ALLIANCE MUNICIPAL TRUST -VIRGINIA PORTFOLIO
ALLIANCE CAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1997
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
MUNICIPAL BONDS-86.9%
VIRGINIA-84.9%
AMELIA COUNTY IDA
(Chambers Waste Systems, Inc)
AMT VRDN (a)
$ 4,990 7/01/07 4.35% $4,990,000
AMHERST IDA SOLID WASTE
(Nekoosa Packaging)
AMT VRDN (a)
2,750 7/01/11 4.60 2,750,000
ARLINGTON COUNTY
(Ballston Public Parking
Facility Project)
Series '84 VRDN (a)
3,700 8/01/17 3.65 3,700,000
BEDFORD IDA SOLID WASTE
(Nekoosa Packaging)
Series '96 AMT VRDN (a)
1,000 12/01/25 4.15 1,000,000
BEDFORD IDA SOLID WASTE
(Nekoosa Packaging)
Series '97 AMT VRDN (a)
1,000 12/01/25 4.15 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 4.30 1,000,000
BRISTOL IDA
(Bristol Health Care Center)
Series '86 VRDN (a)
1,205 6/01/10 4.50 1,205,000
CAMPBELL COUNTY IDA
(Hadson Power 12-Altavista Project)
Series '90A AMT VRDN (a)
4,000 4/01/15 5.30 4,000,000
CAMPBELL COUNTY PCR
(Georgia Pacific Power)
AMT VRDN (a)
3,000 12/01/19 4.60 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
(Philip Morris Co.) VRDN (a)
4,900 4/01/09 4.45 4,900,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(Fairfax Hospital Systems)
Series '88D VRDN (a)
400 10/01/25 3.70 400,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(INOVA Health Systems)
Series '85A VRDN (a)
1,000 10/01/16 3.95 1,000,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(INOVA Health Systems)
Series '88C VRDN (a)
1,050 10/01/25 3.70 1,050,000
FAIRFAX COUNTY IDA HOSPITAL REVENUE
(INOVA Hospital)
Series '89A VRDN (a)
500 1/15/22 3.70 500,000
FLUVANNA COUNTY IDA
(Edgecomb Metals Co.) VRDN (a)
2,100 12/01/09 4.15 2,100,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
FREDERICKSBURG IDA
(MWH Medicorp) Series '91A FGIC
$ 500 8/15/98 3.90% $ 506,010
HAMPTON ROADS JAIL AUTHORITY
Regional Jail Fac.
Series '96B VRDN (a)
2,300 7/01/16 3.70 2,300,000
HENRICO COUNTY IDA
(White Oak Semiconductor-A)
AMT VRDN (a)
6,000 10/01/27 3.80 6,000,000
HOPEWELL IDA
(Hadson Power 13-Hopewell Project)
Series '90A AMT VRDN (a)
600 4/01/15 5.30 600,000
KING GEORGE COUNTY IDA
(Birchwood Power Partners)
AMT VRDN (a)
2,700 11/01/25 5.10 2,700,000
KING GEORGE COUNTY IDA
(Birchwood Power Partners)
AMT VRDN (a)
2,000 4/01/26 5.10 2,000,000
KING GEORGE COUNTY IDA
(Garnet of VA, Inc.)
Series '96 AMT VRDN (a)
1,800 9/01/21 4.15 1,800,000
LOUDOWN COUNTY IDA
(Kinder-Care Learning Centers)
Series A VRDN (a)
394 6/01/02 3.90 394,000
LOUISA COUNTY IDA
Pooled Financing
Series '95 VRDN (a)
500 1/01/20 4.20 500,000
METRO DC AIRPORTS AUTHORITY
(Virginia General Airport Revenue)
Series A AMT FGIC
1,125 10/01/98 3.90 1,148,722
NEWPORT NEWS GO
Pre-Refunded
500 10/15/98 3.75 524,733
NEWPORT NEWS GO
Pre-Refunded
525 10/15/98 3.85 544,332
NORFOLK GO
Pre-Refunded
450 10/01/98 3.80 471,962
PENINSULA PORTS AUTHORITY IDR
(Ziegler Coal Project)
Series '97 AMT VRDN (a)
1,500 5/01/22 5.10 1,500,000
RICHMOND GO
(Public Utility Revenue)
Series A VRDN (a)
3,500 6/30/01 4.25 3,500,000
RICHMOND HFA MFHR
(Old Manchester Project)
Series '95A VRDN (a)
2,000 12/01/25 4.00 2,000,000
RICHMOND REDEVELOPMENT MFHR
(Tobacco Row) Series '89B-2
AMT VRDN (a)
1,000 10/01/24 4.05 1,000,000
RICHMOND REDEVELOPMENT MFHR
(Tobacco Row) Series '89B-8
AMT VRDN (a)
3,555 10/01/24 4.05 3,555,000
2
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
SMYTHE COUNTY IDA
(Summit Products Project)
AMT VRDN (a)
$ 800 3/01/06 4.30% $ 800,000
SOUTHAMPTON IDA
(Hadson Power II-Southampton
Project)
Series '90A AMT VRDN (a)
1,500 4/01/15 5.30 1,500,000
SPOTSYLVANIA COUNTY GO
(School Bonds) Series '97 FGIC
620 1/15/98 3.75 620,152
UNIVERSITY OF VIRGINIA HOSPITAL
REVENUE
Series D Pre-Refunded
1,000 6/01/98 3.96 1,032,489
VIRGINIA BEACH
DEVELOPMENT AUTHORITY
(Kinder-Care Learning Centers)
Series D VRDN (a)
866 10/01/00 3.90 866,000
VIRGINIA BEACH MFHR
(Dam Neck Square Apts.)
Series '97 VRDN (a)
1,000 2/01/17 4.20 1,000,000
VIRGINIA EDUCATION LOAN AUTHORITY
Series B Pre-Refunded
870 3/01/98 3.75 895,033
VIRGINIA GO
300 6/01/98 3.80 302,662
VIRGINIA HDA
(AHC Service Corp. - Lee Gardens)
Series '87A VRDN (a)
5,300 9/01/17 4.00 5,300,000
VIRGINIA PUBLIC SCHOOL AUTHORITY
Series '92A
2,500 1/01/98 3.65 2,500,000
VIRGINIA TRANSPORTATION REVENUE
(Rte. 28 Project) Pre-Refunded
2,415 3/01/98 7.70 2,477,259
------------
87,303,354
PUERTO RICO-2.0%
PUERTO RICO HIGHWAY AUTHORITY
Series P Pre-Refunded
2,000 7/01/98 3.81 2,097,598
Total Municipal Bonds
(amortized cost $89,400,952) 89,400,952
COMMERCIAL PAPER-11.1%
VIRGINIA-6.2%
HAMPTON HOSPITAL REVENUE
(Sentara Health System)
Series '97B
1,000 2/26/98 3.75 1,000,000
HAMPTON HOSPITAL REVENUE
(Sentara Health System)
Series '97B
1,100 2/26/98 3.80 1,100,000
HAMPTON HOSPITAL REVENUE
(Sentara Health System)
Series '97B
2,500 4/09/98 3.80 2,500,000
PENINSULA PORT AUTHORITY
(Dominion Terminal Project)
Series '87A
1,800 1/14/98 3.80 1,800,000
------------
6,400,000
3
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
PUERTO RICO-4.9%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
$ 3,500 2/24/98 3.70% $ 3,500,000
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
1,500 2/12/98 3.75 1,500,000
-------------
5,000,000
Total Commercial Paper
(amortized cost $11,400,000) 11,400,000
TOTAL INVESTMENTS-98.0%
(amortized cost $100,800,952) $100,800,952
Other assets less liabilities-2.0% 2,086,390
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
102,895,367 shares outstanding) $102,887,342
# 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
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
See notes to financial statements.
4
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $1,892,576
EXPENSES
Advisory fee (Note B) $ 244,808
Distribution assistance and administrative
service (Note C) 198,980
Custodian fees 33,319
Transfer agency (Note B) 19,479
Audit and legal fees 8,916
Printing 7,259
Registration fees 2,183
Trustees' fees 1,380
Amortization of organization expense 858
Miscellaneous 3,437
Total expenses 520,619
Less: expense reimbursement and fee waiver (101,589)
Net expenses 419,030
NET INCREASE IN NET ASSETS FROM OPERATIONS $1,473,546
See notes to financial statements.
5
STATEMENT OF CHANGES IN NET ASSETS
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1997 YEAR ENDED
(UNAUDITED) JUNE 30, 1997
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,473,546 $ 2,395,719
Net change in unrealized appreciation
of investments -0- (745)
Net increase in net assets from operations 1,473,546 2,394,974
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,473,546) (2,395,719)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (Note E) 24,112,248 (10,781,003)
Total increase (decrease) 24,112,248 (10,781,748)
NET ASSETS
Beginning of period 78,775,094 89,556,842
End of period $102,887,342 $ 78,775,094
See notes to financial statements.
6
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (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 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. 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 financial statements have been prepared in conformity with
generally accepted accounting principles which require management to make
certain estimates and assumptions that affect the reported amounts of assets
and liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
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, 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
from July 1, 1997 to October 15, 1997 for expenses exceeding .80% of 1% of its
average daily net assets, from October 16, 1997 to October 26, 1997 for
expenses exceeding .85 of 1% of its average daily net assets, from October 27,
1997 to November 19, 1997 for expenses exceeding .90 of 1% of its average daily
net assets and from November 20, 1997 to December 31, 1997 for expenses
exceeding .95 of 1% of its average daily net assets. For the six months ended
December 31, 1997, the reimbursement amounted to $58,867.
7
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
The Portfolio compensates Alliance Fund Services, Inc., a wholly-owned
subsidiary of the Adviser, under a Transfer Agency Agreement for providing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amounted to $9,000 for the six months ended December 31, 1997.
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, 1997, the distribution fee amounted to $122,404, of
which $42,722 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, 1997, such payments by the Portfolio amounted to $76,576, of which
$45,500 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 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 the year 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 December 31,
1997, capital paid-in aggregated $102,895,367. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1997 JUNE 30,
(UNAUDITED) 1997
---------------- --------------
Shares sold 105,046,619 159,430,948
Shares issued on reinvestments of dividends 1,473,546 2,395,719
Shares redeemed (82,407,917) (172,607,670)
Net increase (decrease) 24,112,248 (10,781,003)
8
FINANCIAL HIGHLIGHTS
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
SIX MONTHS END EDYEAR ENDED JUNE 30, OCT. 25,1994(A)
DEC. 31,1997 ----------------------- THROUGH
(UNAUDITED) 1997 1996 JUNE 30, 1995
------------- ---------- ----------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .015 .028 .029 .023
LESS: DIVIDENDS
Dividends from net investment income (.015) (.028) (.029) (.023)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (c) 3.02%(d) 2.83% 2.97% 3.48%(d)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $102,887 $78,775 $89,557 $66,921
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .86%(d) .80% .78% .44%(d)
Expenses, before waivers and
reimbursements 1.06%(d) 1.15% 1.15% 1.30%(d)
Net investment income (b) 3.01%(d) 2.78% 2.91% 3.48%(d)
</TABLE>
(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.
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
