ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
SEMI-ANNUAL REPORT
DECEMBER 31, 1996
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1996 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
MUNICIPAL BONDS-68.3%
VIRGINIA-65.7%
ALEXANDRIA REDEV. &
HOUSING AUTHORITY
(Goodwin House)
Series '96B VRDN*
$ 2,325 10/01/06 5.10% $ 2,325,000
AMELIA COUNTY IDA
(Chambers Waste Systems, Inc)
AMT VRDN*
3,800 7/01/07 4.35 3,800,000
AMHERST IDA SOLID WASTE
(Nekoosa Packaging) AMT VRDN*
2,750 7/01/11 4.40 2,750,000
ARLINGTON COUNTY
(Ballston Public Parking Facility)
Series '84 VRDN*
2,000 8/01/17 3.10 2,000,000
BOTETOURT COUNTY IDA
(Emkay Holdings L.L.C. Project)
Series '95 AMT VRDN*
2,000 10/01/05 4.20 2,000,000
BOTETOURT COUNTY IDA
(Virginia Forge Co. Project)
Series '96 AMT VRDN*
1,000 7/01/11 4.35 1,000,000
CAMPBELL COUNTY PCR
(Georgia Pacific Power) AMT VRDN*
3,000 12/01/19 4.40 3,000,000
CHARLES CITY IDA
(Chambers Dev. of VA, Inc.)
Series '96 AMT VRDN*
1,500 4/01/16 4.35 1,500,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(Fairfax Hospital Systems)
Series '88A VRDN*
600 10/01/25 4.15 600,000
FAIRFAX COUNTY IDA
HOSPITAL REVENUE
(Fairfax Hospital Systems)
Series '88D VRDN*
1,200 10/01/25 4.15 1,200,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(INOVA Services) Series '89A VRDN*
500 1/15/22 4.15 500,000
FLUVANNA COUNTY IDA
(Edgecomb Metals Co.) VRDN*
2,100 12/01/09 4.00 2,100,000
HAMPTON COUNTY REDEV.
& HOUSING AUTHORITY MFHR
(Avalon Pointe Project)
Series '96 AMT VRDN*
2,300 6/15/26 4.20 2,300,000
HAMPTON ROADS JAIL AUTHORITY
Regional Jail Fac.
Series '96B VRDN*
1,500 7/01/16 4.15 1,500,000
KING GEORGE COUNTY IDR
(Birchwood Power Project) AMT VRDN*
600 11/01/25 5.10 600,000
KING GEORGE COUNTY IDR
(Birchwood Power Project)
Series '94A AMT VRDN*
500 10/01/24 5.20 500,000
KING GEORGE COUNTY IDR
(Birchwood Power Project)
Series '94B AMT VRDN*
800 12/01/24 5.20 800,000
KING GEORGE COUNTY IDR
(Garnet of VA, Inc.)
Series '96 AMT VRDN*
1,250 9/01/21 4.20 1,250,000
LOUDOWN COUNTY IDA
(Kinder-Care Learning Centers)
Series A VRDN*
394 6/01/02 4.55 394,000
NORFOLK GO BOND
Pre-Refunded
200 8/01/97 3.50 208,068
NORFOLK GO BOND
Pre-Refunded
1,900 6/01/97 3.62 1,936,680
RICHMOND HFA
(Old Manchester Project)
Series '95A VRDN*
2,800 12/01/25 4.25 2,800,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
RICHMOND REDEV. MFHR
(Tobacco Row)
Series '89B-8 AMT VRDN*
$ 3,555 10/01/24 4.40% $ 3,555,000
SOUTHAMPTON IDA
(Hadson Power II-
Southampton Project)
Series '90A AMT VRDN*
400 4/01/15 5.75 400,000
VIRGINIA BEACH DEV. AUTHORITY
(Kinder-Care Learning Centers)
Series D VRDN*
866 10/01/00 4.55 866,000
VIRGINIA GO EAGLE TRUST
Series 954601 VRDN*
2,000 6/01/21 4.26 2,000,000
VIRGINIA HDA
(AHC Service Corp.- Lee Gardens)
Series '87A VRDN*
2,000 9/01/17 4.15 2,000,000
VIRGINIA HDA BOND
Series I AMT
1,075 5/01/97 3.90 1,075,167
VIRGINIA PUBLIC BUILDING
AUTHORITY BOND
Series '94A
2,295 8/01/97 3.60 2,321,350
VIRGINIA PUBLIC SCHOOL AUTHORITY
Pre-Refunded
2,325 1/01/97 3.25 2,371,500
VIRGINIA PUBLIC SCHOOL AUTHORITY
Series A Pre-Refunded
1,500 1/01/97 3.65 1,530,000
------------
51,182,765
NEW YORK-0.3%
NEW YORK STATE MEDICAL
CARE FACILITIES FINANCE AGENCY
(Equipment Loan Program)
Series '94A VRDN*
200 11/01/03 3.90 200,000
PUERTO RICO-2.3%
PUERTO RICO GO TRAN
Series '97A
1,800 7/30/97 3.43 1,805,796
Total Municipal Bonds
(amortized cost $53,188,561) 53,188,561
COMMERCIAL PAPER-33.1%
VIRGINIA-24.4%
CHESTERFIELD COUNTY PCR
(Virginia Electric & Power Co.)
Series '87B
2,485 2/28/97 3.50 2,485,000
CHESTERFIELD COUNTY PCR
(Virginia Electric & Power Co.)
Series '87B
1,000 2/26/97 3.55 1,000,000
FAIRFAX COUNTY IDA
HOSPITAL REVENUE
(Nova Health Services)
Series '93B
1,500 2/11/97 3.55 1,500,000
LOUISA IDA
(Virginia Electric & Power Co.)
Series '84
1,500 2/26/97 3.60 1,500,000
LOUISA IDA
(Virginia Electric & Power Co.)
Series '85
2,000 3/03/97 3.50 2,000,000
NORFOLK IDA HOSPITAL REVENUE
(Sentara Hospital) Series '90A
1,000 3/11/97 3.50 1,000,000
NORFOLK IDA HOSPITAL REVENUE
(Sentara Hospital)
Series '90A
2,000 4/10/97 3.50 2,000,000
PENINSULA PORT AUTHORITY
(Dominion Term. Assoc.)
Series '87A
7,480 1/23/97 3.45 7,480,000
------------
18,965,000
2
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
PUERTO RICO-8.7%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
$ 2,500 2/06/97 3.55% $ 2,500,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
1,300 3/07/97 3.50 1,300,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
3,000 2/14/97 3.65 3,000,000
------------
6,800,000
Total Commercial Paper
(amortized cost $25,765,000) $25,765,000
TOTAL INVESTMENTS-101.4%
(amortized cost $78,953,561) 78,953,561
Other assets less liabilities-(1.4%) (1,082,464)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
77,879,122 shares outstanding) $77,871,097
# 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 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.
Glossary of Terms:
AMT Alternative Minimum Tax
GO General Obligation
HDA Housing Development Authority
HFA Housing Finance Agency/Authority
IDA Industrial Development AuthorityVRDNVariable Rate Demand Note
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
3
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1996 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $1,596,163
EXPENSES
Advisory fee (Note B) $ 227,896
Distribution assistance and administrative
service (Note C) 201,271
Custodian fees 35,601
Transfer agency (Note B) 18,647
Printing 9,647
Audit and legal fees 9,499
Registration fees 6,369
Trustees' fees 1,534
Amortization of organization expense 857
Miscellaneous 4,235
Total expenses 515,556
Less: expense reimbursement and fee waiver (150,922) 364,634
Net investment income 1,231,529
UNREALIZED LOSS ON INVESTMENTS
Net change in unrealized appreciation of investments (745)
NET INCREASE IN NET ASSETS FROM OPERATIONS $1,230,784
See notes to financial statements.
4
STATEMENTS OF CHANGES IN NET ASSETS
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1996 YEAR ENDED
(UNAUDITED) JUNE 30, 1996
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,231,529 $ 2,432,185
Net realized loss on investments -0- (128)
Net change in unrealized appreciation
of investments (745) 745
Net increase in net assets from operations 1,230,784 2,432,802
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,231,529) (2,432,185)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (Note E) (11,685,000) 22,635,119
Total increase (decrease) (11,685,745) 22,635,736
NET ASSETS
Beginning of period 89,556,842 66,921,106
End of period $77,871,097 $89,556,842
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 (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. As
a matter of fundamental policy, each Portfolio, except the Florida 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
six months ended December 31, 1996, are exempt from federal income taxes.
However, certain shareholders may be subject to the alternative minimum tax.
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 for the six months ended December 31, 1996 for expenses exceeding
.80 of 1% of its average daily net assets. For the six months ended December
31, 1996, the reimbursement amounted to $105,343. 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 $8,954 for the six months ended
December 31, 1996.
6
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this Plan, the Portfolio pays the Adviser a distribution fee at the
annual rate of up to .25% of 1% of the average daily value of the Portfolio's
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, 1996, the distribution fee amounted to $113,948 of
which $45,579 was waived. In addition, the Portfolio may reimburse certain
broker-dealers for administrative costs incurred in connection with providing
shareholder services, and may reimburse the Adviser for accounting and
bookkeeping, and legal and compliance support. For the six months ended
December 31, 1996, such payments by the Portfolio amounted to $87,323 of which
$45,500 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 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 December 31,
1996, capital paid-in aggregated $77,879,122. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1996 JUNE 30,
(UNAUDITED) 1996
-------------- -------------
Shares sold 93,493,576 251,119,609
Shares issued on reinvestments of dividends 1,231,529 2,432,185
Shares redeemed (106,410,105) (230,916,675)
Net increase (decrease) (11,685,000) 22,635,119
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, YEAR ENDED 1994(A)
1996 JUNE 30, THROUGH
(UNAUDITED) 1996 JUNE 30,1995
----------- --------- ------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .014 .029 .023
LESS DISTRIBUTIONS
Dividends from net investment income (.014) (.029) (.023)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on net
asset value (b) 2.72%(c) 2.97% 3.48%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $77,871 $89,557 $66,921
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .80%(c) .78% .44%(c)
Expenses, before waivers and
reimbursements 1.13%(c) 1.15% 1.30%(c)
Net investment income (d) 2.70%(c) 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
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
DREW BIEGEL, SENIOR VICE 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
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, 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
ALLIANCE CAPITAL
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.
AVASR
ALC21PR01
