<PAGE>
ALLIANCE MUNICIPAL TRUST
This is filed pursuant to Rule 497(e).
File Nos: 002-79807 and 811-03586
<PAGE>
- ---------------------------------------------
YIELDS
For current recorded yield information on
the Fund, call toll-free (800) 221-9513.
- ---------------------------------------------
Alliance
The Fund is an open-end management invest-
ment company with investment objectives of Money Funds
safety, liquidity and maximum current income
(in the case of Alliance Municipal Trust-Gen-
eral, exempt from Federal income taxes and,
in the case of the New York, California, Con- Alliance Municipal
necticut, New Jersey, Virginia and Florida
Portfolios, exempt from Federal and state in- - General Portfolio
come taxes of the respective states) to the
extent consistent with the first two objec- - California Portfolio
tives. The General Portfolio of Alliance Mu-
nicipal Trust is diversified and the New - Connecticut Portfolio
York, California, Connecticut, New Jersey,
Virginia and Florida Portfolios of Alliance - Florida Portfolio
Municipal Trust are non-diversified, and are
offered only to residents of each such re- - New Jersey Portfolio
spective state. This prospectus sets forth
the information about each Fund that a pro- - New York Portfolio
spective investor should know before invest-
ing. Please retain it for future reference. - Virginia Portfolio
AN INVESTMENT IN A FUND IS (I) NEITHER IN-
SURED NOR GUARANTEED BY THE U.S. GOVERNMENT;
(II) NOT A DEPOSIT OR OBLIGATION OF, OR GUAR-
ANTEED OR ENDORSED BY, ANY BANK; AND (III)
NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE Prospectus
BOARD OR ANY OTHER AGENCY. THERE CAN BE NO November 1, 1996
ASSURANCE THAT A FUND WILL BE ABLE TO MAIN-
TAIN A STABLE NET ASSET VALUE OF $1.00 PER
SHARE. THE PORTFOLIOS OF ALLIANCE MUNICIPAL
TRUST, EXCEPT FOR THE GENERAL PORTFOLIO, MAY
INVEST A SIGNIFICANT PORTION OF THEIR ASSETS
IN THE SECURITIES OF A SINGLE ISSUER. ACCORD- [ALLIANCE CAPITAL LOGO
INGLY, AN INVESTMENT IN SUCH PORTFOLIOS MAY APPEARS HERE]
BE RISKIER THAN AN INVESTMENT IN OTHER TYPES
OF MONEY MARKET FUNDS.
A "Statement of Additional Information" for
each Fund dated November 1, 1996, which pro-
vides a further discussion of certain areas
in this prospectus and other matters which
may be of interest to some investors, has
been filed with the Securities and Exchange
Commission and is incorporated herein by ref-
erence. A free copy may be obtained by con-
tacting your Introducing Financial Institu-
tion.
THESE SECURITIES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION
NOR HAS THE SECURITIES AND EXCHANGE COMMIS-
SION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CON-
TRARY IS A CRIMINAL OFFENSE.
- ---------------------------------------------
CONTENTS
--------
<TABLE>
<S> <C>
Expense Information.................... 2
Financial Highlights................... 3
Investment Objectives and Policies..... 7
Purchase and Redemption of Shares...... 9
Additional Information................. 10
- ---------------------------------------------
</TABLE>
PE3ASR96
<PAGE>
EXPENSE INFORMATION
SHAREHOLDER TRANSACTION EXPENSES
The Fund has no sales load on purchases or reinvested dividends, deferred
sales load, redemption fee or exchange fee.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average
net assets, after expense AMT-GEN AMT-NY AMT-CA AMT-CT AMT-NJ AMT-VA AMT-FL
reimbursement) ------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Management Fees............ .50% .50% .50% .50% .50% .50% .50%
12b-1 Fees................. .25 .25 .25 .25 .25 .25 .25
Other Expenses............. .25 .25 .25 .25 .25 .25 .25
---- ---- ---- ---- ---- ---- ----
Total Fund Operating
Expenses.................. 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
</TABLE>
EXAMPLE
You would pay the following expenses on a $1,000 investment, assuming a 5%
annual return (cumulatively through the end of each time period):
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AMT--General................................. $10 $32 $55 $122
AMT--New York................................ $10 $32 $55 $122
AMT--California.............................. $10 $32 $55 $122
AMT--Connecticut............................. $10 $32 $55 $122
AMT--New Jersey.............................. $10 $32 $55 $122
AMT--Virginia................................ $10 $32 $55 $122
AMT--Florida................................. $10 $32 $55 $122
</TABLE>
The purpose of the foregoing table is to assist the investor in understand-
ing the various costs and expenses that an investor in the Fund will bear di-
rectly and indirectly. The expenses listed in the table for AMT-CT, AMT-NJ,
AMT-VA and AMT-FL are net of the contractual reimbursement by the Adviser de-
scribed in this prospectus. The expenses of such Portfolios, before expense
reimbursements, would be: AMT-CT: Management Fee--.50%, 12b-1 Fees--.25%,
Other Expenses--.37% and Total Operating Expenses--1.12%; AMT-NJ: Management
Fee--.50%, 12b-1 Fees--.25%, Other Expenses--.37% and Total Operating Ex-
penses--1.12%; AMT-VA: Management Fee--.50%, 12b-1 Fees--.25%, Other Ex-
penses--.38% and Total Operating Expenses--1.13%, and AMT-FL: Management Fee--
.50%, 12b-1 Fees--.25%, Other Expenses--.34% and Total Operating Expenses--
1.09%. THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
2
<PAGE>
FINANCIAL HIGHLIGHTS . FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
The following tables have been audited by McGladrey & Pullen LLP, the Fund's
independent auditors, whose unqualified report thereon appears in each
Statement of Additional Information. This information should be read in
conjunction with the financial statements and notes thereto included in each
Fund's Statement of Additional Information.
<TABLE>
<CAPTION>
GENERAL PORTFOLIO
ALLIANCE MUNICIPAL TRUST ------------------------------------------------------------------------------------------------
YEAR ENDED
YEAR ENDED JUNE 30, SIX MONTHS DECEMBER 31,
--------------------------------------------------------- ENDED ----------------------
1996 1995 1994 1993 1992 1991 1990 JUNE 30, 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income... .029 .028 .018 .020 .034 .046 .055 .030 .047 .041 .044
Net realized and
unrealized loss on
investments............ -0- (.003) -0- -0- -0- -0- -0- -0- -0- -0- -0-
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net increase in net
asset value from
operations............. .029 .025 .018 .020 .034 .046 .055 .030 .047 .041 .044
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
ADD: CAPITAL
CONTRIBUTIONS
Capital Contributed by
the Adviser............ -0- .003 -0- -0- -0- -0- -0- -0- -0- -0- -0-
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
LESS: DISTRIBUTIONS
Dividends from net
investment income...... (.029) (.028) (.018) (.020) (.034) (.046) (.055) (.030) (.047) (.041) (.044)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURNS
Total investment return
based on net asset
value(a)............... 2.93% 2.83%(c) 1.81% 2.05% 3.48% 4.71% 5.65% 6.13%(b) 4.81% 4.18% 4.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (in millions)... $1,148 $1,189 $1,134 $1,016 $914 $883 $798 $695 $633 $690 $794
Ratio to average net
assets of:
Expense, net of waivers
and reimbursements.... .95% .94% .92% .92% .92% .89% .83% .84%(b) .83% .80% .80%
Expense, before waivers
and reimbursements.... .95% .95% .94% .94% .95% .95% .93% .94%(b) .93% .90% .90%
Net investment
income(d)............. 2.90% 2.78% 1.80% 2.02% 3.40% 4.57% 5.50% 5.96%(b) 4.69% 4.08% 4.31%
</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) Annualized.
(c) The capital contribution by the Adviser has no effect on total return.
(d) Net of expenses reimbursed or waived by the Adviser.
3
<PAGE>
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
---------------------------------------------------------------------------------------------------
YEAR ENDED
YEAR ENDED JUNE 30, SIX MONTHS DECEMBER 31,
------------------------------------------------------------------ ENDED ----------------
1996 1995 1994 1993 1992 1991 1990 JUNE 30, 1989 1988 1987
-------- -------- -------- -------- -------- ------- ------- ------------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income... .028 .028 .018 .019 .034 .042 .051 .027 .041 .036
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net
investment income...... (.028) (.028) (.018) (.019) (.034) (.042) (.051) (.027) (.041) (.036)
-------- -------- -------- -------- -------- ------- ------- ------- ------- -------
Net asset value, end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ======= ======= ======= ======= =======
TOTAL RETURNS
Total investment return
based on
net asset value(a)..... 2.87% 2.84% 1.77% 1.94% 3.47% 4.32% 5.26% 5.61%(b) 4.14% 3.71%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (000's omitted). $330,984 $177,254 $162,839 $100,529 $100,476 $71,748 $62,536 $41,910 $41,335 $58,684
Ratio to average net
assets of:
Expenses, net of
waivers and
reimbursements........ .85% .85% .84% .80% .80% .80% .80% .85%(b) 1.00% .87%
Expenses, before
waivers and
reimbursements........ 1.03% 1.03% 1.08% 1.06% 1.12% 1.15% 1.18% 1.35%(b) 1.33% .97%
Net investment
income(c)............. 2.82% 2.81% 1.77% 1.91% 3.35% 4.20% 5.13% 5.45%(b) 4.03% 3.62%
</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) Annualized.
(c) Net of expenses reimbursed or waived by the Adviser.
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
-------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30, SIX MONTHS JUNE 2, 1988(A)
-------------------------------------------------------------------- ENDED THROUGH
1996 1995 1994 1993 1992 1991 1990 JUNE 30, 1989 DECEMBER 31, 1988
-------- -------- -------- -------- -------- -------- -------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income... .029 .027 .018 .020 .032 .043 .050 .029 .030
-------- -------- -------- -------- -------- -------- -------- -------- --------
LESS: DISTRIBUTIONS
Dividends from net
investment income...... (.029) (.027) (.018) (.020) (.032) (.043) (.050) (.029) (.030)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net asset value, end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ======== ======== ======== ========
TOTAL RETURNS
Total investment return
based on
net asset value(b)..... 2.91% 2.78% 1.83% 2.05% 3.26% 4.43% 5.17% 6.02%(c) 5.20%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period
(000's omitted)........ $297,862 $236,479 $219,673 $156,200 $121,317 $111,957 $104,097 $242,124 $103,390
Ratio to average net
assets of:
Expenses, net of
waivers and
reimbursements........ .93% .93% .93% .93% .95% 1.00% .99% .92%(c) .89%(c)
Expenses, before
waivers and
reimbursements........ .94% 1.01% 1.02% 1.02% 1.05% 1.10% 1.09% 1.02%(c) 1.10%(c)
Net investment
income(d)............. 2.86% 2.75% 1.82% 2.01% 3.18% 4.32% 5.03% 5.90%(c) 5.21%(c)
</TABLE>
- -------
(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.
4
<PAGE>
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED JUNE 30, JANUARY 5, 1990(A)
---------------------------------------------------- THROUGH
1996 1995 1994 1993 1992 1991 JUNE 30, 1990
------- ------- ------- ------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income... .028 .028 .017 .020 .033 .045 .026
------- ------- ------- ------- ------- ------- -------
LESS: DISTRIBUTIONS
Dividends from net
investment income...... (.028) (.028) (.017) (.020) (.033) (.045) (.026)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of
period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= =======
TOTAL RETURNS
Total investment return
based on net asset
value(b)............... 2.88% 2.78% 1.71% 2.00% 3.35% 4.57% 5.53%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (000's omitted). $95,812 $75,991 $57,314 $56,224 $54,751 $48,482 $27,945
Ratio to net assets of:
Expenses, net of
waivers and........... .80% .80% .77% .70% .58% .44% .19%(c)
Expenses, before
waivers and
reimbursements........ 1.15% 1.21% 1.21% 1.16% 1.22% 1.16% 1.10%(c)
Net investment
income(d)............. 2.84% 2.77% 1.69% 1.97% 3.28% 4.39% 5.39%(c)
</TABLE>
- -------
(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.
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
-------------------------------------
YEAR ENDED
JUNE 30, FEBRUARY 7, 1994(A)
---------------- THROUGH
1996 1995 JUNE 30, 1994
------- ------- -------------------
<S> <C> <C> <C>
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 as-
set value(b)............................ 2.89% 2.93% 2.08%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omit-
ted).................................... $98,098 $74,133 $36,909
Ratio to average net assets of:
Expenses, net of waivers and reimburse-
ments.................................. .82% .74% .70%(c)
Expenses, before waivers and reimburse-
ments.................................. 1.19% 1.29% 1.93%(c)
Net investment income(d)................ 2.84% 2.98% 2.07%(c)
</TABLE>
- -------
(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.
5
<PAGE>
<TABLE>
<CAPTION>
VIRGINIA PORTFOLIO FLORIDA PORTFOLIO
--------------------------- -----------------
OCTOBER 25,
1994(A) JULY 28, 1995(A)
YEAR ENDED THROUGH THROUGH
JUNE 30, 1996 JUNE 30, 1995 JUNE 30, 1996
------------- ------------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of
period......................... $ 1.00 $ 1.00 $ 1.00
------- ------- -------
INCOME FROM INVESTMENT OPERA-
TIONS
Net investment income........... .029 .023 .030
------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income......................... (.029) (.023) (.030)
------- ------- -------
Net asset value, end of period.. $ 1.00 $ 1.00 $ 1.00
======= ======= =======
TAX RETURNS
Total investment return based on
net asset value(b)............. 2.97% 3.48%(c) 3.32%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's
omitted)....................... $89,557 $66,921 $91,179
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements................ .78% .44%(c) .58%(c)
Expenses, before waivers and
reimbursements................ 1.15% 1.30%(c) 1.24%(c)
Net investment income(d)....... 2.91% 3.48%(c) 3.12%(c)
</TABLE>
- -------
(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 re-
demption on the last day of the period.
(c) Annualized.
(d) Net of expenses reimbursed or waived by the Adviser.
---------------
From time to time each Fund advertises its "yield" and "effective yield."
Both yield figures are based on historical earnings and are not intended to
indicate future performance. To calculate the "yield," the amount of dividends
paid on a share during a specified seven-day period is assumed to be paid each
week over a 52-week period and is shown as a percentage of the investment. To
calculate "effective yield," which will be higher than the "yield" because of
compounding, the dividends paid are assumed to be reinvested. For AMT-General
dividends for the seven days ended June 30, 1996, after expense reimbursement,
amounted to an annualized yield of 2.74%, equivalent to an effective yield of
2.78%. Absent such reimbursement, the annualized yield for such period would
have been 2.69%, equivalent to an effective yield of 2.73%. For AMT-New York
dividends for the seven days ended June 30, 1996, after expense reimbursement,
amounted to an annualized yield of 2.68%, equivalent to an effective yield of
2.72%. Absent such reimbursement, the annualized yield for such period would
have been 2.16%, equivalent to an effective yield of 2.18%. For AMT-California
dividends for the seven days ended June 30, 1996, after expense reimbursement,
amounted to an annualized yield of 2.64%, equivalent to an effective yield of
2.68%. Absent such reimbursement, the annualized yield for such period would
have been 2.56%, equivalent to an effective yield of 2.59%. For AMT-
Connecticut dividends for the seven days ended June 30, 1996, after expense
reimbursement, amounted to an annualized yield of 2.67%, equivalent to an
effective yield of 2.71%. Absent such reimbursement, the annualized yield for
such period would have been 2.31%, equivalent to an effective yield of 2.34%.
For AMT-New Jersey dividends for the seven days ended June 30, 1996, after
expense reimbursement, amounted to an annualized yield of 2.61%, equivalent to
an effective yield of 2.64%. Absent such reimbursement, the annualized yield
for such period would have been 2.24%, equivalent to an effective yield of
2.27%. For AMT-Virginia dividends for the seven days ended June 30, 1996,
after expense reimbursement, amounted to an annualized yield of 2.73%,
equivalent to an effective yield of 2.77%. Absent such reimbursement, the
annualized yield for such period would have been 2.49%, equivalent to an
effective yield of 2.52%. For AMT-Florida dividends for the seven days ended
June 30, 1996, after expense reimbursement, amounted to an annualized yield of
2.92%, equivalent to an effective yield of 2.96%. Absent such reimbursement,
the annualized yield for such period would have been 2.49%, equivalent to an
effective yield of 2.52%.
6
<PAGE>
INVESTMENT OBJECTIVES AND POLICIES
INVESTMENT OBJECTIVES
Alliance Municipal Trust (the "Fund") consists of seven distinct Portfolios,
the General, New York, California, Connecticut, New Jersey, Virginia and Flor-
ida Portfolios (each a "Portfolio"), each of which issues a separate class of
shares. The investment objectives of each Portfolio are safety of principal,
liquidity and, to the extent consistent with these objectives, maximum current
income that is exempt from income taxation to the extent described below. As a
matter of fundamental policy, each Portfolio, except the Florida Portfolio,
pursues its objectives by investing in high quality municipal securities hav-
ing remaining maturities of one year (397 days with respect to the New Jersey
and Virginia Portfolios) or less, which maturities may extend to 397 days and,
except when a Portfolio assumes a temporary defensive position, at least 80%
of each such Portfolio's total assets will be invested in such securities (as
opposed to the taxable investments described below). The Florida Portfolio
pursues its objectives by investing in high quality municipal securities hav-
ing remaining maturities of 397 days or less (which maturities may extend to
such greater length of time as may be permitted from time to time pursuant to
Rule 2a-7 under the Investment Company Act of 1940, as amended (the "1940
Act")) and, except when the Portfolio assumes a temporary defensive position,
as a matter of fundamental policy, at least 80% of the Portfolio's total as-
sets will be invested in municipal securities (as opposed to the taxable in-
vestments described below). While the fundamental policies described above and
the "other fundamental investment policies" identified below may not be
changed for a Portfolio without the approval of its shareholders, the other
investment policies set forth in this prospectus may be changed upon notice
but without such approval. Normally, substantially all of each Portfolio's in-
come will be tax-exempt as described below (e.g., for 1995, 100% of the income
of each Portfolio was exempt from Federal income taxes). The average weighted
maturity of each Portfolio cannot exceed 90 days. The Fund may in the future
establish additional portfolios which may have different investment objec-
tives.
The General Portfolio seeks maximum current income that is exempt from Fed-
eral income taxes by investing principally in a diversified portfolio of high
quality municipal securities. Such income may be subject to state or local in-
come taxes.
The New York Portfolio seeks maximum current income that is exempt from Fed-
eral, New York state and New York City personal income taxes by investing, as
a matter of fundamental policy, not less than 65% of its total assets in a
portfolio of high quality municipal securities issued by New York state or its
political subdivisions.
The California Portfolio seeks maximum current income that is exempt from
Federal and California state personal income taxes by investing, as a matter
of fundamental policy, not less than 65% of its total assets in a portfolio of
high quality municipal securities issued by the State of California or its po-
litical subdivisions.
The Connecticut Portfolio seeks maximum current income that is exempt from
Federal and Connecticut state personal income taxes by investing, as a matter
of fundamental policy, not less than 65% of its total assets in a portfolio of
high quality municipal securities issued by the State of Connecticut or its
political subdivisions.
The New Jersey Portfolio seeks maximum current income that is exempt from
Federal and New Jersey state personal income taxes by investing, as a matter
of fundamental policy, not less than 65% of its total assets in a portfolio of
high quality municipal securities issued by the State of New Jersey or its po-
litical subdivisions. The New Jersey Portfolio will invest not less than 80%
of its net assets in securities the interest on which is exempt from New Jer-
sey personal income taxes [i.e. New Jersey municipal securities and obliga-
tions of the U.S. Government, its agencies and instrumentalities ("U.S. Gov-
ernment Securities")]. In addition, during periods when Alliance Capital Man-
agement L.P. (the "Adviser") believes that New Jersey municipal securities
that meet the New Jersey Portfolio's standards are not available, it may in-
vest a portion of its assets in securities whose interest payments are only
federally tax-exempt.
The Virginia Portfolio seeks maximum current income that is exempt from Fed-
eral and Virginia state
7
<PAGE>
personal income taxes by investing, as a matter of fundamental policy, not
less than 65% of its total assets in a portfolio of high quality municipal se-
curities issued by the Commonwealth of Virginia or its political subdivisions.
The Florida Portfolio seeks maximum current income that is exempt from Fed-
eral income tax and State of Florida intangible tax by investing not less than
65% of its total assets in a portfolio of high-quality municipal securities
issued by Florida or its political subdivisions.
Each Portfolio of the Fund may invest without limitation in tax-exempt mu-
nicipal securities subject to the alternative minimum tax (the "AMT").
Under current Federal income tax law, (1) interest on tax-exempt municipal
securities issued after August 7, 1986 which are "specified private activity
bonds," and the proportionate share of any exempt-interest dividends paid by a
regulated investment company which receives interest from such specified pri-
vate activity bonds, will be treated as an item of tax preference for purposes
of the AMT imposed on individuals and corporations, though for regular Federal
income tax purposes such interest will remain fully tax-exempt, and (2) inter-
est on all tax-exempt obligations will be included in "adjusted current earn-
ings" of corporations for AMT purposes. Such bonds have provided, and may con-
tinue to provide, somewhat higher yields than other comparable municipal secu-
rities. See below, "Daily Dividends, Other Distributions, Taxes."
There can be no assurance that the Portfolios will achieve their investment
objectives. Potential investors in the New York, California, Connecticut, New
Jersey, Virginia and Florida Portfolios should consider the greater risk of
the concentration of such Portfolios versus the safety that comes with less
concentrated investments and should compare yields available on portfolios of
the relevant state's issues with those of more diversified portfolios, includ-
ing other states' issues, before making an investment decision. The Adviser
believes that by maintaining each Portfolio's investments in liquid, short-
term, high quality investments, each Portfolio is largely insulated from the
credit risks that exist on long-term municipal securities of the relevant
state. See the Statement of Additional Information for a more detailed discus-
sion of the financial condition of New York, California, Connecticut, New Jer-
sey, Virginia and Florida.
Municipal Securities. The municipal securities in which each Portfolio in-
vests include municipal notes and short-term municipal bonds. Municipal notes
are generally used to provide for short-term capital needs and generally have
maturities of one year or less. Examples include tax anticipation and revenue
anticipation notes, which are generally issued in anticipation of various sea-
sonal revenues, bond anticipation notes, and tax-exempt commercial paper.
Short-term municipal bonds may include general obligation bonds, which are se-
cured by the issuer's pledge of its faith, credit and taxing power for payment
of principal and interest, and revenue bonds, which are generally paid from
the revenues of a particular facility or a specific excise or other source.
A Portfolio may invest in variable rate obligations whose interest rates are
adjusted either at predesignated periodic intervals or whenever there is a
change in the market rate to which the security's interest rate is tied. Such
adjustments minimize changes in the market value of the obligation and, ac-
cordingly, enhance the ability of the Portfolio to maintain a stable net asset
value. Variable rate securities purchased may include participation interests
in industrial development bonds backed by letters of credit of Federal Deposit
Insurance Corporation member banks having total assets of more than $1 bil-
lion. The letters of credit of any single bank in respect of all variable rate
obligations will not cover more than 10% of a Portfolio's total assets.
Each Portfolios' municipal securities at the time of purchase are rated
within the two highest quality ratings of Moody's Investors Service, Inc. (Aaa
and Aa, MIG 1 and MIG 2, or VMIG 1 and VMIG 2) or Standard & Poor's Corpora-
tion (AAA and AA or SP-1 and SP-2), or judged by the Adviser to be of compara-
ble quality. Securities must also meet credit standards applied by the
Adviser.
To further enhance the quality and liquidity of the securities in which the
Portfolios invest, such securities frequently are supported by credit and li-
quidity enhancements, such as letters of credit, from third party financial
institutions. The Adviser continuously monitors the credit quality of such
third parties; however, changes in the credit quality of such a financial in-
stitution could cause a Portfolio's investments backed by that institution to
lose value and affect a Portfolio's share price.
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A Portfolio also may invest in stand-by commitments, which may involve cer-
tain expenses and risks, but such commitments are not expected to comprise
more than 5% of any Portfolio's net assets. A Portfolio may commit up to 15%
of its net assets to the purchase of when-issued securities. The Fund's custo-
dian will maintain, in a separate account of the respective Portfolio, liquid
high-grade debt securities having value equal to, or greater than, such when-
issued securities. The price of when-issued securities, which is generally ex-
pressed in yield terms, is fixed at the time the commitment to purchase is
made, but delivery and payment for such securities takes place at a later
time. Normally the settlement date occurs from within ten days to one month
after the purchase of the issue. The value of when-issued securities may fluc-
tuate prior to their settlement, thereby creating an unrealized gain or loss
to a Portfolio.
Taxable Investments. The taxable investments in which each Portfolio may in-
vest include obligations of the U.S. Government and its agencies, high quality
certificates of deposit and bankers' acceptances, prime commercial paper, and
repurchase agreements.
Other Fundamental Investment Policies. To reduce investment risk, the Gen-
eral Portfolio may not invest more than 25% of its total assets in municipal
securities whose issuers are located in the same state, and no Portfolio may
invest more than 25% of its total assets in municipal securities the interest
upon which is paid from revenues of similar-type projects; a Portfolio may not
invest more than 5% of its total assets in the securities of any one issuer
except the U.S. Government, although (i) with respect to 25% of its total as-
sets the General Portfolio may invest up to 10% per issuer, and (ii) the New
York, California, Connecticut, New Jersey, Virginia and Florida Portfolios may
invest 50% of their respective total assets in as few as four issuers (but no
more than 25% of total assets in any one issuer); and a Portfolio may not pur-
chase more than 10% of any class of the voting securities of any one issuer
except those of the U.S. Government.
PURCHASE AND REDEMPTION OF SHARES
PURCHASE OF SHARES
A. BY SWEEP
Your brokerage account will be coded to sweep cash balances into shares of
the Portfolio you have selected. There is a $500 minimum initial investment
for all Portfolios. Free credit balances arising in your brokerage account
from check deposits, dividend payments, interest payments and other credits
will be invested in the selected Portfolio on the business day after posting.
Free credit balances arising from the sale of securities will be invested into
the selected Portfolio on the business day following settlement. We will, how-
ever, hold back and not invest in the Portfolio sufficient monies to pay for
security purchases which have not yet settled.
REDEMPTIONS
A. BY CHECKWRITING
Available from your brokerage firm is a checkbook from which you may write
checks made payable to any payee in any amount of $100 or more. The maximum
amount that a check may be written for will depend upon a combination of your
Portfolio shares, other available cash in your brokerage account, and the
available margin loan value of securities in your brokerage account if your
brokerage account is established as a margin account. In order to establish
checkwriting you must complete a signature card which you can obtain from your
Account Executive, Registered Representative or Financial Advisor. There is no
separate charge for the checkwriting service. The checkwriting service enables
you to receive the daily dividends declared on the Portfolio shares to be
redeemed until the day that your check is presented for payment.
B. BY SWEEP
A sufficient number of shares will be redeemed automatically on settlement
date to pay for all securities transactions. A sufficient number of shares
will also be redeemed to satisfy any withdrawals or debits posted to the
brokerage account.
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ADDITIONAL INFORMATION
SHARE PRICE. Shares are sold and redeemed on a continuous basis without sales
or redemption charges at their net asset value which is expected to be constant
at $1.00 per share, although this price is not guaranteed. The net asset value
of the Fund's shares is determined each business day at 12:00 Noon and 4:00
p.m. (New York time). The net asset value per share of the Fund is calculated
by taking the sum of the value of the Fund's investments (amortized cost value
is used for this purpose) and any cash or other assets, subtracting liabili-
ties, and dividing by the total number of shares outstanding. All expenses, in-
cluding the fees payable to the Adviser, are accrued daily.
TIMING OF INVESTMENTS AND REDEMPTIONS. The Fund has two transaction times
each business day, 12:00 Noon and 4:00 p.m. (New York time). New investments
represented by Federal funds or bank wire monies received by State Street Bank
at any time during a day prior to 4:00 p.m. are entitled to the full dividend
to be paid to shareholders for that day. Shares do not earn dividends on the
day a redemption is effected regardless of whether the redemption order is re-
ceived before or after 12:00 Noon.
During drastic economic or market developments, shareholders might have dif-
ficulty in reaching Alliance Fund Services, Inc. by telephone in which event
the shareholder should issue written instructions to Alliance Fund Services,
Inc. at the address shown in this prospectus. The Fund reserves the right to
suspend or terminate their telephone service at any time without notice. Nei-
ther the Fund nor the Adviser, or Alliance Fund Services, Inc. will be respon-
sible for the authenticity of telephone requests to purchase or sell shares.
Alliance Fund Services, Inc. will employ reasonable procedures in order to ver-
ify that telephone requests are genuine and could be liable for losses arising
from unauthorized transactions if it failed to do so. Selected dealers or
agents may charge a commission for handling telephone requests for redemptions.
Redemption proceeds are normally wired or mailed either the same or the next
business day, but in no event later than seven days, unless redemptions have
been suspended or postponed due to the determination of an "emergency" by the
Securities and Exchange Commission or to certain other unusual conditions.
DAILY DIVIDENDS, OTHER DISTRIBUTIONS, TAXES. All net income of the Fund is
determined each business day at 4:00 p.m. (New York time) and is paid immedi-
ately thereafter pro rata to shareholders of the Fund of record via automatic
investment in additional full and fractional shares of the Fund in each share-
holder's account. As such additional shares are entitled to dividends on fol-
lowing days, a compounding growth of income occurs.
Net income consists of all accrued interest income on Fund assets less the
Fund's expenses applicable to that dividend period. Realized gains and losses
are reflected in its net asset value and are not included in net income.
Distributions to you out of tax-exempt interest income earned by each Portfo-
lio of Alliance Municipal Trust are not subject to Federal income tax (other
than the AMT), but, in the case of the General Portfolio, may be subject to
state or local income taxes. Any exempt-interest dividends derived from inter-
est on municipal securities subject to the AMT will be a specific preference
item for purposes of the Federal individual and corporate AMT. Distributions to
residents of New York out of income earned by the New York Portfolio from New
York municipal securities are exempt from New York state and New York City per-
sonal income taxes. Distributions to residents of California out of income
earned by the California Portfolio from California municipal securities are ex-
empt from California personal income taxes. Distributions to individuals who
are residents of Connecticut out of income earned by the Connecticut Portfolio
from Connecticut municipal securities are exempt from Connecticut personal in-
come taxes. Distributions to residents of New Jersey out of income earned by
the New Jersey Portfolio from New Jersey municipal securities or U.S. Govern-
ment Securities are exempt from New Jersey state personal income taxes. Distri-
butions from the New Jersey Portfolio are, however, subject to the New Jersey
Corporation Business (Franchise) Tax and the New Jersey Corporation Income Tax
payable by corporate shareholders. Distributions to residents of Virginia out
of income
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earned by the Virginia Portfolio from Virginia municipal securities or obliga-
tions of the United States or any authority, commission or instrumentality of
the United States are exempt from Virginia individual, estate, trust, or cor-
porate income tax. Dividends paid by the Florida Portfolio to individual Flor-
ida shareholders will not be subject to Florida income tax, which is imposed
only on corporations. However, Florida currently imposes an "intangible tax"
at the rate of $2.00 per $1,000 taxable value of certain securities, such as
shares of the Portfolio, and other intangible assets owned by Florida resi-
dents. U.S. Government securities and Florida municipal securities are exempt
from this intangible tax. It is anticipated that the Florida Portfolio shares
will qualify for exemption from the Florida intangible tax. In order to so
qualify, the Florida Portfolio must, among other things, have its entire port-
folio invested in U.S. Government securities and Florida municipal securities
on December 31 of any year. Exempt-interest dividends paid by the Florida
Portfolio to corporate shareholders will be subject to Florida corporate in-
come tax. Distributions out of taxable interest income, other investment in-
come, and short-term capital gains are taxable to you as ordinary income and
distributions of long-term capital gains, if any, are taxable as long-term
capital gains irrespective of the length of time you may have held your
shares. Distributions of short and long-term capital gains, if any, are nor-
mally made near year-end. Each year shortly after December 31, the Fund will
send you tax information stating the amount and type of all its distributions
for the year just ended.
THE ADVISER. The Fund retains Alliance Capital Management L. P., 1345 Avenue
of the Americas, New York, NY 10105 under its Advisory Agreement to provide
investment advice and, in general, to supervise its management and investment
program, subject to the general control of the Trustees of the Fund. For the
fiscal year ended June 30, 1996, AMT-General, AMT-NY, AMT-CA, AMT-CT, AMT-NJ
and AMT-VA each paid the Adviser an advisory fee at an annual rate of .50,
.42, .50, .25, .23 and .22 of 1%, respectively, of the average daily value of
the respective Portfolio's net assets. For the period ended June 30, 1996, the
Adviser waived the advisory fee for AMT-FL.
Under a Distribution Services Agreement (the "Agreement"), the Fund pays the
Adviser at a maximum annual rate of .25 of 1% of the Fund's aggregate average
daily net assets. For the period ended June 30, 1996, AMT-General, AMT-NY,
AMT-CA, AMT-CT, AMT-NJ, AMT-VA and AMT-FL each paid the Adviser a distribution
services fee at an annual rate of .25, .15, .24, .15, .15, .15 and .15 of 1%,
respectively, of the average daily value of the net assets of each Portfolio.
Substantially all such monies (together with significant amounts from the
Adviser's own resources) are paid by the Adviser to broker-dealers and other
financial intermediaries for their distribution assistance and to banks and
other depository institutions for administrative and accounting services
provided to the Fund, with any remaining amounts being used to partially
defray other expenses incurred by the Adviser in distributing the Fund's
shares. The Fund believes that the administrative services provided by
depository institutions are permissible activities under present banking laws
and regulations and will take appropriate actions (which should not adversely
affect the Fund or its shareholders) in the future to maintain such legal
conformity should any changes in, or interpretations of, such laws or
regulations occur.
The Adviser will reimburse the Fund to the extent that aggregate operating
expenses of the Fund (including the Adviser's fee and expenses incurred under
the Agreement) exceed 1% of its average daily net assets for any fiscal year.
CUSTODIAN, TRANSFER AGENT AND DISTRIBUTOR. State Street Bank and Trust Com-
pany, P.O. Box 1912, Boston, MA 02105, is the Fund's Custodian. Alliance Fund
Services, Inc., P.O. Box 1520, Secaucus, NJ 07096-1520 and Alliance Fund Dis-
tributors, Inc., 1345 Avenue of the Americas, New York, NY 10105, are the
Fund's Transfer Agent and Distributor, respectively.
FUND ORGANIZATION. AMT-General is a diversified, and AMT-NY, AMT-CA, AMT-CT,
AMT-NJ, AMT-VA and AMT-FL are non-diversified series of Alliance Municipal
Trust, which is an open-end management investment company registered under the
1940 Act. The Fund was reorganized as a Massachusetts business trust in April
1985, having previously been a Maryland corporation since its formation in
January 1983. The Fund's activities are supervised by its Trustees. Normally,
shares of
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each series of Alliance Municipal Trust, are entitled to one vote per share,
and vote as a single series, on matters that affect each series in substan-
tially the same manner. Massachusetts law does not require annual meetings of
shareholders and it is anticipated that shareholder meetings will be held only
when required by Federal law. Shareholders have available certain procedures
for the removal of Trustees.
REPORTS. You receive semi-annual and annual reports for the Fund as well as
a monthly summary of your account.
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