ALLIANCE
MUNICIPAL
TRUST
- -NEW JERSEY PORTFOLIO
ALLIANCECAPITAL
ANNUAL REPORT
JUNE 30, 1996
STATEMENT OF NET ASSETS
JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
MUNICIPAL BONDS-76.1%
NEW JERSEY-71.6%
CAMDEN COUNTY MUNICIPAL
UTILITY AUTHORITY
Sewer Revenue FGIC
$ 1,000 7/15/96 3.66% $ 1,000,113
ESSEX COUNTY
IMPROVEMENT AUTHORITY
(County Asset Sale Proj.)
Series '95 VRDN*
3,500 12/01/25 3.20 3,500,000
FORT LEE
Refunding Notes
2,670 5/23/97 3.70 2,682,758
FORT LEE
Refunding Notes
620 5/23/97 3.75 622,399
FREEHOLD TOWNSHIP
GO BOND
FGIC
550 9/01/96 3.85 550,723
GLOUCESTER COUNTY
BOND
1,500 9/01/96 3.90 1,499,488
GLOUCESTER COUNTY
BOND
Series '95 MBIA
190 11/01/96 3.82 190,699
GLOUCESTER COUNTY PCR
(Mobil Oil Co.) VRDN*
2,000 12/01/03 3.00 2,000,000
HACKENSACK BAN
2,958 12/19/96 3.50 2,961,331
HUDSON COUNTY UTILITY
SYSTEMS AUTHORITY
Pre-Refunded
1,960 7/01/96 3.25 1,960,000
JERSEY CITY
School Promissory Note
2,000 3/07/97 3.55 2,002,595
JERSEY CITY BAN
1,500 9/27/96 3.90 1,502,948
JERSEY CITY BAN
1,500 9/27/96 3.90 1,500,345
MIDDLESEX COUNTY
BOND
Pre-Refunded
2,250 7/15/96 3.80 2,297,287
MORRIS COUNTY BOND
County College
Series '95
$ 1,000 7/15/96 3.62% $ 1,000,699
MORRIS COUNTY BOND
General Improvement
Series '95
1,226 7/15/96 3.62 1,226,856
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Epitaxx, Inc.)
Series '91 AMT VRDN*
4,500 8/01/16 3.55 4,500,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Hillcrest Health Services)
Series '95 VRDN*
4,000 1/01/22 3.15 4,000,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Kinder-Care Learning
Centers) Series D VRDN*
390 10/01/00 3.70 390,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
Composite Issue '92 Series
U AMT VRDN*
2,140 12/01/02 3.35 2,140,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
IDR
(Economic Growth)
Series B AMT VRDN*
1,600 8/01/04 3.25 1,600,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
IDR
(STP Company Project)
Series '92 VRDN*
2,885 7/01/06 3.20 2,884,999
NEW JERSEY EDUCATIONAL
FACILITIES AUTHORITY
Higher Education
Equipment Leasing
Fund A MBIA
750 9/01/96 5.00 751,675
NEW JERSEY HFA SFMR
Eagle Trust (Home Owner
Mtg.) Series C-D MBIA
VRDN*
4,100 10/01/15 3.44 4,100,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
NEWARK HEALTHCARE
FACILITY REVENUE
(Urban Renewal Corp.
Care Fac.) Series A VRDN*
$ 3,015 6/01/30 3.65% $ 3,015,000
NORTH BERGEN TOWNSHIP
BOARD OF EDUCATION
Promissory Note
4,000 3/14/97 3.30 4,005,429
PORT AUTHORITY OF NEW
YORK AND NEW JERSEY
(Versatile Structure)
Series 1 AMT VRDN*
5,400 8/01/28 3.70 5,400,000
PORT AUTHORITY OF NEW
YORK AND NEW JERSEY
(Versatile Structure)
Series 3 VRDN*
4,000 6/01/20 3.55 4,000,000
SALEM COUNTY PCR
(Dupont Corp.)
Series '82A VRDN*
2,100 3/01/12 3.65 2,100,000
SOMERS POINT BOARD OF
EDUCATION
FSA
450 3/01/97 3.35 453,939
UNION CITY GO FSA
225 7/15/96 3.65 225,090
VOORHEES TOWNSHIP
WATER & SEWER BOND
MBIA
300 10/15/96 4.85 300,833
WEST DEPTFORD
TOWNSHIP GO
Series '96
900 3/01/97 3.50 900,000
WOODBRIDGE TOWNSHIP
BAN
1,000 7/03/96 3.75 999,993
WOODBRIDGE TOWNSHIP
BAN
2,000 7/03/96 3.77 1,999,979
70,265,178
PUERTO RICO-4.5%
PUERTO RICO HIGHWAY &
TRANSPORTATION AUTHORITY
Series X VRDN*
2,500 7/01/99 3.00 2,500,000
PUERTO RICO INDUSTRIAL,
MEDICAL &
ENVIRONMENTAL PCR
(Key Pharmaceuticals)
PPB*
$ 1,900 12/01/96 3.80% $ 1,900,757
4,400,757
Total Municipal Bonds
(amortized cost
$74,662,630) 74,665,935
COMMERCIAL PAPER-20.5%
NEW JERSEY-16.4%
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Chambers Cogeneration )
Series '91 AMT
1,000 7/12/96 3.40 1,000,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Chambers Cogeneration )
Series '91 AMT
1,000 9/10/96 3.40 1,000,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Chambers Cogeneration )
Series '91 AMT
1,500 10/23/96 3.55 1,500,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Logan-1992 Project)
AMT
1,500 7/19/96 3.30 1,500,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Logan-1992 Project)
AMT
500 7/26/96 3.30 500,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Logan-1992 Project)
AMT
2,000 7/12/96 3.35 2,000,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Logan-1992 Project)
AMT
2,000 9/10/96 3.40 2,000,000
2
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Logan-1992 Project)
AMT
$ 2,000 10/24/96 3.60% $ 2,000,000
PORT AUTHORITY OF NEW
YORK AND NEW JERSEY
AMT
4,550 7/10/96 3.20 4,550,000
16,050,000
PUERTO RICO-4.1%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
1,000 7/26/96 3.55 1,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
2,000 8/16/96 3.60 2,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
$ 1,000 8/21/96 3.70% $ 1,000,000
4,000,000
Total Commercial Paper
(amortized cost
$20,050,000) 20,050,000
TOTAL INVESTMENTS-96.6%
(amortized cost $94,712,630) 94,715,935
Other assets
less liabilities-3.4% 3,382,358
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
98,096,271 shares
outstanding) $98,098,293
+ 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
FSA Financial Security Assurance
GO New Jersey Obligation
HFA Housing Finance Agency/Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
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
YEAR ENDED JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $3,300,284
EXPENSES
Advisory fee (Note B) $ 451,214
Distribution assistance and administrative
service (Note C) 328,198
Transfer agency (Note B) 148,119
Custodian fees 66,870
Printing 27,282
Registration fees 18,161
Audit and legal fees 16,660
Trustees' fees 2,846
Amortization of organization expense 2,031
Miscellaneous 11,225
Total expenses 1,072,606
Less: expense reimbursement and fee waiver (334,601)
738,005
Net investment income 2,562,279
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments (32)
Net change in unrealized appreciation
of investments 3,305
Net gain on investments 3,273
NET INCREASE IN NET ASSETS FROM OPERATIONS $2,565,552
See notes to financial statements.
4
STATEMENTS OF CHANGES
IN NET ASSETS ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30, 1996 JUNE 30,1995
------------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 2,562,279 $ 1,736,484
Net realized loss on investments (32) (1,251)
Net change in unrealized appreciation
of investments 3,305 -0-
Net increase in net assets from operations 2,565,552 1,735,233
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (2,562,279) (1,736,484)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 23,962,316 37,225,371
Total increase 23,965,589 37,224,120
NET ASSETS
Beginning of year 74,132,704 36,908,584
End of year $98,098,293 $74,132,704
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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 (the "Portfolio"), Alliance Municipal 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. 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, 1996, 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, 1995 to March 3, 1996 for expenses exceeding .80 of 1% of its
average daily net assets and from March 4, 1996 to June 30, 1996 for expenses
exceeding .85 of 1% of its average daily net assets. For the year ended June
30, 1996, the reimbursement amounted to $244,358. 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 $90,636 for the year ended June 30,
1996.
6
ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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 year ended June 30, 1996, the distribution fee amounted to $225,607 of
which $90,243 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
$102,591 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 $1,283, of which $1,251 expires in
2003 and $32 expires in 2004.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1996, capital paid-in aggregated $98,096,271. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1996 1995
----------- ----------
Shares sold 392,300,834 365,818,445
Shares issued on reinvestments of dividends 2,562,279 1,736,484
Shares redeemed (370,900,797) (330,329,558)
Net increase 23,962,316 37,225,371
7
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
NOTE F: FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each period.
FEB. 7,
1994(A)
YEAR ENDED JUNE 30, THROUGH
-------------------- JUNE 30,
1996 1995 1994
------ ------ --------
Net asset value, beginning of period $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .028 .029 .008
LESS DISTRIBUTIONS
Dividends from net investment income (.028) (.029) (.008)
Net asset value, end of period $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (b) 2.89% 2.93% 2.08%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $98,098 $74,133 $36,909
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .82% .74% .70%(c)
Expenses, before waivers and
reimbursements 1.19% 1.29% 1.93%(c)
Net investment income (d) 2.84% 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.
(d) Net of expenses reimbursed or waived by the Adviser.
8
INDEPENDENT AUDITOR'S REPORT ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
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, 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
New Jersey 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 - NEW JERSEY 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 - 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
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WHICH CONTAINS FURTHER INFORMATION ABOUT THE FUND.
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