ALLIANCE MUNICIPAL TRUST -MASSACHUSETTS PORTFOLIO
ALLIANCE CAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1997
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-93.1%
MASSACHUSETTS-88.3%
BARNSTABLE BAN
$ 495 6/15/98 3.83% $ 499,714
BRIDGEWATER BAN
FGIC
300 6/01/98 3.90 304,339
BRIDGEWATER GO
(Golf Course Revenue)
Series '97 AMBAC
140 7/15/98 3.93 142,052
CHATHAM GO
MBIA
500 7/01/98 3.83 507,046
FAIRHAVEN BAN
MBIA
645 6/15/98 3.88 653,159
GARDNER BAN
FGIC
1,000 11/01/98 3.87 1,025,322
HOLDEN BAN
1,000 10/01/98 3.92 1,002,371
LEXINGTON BAN
Series '97
210 4/15/98 3.90 210,040
LITTLETON BAN
MBIA
270 9/15/98 3.88 275,762
MASSACHUSETTS EDUCATIONAL
FINANCE AUTHORITY
(Student Loan Revenue)
Series '97E AMT VRDN (a)
700 7/01/15 3.75 700,000
MASSACHUSETTS HEALTH &
EDUCATION FACILITY
(Capital Asset Program) VRDN (a)
1,200 1/01/01 3.45 1,200,000
MASSACHUSETTS HEALTH &
EDUCATION FACILITY
(Harvard University)
Series '85Q VRDN (a)
200 9/01/40 3.80 200,000
MASSACHUSETTS HEALTH &
EDUCATION FACILITY
(Massachusetts Institute
of Technology)
Series '91-G VRDN (a)
900 7/01/21 3.45 900,000
MASSACHUSETTS HFA
(Single Family Housing)
Series '55 AMT PPB (a)
1,000 12/01/27 3.85 1,000,000
MASSACHUSETTS IDA
(Carand Realty Trust)
AMT VRDN (a)
1,000 5/01/17 3.95 1,000,000
MASSACHUSETTS IDA
(Gordon College Project)
Series '97 VRDN (a)
500 12/01/27 3.65 500,000
MASSACHUSETTS IDA
(Groton School Project)
Series '89 VRDN (a)
700 6/01/19 3.55 700,000
MASSACHUSETTS IDA
(Mount Ida College Project)
Series '97 AMT VRDN (a)
1,000 1/01/28 3.80 1,000,000
MASSACHUSETTS IDA
(Newbury College Project)
Series '96 VRDN (a)
700 6/01/21 3.95 700,000
MASSACHUSETTS IDA
(Prevention of Cruelty to Animals)
Series '97 VRDN (a)
300 8/01/27 3.65 300,000
MASSACHUSETTS IDA
(Showa Womens Institute, Inc.)
Series '94 VRDN (a)
900 3/15/04 4.95 900,000
MASSACHUSETTS IDA
Res. Rec.: (Ogden Haverhill Project)
Series '92 VRDN (a)
600 12/01/06 3.50 600,000
MASSACHUSETTS IDA PCR
(Holyoke Water & Power Co.)
Series '90 AMT VRDN (a)
600 12/01/20 3.55 600,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
MASSACHUSETTS IDA PCR
(Holyoke Water & Power Co.)
Series '90A AMT VRDN (a)
$ 500 5/01/22 3.50% $ 500,000
MASSACHUSETTS IDA PCR
(New England Power Co.)
Series '92 VRDN (a)
200 10/01/22 4.85 200,000
MASSACHUSETTS IDR
(Techprint Issue)
Series '97 AMT VRDN (a)
820 6/01/17 4.00 820,000
MEDWAY GO
FGIC
635 6/15/98 3.90 643,678
NEWTON BAN
320 4/15/98 3.85 320,751
PEABODY BAN
Series '97
300 4/14/98 3.85 300,314
PEPPERELL BAN
MBIA
230 5/15/98 3.90 232,131
SOUTH HADLEY GO
Series '97 MBIA
200 7/15/98 3.93 202,670
-------------
18,139,349
PUERTO RICO-4.8%
PUERTO RICO HIGHWAY
AND TRANSPORTATION AUTHORITY
Series X VRDN (a)
685 7/01/99 3.35 685,000
PUERTO RICO INDUSTRIAL, MEDICAL,
HIGHER EDUCATION & ENVIRONMENT
(Ana G. Mendez Educ.
Foundation Project) VRDN (a)
300 12/01/15 4.15 300,000
-------------
985,000
Total Municipal Bonds
(amortized cost $19,124,349) 19,124,349
COMMERCIAL PAPER-7.3%
PUERTO RICO-7.3%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
1,500 2/12/98
(amortized cost $1,500,000) 3.75 1,500,000
TOTAL INVESTMENTS-100.4%
(amortized cost $20,624,349) 20,624,349
Other assets less liabilities-(0.4%) (87,595)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
20,536,754 shares outstanding) $20,536,754
# 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
FGIC Financial Guaranty Insurance Company
GO General Obligation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
PCR Pollution Control Revenue
See notes to financial statements.
2
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1997
(UNAUDITED)
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $425,716
EXPENSES
Advisory fee (Note B) $ 58,312
Distribution assistance and administrative
service (Note C) 58,973
Custodian fees 19,034
Transfer agency (Note B) 10,367
Printing 7,520
Audit and legal fees 6,080
Trustees' fees 1,227
Amortization of organization expense 910
Registration fees 612
Miscellaneous 2,931
Total expenses 165,966
Less: expense reimbursement and fee waiver (86,346)
Net expenses 79,620
NET INCREASE IN NET ASSETS FROM OPERATIONS $346,096
STATEMENT OF CHANGES IN NET ASSETS
_______________________________________________________________________________
APRIL 17,
SIX MONTHS ENDED 1997(A)
DEC. 31, 1997 TO
(UNAUDITED) JUNE 30, 1997
--------------- -------------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income $ 346,096 $ 60,735
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (346,096) (60,735)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 5,490,655 15,046,099
Total increase 5,490,655 15,046,099
NET ASSETS
Beginning of period 15,046,099 -0-
End of period $20,536,754 $15,046,099
(a) Commencement of operations.
See notes to financial statements.
3
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (UNAUDITED)
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 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 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
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 August 31, 1997 for expenses exceeding .50 of 1% of its
average daily net assets, from September 1, 1997 to September 30, 1997 for
expenses exceeding .60 of 1% of its average daily net assets, from October 1,
1997 to October 26, 1997 for expenses exceeding .70 of 1% of its average daily
net assets, from October 27, 1997 to November 19, 1997 for expenses exceeding
.80 of 1% of its average daily net assets and from November 20, 1997 to
December 31, 1997 for expenses exceeding .90 of 1% of its average daily net
assets. For the six months ended December 31, 1997, the reimbursement amounted
to $59,744.
4
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS 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 of which $4,500 was waived 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 $29,156, of
which $26,602 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 $29,817, of which
no payment was made to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1997, the cost of securities for federal income tax purposes
was the same as the cost for financial reporting purposes.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1997, capital paid-in aggregated $20,536,754. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED APRIL 17,1997(A)
DEC. 31, 1997 THROUGH
(UNAUDITED) JUNE 30, 1997
---------------- ----------------
Shares sold 59,915,468 25,831,508
Shares issued on reinvestments of dividends 346,096 60,735
Shares redeemed (54,770,909) (10,846,144)
Net increase 5,490,655 15,046,099
(a) Commencement of operations.
5
FINANCIAL HIGHLIGHTS
ALLIANCE MUNICIPAL TRUST - MASSACHUSETTS PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
APRIL 17,
SIX MONTHS ENDED 1997(A)
DEC. 31, 1997 THROUGH
(UNAUDITED) JUNE 30, 1997
------------- -------------
Net asset value, beginning of period $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .015 .007
LESS: DIVIDENDS
Dividends from net investment income (.015) (.007)
Net asset value, end of period $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (c)(d) 2.99% 3.53%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $20,537 $15,046
Ratio to average net assets of:
Expenses, net of waivers and reimbursements (d) .68% .50%
Expenses, before waivers and reimbursements (d) 1.42% 2.99%
Net investment income (b)(d) 2.97% 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.
6
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 # 1 5 #
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.
AMASR
