ALLIANCE MUNICIPAL TRUST -MASSACHUSETTS PORTFOLIO
ALLIANCE CAPITAL
ANNUAL REPORT
JUNE 30, 1997
STATEMENT OF NET ASSETS
JUNE 30, 1997
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-97.2%
MASSACHUSETTS-77.9%
ACUSHNET BAN
$ 500 11/06/97 3.79% $ 500,784
BARNSTABLE BAN
495 6/15/98 3.83 504,970
BRIDGEWATER BAN
FGIC
300 6/01/98 3.90 309,627
CHATHAM GO
500 7/01/98 3.83 514,170
LEXINGTON BAN
Series '97
210 4/15/98 3.90 210,112
MASSACHUSETTS EDUCATIONAL
FINANCING AUTHORITY
Series E AMT VRDN(a)
1,100 7/01/15 4.25 1,100,000
MASSACHUSETTS GO
Series '90E VRDN(a)
120 12/01/97 4.00 120,000
MASSACHUSETTS GO
Series B VRDN(a)
400 12/01/97 4.00 400,000
MASSACHUSETTS HEALTH &
EDUCATION FACILITY
(Capital Asset Program)
VRDN(a)
1,200 1/01/01 3.80 1,200,000
MASSACHUSETTS HEALTH &
EDUCATION FACILITY
(Harvard University)
Series '85 VRDN(a)
1,000 8/01/17 4.00 1,000,000
MASSACHUSETTS HEALTH &
EDUCATION FACILITY
(Massachusetts Institute of Technology)
Series '91 VRDN(a)
300 7/01/21 3.90 300,000
MASSACHUSETTS IDA
(Carand Realty Trust)
AMT VRDN(a)
500 5/01/17 4.15 500,000
MASSACHUSETTS IDA
(Goddard House Project)
Series '95 VRDN(a)
500 11/01/25 4.15 500,000
MASSACHUSETTS IDA
(Groton School Project)
Series '89 VRDN(a)
500 6/01/19 4.00 500,000
MASSACHUSETTS IDA
(Newbury College Project)
Series '96 VRDN(a)
700 6/01/21 4.05 700,000
MASSACHUSETTS IDA
(Showa Womens Institute, Inc)
Series '94 VRDN(a)
400 3/15/04 4.00 400,000
MASSACHUSETTS IDA
Res. Rec.: (Ogden Haverhill Project)
Series '92 VRDN(a)
600 12/01/06 4.10 600,000
MASSACHUSETTS IDA PCR
(Holyoke Water & Power Co.)
Series A VRDN(a)
800 5/01/22 3.85 800,000
MASSACHUSETTS IDA PCR
(New England Power Co.)
VRDN(a)
700 10/01/22 4.00 700,000
NEWTON BAN
320 4/15/98 3.85 322,079
PEABODY BAN
Series '97
300 4/14/98 3.85 300,874
PEPPERELL BAN
MBIA
230 5/15/98 3.90 235,057
------------
11,717,673
CALIFORNIA-4.6%
CONTRA COSTA COUNTY MFHR
(Park Regency Apts.)
Series '92A AMT VRDN(a)
700 8/01/32 4.20 700,000
DISTRICT OF COLUMBIA-4.0%
DISTRICT OF COLUMBIA GO
Series '92 A-4 VRDN(a)
600 10/01/07 4.30 600,000
1
STATEMENT OF NET ASSETS
(CONTINUED)
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
NEW YORK-2.7%
NEW YORK CITY IDR
(Brooklyn Navy Yard Project)
Series '95B AMT VRDN(a)
$ 400 7/01/29 4.15% $ 400,000
PUERTO RICO-5.3%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '85 VRDN(a)
100 12/01/15 3.75 100,000
PUERTO RICO HIGHWAY &
TRANSPORTATION AUTHORITY
Series X VRDN(a)
400 7/01/99 3.75 400,000
PUERTO RICO INDUSTRIAL, MEDICAL,
HIGHER EDUCATION & ENVIRONMENT
(Ana G. Mendez Educ.
Foundation Project)
VRDN(a)
300 12/01/15 4.20 300,000
-----------
800,000
TEXAS-2.7%
BRAZOS RIVER HARBOR
NAVIGATION DISTRICT
(Dow Chemical Company Project)
Series '97 AMT VRDN(a)
400 5/01/27 5.20 400,000
Total Municipal Bonds
(amortized cost $14,617,673) $14,617,673
COMMERCIAL PAPER-5.3%
MASSACHUSETTS-2.0%
MASSACHUSETTS WATER AUTHORITY
300 7/18/97 3.85 300,000
PUERTO RICO-3.3%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
500 7/14/97 3.80 500,000
Total Commercial Paper
(amortized cost $800,000) 800,000
TOTAL INVESTMENTS-102.5%
(amortized cost $15,417,673) 15,417,673
Other assets less liabilities-(2.5%) (371,574)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
15,046,099 shares outstanding) $15,046,099
# All securities either mature or their interest rate changes in one year or
less.
(a) 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.
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
GO General obligation
IDA Industrial development authority
IDR Industrial development revenue
MBIA Municipal bond investors assurance
MFHR Multi-family housing revenue
PCR Pollution control revenue
See notes to financial statements.
2
STATEMENT OF OPERATIONS
APRIL 17, 1997* TO JUNE 30, 1997
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $69,477
EXPENSES
Advisory fee (Note B) $8,742
Distribution assistance and administrative service(Note C) 12,876
Printing 7,550
Audit and legal fees 6,760
Transfer agency (Note B) 4,878
Registration fees 4,635
Custodian fees 4,467
Trustees' fees 810
Amortization of organization expense 350
Miscellaneous 1,185
Total expenses 52,253
Less: expense reimbursement and fee waiver (43,511)
Net expenses 8,742
NET INCREASE IN NET ASSETS FROM OPERATIONS $60,735
* Commencement of operations.
See notes to financial statements.
3
STATEMENT OF CHANGES
IN NET ASSETS
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
APRIL 17, 1997*
TO
JUNE 30, 1997
---------------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income $ 60,735
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (60,735)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 15,046,099
Total increase 15,046,099
NET ASSETS
Beginning of period -0-
End of period $15,046,099
* Commencement of operations.
See notes to financial statements.
4
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS 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 eight 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,
Alliance Municipal Trust-Florida Portfolio and Alliance Municipal
Trust-Massachusetts Portfolio (the "Portfolio"). Each series is considered to
be a separate entity for financial reporting and tax purposes. The
Massachusetts 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 EXPENSE
The organization expenses of the Portfolio are being amortized against income
on a straight-line basis through July, 2002.
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
period ended June 30, 1997, are exempt from federal income taxes. However,
certain shareholders may be subject to the alternative minimum tax.
5. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued as earned. Investment transactions are recorded on a
trade date basis. Realized gain (loss) from investment 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. For the period ended June 30, 1997, the Adviser also voluntarily
agreed to reimburse the Portfolio for expenses exceeding .50 of 1% of its
average daily net assets. For the period ended June 30, 1997, the reimbursement
amounted to $39,140. 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 $3,015 for the period ended June 30, 1997.
5
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS 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 period ended June 30, 1997, the distribution fee amounted to $4,371,
all of which 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 period ended June 30,
1997, such payments by the Portfolio amounted to $8,505 of which no payment was
made to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1997, the cost of securities for federal income tax purposes was
the same as the cost for financial reporting purposes.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1997, capital paid-in aggregated $15,046,099. Transactions, all at $1.00 per
share, were as follows:
APRIL 17, 1997(A)
THROUGH
JUNE 30, 1997
-----------------
Shares sold 25,831,508
Shares issued on reinvestments of dividends 60,735
Shares redeemed (10,846,144)
Net increase 15,046,099
(a) Commencement of operations.
6
FINANCIAL HIGHLIGHTS
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
APRIL 17, 1997(A)
THROUGH
JUNE 30, 1997
-----------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .007
LESS: DIVIDENDS
Dividends from net investment income (.007)
Net asset value, end of period $ 1.00
TOTAL RETURNS
Total investment return based on net asset value (c)(d) 3.53%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $15,046
Ratio to average net assets of:
Expenses, net of waivers and reimbursements (d) .50%
Expenses, before waivers and reimbursements (d) 2.99%
Net investment income (b)(d) 3.47%
(a) Commencement of operations.
(b) Net of expenses reimbursed or waived by the Adviser.
(c) 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.
(d) Annualized.
7
INDEPENDENT AUDITOR'S REPORT
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
We have audited the accompanying statement of net assets of the Massachusetts
Portfolio of Alliance Municipal Trust as of June 30, 1997 and the related
statements of operations, changes in net assets, and financial highlights for
the period 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 audit.
We conducted our audit 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, 1997, by correspondence with the custodian and brokers.
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 audit provides 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
Massachusetts Portfolio of Alliance Municipal Trust as of June 30, 1997, and
the results of its operations, changes in its net assets, and its financial
highlights for the period indicated, in conformity with generally accepted
accounting principles.
McGladrey & Pullen, LLP
New York, New York
July 29, 1997
8
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS 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
KENNETH T. CARTY, VICE PRESIDENT
DORIS T. CILIBERTI, VICE PRESIDENT
MARIA R. CONA, 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
VINCENT S. NOTO, 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 - MASSACHUSETTS 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 # 4 9 #
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.
AMAAR
