999,330
WATERBURY GO BOND
Series '93 FGIC
300 4/15/97 3.45 301,721
WEST HARTFORD GO BAN
Series '96
3,000 7/18/96 3.30 3,000,039
WESTPORT GO BAN
3,500 10/17/96 3.35 3,500,170
71,450,374
DISTRICT OF COLUMBIA-3.2%
DISTRICT OF COLUMBIA
Series '92 A-2 VRDN*
3,100 10/01/07 3.80 3,100,000
PUERTO RICO-5.5%
PUERTO RICO HIGHWAY &
TRANSPORTATION AUTHORITY
Series X VRDN*
$ 4,100 7/01/99 3.00% $4,100,000
PUERTO RICO INDUSTRIAL,
MEDICAL, HIGHER EDUCATION &
ENVIRONMENT
(Ana G. Mendez Educ.
Foundation Feagm Proj.)
VRDN*
1,200 12/01/15 3.15 1,200,000
5,300,000
Total Municipal Bonds
(amortized cost $79,849,175) 79,850,374
COMMERCIAL PAPER-19.1%
CONNECTICUT-8.6%
CONNECTICUT HEFA
(Yale University) Series L
2,500 8/23/96 3.55 2,500,000
CONNECTICUT HEFA
(Yale University) Series P
1,350 8/13/96 3.45 1,350,000
CONNECTICUT MUNICIPAL
ELECTRIC ENERGY
Cooperative Power Supply
Systems Rev. Series '95A
2,000 7/12/96 3.30 2,000,000
CONNECTICUT MUNICIPAL
ELECTRIC ENERGY
Cooperative Power Supply
Systems Rev. Series '95A
500 8/15/96 3.45 500,000
CONNECTICUT MUNICIPAL
ELECTRIC ENERGY
Cooperative Power Supply
Systems Rev. Series '95A
400 7/30/96 3.50 400,000
CONNECTICUT MUNICIPAL
ELECTRIC ENERGY
Cooperative Power Supply
Systems Rev. Series '95A
1,500 7/25/96 3.55 1,500,000
8,250,000
2
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
PUERTO RICO-10.5%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
$ 2,000 8/13/96 3.50% $2,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
1,000 7/26/96 3.55 1,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
3,000 9/11/96 3.65 3,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
2,000 8/21/96 3.70 2,000,000
PUERTO RICO INDUSTRIAL,
MEDICAL, HIGHER EDUCATION &
ENVIRONMENT
(Inter-American Univ. of
Puerto Rico) Series '88
2,000 7/12/96 3.40 2,000,000
10,000,000
VALUE
Total Commercial Paper
(amortized cost $18,250,000) $18,250,000
TOTAL INVESTMENTS-102.4%
(amortized cost $98,099,175) 98,100,374
Other assets less
liabilities-(2.4%) (2,287,903)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
95,840,864 shares
outstanding) $95,812,471
+ 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
HEFA Health & Educational Facility Authority
HFA Housing Finance Agency/Authority
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
PPB Periodic Put Bond
VRDN Variable Rate Demand Note
See notes to financial statements.
3
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $98,099,175) $ 98,100,374
Cash 360,834
Receivable for investments sold 4,900,000
Interest receivable 550,046
Receivable for capital stock sold 6,721
Total assets 103,917,975
LIABILITIES
Payable for investments purchased 8,007,800
Investment advisory fee payable 21,949
Payable for capital stock redeemed 14,701
Distribution fee payable 11,955
Accrued expenses 49,099
Total liabilities 8,105,504
NET ASSETS $ 95,812,471
COMPOSITION OF NET ASSETS
Capital shares $ 95,840,864
Accumulated net realized loss on investments (29,592)
Net unrealized appreciation of investments 1,199
$ 95,812,471
See notes to financial statements.
4
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $3,096,150
EXPENSES
Advisory fee (Note B) $425,285
Distribution assistance and administrative
service (Note C) 336,585
Transfer agency (Note B) 80,248
Custodian fees 65,730
Printing 21,881
Registration expense 21,191
Audit and legal fees 17,435
Trustees' fees 3,276
Miscellaneous 10,128
Total expenses 981,759
Less: expense reimbursement and fee waiver (301,303)
680,456
Net investment income 2,415,694
UNREALIZED GAIN ON INVESTMENTS
Net change in unrealized appreciation of investments 1,199
NET INCREASE IN NET ASSETS FROM OPERATIONS $2,416,893
See notes to financial statements.
5
STATEMENTS OF CHANGES
IN NET ASSETS ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 2,415,694 $ 1,813,183
Net realized loss on investments -0- (2,026)
Net change in unrealized appreciation
of investments 1,199 -0-
Net increase in net assets from operations 2,416,893 1,811,157
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (2,415,694) (1,813,183)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 19,820,540 18,678,491
Total increase 19,821,739 18,676,465
NET ASSETS
Beginning of year 75,990,732 57,314,267
End of year $95,812,471 $75,990,732
See notes to financial statements.
6
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
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 seven 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 (the "Portfolio"),
Alliance Municipal Trust-New Jersey Portfolio, Alliance Muncipal Trust-Virginia
Portfolio and Alliance Municipal Trust-Florida Portfolio. Each series is
considered to be a separate entity for financial reporting and tax purposes. As
a matter of fundamental policy, each Portfolio 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 397 days or less. 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, 1996 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. The Adviser also voluntarily agreed to reimburse the Portfolio for
the year ended June 30, 1996 for expenses exceeding .80 of 1% of its average
daily net assets. For the year ended June 30, 1996, the reimbursement amounted
to $216,246. 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 $45,853 for the year ended June 30, 1996.
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,
1996, the distribution fee
7
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
amounted to $212,643 of which $85,057 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, 1996, such payments by the
Portfolio amounted to $123,942 of which $92,500 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1996, the cost of securities for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1996, the
Portfolio had a capital loss carryforward of $29,592 of which $10,717 expires
in the year 2000, $16,849 expires in the year 2002 and $2,026 expires in the
year 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1996, capital paid-in aggregated $95,840,864. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
Shares sold 358,252,167 243,757,597
Shares issued on reinvestments of dividends 2,415,694 1,813,183
Shares redeemed (340,847,321) (226,892,289)
Net increase 19,820,540 18,678,491
NOTE F: FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each year.
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
-----------------------------------------------------------------
1996 1995 1994 1993 1992
------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .028 .028 .017 .020 .033
LESS: DISTRIBUTIONS
Dividends from net investment income (.028) (.028) (.017) (.020) (.033)
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (a) 2.88% 2.78% 1.71% 2.00% 3.35%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $95,812 $75,991 $57,314 $56,224 $54,751
Ratio to net assets of:
Expenses, net of waivers and .80% .80% .77% .70% .58%
Expenses, before waivers and
reimbursements 1.15% 1.21% 1.21% 1.16% 1.22%
Net investment income (b) 2.84% 2.77% 1.69% 1.97% 3.28%
</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 expenses reimbursed or waived by the Adviser.
8
INDEPENDENT AUDITOR'S REPORT ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of the Connecticut Portfolio of Alliance
Municipal Trust as of June 30, 1996 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, 1996, 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
Connecticut Portfolio of Alliance Municipal Trust as of June 30, 1996, 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
July 26, 1996
9
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
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
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
JOHN R. BONCZEK, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
ROBERT I. KURZWEIL, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
PATRICIA NETTER, SENIOR VICE PRESIDENT
RONALD R. VALEGGIA, SENIOR VICE PRESIDENT
DREW BIEGEL, VICE PRESIDENT
DORIS T. CILIBERTI, VICE PRESIDENT
WILLIAM J. FAGAN, VICE PRESIDENT
JOSEPH R. LASPINA, VICE PRESIDENT
LINDA D. NEIL, 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 - CONNECTICUT 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 # 2 8 #
For non-touch-tone telephones, call toll-free (800) 221-9513
ALLIANCECAPITAL
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