ALLIANCE MUNICIPAL TRUST -VIRGINIA PORTFOLIO
ALLIANCE CAPITAL
ANNUAL REPORT
JUNE 30, 1997
STATEMENT OF NET ASSETS
JUNE 30, 1997 ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-94.4%
VIRGINIA-90.9%
ALEXANDRIA REDEVELOPMENT &
HOUSING AUTHORITY MFHR
(Crystal City Apts. Project)
Series '90A AMT VRDN(a)
$ 4,700 12/15/18 4.35% $4,700,000
AMELIA COUNTY IDA
(Chambers Waste Systems, Inc)
AMT VRDN(a)
4,290 7/01/07 4.35 4,290,000
AMHERST IDA SOLID WASTE
(Nekoosa Packaging) AMT VRDN(a)
2,750 7/01/11 4.45 2,750,000
ARLINGTON COUNTY
(Ballston Public Parking Facility)
Series '84 VRDN(a)
1,900 8/01/17 4.15 1,900,000
BEDFORD IDA SOLID WASTE
(Nekoosa Packaging) AMT VRDN(a)
1,000 12/01/25 4.20 1,000,000
BOTETOURT COUNTY IDA
(Emkay Holdings L.L.C. Project)
Series '95 AMT VRDN(a)
2,000 10/01/05 4.20 2,000,000
BOTETOURT COUNTY IDA
(Virginia Forge Co. Project)
Series '96 AMT VRDN(a)
1,000 7/01/11 4.35 1,000,000
CAMPBELL COUNTY PCR
(Georgia Pacific Power) AMT VRDN(a)
3,000 12/01/19 4.45 3,000,000
CHARLES CITY IDA
(Chambers Dev. of VA, Inc.)
Series '89 AMT VRDN(a)
1,100 10/01/04 4.35 1,100,000
CHARLES CITY IDA
(Chambers Dev. of VA, Inc.)
Series '96 AMT VRDN(a)
1,500 4/01/16 4.35 1,500,000
CHESAPEAKE IDA
(LTD Associates) VRDN(a)
1,770 3/01/11 4.20 1,770,000
CHESTERFIELD COUNTY IDA
(Phillip Morris Co.) VRDN(a)
3,500 4/01/09 4.40 3,500,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(Fairfax Hospital Systems)
Series '88C VRDN(a)
1,050 10/01/25 4.15 1,050,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(Fairfax Hospital Systems)
Series '88D VRDN(a)
400 10/01/25 4.15 400,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(INOVA Services) Series '85A VRDN(a)
1,100 10/01/16 4.25 1,100,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(INOVA Services) Series '89A VRDN(a)
500 1/15/22 4.15 500,000
FLUVANNA COUNTY IDA
(Edgecomb Metals Co.) VRDN(a)
2,100 12/01/09 4.13 2,100,000
FREDERICKSBURG IDA
(MWH Medicorp) Series '91A FGIC
100 8/15/97 3.65 100,262
HAMPTON COUNTY REDEVELOPMENT &
HOUSING AUTHORITY MFHR
(Avalon Pointe Project)
Series '96 AMT VRDN(a)
2,000 6/15/26 4.20 2,000,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
HAMPTON ROADS JAIL AUTHORITY
Regional Jail Fac.
Series '96B VRDN(a)
$ 2,300 7/01/16 4.15% $ 2,300,000
KING GEORGE COUNTY IDR
(Birchwood Power Project)
Series '94A AMT VRDN(a)
2,600 10/01/24 4.30 2,600,000
KING GEORGE COUNTY IDR
(Birchwood Power Project)
Series '97 AMT VRDN(a)
500 3/01/27 4.30 500,000
KING GEORGE COUNTY IDR
(Garnet of VA, Inc.)
Series '96 AMT VRDN(a)
800 9/01/21 4.20 800,000
LOUDOWN COUNTY IDA
(Kinder-Care Learning Centers)
Series A VRDN(a)
394 6/01/02 4.35 394,000
LOUISA COUNTY IDA
Pooled Financing Series '95 VRDN(a)
2,500 1/01/20 4.20 2,500,000
METRO DC AIRPORTS AUTHORITY
Series A AMT MBIA
1,290 10/01/97 3.80 1,292,305
NORFOLK GO BOND
Pre-Refunded
200 8/01/97 3.50 204,595
RICHMOND GO
(Public Utility Revenue)
Series A VRDN(a)
3,500 6/30/01 4.25 3,500,000
RICHMOND HFA
(Old Manchester Project)
Series A VRDN(a)
1,000 12/01/25 4.30 1,000,000
RICHMOND REDEVELOPMENT MFHR
(Tobacco Row)
Series '89B-8 AMT VRDN(a)
3,555 10/01/24 4.20 3,555,000
SMYTHE COUNTY IDA
(Summit Products Project)
AMT VRDN(a)
800 3/01/06 4.30 800,000
SPOTSYLVANIA COUNTY GO
(School Bonds) Series '97 FGIC
620 1/15/98 3.75 622,152
UNIVERSITY OF VIRGINIA
HOSPITAL REVENUE
Series D Pre-Refunded
1,000 6/01/98 3.96 1,047,707
VIRGINIA BEACH DEVELOPMENT AUTHORITY
(Kinder-Care Learning Centers)
Series D VRDN(a)
866 10/01/00 4.35 866,000
VIRGINIA BEACH MFHR
(Dam Neck Square Apts.)
Series '97 VRDN(a)
1,000 2/01/17 4.20 1,000,000
VIRGINIA HDA
(AHC Service Corp.- Lee Gardens)
Series '87A VRDN(a)
5,500 9/01/17 4.30 5,500,000
VIRGINIA PUBLIC BUILDING
AUTHORITY BOND
Series '94A
2,295 8/01/97 3.60 2,298,853
VIRGINIA PUBLIC SCHOOL AUTHORITY
Series '92A
2,500 1/01/98 3.65 2,528,829
VIRGINIA TRANSPORTATION REVENUE
(Rte. 28 Project) Pre-Refunded
1,000 3/01/98 4.00 1,043,426
VIRGINIA TRANSPORTATION REVENUE
(Rte. 28 Project) Pre-Refunded
1,415 3/01/98 4.00 1,477,366
------------
71,590,495
2
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
PUERTO RICO-3.5%
PUERTO RICO GO TRAN
Series '97A
$ 2,800 7/30/97 3.56% $ 2,800,950
Total Municipal Bonds
(amortized cost $74,391,445) 74,391,445
COMMERCIAL PAPER-6.1%
VIRGINIA-3.2%
HAMPTON HOSPITAL REVENUE
(Sentara Health System) Series '97B
2,500 7/24/97 4.00 2,500,000
PUERTO RICO-2.9%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
2,300 7/14/97 3.85 2,300,000
Total Commercial Paper
(amortized cost $4,800,000) 4,800,000
TOTAL INVESTMENTS-100.5%
(amortized cost $79,191,445) 79,191,445
Other assets less liabilities-(0.5%) (416,351)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
78,783,119 shares outstanding) $78,775,094
# 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
FGIC Financial guaranty insurance company
GO General obligation
HDA Housing development authority
HFA Housing finance agency/authority
IDA Industrial development authority
IDR Industrial development revenue
MBIA Municipal bond investors assurance
MFHR Multi-family housing revenue
PCR Pollution control revenue
TRAN Tax & revenue anticipation note
See notes to financial statements.
3
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1997 ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $3,084,776
EXPENSES
Advisory fee (Note B) $ 430,661
Distribution assistance and administrative
service (Note C) 383,737
Custodian fees 72,958
Transfer agency (Note B) 37,947
Audit and legal fees 21,903
Printing 18,223
Registration fees 10,782
Trustees' fees 2,908
Amortization of organization expense 1,701
Miscellaneous 8,036
Total expenses 988,856
Less: expense reimbursement and fee waiver (299,799)
Net expenses 689,057
Net investment income 2,395,719
UNREALIZED LOSS ON INVESTMENTS
Net change in unrealized appreciation of investments (745)
NET INCREASE IN NET ASSETS FROM OPERATIONS $2,394,974
See notes to financial statements.
4
STATEMENT OF CHANGES
IN NET ASSETS ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30,1997 JUNE 30,1996
------------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 2,395,719 $ 2,432,185
Net realized loss on investment transactions -0- (128)
Net change in unrealized appreciation of
investments (745) 745
Net increase in net assets from operations 2,394,974 2,432,802
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (2,395,719) (2,432,185)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (Note E) (10,781,003) 22,635,119
Total increase (decrease) (10,781,748) 22,635,736
NET ASSETS
Beginning of year 89,556,842 66,921,106
End of year $ 78,775,094 $89,556,842
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 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 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 (the
"Portfolio"), Alliance Municipal Trust-Florida Portfolio and Alliance Municipal
Trust-Massachusetts Portfolio. Each series is considered to be a separate
entity for financial reporting and tax purposes. As a matter of fundamental
policy, the 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, 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. The Adviser also voluntarily agreed to reimburse the Portfolio for
all expenses for the year ended June 30, 1997 for expenses exceeding .80 of 1%
of its average daily net assets. For the year ended June 30, 1997, the
reimbursement amounted to $213,667. 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 $17,735 for the year ended June 30, 1997.
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 year
ended June 30, 1997, the distribution fee amounted to $215,330 of which $86,132
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 year ended June 30, 1997, such payments
by the Portfolio amounted to $168,407 of which $91,000 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1997, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1997 the
Portfolio had a capital loss carryforward of $8,025, of which $7,897 expires in
2004 and $128 expires in the year 2005.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At June 30,
1997, capital paid-in aggregated $78,783,119. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1997 1996
------------- -------------
Shares sold 159,430,948 251,119,609
Shares issued on reinvestments of dividends 2,395,719 2,432,185
Shares redeemed (172,607,670) (230,916,675)
Net increase (decrease) (10,781,003) 22,635,119
7
FINANCIAL HIGHLIGHTS ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
OCTOBER 25,
YEAR ENDED JUNE 30, 1994(A)
-------------------- THROUGH
1997 1996 JUNE 30,1995
--------- --------- ------------
Net asset value, beginning of period $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .028 .029 .023
LESS: DIVIDENDS
Dividends from net investment income (.028) (.029) (.023)
Net asset value, end of period $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on
net asset value (c) 2.83% 2.97% 3.48%(d)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $78,775 $89,557 $66,921
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .80% .78% .44%(d)
Expenses, before waivers and reimbursements 1.15% 1.15% 1.30%(d)
Net investment income (b) 2.78% 2.91% 3.48%(d)
(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.
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, 1997 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, 1997, 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, 1997, 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 29, 1997
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
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
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
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.
AVAAR
