ALLIANCE MUNICIPAL TRUST -NEW JERSEY PORTFOLIO
ALLIANCE CAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1997
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-92.8%
NEW JERSEY-83.3%
BERGEN COUNTY UTILITY AUTHORITY
FGIC Pre-Refunded
$ 1,000 3/15/98 3.90% $ 1,007,494
CARLSTADT COUNTY
Tax Appeal Refunding Notes
500 3/01/98 3.70 500,352
CLOSTER GO BAN
1,710 8/21/98 3.80 1,713,402
EAST WINDSOR TOWNSHIP BAN
5,000 4/17/98 3.90 5,004,878
EGG HARBOR
FSA
500 9/15/98 3.88 502,281
ESSEX COUNTY GO
Series '97A FGIC
815 7/15/98 3.70 818,350
ESSEX COUNTY IMPROVEMENT AUTHORITY
(County Asset Sale Project)
Series '95 AMBAC VRDN (a)
7,000 12/01/25 3.50 7,000,000
ESSEX COUNTY IMPROVEMENT AUTHORITY
SFMR (Pooled Govt Loan Prog.)
Series '86 VRDN (a)
2,000 7/01/26 3.45 2,000,000
FORT LEE BAN
Series '97
2,320 5/22/98 3.90 2,322,581
GLOUCESTER COUNTY PCR
(Mobil Oil Co.) VRDN (a)
2,000 12/01/03 3.35 2,000,000
JERSEY CITY BAN
6,000 9/18/98 3.87 6,020,756
MAHWAH TOWNSHIP SCHOOL DISTRICT
FSA
415 7/15/98 3.90 417,582
MERCER COUNTY IMPROVEMENT AUTHORITY
(Aces Pooled Govt Loan Prog.)
VRDN (a)
2,700 11/01/98 3.45 2,700,000
MIDDLESEX BAN
1,200 6/24/98 3.90 1,201,922
MONMOUTH COUNTY
500 7/01/98 3.95 502,526
MONMOUTH COUNTY
IMPROVEMENT AUTHORITY
(Pooled Govt Loan Prog.) VRDN (a)
5,050 8/01/16 3.50 5,050,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Bergen Community Blood Center)
Series '97 VRDN (a)
2,170 12/01/12 4.10 2,170,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Epitaxx, Inc. Project)
Series '91 AMT VRDN (a)
5,000 8/01/16 4.40 5,000,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Hoffman-La Roche Inc.)
Series '93 AMT VRDN (a)
6,000 11/01/11 5.00 6,000,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Kinder-Care Learning Centers)
Series D VRDN (a)
390 10/01/00 3.90 390,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Merck & Co.)
Series '82 VRDN (a)
1,300 10/01/22 3.90 1,300,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Newark Recycling)
Series '97 PPB (a)
$ 4,500 12/01/22 3.95% $ 4,500,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Russ Berrie & Co., Inc.)
Series '83 VRDN (a)
200 12/01/13 3.70 200,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(Thermal Energy Ltd.)
AMT VRDN (a)
4,500 12/01/31 3.55 4,500,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
(United Water Project)
Series '96C
AMBAC AMT VRDN (a)
5,300 11/01/25 4.80 5,300,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY
Composite Issue
Series '92U AMT VRDN (a)
1,530 12/01/02 4.15 1,530,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY IDR
(Economic Growth)
Series B AMT VRDN (a)
1,255 8/01/04 4.10 1,255,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY IDR
(Fujinon Inc. Project)
Series '86 VRDN (a)
2,000 3/01/01 4.00 2,000,000
NEW JERSEY ECONOMIC
DEVELOPMENT AUTHORITY PCR
(Hoffman-LA Roche Inc.)
VRDN (a)
2,800 2/01/05 4.15 2,800,000
NEW JERSEY HEALTH
CARE FACILITIES
(AHS Hospital Corp.)
Series A AMBAC
1,940 7/01/98 4.00 1,941,822
NEW JERSEY STATE TRANSPORTATION
TRUST FUND AUTHORITY
(Transportation System)
Series A ETM
1,000 6/15/98 4.30 1,001,692
NEW JERSEY STATE
TURNPIKE AUTHORITY
(Turnpike Revenue)
Series '91D FGIC VRDN (a)
7,400 1/01/18 3.45 7,400,000
NEWARK HEALTHCARE
FACILITY REVENUE
(Urban Renewal Corp. Care Fac.)
Series '95A VRDN (a)
2,965 6/01/30 4.85 2,965,000
OLD BRIDGE GO BAN
Series '97
1,484 7/01/98 3.87 1,486,677
PASSAIC COUNTY BAN
Series '97
5,000 4/03/98 3.85 5,007,877
PLEASANTVILLE BOARD OF
EDUCATION BAN
6,000 8/28/98 3.89 6,013,593
PORT AUTHORITY OF NEW
YORK AND NEW JERSEY
(Versatile Structure)
Series '96-5 VRDN (a)
2,300 8/01/24 4.90 2,300,000
PORT AUTHORITY OF NEW
YORK AND NEW JERSEY
(Versatile Structure)
Series '97-1R VRDN (a)
1,000 8/01/28 5.10 1,000,000
2
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
PORT AUTHORITY OF NEW
YORK AND NEW JERSEY
(Versatile Structure)
Series 3 VRDN (a)
$ 2,000 6/01/20 4.90% $ 2,000,000
ROSELAND
General Improvement FGIC
200 3/15/98 3.85 200,485
SALEM COUNTY PCR
(Dupont Corp.)
Series '82A VRDN (a)
2,400 3/01/12 3.80 2,400,000
WESTWOOD BAN
943 8/17/98 3.90 944,946
-------------
110,369,216
COLORADO-1.5%
DENVER HFA MFHR
(Seasons Apts. Project)
Series '90 VRDN (a)
2,000 10/01/06 3.70 2,000,000
LOUISIANA-0.6%
WEST BATON ROUGE PARISH IDR
(Dow Chemical Co. Project)
Series '95 AMT VRDN (a)
800 11/01/25 5.15 800,000
NEBRASKA-2.2%
STANTON COUNTY IDR
(Nucor Corp. Project)
Series '96 AMT VRDN (a)
2,900 11/01/26 3.80 2,900,000
PENNSYLVANIA-3.3%
PENNSYLVANIA ECONOMIC
DEVELOPMENT AUTHORITY
(National Gypsum Co. Project)
Series '97A AMT VRDN (a)
4,400 11/01/32 3.85 4,400,000
PUERTO RICO-1.9%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '85 MBIA VRDN (a)
1,300 12/01/15 3.35 1,300,000
PUERTO RICO HIGHWAY
AND TRANSPORTATION AUTHORITY
Series X VRDN(a)
300 7/01/99 3.35 300,000
PUERTO RICO INDUSTRIAL,
MEDICAL, HIGHER EDUCATION &
ENVIRONMENT
(Ana G. Mendez Educ.
Foundation Project) VRDN (a)
900 12/01/15 4.15 900,000
-------------
2,500,000
Total Municipal Bonds
(amortized cost $122,969,216) 122,969,216
COMMERCIAL PAPER-7.3%
NEW JERSEY-5.3%
NEW JERSEY TRAN
Series '98-A
2,000 2/25/98 3.65 2,000,000
2,000 2/26/98 3.70 2,000,000
3,000 1/26/98 3.75 3,000,000
7,000,000
3
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
PUERTO RICO-2.0%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
$ 2,650 2/12/98 3.75% $ 2,650,000
Total Commercial Paper
(amortized cost $9,650,000) 9,650,000
TOTAL INVESTMENTS-100.1%
(amortized cost $132,619,216) $132,619,216
Other assets less liabilities-(0.1%) (186,337)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
132,434,162 shares outstanding) $132,432,879
# 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:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
ETM Escrowed to Maturity
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance
GO General Obligation
HFA Housing Finance Agency/Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
4
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $2,577,193
EXPENSES
Advisory fee (Note B) $ 354,039
Distribution assistance and administrative
service (Note C) 232,305
Transfer agency (Note B) 93,964
Custodian fees 38,732
Audit and legal fees 8,219
Printing 7,410
Registration fees 3,744
Trustees' fees 1,594
Amortization of organization expense 1,021
Miscellaneous 3,134
Total expenses 744,163
Less: expense reimbursement and fee waiver (117,792)
Net expenses 626,370
NET INCREASE IN NET ASSETS FROM OPERATIONS $1,950,823
See notes to financial statements.
5
STATEMENT OF CHANGES IN NET ASSETS
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1997 YEAR ENDED
(UNAUDITED) JUNE 30, 1997
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,950,822 $ 3,170,235
Net change in unrealized appreciation
of investments -0- (3,305)
Net increase in net assets from operations 1,950,822 3,166,930
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,950,822) (3,170,235)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 8,853,625 25,484,266
Total increase 8,853,625 25,480,961
NET ASSETS
Beginning of period 123,579,254 98,098,293
End of period $132,432,879 $123,579,254
See notes to financial statements.
6
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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 (the "Portfolio"), Alliance Municipal Trust-Virginia
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 February 7, 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 November 19, 1997 for expenses exceeding .85 of 1% of its
average daily net assets. For the six months ended December 31, 1997, the
reimbursement amounted to $63,321.
7
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - NEW JERSEY 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 $55,088 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 $177,019 of
which $54,471 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 $55,286, of which
$45,500 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1997, the cost of securities 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 $1,283, of which $1,032 expires in
2003 $219, expires in the year 2004 and $32 expires in 2005.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1997, capital paid-in aggregated $132,434,162. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1997 JUNE 30,
(UNAUDITED) 1997
---------------- -------------
Shares sold 393,676,057 521,386,264
Shares issued on reinvestments of dividends 1,950,822 3,170,235
Shares redeemed (386,773,254) (499,072,233)
Net increase 8,853,625 25,484,266
8
FINANCIAL HIGHLIGHTS
ALLIANCE MUNICIPAL TRUST - NEW JERSEY PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
SIX MONTHS FEBRUARY 7,
-----------------------------------------------------------------
ENDED 1994(A)
DECEMBER 31, YEAR ENDED JUNE 30, THROUGH
1997 ------------------------------------- JUNE 30,
(UNAUDITED) 1997 1996 1995 1994
------------ ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .014 .027 .028 .029 .008
LESS: DIVIDENDS
Dividends from net investment income (.014) (.027) (.028) (.029) (.008)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on
net asset value (c) 2.78%(d) 2.72% 2.89% 2.93% 2.08%(d)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $132,433 $123,579 $98,098 $74,133 $36,909
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .88%(d) .85% .82% .74% .70%(d)
Expenses, before waivers and
reimbursements 1.05%(d) 1.12% 1.19% 1.29% 1.93%(d)
Net investment income (b) 2.76%(d) 2.68% 2.84% 2.98% 2.07%(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 - NEW JERSEY 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 # 9 2 #
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.
ANJSR
