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Alliance
Municipal
Trust
- New Jersey Portfolio
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AllianceCapital [LOGO](R)
Annual Report
June 30, 2000
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<PAGE>
LETTER TO SHAREHOLDERS Alliance Municipal Trust - New Jersey Portfolio
===============================================================================
August 2, 2000
Dear Shareholder:
We are pleased to provide you with an update of Alliance Municipal Trust - New
Jersey Portfolio for the annual reporting period ended June 30, 2000.
U.S. financial markets were anticipating some signs of a slowdown for the first
half of 2000 -- some sign that past Fed rate hikes were having an effect and
that little, if any, further tightening would be necessary. The U.S. economy,
however, has continued to grow. The U.S. Commerce Department recently reported
that the U.S. economy grew at an impressive, seasonally-adjusted annual rate of
+5.2% during the spring quarter. Inflation, as measured by the broad and
reliable gross domestic purchases and personal consumption price indices, held
stable at 2.5% on a year-earlier basis. The second-quarter growth number, well
above the 3.5% to 4.0%, consensus and actually faster than a downward-revised
quarter-one growth rate of +4.8%, created immediate anxiety. As a result,
interest rates headed higher and stock prices headed lower.
The U.S. economy's gross domestic product report does, however, give evidence
to some signs of cooling off. For example, a key measure of aggregate demand
(real final sales) slowed sharply to +4.2% from +6.7% in the first quarter.
Monthly evidence that consumers had taken a break from their long-running
shopping spree was confirmed. Household spending dipped to just +3.0% in the
second quarter versus +7.6% in the first quarter. Unwanted inventories added a
full percentage point to second-quarter growth. We also believe that a more
meaningful comparison can be made between growth during the second half of 1999
(+7.0%) and growth during the first half of this year (+5.0%).
In his late-July Congressional testimony, Fed Chairman Alan Greenspan laid out
an upbeat forecast for the U.S. economy and rendered a somewhat
self-congratulatory assessment of the role the Federal Reserve has played in
securing that future. To be sure, we welcome his endorsement of both the "New
Economy" paradigm and our own bullishness about accelerating productivity. The
subsequent report on employment costs, showing a quarter-to-quarter gain of
only 1.0% in the spring versus a 1.4% rise in the first quarter, and the
soon-to-be-released report on second-quarter productivity, should help to
validate the Chairman's optimism. Mr. Greenspan is repositioning the Fed to
play a more reactive role going forward. He understands that financial markets
should and must take the lead role in terms of steering the New Economy. As a
consequence, although we still believe the Fed will tighten further, we look
for that tightening to come late in the year and only after the bond market has
laid the groundwork.
As for U.S. financial markets, the road to higher prices will be a bit bumpier
than we expected. Inaction by the Fed toward the end of August could open the
window to the upside, but for now we see more volatility than opportunity. With
an election in front of us, the next several months could be a difficult time
for investors. Therefore investors may want to use periods of asset market
strength to establish more defensive positions.
We appreciate your investment in the portfolios of Alliance Municipal Trust -
New Jersey Portfolio and look forward to reporting further investment progress
in the coming period.
Sincerely,
/s/ Ronald M. Whitehill
Ronald M. Whitehill
President
1
<PAGE>
STATEMENT OF NET ASSETS
June 30, 2000 Alliance Municipal Trust - New Jersey Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-------------------------------------------------------------------------------
MUNICIPAL BONDS - 100.7%
ARKANSAS - 1.3%
Blytheville IDR
(Nucor Corp. Project)
Series 98
AMT
$ 3,600 6/01/28 (b)................................ 5.00% $ 3,600,000
------------
FLORIDA - 1.9%
Hillsborough County IDA
(Seaboard Tampa)
AMT
5,500 12/01/16 (b)................................ 4.95 5,500,000
------------
ILLINOIS - 0.8%
Rock Island
Metropolitan Airport
(Elliot Aviation Project)
Series 98
AMT
2,200 12/01/18 (b)................................ 4.95 2,200,000
------------
INDIANA - 2.1%
Gibson County PCR
(Toyota Motor
Manufacturing Project)
Series 97
AMT
2,500 10/01/27 (b)................................ 4.90 2,500,000
Indiana Health Facility
Finance Authority
(Ascension Health)
Series 99B
3,500 11/15/39 (b)................................ 5.10 3,500,000
------------
6,000,000
------------
NEW JERSEY - 74.9%
Atlantic City GO
AMBAC Series 98
2,250 8/15/00..................................... 3.71 2,252,822
Bergen County GO
Series 97
1,000 7/15/00..................................... 3.71 1,000,297
Camden County
Improvement Authority
(Harvest Village Project)
Series 99A
6,000 7/01/29 (b)................................. 4.25 6,000,000
Closter GO BAN
Series 99
3,648 8/18/00..................................... 3.62 3,649,751
Gloucester County PCR
(Mobil Oil Co.)
2,400 12/01/03 (b)................................ 4.60 2,400,000
Jersey City GO BAN
Series 00
3,000 3/02/01..................................... 4.25 3,007,199
Jersey City GO BAN
Series 99
6,000 9/15/00..................................... 3.80 6,005,400
Jersey City
Redevelopment Agency
(Dixon Mill
Apartments Project)
Series 00A
7,135 5/15/30 (b)................................. 4.50 7,135,000
Medford GO BAN
Series 00A
6,293 7/28/00..................................... 4.08 6,293,175
Monmouth County
Improvement Authority
(Pooled Govt. Loan Prog.)
16,350 8/01/16 (b)................................. 4.50 16,350,000
New Jersey Economic
Development Authority
(Bergen Community
Blood Center)
Series 97
1,965 12/01/12 (b)................................ 4.65 1,965,000
New Jersey Economic
Development Authority
(Colonial Wire & Cable)
Series B-1
AMT
1,160 10/01/00 (b)................................ 4.80 1,160,000
New Jersey Economic
Development Authority
(Curtiss Wright Flight)
2,047 1/01/02 (b)................................. 4.85 2,047,000
New Jersey Economic
Development Authority
(Economic Growth E-1)
Series 94E
AMT
1,470 8/01/14 (b)................................. 4.75 1,470,000
New Jersey Economic
Development Authority
(Economic Growth)
Series 94F
550 8/01/14 (b)................................. 4.70 550,000
2
<PAGE>
Alliance Municipal Trust - New Jersey Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-------------------------------------------------------------------------------
New Jersey Economic
Development Authority
(Economic Growth)
Series 96C
$ 2,535 11/01/11 (b)................................ 4.55% $ 2,535,000
New Jersey Economic
Development Authority
(Economic Growth)
Series 96G
1,000 11/01/16 (b)................................ 4.55 1,000,000
New Jersey Economic
Development Authority
(Economic Growth)
Series B
AMT
1,615 8/01/04 (b)................................. 4.80 1,615,000
New Jersey Economic
Development Authority
(Economic Growth-Kirker Ent.)
Series 96
AMT
1,500 1/01/05 (b)................................. 0.35 1,500,000
New Jersey Economic
Development Authority
(Economic Growth-Mona Industries)
Series 96
AMT
2,400 1/01/16 (b)................................. 0.35 2,400,000
New Jersey Economic
Development Authority
(El Dordo Terminals-Dow)
Series 84B
2,000 12/01/21 (b)................................ 4.20 2,000,000
New Jersey Economic
Development Authority
(El Dordo Terminals-Dow)
Series 99A
2,200 12/01/21 (b)................................ 4.30 2,200,000
New Jersey Economic
Development Authority
(Foreign Trade Zone Project)
Series 98
4,500 12/01/07 (b)................................ 4.45 4,500,000
New Jersey Economic
Development Authority
(Fujinon Inc. Project)
Series 86
2,000 3/01/01 (b)................................. 5.00 2,000,000
New Jersey Economic
Development Authority
(General Motors Corp.)
Series 85
4,835 10/01/00.................................... 4.65 4,835,000
New Jersey Economic
Development Authority
(Hoffman-LA Roche Inc.)
2,800 2/01/05 (b)................................. 4.80 2,800,000
New Jersey Economic
Development Authority
(Job Haines Home Project)
Series 98
2,000 2/01/28 (b)................................. 4.55 2,000,000
New Jersey Economic
Development Authority
(Kinder-Care Learning Centers)
Series D
390 10/01/00.................................... 4.75 390,000
New Jersey Economic
Development Authority
(Market Transition Fac)
MBIA Series 94A
1,000 7/01/00..................................... 5.13 1,000,000
New Jersey Economic
Development Authority
(Mercer Street Friends Project)
Series 96-F
1,165 11/01/16 (b)................................ 4.55 1,165,000
New Jersey Economic
Development Authority
(Russ Berrie & Co., Inc.)
Series 83
4,000 12/01/13 (b)................................ 4.30 4,000,000
New Jersey Economic
Development Authority
(Stolthaven Perth Amboy Inc.)
Series 98A
2,000 1/15/18 (b)................................. 4.30 2,000,000
New Jersey Economic
Development Authority
(The Homasote Co. Project)
Series 96-E
AMT
1,225 11/01/06 (b)................................ 4.65 1,225,000
3
<PAGE>
STATEMENT OF NET ASSETS (continued) Alliance Municipal Trust -
New Jersey Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-------------------------------------------------------------------------------
New Jersey Economic
Development Authority
(The Montclair Art Museum)
Series 00
$ 6,000 6/01/20 (b)................................. 4.55% $ 6,000,000
New Jersey Economic
Development Authority
(Thermal Energy Ltd.)
AMT
10,500 12/01/31 (b)................................ 4.35 10,500,000
New Jersey Economic
Development Authority
(Vahariolos Partners Project)
Series H
AMT
1,640 11/01/16 (b)................................ 4.65 1,640,000
New Jersey Educational
Facilities Authority
(Caldwell College)
Series 00B
2,300 7/01/25 (b)................................. 4.30 2,300,000
New Jersey GO
Series 96
2,000 7/15/00..................................... 3.35 2,001,230
New Jersey Health
Care Facilities
(Atlantic City Medical Center)
Series 98A-1
6,400 7/01/28 (b)................................. 4.55 6,400,000
New Jersey Health
Care Facilities
(Beth Israel Hospital)
Series 99A-1
12,700 7/01/14 (b)................................. 4.60 12,700,000
New Jersey Health
Care Facilities
(Christ Hospital)
Series 98A-2
4,000 7/01/13 (b)................................. 4.55 4,000,000
New Jersey Health
Care Facilities
(Holland Christian)
Series 99A-2
4,000 7/01/19 (b)................................. 4.60 4,000,000
New Jersey Health
Care Facilities
(Hospital Capital Asset Financing)
Series 85D
8,400 7/01/35 (b)................................. 4.40 8,400,000
New Jersey Health
Care Facilities
(Hospital Capital Asset Financing)
Series 85B
8,000 7/01/35 (b)................................. 4.40 8,000,000
New Jersey Health
Care Facilities
(St. Mary's Hospital)
Series 99A-4
6,400 7/01/19 (b)................................. 4.60 6,400,000
New Jersey Health
Care Facilities
(United Methodist Homes)
Series 98A-6
AMT
3,300 7/01/07 (b)................................. 4.55 3,300,000
New Jersey State
Turnpike Authority
(Turnpike Revenue)
FGIC Series 91D
20,400 1/01/18 (b)................................. 4.20 20,400,000
Northeast Monmouth
County
(Regional Sewer Project
Notes)
Series 99
2,500 7/21/00..................................... 3.50 2,500,824
Port Authority of
New York & New Jersey
Series 108th
AMT
2,075 7/15/00..................................... 4.50 2,075,579
Raritan GO BAN
Series 99
2,300 9/14/00..................................... 3.79 2,302,088
Salem County Pollution
Control
(Dupont Corp.)
Series 82A
2,400 3/01/12 (b)................................. 4.40 2,400,000
4
<PAGE>
Alliance Municipal Trust - New Jersey Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-------------------------------------------------------------------------------
Sparta Township
GO BAN
Series 00
$ 5,000 1/18/01..................................... 4.60% $ 5,010,636
------------
210,781,001
------------
NEW YORK - 5.0%
Port Authority of
New York & New Jersey
(Versatile Structure)
AMT
8,000 4/01/24 (b)................................. 4.40 8,000,000
Port Authority of
New York & New Jersey
(Versatile Structure)
Series 96-5
6,000 8/01/24 (b)................................. 4.50 6,000,000
------------
14,000,000
------------
SOUTH CAROLINA - 2.5%
Berkeley County IDA
(Nucor Corp. Project)
Series 97
AMT
1,400 4/01/30 (b)................................. 5.00 1,400,000
Berkeley County IDA
(Nucor Corp. Project)
Series 98
AMT
3,500 4/01/31 (b)................................. 5.00 3,500,000
Berkeley County IDA
(Nucor Corp. Project)
Series 95
AMT
2,300 9/01/28 (b)................................. 5.00 2,300,000
------------
7,200,000
------------
TENNESSEE - 7.4%
Education Funding
of the South
(Student Loan Funding
Corp.)
Series 87A-3
AMT
11,200 12/01/17 (b)................................ 4.85 11,200,000
Rutherford County
(Tennessee Farmers
Cooperative Project)
Series 99C
AMT
1,600 11/01/14 (b)................................ 4.95 1,600,000
Stewart County IDA
(Standard Gypsum
Project)
Series 99
AMT
8,000 5/01/34 (b)................................. 5.00 8,000,000
------------
20,800,000
------------
TEXAS - 2.7%
Panhandle Plains Higher
Education Authority
(Student Loan Revenue)
Series 97Y
AMT
7,500 10/01/02 (b)................................ 4.80 7,500,000
------------
VIRGINIA - 1.4%
Capital Region Airport
(Passenger Facility Charge
Revenue)
Series B
1,500 6/01/29 (b)................................. 4.75 1,500,000
Loudoun County IDA
(Falcons Landing Project)
Series 98
1,000 11/01/28 (b)................................ 4.75 1,000,000
Virginia Beach
Development Authority
(Chesapeake Bay
Academy)
Series 00
AMT
1,500 4/01/25 (b)................................. 4.80 1,500,000
------------
4,000,000
------------
WASHINGTON - 0.7%
Port of Port Angeles IDA
(Daishowa America
Project)
Series 92B
AMT
2,000 8/01/07 (b)................................. 4.95 2,000,000
------------
5
<PAGE>
STATEMENT OF NET ASSETS (continued) Alliance Municipal Trust -
New Jersey Portfolio
===============================================================================
Principal
Amount
(000) Security(a) Yield Value
-------------------------------------------------------------------------------
TOTAL INVESTMENTS -100.7%
(amortized cost
$283,581,001) .............. $ 283,581,001
Other assets less
liabilities - (0.7%) ....................... (2,003,012)
-------------
NET ASSETS - 100%
(offering and redemption
price of $1.00
per share;
281,577,989 shares
outstanding) ............................... $ 281,577,989
=============
-------------------------------------------------------------------------------
(a) All securities either mature or their interest rate changes in one year
or less.
(b) 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
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
MBIA - Municipal Bond Investors Assurance
PCR - Pollution Control Revenue
See notes to financial statements.
6
<PAGE>
STATEMENT OF OPERATIONS
Year Ended June 30, 2000 Alliance Municipal Trust - New Jersey Portfolio
===============================================================================
INVESTMENT INCOME
Interest ......................................... $ 8,981,992
EXPENSES
Advisory fee (Note B) ............................ $ 1,243,558
Distribution assistance and administrative
service (Note C)................................ 1,131,930
Transfer agency (Note B) ......................... 123,060
Custodian fees ................................... 77,471
Printing ......................................... 35,438
Registration fees ................................ 30,987
Audit and legal fees ............................. 21,142
Trustees' fees ................................... 3,381
Miscellaneous .................................... 5,813
-----------
Total expenses ................................... 2,672,780
Less: expense reimbursement ...................... (185,664)
-----------
Net expenses ..................................... 2,487,116
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS .......... $ 6,494,876
===========
STATEMENT OF CHANGES IN NET ASSETS
===============================================================================
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 2000 June 30, 1999
------------- -------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income ........................ $ 6,494,876 $ 4,367,022
Net realized gain on investment transactions.. -0- 5,000
------------- -------------
Net increase in net assets from operations ... 6,494,876 4,372,022
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ........................ (6,494,876) (4,367,022)
Net realized gain ............................ (3,718) -0-
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) ........................ 60,716,331 69,243,011
------------- -------------
Total increase ............................... 60,712,613 69,248,011
NET ASSETS
Beginning of period .......................... 220,865,376 151,617,365
------------- -------------
End of period ................................ $ 281,577,989 $ 220,865,376
============= =============
</TABLE>
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See notes to financial statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 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 an open-end investment company. The Fund operates as a
series company currently consisting of: 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 accounting principles generally accepted in the United States, 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 policy of the Portfolio to meet 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 any, to
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
year ended June 30, 2000, 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% on the first $1.25 billion of average daily net
assets; .49% on the next $.25 billion; .48% on the next $.25 billion; .47% on
the next $.25 billion; .46% on the next $1 billion; and .45% 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. For
the year ended June 30, 2000, the reimbursement amounted to $185,664.
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 $58,225 for the year ended June 30, 2000.
For the year ended June 30, 2000, the Fund's expenses were reduced by $750
under an expense offset arrangement with Alliance Fund Services, Inc.
8
<PAGE>
Alliance Muncipal Trust - New Jersey Portfolio
===============================================================================
NOTE C: Distribution Assistance and Administrative Services Plan
Under this Plan, the Portfolio pays Alliance Fund Distributors, Inc., (the
"Distributor"), a wholly-owned subsidiary of the Adviser, a distribution fee at
the annual rate of .25% of the average daily value of the Portfolio's net
assets. The Plan provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. For the year
ended June 30, 2000, the distribution fee amounted to $621,779. 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, 2000, such payments by the Portfolio amounted to
$510,151, a substantial portion of which was paid to the Adviser and its
affiliates.
-------------------------------------------------------------------------------
NOTE D: Investment Transactions
At June 30, 2000, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes.
-------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.01 par value) are authorized. At June 30,
2000, capital paid-in aggregated $281,577,989. Transactions, all at $1.00 per
share, were as follows:
Year Ended Year Ended
June 30, June 30,
2000 1999
------------ -------------
Shares sold ................................... 631,912,513 531,409,514
Shares issued on reinvestments of dividends.... 6,494,876 4,367,022
Shares redeemed ............................... (577,691,058) (466,533,525)
------------ ------------
Net increase .................................. 60,716,331 69,243,011
============ ============
9
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Municipal Trust - New Jersey Portfolio
===============================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Year Ended June 30,
----------------------------------------------
2000 1999 1998 1997 1996
------ ------ ------ ------ -------
<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 (a) ................. .026 .022 .026 .027 .028
------ ------ ------ ------ ------
Less: Dividends
Dividends from net investment income ...... (.026) (.022) (.026) (.027) (.028)
------ ------ ------ ------ ------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
====== ====== ====== ====== ======
Total Return
Total investment return based on net
asset value (b) ......................... 2.63% 2.21% 2.67% 2.72% 2.89%
Ratios/Supplemental Data
Net assets, end of period (000's omitted).. $281,578 $220,865 $151,617 $123,579 $98,098
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ....................... 1.00% 1.00% .94% .85% .82%
Expenses, before waivers and
reimbursements ....................... 1.07% 1.09% 1.07% 1.12% 1.19%
Net investment income (a) .............. 2.61% 2.16% 2.63% 2.68% 2.84%
</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. Total investment return
calculated for a period of less than one year is not annualized.
10
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS Alliance Municipal Trust -
New Jersey Portfolio
===============================================================================
To the Board of Trustees and Shareholders of
Alliance Municipal Trust - New Jersey Portfolio
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Alliance Municipal Trust - New Jersey Portfolio (the "Fund") at June 30, 2000,
and the results of its operations, the changes in its net assets and the
financial highlights for the year then ended, in conformity with accounting
principles generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express
an opinion on these financial statements based on our audit. We conducted our
audit of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audit, which included confirmation of
securities at June 30, 2000, by correspondence with the custodian and brokers,
provides a reasonable basis for the opinion expressed above. The financial
statements for the year ended June 30, 1999, including the financial highlights
for each of the four years in the period then ended, were audited by other
independent accountants whose report dated July 23, 1999, expressed an
unqualified opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
July 28, 2000
11
<PAGE>
Alliance Municipal Trust - New Jersey Portfolio
===============================================================================
Alliance Municipal Trust
1345 Avenue of the Americas
New York, NY 10105
Toll-free 1(800)221-5672
TRUSTEES
Dave H. Williams, Chairman
John D. Carifa
Sam Y. Cross (1)
Charles H.P. Duell (1)
William H. Foulk, Jr. (1)
David K. Storrs (1)
Shelby White (1)
OFFICERS
Dave H. Willliams, Chairman
Ronald M. Whitehill, President
Kathleen A. Corbet, Senior Vice President
Drew Biegel, Senior Vice President
John R. Bonczek, Senior Vice President
Doris T. Ciliberti, Senior Vice President
Robert I. Kurzweil, Senior Vice President
Wayne D. Lyski, Senior Vice President
Patricia Ittner, Senior Vice President
William E. Oliver, Senior Vice President
Raymond J. Papera, Senior Vice President
Frances M. Dunn, Vice President
William J. Fagan, Vice President
Linda D. Kelley, Vice President
Joseph R. LaSpina, Vice President
Eileen M. Murphy, Vice President
Maria C. Sazon, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer and
Chief Financial Officer
Vincent S. Noto, Controller
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 1912
Boston, MA 02105
DISTRIBUTOR
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
TRANSFER AGENT
Alliance Fund Services
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
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(1) Members of the Audit Committee.
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Alliance Municipal Trust - New Jersey Portfolio ----------------
1345 Avenue of the Americas, New York NY 10105 BULK RATE
Toll free 1 (800) 221-5672 U.S. POSTAGE
PAID
Yields. For current recorded yield information on New York, NY
Alliance Municipal Trust, call on a touch-tone Permit No. 7131
telephone toll-free (800) 251-0539 and press the ----------------
following sequence of keys:
- - - - - - -
* * 1 2 9 2 #
- - - - - - -
For non-touch-tone telephones, call toll free (800) 221-8513
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AllianceCapital [LOGO](R)
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
AMTNJAR600
