ALLIANCE MUNICIPAL TRUST -CONNECTICUT PORTFOLIO
ALLIANCE CAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1997
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-92.1%
CONNECTICUT-73.6%
BERLIN COUNTY
FSA
$ 500 6/15/98 3.65% $ 504,619
BRANFORD GO
Series '97
1,125 5/15/98 3.65 1,135,552
CHESHIRE GO
Series '97
500 8/01/98 3.83 507,249
CONNECTICUT DEVELOPMENT AUTHORITY
(Exeter Energy Project)
Series '89B AMT VRDN (a)
3,700 12/01/19 3.75 3,700,000
CONNECTICUT DEVELOPMENT AUTHORITY
(Independent Living)
Series '90 VRDN (a)
6,700 7/01/15 3.40 6,700,000
CONNECTICUT DEVELOPMENT AUTHORITY
(Rand Whitney Project)
Series '93 AMT VRDN (a)
4,000 8/01/23 3.50 4,000,000
CONNECTICUT DEVELOPMENT
AUTHORITY IDR
(Zotos International Project)
Series '84 VRDN (a)
2,325 12/01/04 3.90 2,325,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Central Vermont Public Service)
Series '85 VRDN (a)
1,000 12/01/15 3.55 1,000,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Connecticut Light and Power Co.)
Series '93A VRDN (a)
2,800 9/01/28 3.65 2,800,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Connecticut Light and Power Co.)
Series '93B AMT VRDN (a)
3,300 9/01/28 3.70 3,300,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Connecticut Light and Power Co.)
Series '96A AMBAC AMT VRDN (a)
4,600 5/01/31 4.05 4,600,000
CONNECTICUT DEVELOPMENT
AUTHORITY PCR
(Western Mass. Electric Co.)
Series '93A VRDN (a)
5,100 9/01/28 3.50 5,100,000
CONNECTICUT GO
(Economic Recovery Notes)
1,000 6/15/98 3.70 1,005,711
CONNECTICUT GO
Series '94C
900 8/15/98 3.77 908,716
CONNECTICUT GO
Series A
460 5/15/98 3.80 460,328
CONNECTICUT GO
Series B
400 3/15/98 4.00 400,230
200 5/01/98 4.05 200,732
CONNECTICUT HEFA
(Bradley Health Care)
Series B VRDN (a)
2,000 7/01/29 3.85 2,000,000
CONNECTICUT HEFA
(Jerome Home Project)
Series C VRDN (a)
3,780 7/01/29 3.85 3,780,000
CONNECTICUT HEFA
(Pomfret School Issue)
Series '95A VRDN (a)
1,000 7/01/24 3.50 1,000,000
CONNECTICUT HEFA
(Yale University)
Series '97T VRDN (a)
6,000 7/01/29 4.00 6,000,000
CONNECTICUT SPECIAL ASSESSMENT
UNEMPLOYMENT COMPENSATION
Series '93C FGIC PPB (a)
7,000 11/15/01 3.90 7,000,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
CONNECTICUT SPECIAL TAX OBLIGATION
(Transportation Infrastructure)
Series '90-1 VRDN (a)
$ 5,100 12/01/10 3.65% $ 5,100,000
DANBURY GO
510 8/01/98 3.82 515,554
EAST HAVEN GO BAN
Series '97
1,500 9/01/98 3.85 1,501,436
FAIRFIELD GO
850 6/05/98 3.70 851,029
FAIRFIELD GO BAN
Series '97
1,947 7/01/98 3.60 1,950,699
HAMDEN GO BAN
Series '97
2,000 8/14/98 3.80 2,002,374
LEDYARD GO BAN
Series '97
4,085 8/13/98 3.80 4,089,827
MANCHESTER GO BAN
Temporary Notes Lot B
1,550 5/27/98 3.66 1,552,033
MONROE COUNTY
Series '97 FGIC
700 4/15/98 3.75 705,916
NEW BRITAIN COUNTY
AMBAC
985 4/15/98 3.70 992,303
NEW HAVEN GO
Series '97B FGIC
1,575 9/01/98 3.64 1,581,170
NORWICH GO BAN
Series '97
1,210 11/10/98 3.70 1,212,840
SHELTON GO BAN
Series '97
3,465 12/08/98 3.64 3,478,039
STAMFORD HFA MFHR
(Morgan Street Project)
Series '94 AMT VRDN (a)
1,600 8/01/24 3.70 1,600,000
------------
85,561,357
ALABAMA-1.7%
PHOENIX IDR
(Mead Coated Board Project)
Series '93A VRDN (a)
2,000 6/01/28 5.10 2,000,000
ALASKA-0.9%
ALASKA IDR
(Healy Clean Coal Project)
Series '96A AMT VRDN (a)
1,000 4/01/23 3.75 1,000,000
KANSAS-2.0%
BUTLER COUNTY SOLID WASTE
(Texaco Disposal Facility Project)
AMT VRDN (a)
2,300 8/01/24 5.15 2,300,000
LOUISIANA-1.7%
CALCASIEU PARISH IDR
(Citgo Petroleum Corp.)
Series '96 AMT VRDN (a)
2,000 7/01/26 5.15 2,000,000
MASSACHUSETTS-0.7%
MASSACHUSETTS IDR
(Techprint Issue)
Series '97 AMT VRDN (a)
800 6/01/17 4.00 800,000
PENNSYLVANIA-1.7%
ALLEGHENY COUNTY IDR
(UTD Jewish Federation)
Series '96A VRDN (a)
2,000 10/01/26 4.25 2,000,000
SOUTH CAROLINA-2.6%
BERKELEY COUNTY IDR
(Nucor Corp. Project)
Series '97 AMT VRDN (a)
3,000 4/01/30 3.80 3,000,000
TEXAS-5.9%
BRAZOS RIVER HARBOR DISTRICT
(Dow Chemical Project)
Series '97 AMT VRDN (a)
2,000 5/01/27 5.15 2,000,000
BRAZOS RIVER IDR
(Dow Chemical Project)
Series '93 AMT VRDN (a)
2,900 5/01/23 5.15 2,900,000
2
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
BRAZOS RIVER IDR
(Dow Chemical Project)
Series '96 AMT VRDN (a)
$ 1,000 4/01/26 5.15% $ 1,000,000
GULF COAST SOLID WASTE IDA
(Citgo Petroleum Corp.)
Series '94 AMT VRDN (a)
1,000 4/01/26 5.15 1,000,000
-------------
6,900,000
VERMONT-1.3%
VERMONT HEFA
(Capital Asset Finance Program)
Series '97-1 VRDN (a)
1,500 6/01/22 4.25 1,500,000
Total Municipal Bonds
(amortized cost $107,061,357) 107,061,357
COMMERCIAL PAPER-5.7%
CONNECTICUT-1.5%
CONNECTICUT HEFA
(Yale University) Series S
1,700 1/21/98 3.60 1,700,000
PUERTO RICO-4.2%
PUERTO RICO GOVERNMENT
DEVELOPMENT BANK
Series '96
$ 2,277 2/24/98 3.70% $ 2,277,000
2,650 2/12/98 3.75 2,650,000
-------------
4,927,000
Total Commercial Paper
(amortized cost $6,627,000) 6,627,000
TOTAL INVESTMENTS-97.8%
(amortized cost $113,688,357) 113,688,357
Other assets less liabilities-2.2% 2,519,253
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
116,237,202 shares outstanding) $116,207,610
# 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
FSA Financial Security Assurance
GO General Obligation
HEFA Health & Educational Facility 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.
3
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $2,055,341
EXPENSES
Advisory fee (Note B) $ 278,570
Distribution assistance and administrative
service (Note C) 211,261
Transfer agency (Note B) 43,000
Custodian fees 35,394
Audit and legal fees 6,426
Printing 5,432
Registration expense 4,708
Trustees' fees 1,472
Miscellaneous 3,988
Total expenses 590,251
Less: expense reimbursement and fee waiver (115,608)
Net expenses 474,643
Net investment income 1,580,698
UNREALIZED LOSS ON INVESTMENTS
Net change in unrealized appreciation of investments (932)
NET INCREASE IN NET ASSETS FROM OPERATIONS $1,579,766
See notes to financial statements.
4
STATEMENT OF CHANGES IN NET ASSETS
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1997 YEAR ENDED
(UNAUDITED) JUNE 30, 1997
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,580,698 $ 2,779,714
Net change in unrealized appreciation
of investments (932) (267)
Net increase in net assets from operations 1,579,766 2,779,447
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,580,698) (2,779,714)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 13,596,570 6,799,768
Total increase 13,595,638 6,799,501
NET ASSETS
Beginning of period 102,611,972 95,812,471
End of period $116,207,610 $102,611,972
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - CONNECTICUT 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 (the "Portfolio"),
Alliance Municipal Trust-New Jersey Portfolio, Alliance Muncipal 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. 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.
3. 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.
4. 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 26, 1997 for expenses exceeding .80 of 1% of its
average daily net assets and from October 27, 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 $72,585.
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 $23,732 for the six months ended December 31,
1997.
6
ALLIANCE MUNICIPAL TRUST - CONNECTICUT 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 six
months ended December 31, 1997, the distribution fee amounted to $139,285, of
which $43,023 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 $71,976, 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 $29,592 of which $10,717
expires in 2000, $16,849 expires in 2002 and $2,026 expires in the year 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1997, capital paid-in aggregated $116,237,202. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1997 JUNE 30,
(UNAUDITED) 1997
---------------- --------------
Shares sold 242,623,541 454,599,210
Shares issued on reinvestments of dividends 1,580,698 2,779,714
Shares redeemed (230,607,669) (450,579,156)
Net increase 13,596,570 6,799,768
7
FINANCIAL HIGHLIGHTS
ALLIANCE MUNICIPAL TRUST - CONNECTICUT PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
1997 ---------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .014 .027 .028 .028 .017 .020
LESS: DIVIDENDS
Dividends from net investment income (.014) (.027) (.028) (.028) (.017) (.020)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (b) 2.86%(c) 2.76% 2.88% 2.78% 1.71% 2.00%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $116,208 $102,612 $95,812 $75,991 $57,314 $56,224
Ratio to net assets of:
Expenses, net of waivers and
reimbursements .85%(c) .80% .80% .80% .77% .70%
Expenses, before waivers and
reimbursements 1.06%(c) 1.10% 1.15% 1.21% 1.21% 1.16%
Net investment income (a) 2.85%(c) 2.72% 2.84% 2.77% 1.69% 1.97%
</TABLE>
(a) Net of expenses reimbursed or waived by the Adviser.
(b) 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.
(c) Annualized.
8
ALLIANCE MUNICIPAL TRUST - CONNECTICUT 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 8 #
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.
ACTSR
