ALLIANCE
MUNICIPAL
TRUST
- -VIRGINIA PORTFOLIO
ALLIANCECAPITAL
ANNUAL REPORT
JUNE 30, 1996
STATEMENT OF NET ASSETS
JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
MUNICIPAL BONDS-81.2%
VIRGINIA-78.1%
ALEXANDRIA REDEV. &
HOUSING MFHR
(Crystal City Apts. Proj.)
Series '90A AMT VRDN*
$ 3,500 12/15/18 3.65% $ 3,500,000
AMELIA COUNTY IDA
(Chambers Waste Systems,
Inc.) AMT VRDN*
4,000 7/01/07 3.75 4,000,000
AMHERST IDA SOLID
WASTE
(Nekoosa Packaging)
AMT VRDN*
2,750 7/01/11 3.65 2,750,000
ARLINGTON COUNTY
(Ballston Public Parking
Facility)
Series '84 VRDN*
1,500 8/01/17 3.35 1,500,000
BOTETOURT COUNTY IDA
(Emkay Holdings L.L.C.)
Series '95 AMT VRDN*
3,500 10/01/05 3.40 3,500,000
CAMPBELL COUNTY PCR
(Georgia Pacific Power)
AMT VRDN*
3,000 12/01/19 3.65 3,000,000
CHARLES CITY IDA
(Chambers Dev. of VA,
Inc.)
Series '96 AMT VRDN*
1,500 4/01/16 3.75 1,500,000
FAIRFAX COUNTY IDA
HOSPITAL REVENUE
(Fairfax Hospital)
Series '88B VRDN*
1,200 10/01/25 3.60 1,200,000
FAIRFAX COUNTY IDA
HOSPITAL REVENUE
(INova Health Services)
Series '88C VRDN*
1,400 10/01/25 3.60 1,400,000
FAIRFAX COUNTY REDEV.
HOUSING AUTHORITY
(Chase Commons Project)
Series '84A VRDN*
3,000 12/01/06 3.43 3,000,000
FLUVANNA COUNTY IDA
(Edgecomb Metals Co.)
VRDN*
$ 3,800 12/01/09 3.30% $ 3,800,000
HAMPTON COUNTY REDEV.
HOUSING AUTHORITY
(Chase Hampton Project)
Series '84A VRDN*
2,500 12/01/06 4.08 2,500,000
HAMPTON ROADS JAIL
AUTHORITY
Series '96B VRDN*
4,000 7/01/16 3.50 4,000,000
JAMES CITY COUNTY BOND
FGIC
960 12/15/96 3.70 971,495
LOUDOWN COUNTY IDA
(Kinder-Care Learning
Centers)
Series A VRDN*
394 6/01/02 3.70 394,000
METRO DC AIRPORTS
AUTHORITY
Series A MBIA AMT
200 10/01/96 3.90 200,644
NORFOLK BOND
Pre-Refunded
1,900 6/01/97 3.62 1,981,375
NORFOLK GO EAGLE TRUST
Series 944601 VRDN*
3,900 6/01/06 3.44 3,900,000
NORFOLK WATER REVENUE
BOND
MBIA
480 11/01/96 3.45 482,427
PRINCE WILLIAM COUNTY
COP
MBIA
2,540 12/01/96 3.45 2,545,634
RICHMOND
REDEVELOPMENT
MFHR AMT
(Tobacco Row)
Series '89B-8 VRDN*
3,555 10/01/24 3.70 3,555,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
VIRGINIA BEACH
DEVELOPMENT
AUTHORITY
(Kinder-Care Learning
Centers)
Series D VRDN*
$ 866 10/01/00 3.70% $ 866,000
VIRGINIA GO BOND
Series A
1,400 12/01/96 3.50 1,409,950
VIRGINIA GO EAGLE TRUST
Series 954601 VRDN*
3,000 6/01/21 3.44 3,000,000
VIRGINIA HOUSING
AUTHORITY SFMR
Series D PPB*
6,000 7/16/96 3.35 6,000,000
VIRGINIA HOUSING
DEVELOPMENT AUTHORITY
(AHC Service Corp.-
Lee Gardens)
Series '87A VRDN*
3,500 9/01/17 3.50 3,500,000
VIRGINIA HOUSING
DEVELOPMENT AUTHORITY
Series I AMT
1,075 5/01/97 3.90 1,075,423
VIRGINIA HOUSING
DEVELOPMENT
AUTHORITY MFHR
Series L AMT
445 11/01/96 4.25 444,632
VIRGINIA PUBLIC
SCHOOL AUTHORITY
Pre-Refunded
2,325 1/01/97 3.25 2,415,696
VIRGINIA PUBLIC
SCHOOL AUTHORITY
Series A Pre-Refunded
1,500 1/01/97 3.65 1,552,908
69,945,184
PUERTO RICO-3.1%
PUERTO RICO HIGHWAY &
TRANSPORTATION AUTHORITY
Series X VRDN*
400 7/01/99 3.00 400,000
PUERTO RICO INDUSTRIAL,
MEDICAL &
ENVIRONMENTAL PCR
(Key Pharmaceuticals)
PPB*
$ 2,400 12/01/96 3.60% $ 2,401,946
2,801,946
Total Municipal Bonds
(amortized
cost $72,746,385) 72,747,130
COMMERCIAL PAPER-17.4%
VIRGINIA-10.7%
CHESAPEAKE IDA
(Virginia Electric &
Power Co.)
Series '85
2,000 8/20/96 3.70 2,000,000
CHESTERFIELD COUNTY
PCR
(Virginia Electric &
Power Co.)
Series '87
1,585 8/08/96 3.65 1,585,000
CHESTERFIELD COUNTY
PCR
(Virginia Electric &
Power Co.)
Series '87B
1,000 8/15/96 3.65 1,000,000
FAIRFAX COUNTY IDA
HOSPITAL REVENUE
(INova Health Services)
Series '93B
1,000 7/29/96 3.65 1,000,000
LOUISA PCR
(Virginia Electric &
Power Co.)
Series '87
500 8/12/96 3.70 500,000
PENINSULA PORT AUTHORITY
(Chessie & Ohio Project)
Series '92
2,000 7/12/96 3.50 2,000,001
PENINSULA PORT AUTHORITY
(Chessie & Ohio Project)
Series '92
1,500 8/15/96 3.65 1,500,000
9,585,001
2
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
_______________________________________________________________________________
PUERTO RICO-6.7%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
$ 3,000 7/16/96 3.50% $ 3,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
1,000 7/26/96 3.55 1,000,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
2,000 8/21/96 3.70 2,000,000
6,000,000
Total Commercial Paper
(amortized cost $15,585,001) 15,585,001
VALUE
TOTAL INVESTMENTS-98.6%
(amortized cost $88,331,386) $88,332,131
Other assets less liabilities-1.4% 1,224,711
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
89,564,122 shares
outstanding) $89,556,842
+ 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
COP Certificate of Participation
FGIC Financial Guaranty Insurance Company
GO Virginia Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance
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
YEAR ENDED JUNE 30, 1996 ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $3,082,007
EXPENSES
Advisory fee (Note B) $ 417,867
Distribution assistance and administrative
service (Note C) 367,236
Custodian fees 64,227
Transfer agency (Note B) 44,100
Printing 25,454
Registration fees 20,000
Audit and legal fees 10,316
Trustees' fees 3,364
Amortization of organization expense 1,705
Miscellaneous 9,711
Total expenses 963,980
Less: expense reimbursement and fee waiver (314,158)
649,822
Net investment income 2,432,185
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments (128)
Net change in unrealized appreciation of investments 745
Net gain on investments 617
NET INCREASE IN NET ASSETS FROM OPERATIONS $2,432,802
See notes to financial statements.
4
STATEMENTS OF CHANGES
IN NET ASSETS ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
OCT. 25,
1994(A)
YEAR ENDED THROUGH
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $2,432,185 $1,265,221
Net realized loss on investments (128) (7,897)
Net change in unrealized appreciation of
investments 745 -0-
Net increase in net assets from operations 2,432,802 1,257,324
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (2,432,185) (1,265,221)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 22,635,119 66,928,803
Total increase 22,635,736 66,920,906
NET ASSETS
Beginning of period 66,921,106 200
End of period $89,556,842 $66,921,106
(a) Commencement of operations.
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 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. 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 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
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 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 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
$230,585. 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 $27,198 for the year ended June 30, 1996.
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 year ended June 30,
1996, the distribution fee amounted to $208,933 of which $83,573 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 $158,303 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 $8,025, of which $7,897 expires in
the year 2003 and $128 expires in the year 2004.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1996, capital paid-in aggregated $89,564,122. Transactions, all at $1.00 per
share, were as follows:
OCT. 25,
YEAR ENDED 1994(A)
JUNE 30, THROUGH
1996 JUNE 30, 1995
----------- -------------
Shares sold 251,119,609 187,540,379
Shares issued on reinvestments of dividends 2,432,185 1,265,221
Shares redeemed (230,916,675) (121,876,797)
Net increase 22,635,119 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.
OCTOBER 25,
YEAR ENDED 1994(A)
JUNE 30, THROUGH
1996 JUNE 30, 1995
---------- -------------
Net asset value, beginning of period $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .029 .023
LESS DISTRIBUTIONS
Dividends from net investment income (.029) (.023)
Net asset value, end of period $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (b) 2.97% 3.48%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $89,557 $66,921
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .78% .44%(c)
Expenses, before waivers and
reimbursements 1.15% 1.30%(c)
Net investment income (d) 2.91% 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
INDEPENDENT AUDITOR'S REPORT ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
We have audited the accompanying statement of net assets of the Virginia
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
Virginia 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 - 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
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 - VIRGINIA 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 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.
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