ALLIANCE MUNICIPAL TRUST-VIRGINIA PORTFOLIO
ALLIANCECAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1995
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ---------------------------------------------------------------------------
MUNICIPAL BONDS-74.3%
VIRGINIA-71.1%
ALEXANDRIA REDEV. & HOUSING MFHR
(Crystal City Apts. Proj.)
Series '90A AMT VRDN*
$ 3,500 12/15/18 5.25% $3,500,000
AMHERST IDA SOLID WASTE
(Nekoosa Packaging) AMT VRDN*
2,750 7/01/11 5.30 2,750,000
ARLINGTON COUNTY
(Ballston Public Parking Facility)
Series '84 VRDN*
1,100 8/01/17 5.25 1,100,000
BOTETOURT COUNTY IDA
(Emkay Holdings L.L.C.)
Series '95 AMT VRDN*
3,200 10/01/05 5.20 3,200,000
CAMPBELL COUNTY IDA
(Hadson Power-Altavista Proj.)
Series '90A AMT VRDN*
1,000 4/01/15 6.15 1,000,000
CAMPBELL COUNTY PCR
(Georgia Pacific Power) AMT VRDN*
3,000 12/01/19 5.30 3,000,000
CHESTERFIELD GO BOND
Pre-Refunded
1,000 1/15/96 4.33 1,001,395
FAIRFAX COUNTY BOND
Public Improvement Series '95A
1,000 6/01/96 3.90 1,012,494
FAIRFAX COUNTY BOND
Series '92B
1,130 5/01/96 3.40 1,134,744
FAIRFAX COUNTY GO BOND
Series A Pre-Refunded
1,000 6/01/96 3.75 1,027,119
FAIRFAX COUNTY HOSPITAL REVENUE IDA
(Fairfax Hospital) Series '88B VRDN*
1,200 10/01/25 5.20 1,200,000
FAIRFAX COUNTY HOSPITAL REVENUE IDA
(Nova Health Services) Series '88C VRDN*
1,400 10/01/25 5.20 1,400,000
FAIRFAX COUNTY REDEV. HFA
(Chase Commons Project)
Series '84A VRDN*
3,000 12/01/06 5.13 3,000,000
HAMPTON REDEV. HFA
(Chase Hampton Project) Series '84A VRDN*
2,500 12/01/06 3.88 2,500,000
HENRICO COUNTY WATER AND SEWER REVENUE
Series '86 Pre-Refunded
700 5/01/96 3.80 722,837
JAMES CITY COUNTY BOND
FGIC
960 12/15/96 3.70 984,023
KING GEORGE COUNTY IDR
(Birchwood Power) Series '94A AMT VRDN*
1,000 10/01/24 6.15 1,000,000
KING GEORGE COUNTY IDR
(Birchwood Power) Series '94B AMT VRDN*
500 12/01/24 6.15 500,000
LOUDOUN COUNTY IDA
(Kinder-Care Learning Centers)
Series A VRDN*
394 6/01/02 5.35 394,000
LYNCHBURG IDA
(Pooled Hospital Finance)
Series '85B VRDN* AMBAC
2,300 12/01/25 5.00 2,300,000
LYNCHBURG IDA
(Pooled Hospital Finance)
Series '85C VRDN* AMBAC
300 12/01/25 5.00 300,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ---------------------------------------------------------------------------
LYNCHBURG IDA
(Pooled Hospital Finance)
Series'85E VRDN* AMBAC
$ 100 12/01/25 5.00% $ 100,000
NORFOLK GO EAGLE TRUST
Series 944601 VRDN*
3,900 6/01/06 5.25 3,900,000
RICHMOND GO BOND
Equipment Notes Series '95
960 5/15/96 3.70 962,402
RICHMOND GO BOND
Public Improvement Series A
2,000 1/15/96 3.55 2,000,186
VIRGINIA GO EAGLE TRUST
Series 954601 VRDN*
3,000 6/01/21 5.25 3,000,000
VIRGINIA HOUSING DEVELOPMENT AUTH.
(AHC Service Corp.- Lee Gardens)
Series '87A VRDN*
3,500 9/01/17 5.35 3,500,000
VIRGINIA HOUSING DEVELOPMENT AUTH.
MFHR BOND
Series L AMT
445 11/01/96 4.25 444,088
VIRGINIA HOUSING DEVELOPMENT AUTH. SFMR
Series '93F PPB*
2,500 3/04/96 3.75 2,500,000
VIRGINIA PUBLIC SCHOOL AUTH.
School Equipment Notes Issue III
3,000 4/01/96 4.00 3,002,037
----------
52,435,325
PUERTO RICO-3.2%
PUERTO RICO INDUSTRIAL, MEDICAL &
ENVIRONMENTAL PCR
(Key Pharmaceuticals) PPB*
2,400 12/01/13 3.80 2,404,262
Total Municipal Bonds
(amortized cost $54,839,387) 54,839,587
COMMERCIAL PAPER-24.6%
VIRGINIA-19.6%
CHESTERFIELD COUNTY PCR
(Electric & Power Co.) Series '87
1,585 1/04/96 3.80 1,585,000
CHESTERFIELD COUNTY PCR
(Electric & Power Co.) Series '87B
2,000 1/11/96 3.60 2,000,000
CHESTERFIELD COUNTY PCR
(Electric & Power Co.) Series '87B
1,000 1/09/96 3.75 1,000,000
CHESTERFIELD COUNTY PCR
(Electric & Power Co.) Series '87B
1,000 2/21/96 3.75 1,000,000
FAIRFAX COUNTY HOSPITAL REVENUE IDA
(Nova Health Services) Series '93A
2,200 2/27/96 3.55 2,200,000
FAIRFAX COUNTY HOSPITAL REVENUE IDA
(Nova Health Services) Series '93B
1,000 3/07/96 3.50 1,000,000
NORFOLK IDA
(Sentara Hospital) Series '90A
1,000 2/16/96 3.70 1,000,000
PENINSULA PORT AUTHORITY
(Chessie & Ohio Project) Series '92
2,000 2/16/96 3.40 2,000,000
PENINSULA PORT AUTHORITY
(Chessie & Ohio Project) Series '92
1,500 2/12/96 3.65 1,500,000
PENINSULA PORT AUTHORITY
(Dominion Terminal Project) Series '87B
1,135 1/31/96 3.45 1,135,000
14,420,000
2
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ---------------------------------------------------------------------------
PUERTO RICO-5.0%
PUERTO RICO GOVERNMENT DEVELOPMENT BANK
$ 2,000 3/05/96 3.40% $ 2,000,000
PUERTO RICO GOVERNMENT DEVELOPMENT BANK
1,700 3/08/96 3.65 1,700,000
-----------
3,700,000
Total Commercial Paper
(amortized cost $18,120,000) 18,120,000
TOTAL INVESTMENTS-98.9%
(amortized cost $72,959,387) $72,959,587
Other assets less liabilities-1.1% 793,590
NET ASSETS-100%
(offering and redemption price of $1.00
per share; 73,760,874 shares outstanding) $73,753,177
+ 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
FGIC Financial Guaranty Insurance Company
GO General Obligation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
PPB Periodic Put Bond
SFMR Single Family Mortgage Revenue
VRDN Variable Rate Demand Note
See notes to financial statements.
3
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $1,507,921
EXPENSES
Advisory fee (Note B) $195,119
Distribution assistance and administrative service
(Note C) 165,425
Custodian fees 27,650
Transfer agency 26,841
Audit and legal fees 8,415
Registration fees 4,652
Printing 3,555
Trustees' fees 2,024
Amortization of organization expense 858
Miscellaneous 2,327
Total expenses 436,866
Less: expense reimbursement and fee waiver (143,440)
293,426
Net investment income 1,214,495
UNREALIZED GAIN ON INVESTMENTS
Net change in unrealized appreciation of investments 200
NET INCREASE IN NET ASSETS FROM OPERATIONS $1,214,695
See notes to financial statements.
4
STATEMENT OF CHANGES IN NET ASSETS
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
SIX MONTHS ENDED OCT. 25,1994*
DEC. 31,1995 TO
(UNAUDITED) JUNE 30,1995
------------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,214,495 $ 1,265,221
Net realized loss on investments -0- (7,897)
Net change in unrealized appreciation of investments 200 -0-
Net increase in net assets from operations 1,214,695 1,257,324
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,214,495) (1,265,221)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase 6,831,871 66,928,803
Total increase 6,832,071 66,920,906
NET ASSETS
Beginning of period 66,921,106 200
End of period $73,753,177 $66,921,106
* Commencement of operations.
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE MUNICIPAL TRUST - VIRGINIA 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, Alliance Municipal
Trust-New Jersey Portfolio, Alliance Municipal Trust-Virginia Portfolio (the
'Portfolio') and Alliance Municipal Trust-Florida 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 October, 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
six months ended December 31, 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 for
all expenses from July 1, 1995 to July 9, 1995 for expenses exceeding .60 of 1%
of its average daily net assets, from July 10, 1995 to September 17, 1995 for
expenses exceeding .70 of 1% of its average daily net assets and from September
18, 1995 to December 31, 1995 for expenses exceeding .80 of 1% of its average
daily net assets. For the six months ended December 31, 1995, the reimbursement
amounted to $104,416. 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 $17,830 for the six months ended December 31, 1995.
6
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
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 six months ended
December 31, 1995, the distribution amounted to $97,560 of which $39,024 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 six
months ended December 31, 1995, such payments by the Portfolio amounted to
$67,865 of which $47,000 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 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 $7,897 which expires in the year
2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1995, capital paid-in aggregated $73,760,874. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED OCT.25,1994(A)
DEC. 31,1995 THROUGH
(UNAUDITED) JUNE 30, 1995
----------------- -------------
Shares sold 114,544,205 187,540,379
Shares issued on reinvestments of dividends 1,214,495 1,265,221
Shares redeemed (108,926,829) (121,876,797)
Net increase 6,831,871 66,928,803
(a) Commencement of operations.
7
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
NOTE F: FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each period.
SIX MONTHS ENDED OCTOBER 25,
DECEMBER 31, 1994(A)
1995 THROUGH
(UNAUDITED) JUNE 30,1995
------------ ------------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .016 .023
LESS DISTRIBUTIONS
Dividends from net investment income (.016) (.023)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on net asset value (b) 3.13%(c) 3.48%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $73,753 $66,921
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .75%(c) .44%(c)
Expenses, before waivers and reimbursements 1.11%(c) 1.30%(c)
Net investment income (d) 3.09%(c) 3.48%(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.
(d) Net of expenses reimbursed or waived by the Adviser.
8
ALLIANCE MUNICIPAL TRUST - VIRGINIA 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
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
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
9
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
1345 Avenue of the Americas, Virginia, 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 1 #
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.
ALC601030
AVASR
