ALLIANCE MUNICIPAL INCOME FUND II
SEMI-ANNUAL REPORT
MARCH 31, 1997
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
May 5, 1997
Dear Shareholder:
We are pleased to report municipal market activity and investment results for
Alliance Municipal Income Fund II's fiscal reporting period ended March 31,
1997. Over the past six and twelve month periods, all of the Fund's
Portfolios--Arizona, Florida, Massachusetts, Michigan, Minnesota, New Jersey,
Ohio, Pennsylvania and Virginia--produced excellent total returns and
outperformed their respective benchmarks, the state specific Lipper Municipal
Debt Funds Average. We are no longer using the Lehman Brothers Long Municipal
Bond Index as one of the Fund's benchmarks because the state specific Lipper
Municipal Debt Funds Average more closely resembles the composition of the
Fund's portfolios.
Additionally, eight of the Fund's nine portfolios achieved the #1 ranking of
all state specific municipal income funds in their respective peer groups
tracked by Lipper for the 12 months ended March 31, 1997. Lipper rankings are
based on total returns at net asset value, without the imposition of the
maximum 4.25% sales charge, which would reduce total return figures.
LIPPER RANKINGS
For the period ended March 31, 1997
SINCE INCEPTION*
PORTFOLIO* 1 YEAR RANKING RANKING
- -------------- -------------- --------------
Arizona #1 of 32 funds #2 of 22 funds
Florida #2 of 78 funds #8 of 34 funds
Massachusetts #1 of 51 funds #1 of 37 funds
Michigan #1 of 46 funds #1 of 33 funds
Minnesota #1 of 44 funds #8 of 22 funds
New Jersey #1 of 55 funds #2 of 26 funds
Ohio #1 of 52 funds #7 of 29 funds
Pennsylvania #1 of 63 funds #1 of 36 funds
Virginia #1 of 31 funds #1 of 26 funds
* PORTFOLIO HIGHLIGHTS ARE LISTED ON PAGE 3, WHILE INVESTMENT RESULTS AND
PORTFOLIO INCEPTION DATES CAN BE FOUND ON PAGE 4.
MARKET OVERVIEW
Much like the market trend established in early 1996, the municipal bond market
returned inconsistent performance in the first quarter of 1997. After posting
strong returns through early February, the bond market became weaker as
investors became increasingly comfortable with the economy. Confirming this
strong economic growth outlook, in early March, the Federal Reserve Board
raised its benchmark Federal funds rate by one quarter of one percent, or 25
basis points, in an effort to contain present and future inflationary
pressures. Volatility continued through the remainder of the first quarter. At
this writing, it is still widely believed by the investment community that the
Federal Reserve will need to increase rates at least one more time in the near
future to complete the current round of money supply tightening.
THE MUNICIPAL BOND MARKET
One theme that we have discussed over the last several years has been the
importance of various technical factors affecting the relative value of
municipal bonds versus taxable bonds. Since late 1995, municipal bonds have
been trading at inexpensive prices when compared to their fully taxable
counterparts. This was due to the threat of "tax reform" during the last
election. However, now that the election and the tax reform debate seem well
behind us, we expect that municipal bond prices will improve relative to their
taxable counterparts. The volume of new issues of municipal securities
accelerated in the first quarter of 1997 for the first time in years. This
trend is attributable to an increase in voter authorized state and local
government debt and a low interest rate environment. As a result of this influx
of new issues, municipal bonds currently offer excellent value relative to
other fixed-income investments, especially when compared on a tax-adjusted
basis.
Credit ratings of municipal issuers improved as state and local governments
benefited from a robust economy which resulted in higher-than-expected tax
receipts. Many large states such as California, New York, Massachusetts and
Michigan are in their best fiscal condition in years. In most cases, many of
these states have built up substantial "rainy day" funds to cushion against
future economic downturns. These funds will be critical in maintaining strong
fiscal performance, especially if economic growth slows and big budget items
such as Medicaid costs begin to rise. For state and local governments, the
continuation of tax reduction programs and the likely continuation of anti-tax
sentiment, will be constraining factors in maintaining budgetary balances in
the
1
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
next couple of years. The recent proposal by the State of New Jersey to close a
budget gap by selling a $2.75 billion pension funding bond may be a precursor
of future budgetary actions in other states where large tax cuts have severely
cut the revenue base. This phenomenon could result in weakening credit quality
of issuers who pursue these types of stop-gap measures.
INVESTMENT STRATEGY
The first quarter volatility in the bond market once again provided your
portfolio managers with an opportunity to capture higher incremental after-tax
yield and to further improve overall call protection in the Fund's portfolios.
At Alliance we continue to believe that long-term interest rates will decline
modestly over the next several years, and that market weakness provides an
opportunity for us to purchase quality securities at advantageous prices. To
make room for these attractive new issues, we continue to sell lower-coupon
bonds with call protection of less than 10 years. We also continue to sell
bonds that have been "pre-refunded" by their issuers and have realized their
maximum price appreciation potential relative to other investment opportunities.
The overall theme of our municipal bond portfolio strategy continues to be one
of active management in terms of the performance factors we can control (namely
the securities owned in your portfolios) without attempting to manage the
portfolios for those factors that are out of our control (such as the future
direction of interest rates). This strategy is centered on selecting securities
with price appreciation potential, either through credit improvements,
structural features or technical factors. By continuing to keep a "buy low,
sell high" philosophy as part of our strategy, we expect to once again post
strong performance relative to our peers in the mutual fund industry.
MARKET OUTLOOK
Barring any unforeseen drama in the global financial markets, we expect 1997 to
be a relatively uneventful year for municipal bond investors. Municipal bond
prices should continue to trade in a relatively narrow range and yields will
most likely peak on or around current levels in the near future. Any increase
in short-term rates on the part of the Federal Reserve should be viewed as a
positive for long-term fixed income investors because such action will help
curb inflationary pressures in the economy. Finally, we believe that the
municipal bond market offers excellent value at current prices, especially on a
tax-adjusted basis.
We appreciate your investment in Alliance Municipal Income Fund II and look
forward to reporting to you again at the end of our fiscal year in September.
Sincerely,
John D. Carifa
Chairman and President
Susan P. Keenan
Senior Vice President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
2
HOW YOUR PORTFOLIO PERFORMED
OVER THE PAST SIX MONTHS ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
The Portfolios' Class A shares total returns for the periods ended March 31,
1997 are shown below. We have also shown, for comparison, returns for the
overall municipal bond market, represented by the unmanaged state specific
Lipper Municipal Debt Funds Average. Current yields and returns for Class B and
Class C shares are on the next page.
INVESTMENT RESULTS
_______________________________________________________________________________
MUNICIPAL INCOME FUND II - CLASS A SHARES
Periods Ended March 31, 1997
TOTAL RETURN
6 MONTHS 12 MONTHS
---------- ---------
Arizona Portfolio 3.02% 8.39%
Florida Portfolio 2.63% 6.78%
Massachusetts Portfolio 2.69% 10.46%
Michigan Portfolio 2.59% 7.49%
Minnesota Portfolio 2.38% 7.63%
New Jersey Portfolio 2.58% 6.94%
Ohio Portfolio 3.54% 6.86%
Pennsylvania Portfolio 2.95% 7.46%
Virginia Portfolio 2.74% 7.49%
TOTAL RETURNS ARE BASED ON THE NET ASSET VALUES OF CLASS A SHARES AS OF MARCH
31, 1997.
LIPPER MUNICIPAL DEBT FUNDS AVERAGE
6 MONTHS 12 MONTHS
---------- ---------
Arizona 2.03% 5.28%
Florida 1.73% 4.75%
Massachusetts 1.95% 5.12%
Michigan 1.81% 4.79%
Minnesota 1.80% 4.77%
New Jersey 1.91% 4.79%
Ohio 1.93% 5.05%
Pennsylvania 1.96% 4.95%
Virginia 1.79% 4.92%
INVESTMENT OBJECTIVE AND POLICIES
_______________________________________________________________________________
The nine Portfolios of Alliance Municipal Income Fund II, by investing
principally in high-yielding, predominantly medium quality municipal
securities, seek to provide their shareholders with the highest level of income
exempt from Federal and state tax that is available without assuming undue
risk. These securities generally offer current yield above those of higher
quality municipal obligations.
3
INVESTMENT RESULTS
AS OF MARCH 31, 1997 ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
-------------------------------------------- TAXABLE
WITHOUT SALES CHARGE WITH SALES CHARGE EQUIVALENT
---------------------- -------------------- 30 DAY YIELD IN 36%
1 SINCE 1 SINCE SEC TAX BRACKET#
YEAR INCEPTION* YEAR INCEPTION* YIELD# (AT NAV)
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ARIZONA PORTFOLIO
Class A Shares +8.39% +7.39% +3.76% +5.77% 5.31% 9.22%
Class B Shares +7.65% +6.65% +4.65% +6.33% 4.85% 8.08%
Class C Shares +7.65% +6.65% +6.65% +6.65% 4.83% 8.08%
FLORIDA PORTFOLIO
Class A Shares +6.78% +5.14% +2.22% +3.95% 5.41% 8.81%
Class B Shares +5.90% +4.37% +2.90% +4.37% 4.94% 7.67%
Class C Shares +5.89% +4.36% +4.89% +4.36% 4.94% 7.67%
MASSACHUSETTS PORTFOLIO
Class A Shares +10.46% +9.08% +5.77% +7.53% 5.48% 10.23%
Class B Shares +9.84% +8.34% +6.84% +8.34% 5.02% 9.04%
Class C Shares +9.84% +8.35% +8.84% +8.35% 5.01% 9.04%
MICHIGAN PORTFOLIO
Class A Shares +7.49% +6.66% +2.93% +5.19% 5.20% 9.04%
Class B Shares +6.75% +5.91% +3.75% +5.91% 4.72% 7.89%
Class C Shares +6.75% +5.91% +5.75% +5.91% 4.72% 7.89%
MINNESOTA PORTFOLIO
Class A Shares +7.63% +4.62% +3.02% +3.43% 5.40% 9.58%
Class B Shares +6.83% +3.84% +3.83% +3.84% 4.92% 8.28%
Class C Shares +6.83% +3.84% +5.83% +3.84% 4.93% 8.28%
NEW JERSEY PORTFOLIO
Class A Shares +6.94% +5.02% +2.35% +3.83% 5.05% 8.93%
Class B Shares +6.14% +4.24% +3.14% +4.24% 4.55% 7.68%
Class C Shares +6.14% +4.24% +5.14% +4.24% 4.56% 7.68%
OHIO PORTFOLIO
Class A Shares +6.86% +5.00% +2.27% +3.81% 5.20% 9.34%
Class B Shares +6.18% +4.25% +3.18% +4.25% 4.70% 8.07%
Class C Shares +6.18% +4.25% +5.18% +4.25% 4.72% 8.07%
PENNSYLVANIA PORTFOLIO
Class A Shares +7.46% +5.60% +2.90% +4.40% 5.31% 9.11%
Class B Shares +6.57% +4.83% +3.57% +4.83% 4.83% 7.94%
Class C Shares +6.57% +4.82% +5.57% +4.82% 4.84% 7.94%
VIRGINIA PORTFOLIO
Class A Shares +7.49% +8.08% +2.93% +6.50% 5.30% 9.13%
Class B Shares +6.78% +7.35% +3.80% +7.05% 4.82% 8.01%
Class C Shares +6.78% +7.35% +5.78% +7.35% 4.80% 8.01%
</TABLE>
The average annual total returns reflect reinvestment of dividends and/or
capital gains distributions in additional shares with and without the effect of
the 4.25% maximum front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (3% year 1, 2% year 2, 1% year 3, 0% year 4);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception: AZ, 6/1/94; MI, 2/25/94; FL, MN, NJ, OH, PA, 6/25/93; MA,
3/29/94; VA, 4/29/94.
# Yields are for the 30 days ended March 31, 1997.
4
ARIZONA PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- -----------------------------------------------------------------------------
MUNICIPAL BONDS-82.5%
ARIZONA-65.0%
AAA Glendale - IDA (Midwestern Univ)
Connie Lee Ser 96A
6.00%, 5/15/26 $ 660 $ 662,600
NR Goodyear Assessment
District Dist No. 1 Ser 96C
7.25%, 7/01/16 325 328,679
NR Hassayampa Cmnty Fac
Dist Spec Assessment Lien
7.75%, 7/01/21 2,730 2,729,482
AAA Maricopa Cnty IDA Hlth Fac Rev
(Catholic Healthcare West) MBIA Ser 93
7.452%, 7/01/13 (a) 645 628,527
AAA Maricopa Cnty MFHR (Tempe Grove Apts Proj)
Ser 96A GNMA Coll Ser A AMT
6.20%, 1/20/39 680 682,176
AA+ Maricopa Cnty IDR (Citizens Utilities)
Ser 95 AMT
6.20%, 5/01/30 620 636,542
AA- Mohave Cnty IDR
(Cargill/North Star Steel Proj)
Ser 95A AMT
6.70%, 3/01/20 610 651,565
AAA Phoenix Arpt Rev
(Sky Harbor/Goodyear/Deer Valley)
MBIA Ser 94D AMT
6.30%, 7/01/10 $615 $645,670
AA Phoenix IDA MFHR
(Woodstone & Silver Springs) Asset Gty
Ser 93
6.25%, 4/01/23 640 648,819
AAA Tempe IDA MFHR (Quadrangles) FHA Ser 93
6.25%, 6/01/26 640 648,902
AAA Yuma IDA (Alexandrite Sands Apt)
MFHR FHA Ser 90 AMT
7.70%, 12/01/29 605 633,332
-----------
8,896,294
PUERTO RICO-17.5%
BB+ Puerto Rico Port Auth Rev
Spec Fac (American Airlines)
Ser 96A AMT
6.25%, 6/01/26 2,410 2,425,135
TOTAL INVESTMENTS-82.5%
(cost $11,288,814) 11,321,429
Other assets less liabilities-17.5% 2,397,255
NET ASSETS-100% $13,718,684
# Unaudited
(a) Inverse floater security--security with variable or floating interest rate
that moves in opposite direction of short-term interest rates.
See Glossary of Terms on page 15.
See notes to financial statements.
5
FLORIDA PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- -----------------------------------------------------------------------------
MUNICIPAL BONDS-99.2%
FLORIDA LONG TERM MUNICIPAL BONDS-88.1%
BBB+ Collier Cnty Hlth Fac
(The Moorings Proj) Ser 94
7.00%, 12/01/19 $2,000 $ 2,102,880
AAA Dade Cnty Arpt Rev (Miami Int'l Arpt)
MBIA Ser 95B AMT
6.00%, 10/01/24 3,220 3,222,447
A* Dade Cnty Spec Obl
(Courthouse Ctr Proj) Ser 95
6.10%, 4/01/20 1,800 1,824,156
AAA Escambia Cnty Hsg Fin Auth
SFMR FNMA/GNMA Coll Ser 96B AMT
6.25%, 4/01/28 3,245 3,266,514
Baa1* Escambia Cnty PCR
(Champion Int'l Corp Proj) Ser 96 AMT
6.40%, 9/01/30 5,000 4,985,900
NR Fiddlers Creek Cmnty Dev
Dist Spec Assessment Rev
7.50%, 5/01/18 11,600 11,574,596
AAA Florida Hsg Fin Agy
(Brittany of Rosemont) MHFR AMBAC AMT
6.25%, 7/01/35 1,350 1,358,222
AAA Florida Hsg Fin Agy (Landings Boot Ranch)
AMBAC Ser 95K AMT
6.10%, 11/01/35 2,050 2,028,844
AAA Florida Hsg Fin Agy
(Turtle Creek Apts Proj)
AMBAC Ser 96C AMT
6.20%, 5/01/36 3,245 3,252,528
AAA Florida Hsg Fin Agy Home
Mtg SFMR Ser 95A AMT
6.65%, 1/01/24 4,300 4,452,091
AAA Florida Hsg Fin Agy SFMR
GNMA/FNMA Coll Ser 94B AMT
6.65%, 7/01/26 710 736,178
NR Heritage Greens Cmnty Dev
Dist Spec Assessment
8.25%, 5/01/18 $2,000 $1,995,800
Aa3* North Miami Hlth Fac Auth Rev
(Catholic Hlth Svcs Oblig Grp) Ser 96
6.00%, 8/15/24 1,200 1,184,016
NR Northern Palm Beach Cnty Wtr Ctl &
Imp Dist-Unit Dev 9A-Abacoa
Ser 96A
7.20%, 8/01/16 2,100 2,156,973
AA- Orlando Util Cmnty Wtr & Elec Rev
BB- Ser 93B
7.271%, 10/06/17 (a) 4,550 4,281,960
Aaa* Pinellas Cnty Hsg Fin Auth
SFMR GNMA/FNMA Coll
Ser 94A AMT
6.55%, 8/01/27 3,145 3,228,437
Baa2* Volusia Cnty Ed Fac Auth Rev
(Embry-Riddle Aero Univ)
6.125%, 10/15/26 3,045 3,022,284
AA Volusia Cnty Hlth Fac Auth Rev
Asset Gty (John Knox Village)
6.00%, 6/01/17 3,000 3,023,970
TOTAL FLORIDA LONG TERM MUNICIPAL BONDS
(cost $57,645,515) 57,697,796
SHORT TERM MUNICIPAL NOTES-11.1%
HAWAII-1.2%
VMIG1* Hawaii Hsg Fin & Dev Corp
(Affordable Rental Hsg Prog)
Ser A VRDN (b)
3.70%, 7/01/27 800 800,000
ILLINOIS-3.3%
Aa2* Illinois Dev Fin Auth IDR
(Bridgestone Tire Co) VRDN (b)
3.50%, 7/01/00 2,175 2,175,000
6
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- -----------------------------------------------------------------------------
NORTH CAROLINA-2.0%
AAA North Carolina Med Care Comnty Hosp Rev
(Pooled Equip Fin Proj) MBIA VRDN (b)
3.50%, 12/01/25 $1,300 $ 1,300,000
WASHINGTON-4.6%
A1 Yakima Cnty Pub Corp
(Macro Plastics Inc Proj) VRDN (b)
3.70%, 12/01/26 3,000 3,000,000
TOTAL SHORT TERM MUNICIPAL NOTES
(cost $7,275,000) $ 7,275,000
TOTAL INVESTMENTS-99.2%
(cost $64,920,515) 64,972,796
Other assets less liabilities-0.8% 516,627
NET ASSETS-100% $65,489,423
# Unaudited
* Moody's Rating
(a) Inverse floater security--security with variable or floating interest rate
that moves in opposite direction of short-term interest rates.
(b) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specific date (such as coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as prime
interest rate). This instrument is payable on demand and is secured by letters
of credit or other credit support agreements from major banks.
See Glossary of Terms on page 15.
See notes to financial statements.
7
MASSACHUSETTS PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- ------------------------------------------------------------------------------
MUNICIPAL BONDS-97.7%
MASSACHUSETTS-94.5%
AAA Holyoke GO FSA Ser 93B
6.125%, 8/01/13 $ 670 $ 695,802
AAA Massachusetts Bay
Transportation Auth MBIA Ser 92C
6.10%, 3/01/23 670 690,871
AAA Massachusetts Ed Fin Auth
Educational Loan Rev
AMBAC Ser 94E AMT
6.00%, 1/01/12 725 722,810
AAA Massachusetts Hlth & Ed
Fac Auth Hosp Rev
(Beth Israel Hosp) AMBAC Ser G-4
8.294%, 7/01/25 (a) 2,000 1,994,660
AAA Massachusetts Hsg Fin Agy MFHR
(Harbor Pt Development) AMBAC
Ser 96A AMT
6.40%, 12/01/15 1,610 1,649,815
A+ Massachusetts Hsg Fin Auth
SFMR Ser 40 AMT
6.65%, 12/01/27 3,455 3,573,161
A3* Massachusetts Ind Fin Agy
Rev (Brooks School)
5.95%, 7/01/23 720 708,646
AAA Massachusetts Ind Fin Auth
Rev (Heights Crossing Ltd)
FHA Ser 95 AMT
6.15%, 2/01/35 715 705,619
AAA Massachusetts Muni Wholesale Elec Pwr
Supply Sys MBIA Ser 92A
6.00%, 7/01/18 $720 $723,449
AAA Massachusetts Port Auth Rev Spec Fac
(US Air Proj) MBIA Ser 96A AMT
5.875%, 9/01/23 730 705,749
AA+ Massachusetts Wtr Pollution
Abatement (So Essex Prog) GO Ser 94A
6.375%, 2/01/15 685 714,243
A1* New England Ed Loan Mktg
(Student Loan Rev) Ser 93H AMT
6.90%, 11/01/09 650 695,754
-----------
13,580,579
PUERTO RICO-3.2%
BB+ Puerto Rico Port Auth Rev Spec Fac
(American Airlines) Ser 96A AMT
6.25%, 6/01/26 455 457,857
TOTAL INVESTMENTS-97.7%
(cost $13,969,029) 14,038,436
Other assets less liabilities-2.3% 332,059
NET ASSETS-100% $14,370,495
# Unaudited
* Moody's Rating.
(a) Inverse floater security--security with variable or floating interest rate
that moves in opposite direction of short-term interest rates.
See Glossary of Terms on page 15.
See notes to financial statements.
8
MICHIGAN PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- ------------------------------------------------------------------------------
MUNICIPAL BONDS-98.5%
MICHIGAN-89.1%
AAA Detroit GO FGIC Ser 93
6.35%, 4/01/14 $ 655 $ 681,174
AAA Grand Rapids Swr Sys Rev MBIA Ser 92
6.00%, 1/01/22 705 712,698
AAA Kalamazoo Hosp Fin Auth
(Borgess Med Ctr) FGIC Ser 94A
6.758%, 6/01/11 (a) 760 689,396
AAA Kent Cnty Arpt Fac Rev
(Kent Cnty Int'l Arpt) Ser 95 AMT
6.10%, 1/01/25 710 719,805
AAA Michigan Hosp Fin Auth Hosp Rev
(St Johns Hosp) AMBAC Ser 92A
6.00%, 5/15/13 705 719,911
AA+ Michigan Hsg Dev Auth
SFMR Mortgage Rev Ser 95B AMT
7.05%, 6/01/26 3,245 3,383,172
AAA Michigan Strategic Fund PCR
(Detroit Edison) MBIA Ser 95AA
6.40%, 9/01/25 685 714,017
A- Michigan Strategic Fund PCR
(General Motors) Ser 95
6.20%, 9/01/20 $705 $719,030
NR Romulus Tax Increment
Finance Auth Ser 94
6.75%, 11/01/19 1,585 1,643,661
AAA Three Rivers Cmnty Schl Dist
GO MBIA Ser 96
6.00%, 5/01/23 700 720,510
AA Troy MI Downtown Dev
Auth Asset Gty Ser 95A
6.375%, 11/01/18 2,250 2,324,115
-----------
13,027,489
FLORIDA-4.8%
NR Heritage Greens Cmnty Dev
Dist Spec Assessment
8.25%, 5/01/18 700 698,530
PUERTO RICO-4.6%
BB+ Puerto Rico Port Auth Rev Spec Fac
(American Airlines) Ser 96A AMT
6.25%, 6/01/26 665 669,176
TOTAL INVESTMENTS-98.5%
(cost $14,266,282) 14,395,195
Other assets less liabilities-1.5% 225,608
NET ASSETS-100% $14,620,803
# Unaudited
(a) Inverse floater security--security with variable or floating interest rate
that moves in opposite direction of short-term interest rates.
See Glossary of Terms on page 15.
See notes to financial statements.
9
MINNESOTA PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- ------------------------------------------------------------------------------
MUNICIPAL BONDS-98.7%
MINNESOTA LONG TERM MUNICIPAL BONDS-93.8%
BBB+ Bass Brook PCR
(Minn Power & Light) Ser 92
6.00%, 7/01/22 $ 935 $ 921,742
AA+ Duluth Arpt Lease Rev St
Secured GO Ser 95C AMT
6.25%, 8/01/14 900 925,164
Aaa* Eagan MFHR (Woodridge Apts) GNMA
Coll Ser 97A
5.95%, 2/01/32 935 925,276
Aaa* Little Canada MFHR
(Cedars Lakeside Apts)
GNMA Coll Ser 97A
5.95%, 2/01/32 935 925,276
A- Minneapolis Common Bond
Fund Community Dev Agy Ser 95-2 AMT
6.625%, 12/01/15 890 921,097
AAA Minneapolis COP Special
School Dist #1 MBIA Ser 96A
5.90%, 2/01/17 920 925,566
AA+ Minnesota Hsg Fin Agy
SFMR Ser 96F AMT
6.30%, 1/01/28 1,135 1,143,660
NR Minnesota Agric & Econ Dev Brd IDR
(Small Business Loan Prog) Ser 96A AMT
6.75%, 8/01/16 1,450 1,470,445
NR Minnesota Agric & Econ Dev IDR
(Small Business Loan Prog) Ser 96B AMT
7.00%, 8/01/16 750 768,712
Baa1* Minnesota Higher Ed Fac Auth
(Hamline Univ) Ser 4-I
6.00%, 10/01/16 $790 $781,057
AA+ Minnesota Hsg Fin Agy SFMR Ser 89A AMT
7.90%, 7/01/19 2,710 2,818,752
AA+ Rochester Hlth Care Fac Hosp Rev
(Mayo Med Ctr) Ser 92H
8.249%, 11/15/15 (a) 3,000 3,055,710
BBB South St. Paul Hosp Rev
(Health East Proj) Ser 94
6.75%, 11/01/09 870 899,667
AAA St Francis GO Ind Sch Dist # 15
CGIC Ser 95A
6.375%, 2/01/16 865 922,263
TOTAL MINNESOTA LONG TERM MUNICIPAL BONDS
(cost $17,099,511) 17,404,387
SHORT TERMMUNICIPAL NOTE-4.9%
VMIG1* Minneapolis Hsg Dev Rev MFHR
(One Ten Grant Proj) Ser 89 VRDN (b)
3.35%, 9/01/08
cost ($900,000) 900 900,000
TOTAL INVESTMENTS-98.7%
(cost $17,999,511) 18,304,387
Other assets less liabilities-1.3% 241,599
NET ASSETS-100% $18,545,986
# Unaudited
* Moody's Rating.
(a) Inverse floater security--security with variable or floating interest rate
that moves in opposite direction of short-term interest rates.
(b) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specific date (such as coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as prime
interest rate). This instrument is payable on demand and is secured by letters
of credit or other credit support agreements from major banks.
See Glossary of Terms on page 15.
See notes to financial statements.
10
NEW JERSEY PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- -----------------------------------------------------------------------------
NEW JERSEY MUNICIPAL BONDS-98.1%
AAA Essex Cnty Imp Auth Util
Rev (Orange Twp) MBIA Ser 93
6.00%, 12/01/17 $2,510 $ 2,541,852
AA Gloucester Cnty PCR
(Mobil Oil Refining) Ser 93
5.625%, 12/01/28 3,000 2,928,270
AAA Landis Swr Rev FGIC Ser 93C
7.42%, 9/19/19(a) 3,250 3,169,302
AA- New Jersey Eco Dev Auth
(Anheuser-Busch Proj)
Ser 95 AMT
5.85%, 12/01/30 2,075 2,065,725
AAA New Jersey Eco Dev Auth
(Elizabethtown Wtr Co) MBIA Ser 95 AMT
5.60%, 12/01/25 3,500 3,318,350
AAA New Jersey Eco Dev Auth
(Hackensack Wtr Co) MBIA Ser 94B AMT
5.90%, 3/01/24 3,390 3,376,169
AAA New Jersey Eco Dev Auth
(Pub Ser Elec & Gas) MBIA Ser 94A AMT
6.40%, 5/01/32 4,245 4,371,204
BB+ New Jersey Eco Dev Auth
Spec Fac (American Airlines) AMT
7.10%, 11/01/31 4,500 4,762,080
AAA New Jersey Eco Dev Auth Wtr Fac
(NJ American Wtr Co) FGIC AMT
6.875%, 11/01/34 5,000 5,425,650
BBB New Jersey Hlth Care Fac
(Franciscan Sisters, St. Mary's Hosp)
Ser 93
5.875%, 7/01/12 2,755 2,688,384
AAA New Jersey Hlth Care Fac Fin Hlth Fac
(Monmouth Med Ctr) CGIC Ser C
6.25%, 7/01/24 $2,750 2,825,405
BBB New Jersey Hlth Care Fac
(Englewood Hosp) Ser 94
6.75%, 7/01/24 4,230 4,385,283
AAA New Jersey Hsg & Mtg Fin
Agy MBIA Ser 95O AMT
6.35%, 10/01/27 5,000 5,084,150
AAA New Jersey Hsg & Mtg Fin
Agy MFHR AMBAC Ser 96A AMT
6.25%, 5/01/28 3,085 3,099,469
A+ New Jersey Hsg & Mtg Fin
Agy MFHR (Sect 8) Ser 1
6.70%, 11/01/28 8,500 8,901,710
AA- New Jersey Hwy Auth
Garden State Parkway
6.25%, 1/01/14 1,250 1,307,112
AAA Passaic Valley Sewer Comm
AMBAC Ser 92D
5.75%, 12/01/15 3,400 3,399,694
AA- Port Auth of NY & NJ Cons
Rev 95th Ser AMT
6.125%, 7/15/29 3,450 3,470,217
AA- Salem Cnty NJ Waste Disposal Auth
(E.I. Dupont) Ser 92A AMT
6.125%, 7/15/22 3,500 3,547,740
BBB South Jersey Transportation Auth
NJ Lease Rev
(Raytheon Aircraft Service)
Ser 97A AMT
6.15%, 1/01/22 500 491,830
TOTAL INVESTMENTS-98.1%
(cost $69,464,954) 71,159,596
Other assets less liabilities-1.9% 1,345,364
NET ASSETS-100% $72,504,960
# Unaudited
(a) Inverse floater security--security with variable or floating interest rate
that moves in opposite direction of short-term interest rates.
See Glossary of Terms on page 15.
See notes to financial statements.
11
OHIO PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- ------------------------------------------------------------------------------
MUNICIPAL BONDS-99.1%
OHIO-86.7%
BBB Akron Ctfs Partn
(Akron Municipal Baseball Stad Proj)
Ser 96
Zero Coupon, 12/01/16 $5,000 $ 3,707,000
BBB- Butler Cnty Hosp Rev
(Fort Hamilton Hughes)
7.50%, 1/01/10 1,400 1,477,420
AAA Columbus Municipal Arpt
Rev (Columbus Int'l Arpt)
MBIA Ser 94A AMT
6.25%, 1/01/24 1,800 1,851,012
A Cuyahoga Cnty Hosp Rev
(Meridia Health Sys) Ser 95
6.25%, 8/15/24 2,135 2,172,256
AAA Cuyahoga Cnty MFHR
(Nat'l Terminal Apts Proj)
FNMA Coll Ser 96 AMT
6.40%, 7/01/16 4,580 4,697,569
BBB- Dayton Spec Fac Rev
(Emery Air Freight) Ser 96D AMT
6.20%, 10/01/09 2,225 2,253,947
BBB Hamilton Cnty Hlth Sys
(Hlth Fac & Franciscan Sisters
Providence Hosp) Ser 92
6.875%, 7/01/15 2,000 2,090,600
Aaa* Kent Ohio MFHR (Silver Meadows Apt Proj)
GNMA Coll Ser 95 AMT
7.15%, 12/20/26 2,000 2,113,420
NR Mahoning Valley Sanitary Dist Oblig
Ser 94
7.75%, 5/15/14 2,500 2,605,700
Baa2* Ohio Air Quality Dev Auth
(Columbus Southern Pwr) Ser 85B
6.25%, 12/01/20 2,205 2,210,601
AAA Ohio Air Quality Dev Auth
(JMG Funding/Ohio Pwr) AMBAC
Ser 94B AMT
6.375%, 4/01/29 2,150 2,229,743
AAA Ohio Capital Corp Sec 8 Assist
MBIA FHA Ser 95E
6.35%, 1/01/22 1,965 1,992,235
Aa* Ohio Hsg Fin Agy Mtg FHA
(Insured Bridgeview Villa II) MFHR AMT
6.45%, 12/01/33 1,965 1,994,612
AAA Ohio Hsg Fin Agy Residential Mtg SFMR
GNMA Coll Ser 94 B2 AMT
6.70%, 3/01/25 5,710 5,865,769
A Ohio St Wtr Dev Auth Solid Waste Disposal
(North Star BHP-Broken Hill) AMT
6.45%, 9/01/20 1,760 1,802,750
-----------
39,064,634
FLORIDA-12.4%
NR Fiddlers Creek Cmnty Dev
Dist Spec Assessment Rev Ser 96
7.50%, 5/01/18 2,300 2,294,963
NR Heritage Greens Cmnty Dev
Dist Spec Assessment Ser 96
8.25%, 5/01/18 3,300 3,293,070
-----------
5,588,033
TOTAL INVESTMENTS-99.1%
(cost $43,657,217) 44,652,667
Other assets less liabilities-0.9% 399,079
NET ASSETS-100% $45,051,746
# Unaudited
* Moody's Rating.
See Glossary of Terms on page 15.
See notes to financial statements.
12
PENNSYLVANIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- ------------------------------------------------------------------------------
MUNICIPAL BONDS-96.7%
PENNSYLVANIA-93.8%
AAA Allegheny Cnty Arpt Rev
(Pittsburgh Int'l) FSA Ser 92B AMT
6.625%,1/01/22 $2,740 $ 2,887,796
BBB- Allegheny Cnty IDA
(Environmental Impt-USX Proj) Ser 96
6.10%, 1/15/18 2,000 1,969,680
A- Bradford Cnty IDA Solid Waste Disposal
(Int'l Paper) Ser 95A AMT
6.60%, 3/01/19 2,500 2,599,300
A- Bradford Cnty IDA Solid Waste Disposal
(Int'l Paper) Ser 95B AMT
5.90%, 12/01/19 715 693,228
A- Cambria Twnship Ind Wtr
Auth Rev Ser 93A AMT
6.00%, 12/01/12 3,100 3,184,568
BBB+ Cumberland Cnty Municipal Auth Rev
(Presbyterian Homes Inc Proj)
6.00%, 12/01/26 7,300 7,102,243
A New Morgan IDA Solid Waste Disp Rev
(New Morgan Landfill Co Inc Proj)
Ser 94 AMT
6.50%, 4/01/19 3,000 3,082,110
BBB- Pennsylvania Econ Dev Fin Auth
(Macmillan Bloedel Clarion Proj)
Ser 95 AMT
7.60%, 12/01/20 5,000 5,532,650
BBB Pennsylvania Econ Dev
Fin Auth Wastewater Rev
(Sun Company) Ser 94A AMT
7.60%, 12/01/24 2,900 3,203,079
AA+ Pennsylvania Hsg Fin Agy
SFMR Ser 92 35D AMT
8.415%, 4/01/25 (a) 9,500 9,303,065
AA+ Pennsylvania Hsg Fin Agy
SFMR Ser 94 41B AMT
6.65%, 4/01/25 5,000 5,160,250
AAA Pennsylvania Higher Ed
Student Loan AMBAC Ser 88D AMT
6.05%, 1/01/19 3,225 3,230,837
AAA Pennsylvania Turnpike
Commission Oil Franchise
Tax Rev AMBAC Ser 94A
6.00%, 12/01/19 3,000 3,032,550
AAA Philadelphia Airport
System Rev Ser 95A AMBAC AMT
6.10%, 6/15/25 3,245 3,274,043
A- Philadelphia Hosp Rev
(Temple Univ) Ser 93A
6.625%, 11/15/23 3,250 3,321,272
AA Potter Cnty Hosp Auth Rev
(Charles Cole Memorial Hosp)
Asset Gty Ser 96
6.05%, 8/01/24 2,860 2,840,781
BBB+ Warren Cnty Hosp Rev
(Warren Gen Hosp Proj) Ser 94B
7.00%, 4/01/19 2,200 2,275,526
-----------
62,692,978
PUERTO RICO-2.9%
BB+ Puerto Rico Port Auth Rev Spec Fac
(American Airlines) Ser 96A AMT
6.25%, 6/01/26 1,945 1,957,215
TOTAL INVESTMENTS-96.7%
(cost $63,482,105) 64,650,193
Other assets less liabilities-3.3% 2,192,333
NET ASSETS-100% $66,842,526
# Unaudited
(a) Inverse floater security--security with variable or floating interest rate
that moves in opposite direction of short-term interest rates.
See Glossary of Terms on page 15.
See notes to financial statements.
13
VIRGINIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
STANDARD PRINCIPAL
& POOR'S AMOUNT
RATINGS# (000) VALUE
- ------------------------------------------------------------------------------
VIRGINIA MUNICIPAL BONDS-98.4%
A Alexandria Redev & Hsg Auth MFHR
(Buckingham Village Apts) Ser 96A AMT
6.15%, 1/01/29 $ 375 $ 373,916
A+ Gile Cnty IDR (Hoeschst Celanese Corp)
Ser 96 AMT
6.45%, 5/01/26 355 366,900
AAA Harrisonburg Redev & Hsg Auth MFHR
(Battery Heights) Ser 96A GNMA
6.25%, 4/20/36 375 380,662
A Henrico Cnty swr (Browning-Ferris)
Ser 97A AMT
5.875%, 3/01/17 380 371,477
AA Henrico Cnty IDR
(Henrico Cnty Reg Jail) Ser 94
7.125%, 8/01/21 1,650 1,852,769
A- Isle of Wight Cnty IDA
Solid Waste (Union Camp Corp) Ser 94 AMT
6.55%, 4/01/24 375 389,171
AAA Newport News IDA (Mennowood Cmntys)
MFHR Ser 96A GNMA
6.25%, 8/01/36 385 391,245
A* Prince William Cnty IDA Hosp Rev
(Potomac Hosp Group) Ser 95
6.75%, 10/01/15 345 363,558
NR Staunton IDA Ed Fac
(Mary Baldwin College) Ser 96
6.75%, 11/01/21 1,570 1,584,946
AAA Suffolk Redev & Hsg Auth MFHR
(Prince William Commons) FNMA Ser 95A AMT
6.50%, 6/01/29 380 385,852
AA Virginia Beach Hlth Care
Hosp Rev (Sentara Bayside)
6.30%, 11/01/21 365 374,439
AA+ Virginia Hsg Dev Auth
(Commonwealth Mtg) SFMR Ser 94G AMT
7.125%, 7/01/22 375 387,570
AA Virginia Resources Auth Swr Rev
(Hopewell Regl Waste Wtr) Ser 95A AMT
6.00%, 10/01/25 355 354,034
TOTAL INVESTMENTS-98.4%
(cost $7,574,216) 7,576,539
Other assets less liabilities-1.6% 123,468
NET ASSETS-100% $7,700,007
# Unaudited
* Moody's Rating.
See Glossary of Terms on page 15.
See notes to financial statements.
14
GLOSSARY OF TERMS ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax--Subject to
CGIC Capital Guaranty Insurance Company
COP Certificate of Participation
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Administration
FNMA Federal National Mortgage Association
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
GO General Obligation
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
NR Rating not applied for
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
VRDN Variable Rate Demand Note
15
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
<TABLE>
<CAPTION>
ARIZONA FLORIDA MASSACHUSETTS
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value (cost:
$11,288,814, $64,920,515, $13,969,029, $14,266,282,
$17,999,511, $69,464,954, $43,657,217, $63,482,105,
$7,574,216, respectively) $11,321,429 $64,972,796 $14,038,436
Cash -0- -0- -0-
Receivable for investment securities sold 2,184,476 1,804,876 51,692
Interest receivable 219,585 1,143,416 241,952
Receivable for shares of beneficial interest sold 76,406 78,265 266,764
Receivable due from Adviser 73,590 -0- 61,321
Other assets 19,321 18,031 14,199
Total assets 13,894,807 68,017,384 14,674,364
LIABILITIES
Due to custodian 17,605 44,400 32,099
Payable for shares of beneficial interest redeemed 60,000 177,380 14,455
Dividends payable 21,041 98,164 22,247
Distribution fee payable 7,672 47,461 9,077
Payable for investment securities purchased -0- 2,109,600 174,490
Advisory fee payable -0- 6,090 -0-
Accrued expenses and other liabilities 69,805 44,866 51,501
Total liabilities 176,123 2,527,961 303,869
NET ASSETS $13,718,684 $65,489,423 $14,370,495
COMPOSITION OF NET ASSETS
Shares of beneficial interest, at par $ 13,297 $ 67,416 $ 13,523
Additional paid-in capital 13,512,642 70,918,155 14,204,068
Distributions in excess of net investment income (15,831) (76,479) (23,715)
Accumulated net realized gain (loss) on investments 175,961 (5,471,950) 107,212
Net unrealized appreciation of investments 32,615 52,281 69,407
$13,718,684 $65,489,423 $14,370,495
CLASS A SHARES
Net assets $ 6,583,020 $14,386,776 $ 4,926,835
Shares of beneficial interest outstanding 637,993 1,481,163 463,592
CLASS B SHARES
Net assets $ 5,731,890 $21,850,799 $ 4,369,826
Shares of beneficial interest outstanding 555,610 2,249,194 411,186
CLASS C SHARES
Net assets $ 1,403,774 $29,251,848 $ 5,073,834
Shares of beneficial interest outstanding 136,078 3,011,198 477,520
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share $10.32 $ 9.71 $10.63
Sales charge--4.25% of public offering price .46 .43 .47
Maximum offering price $10.78 $10.14 $11.10
CLASS B SHARES
Net asset value and offering price per share $10.32 $ 9.71 $10.63
CLASS C SHARES
Net asset value and offering price per share $10.32 $ 9.71 $10.63
</TABLE>
See notes to financial statements.
16
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY OHIO PENNSYLVANIA VIRGINIA
------------- ------------- ------------- ------------- ------------- -------------
<C> <C> <C> <C> <C> <C>
$14,395,195 $18,304,387 $71,159,596 $44,652,667 $64,650,193 $ 7,576,539
-0- -0- -0- -0- 16,185 -0-
-0- 19,734 -0- -0- -0- -0-
296,505 262,039 1,438,378 725,098 1,547,199 171,849
9,669 23,002 312,410 80,775 1,073,786 72,000
41,914 44,737 -0- 3,583 -0- 67,133
10,821 17,002 17,002 17,780 23,083 12,313
14,754,104 18,670,901 72,927,386 45,479,903 67,310,446 7,899,834
50,939 11,076 18,315 151,022 -0- 73,854
100 29,834 171,245 122,410 255,430 67,611
22,018 27,366 101,133 65,211 101,041 11,519
8,850 13,755 53,931 34,738 43,154 4,880
-0- -0- -0- -0- -0- -0-
-0- -0- 14,736 -0- 18,169 -0-
51,394 42,884 63,066 54,776 50,126 41,963
133,301 124,915 422,426 428,157 467,920 199,827
$14,620,803 $18,545,986 $72,504,960 $45,051,746 $66,842,526 $ 7,700,007
$ 14,647 $ 19,437 $ 74,636 $ 46,513 $ 67,791 $ 7,457
14,407,357 19,848,835 75,856,390 47,741,131 68,052,113 7,654,987
(37,277) (15,768) (125,134) (117,438) (130,477) (8,927)
107,163 (1,611,394) (4,995,574) (3,613,910) (2,314,989) 44,167
128,913 304,876 1,694,642 995,450 1,168,088 2,323
$14,620,803 $18,545,986 $72,504,960 $45,051,746 $66,842,526 $ 7,700,007
$ 6,102,682 $ 3,515,285 $13,940,923 $ 6,588,589 $23,553,672 $ 2,789,251
611,365 368,503 1,435,070 680,309 2,388,859 270,091
$ 4,105,511 $ 7,839,692 $36,838,200 $24,553,460 $29,621,028 $ 3,957,180
411,307 821,641 3,792,096 2,534,952 3,004,081 383,211
$ 4,412,610 $ 7,191,009 $21,725,837 $13,909,697 $13,667,826 $ 953,576
442,069 753,599 2,236,442 1,436,033 1,386,197 92,351
$ 9.98 $ 9.54 $ 9.71 $ 9.68 $ 9.86 $10.33
.44 .42 .43 .43 .44 .46
$10.42 $ 9.96 $10.14 $10.11 $10.30 $10.79
$ 9.98 $ 9.54 $ 9.71 $ 9.69 $ 9.86 $10.33
$ 9.98 $ 9.54 $ 9.71 $ 9.69 $ 9.86 $10.33
</TABLE>
17
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1997(UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
<TABLE>
<CAPTION>
ARIZONA FLORIDA MASSACHUSETTS
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 391,463 $ 2,125,955 $ 401,311
EXPENSES
Advisory fee 38,763 208,576 39,768
Distribution fee- Class A 8,692 21,641 5,935
Distribution fee- Class B 27,100 111,588 19,965
Distribution fee- Class C 5,949 149,995 23,881
Custodian 43,955 45,269 43,374
Administrative 27,500 27,500 27,500
Audit & legal 24,885 18,745 21,646
Transfer agency 17,652 22,018 12,642
Printing 7,363 6,127 2,182
Amortization of organizational expenses 4,448 7,311 3,556
Registration 2,271 1,032 1,928
Trustees' fees 1,274 1,274 1,274
Miscellaneous 1,512 2,560 1,443
Total expenses 211,364 623,636 205,094
Less: expenses waived and assumed by Adviser
(see Note B) (139,852) (196,911) (128,588)
Net expenses 71,512 426,725 76,506
Net investment income 319,951 1,699,230 324,805
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments 199,919 940,724 134,059
Net change in unrealized appreciation of investments (216,913) (1,087,545) (177,548)
Net gain (loss) on investments (16,994) (146,821) (43,489)
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 302,957 $ 1,552,409 $ 281,316
</TABLE>
See notes to financial statements.
18
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY OHIO PENNSYLVANIA VIRGINIA
------------- ------------- ------------- ------------- ------------- -------------
<C> <C> <C> <C> <C> <C>
$ 438,170 $ 589,257 $ 2,260,918 $ 1,409,523 $ 2,125,625 $ 218,117
44,335 57,715 234,290 146,106 206,912 22,226
9,091 5,102 21,460 9,569 32,905 3,845
19,380 40,361 191,558 124,240 152,068 18,314
21,252 34,977 111,774 77,631 69,310 4,430
40,173 42,789 42,264 45,621 46,688 40,793
27,500 27,500 27,500 27,500 27,500 27,500
20,509 18,642 23,909 23,813 20,201 18,673
13,680 12,293 33,283 22,105 30,994 12,530
3,320 2,008 12,158 7,369 12,193 1,068
2,839 6,892 6,892 7,205 9,349 2,856
3,963 879 1,094 938 2,438 1,134
1,274 1,274 1,274 1,274 1,274 1,274
2,976 1,918 5,068 1,697 2,362 1,964
210,292 252,350 712,524 495,068 614,194 156,607
(113,748) (129,952) (190,888) (177,189) (143,202) (116,860)
96,544 122,398 521,636 317,879 470,992 39,747
341,626 466,859 1,739,282 1,091,644 1,654,633 178,370
150,010 81,153 633,687 460,260 502,896 46,877
(168,527) (169,607) (597,161) (18,951) (436,701) (60,211)
(18,517) (88,454) 36,526 441,309 66,195 (13,334)
$323,109 $378,405 $1,775,808 $1,532,953 $1,720,828 $165,036
</TABLE>
19
STATEMENTS OF CHANGES IN NET ASSETS ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
<TABLE>
<CAPTION>
ARIZONA FLORIDA MASSACHUSETTS
---------------------------- ---------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31,1997 SEP. 30, MARCH 31,1997 SEP. 30, MARCH 31,1997 SEP. 30,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $ 319,951 $ 390,371 $ 1,699,230 $ 3,233,449 $ 324,805 $ 464,239
Net realized gain on investments 199,919 45,864 940,724 1,662,326 134,059 227,868
Net change in unrealized
appreciation of investments (216,913) 83,969 (1,087,545) (590,349) (177,548) 132,436
Net increase in net assets from
operations 302,957 520,204 1,552,409 4,305,426 281,316 824,543
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A (160,564) (172,713) (405,474) (732,184) (111,931) (125,448)
Class B (131,887) (192,483) (544,717) (1,058,719) (100,256) (129,553)
Class C (28,783) (25,175) (732,855) (1,442,546) (119,944) (209,238)
Distributions in excess of net
investment income
Class A -0- (10,334) -0- (14,102) -0- (3,990)
Class B -0- (11,517) -0- (20,392) -0- (4,120)
Class C -0- (1,507) -0- (27,785) -0- (6,654)
Net realized gain on investments
Class A (12,807) (18,449) -0- -0- (77,311) (12,500)
Class B (11,580) (25,982) -0- -0- (71,686) (13,699)
Class C (2,601) (3,713) -0- -0- (86,735) (30,280)
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST
Net increase (decrease) 3,446,160 4,233,239 (1,032,749) 2,240,362 3,249,004 5,472,421
Total increase (decrease) 3,400,895 4,291,570 (1,163,386) 3,250,060 2,962,457 5,761,482
NET ASSETS
Beginning of year 10,317,789 6,026,219 66,652,809 63,402,749 11,408,038 5,646,556
End of period $13,718,684 $10,317,789 $65,489,423 $66,652,809 $14,370,495 $11,408,038
</TABLE>
See notes to financial statements.
20
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
<TABLE>
<CAPTION>
MICHIGAN MINNESOTA NEW JERSEY
---------------------------- ---------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31,1997 SEP. 30, MARCH 31,1997 SEP. 30, MARCH 31,1997 SEP. 30,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $ 341,626 $ 579,134 $ 466,859 $ 873,763 $ 1,739,282 $ 3,494,083
Net realized gain on investments 150,010 310,017 81,153 566,704 633,687 926,101
Net change in unrealized
appreciation of investments (168,527) (40,072) (169,607) (399,102) (597,161) (334,852)
Net increase in net assets from
operations 323,109 849,079 378,405 1,041,365 1,775,808 4,085,332
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income
Class A (165,728) (284,490) (94,723) (157,583) (379,226) (747,181)
Class B (92,537) (137,182) (194,377) (381,606) (873,746) (1,724,184)
Class C (101,653) (157,462) (168,540) (334,574) (509,857) (1,022,718)
Distributions in excess of net
investment income
Class A -0- (16,370) -0- (6,547) -0- (53,494)
Class B -0- (7,894) -0- (15,854) -0- (123,442)
Class C -0- (9,061) -0- (13,899) -0- (73,220)
Net realized gain on investments
Class A (73,030) (83,366) -0- -0- -0- -0-
Class B (46,231) (44,698) -0- -0- -0- -0-
Class C (52,615) (49,542) -0- -0- -0- -0-
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST
Net increase (decrease) 1,213,230 3,089,421 616,231 860,087 (4,705,918) 9,294,813
Total increase (decrease) 1,004,545 3,148,435 536,996 991,389 (4,692,939) 9,635,906
NET ASSETS
Beginning of year 13,616,258 10,467,823 18,008,990 17,017,601 77,197,899 67,561,993
End of period $14,620,803 $13,616,258 $18,545,986 $18,008,990 $72,504,960 $77,197,899
</TABLE>
See notes to financial statements.
21
STATEMENTS OF CHANGES IN NET ASSETS(CONT.) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
<TABLE>
<CAPTION>
OHIO PENNSYLVANIA VIRGINIA
---------------------------- ---------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31,1997 SEP. 30, MARCH 31,1997 SEP. 30, MARCH 31,1997 SEP. 30,
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $ 1,091,644 $ 2,282,058 $ 1,654,633 $ 2,645,781 $ 178,370 $ 238,998
Net realized gain on investments 460,260 1,554,258 502,896 1,880,108 46,877 180,231
Net change in unrealized
appreciation of investments (18,951) (1,132,174) (436,701) (602,626) (60,211) (28,212)
Net increase in net assets from
operations 1,532,953 2,704,142 1,720,828 3,923,263 165,036 391,017
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income
Class A (176,413) (291,324) (619,957) (555,739) (69,925) (115,677)
Class B (595,253) (1,131,284) (746,561) (1,401,785) (87,551) (100,364)
Class C (371,570) (859,450) (340,358) (688,257) (21,036) (22,957)
Distributions in excess of net
investment income
Class A -0- (9,978) -0- (33,335) -0- (902)
Class B -0- (38,746) -0- (84,082) -0- (783)
Class C -0- (29,435) -0- (41,283) -0- (179)
Net realized gain on investments
Class A -0- -0- -0- -0- (59,025) (15,668)
Class B -0- -0- -0- -0- (85,912) (10,549)
Class C -0- -0- -0- -0- (22,732) (1,013)
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST
Net increase (decrease) (3,928,533) 3,381,831 1,288,776 12,089,059 1,439,371 3,148,417
Total increase (decrease) (3,538,816) 3,725,756 1,302,728 13,207,841 1,258,226 3,271,342
NET ASSETS
Beginning of year 48,590,562 44,864,806 65,539,798 52,331,957 6,441,781 3,170,439
End of period $45,051,746 $48,590,562 $66,842,526 $65,539,798 $ 7,700,007 $ 6,441,781
</TABLE>
See notes to financial statements.
22
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997 (UNAUDITED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Municipal Income Fund II (the "Fund") which is a Massachusetts
Business Trust, is registered under the Investment Company Act of 1940, as a
non-diversified open-end management investment company. The Fund operates as a
series company currently comprised of nine portfolios: Arizona Portfolio,
Florida Portfolio, Massachusetts Portfolio, Michigan Portfolio, Minnesota
Portfolio, New Jersey Portfolio, Ohio Portfolio, Pennsylvania Portfolio and
Virginia Portfolio (the "Portfolios"). Each series is considered to be a
separate entity for financial reporting and tax purposes. Each portfolio offers
Class A, Class B and Class C shares. Class A shares are sold with a front-end
sales charge of up to 4.25% for purchases not exceeding $1,000,000. With
respect to purchases of $1,000,000 or more, Class A shares redeemed within one
year of purchase will be subject to a contingent deferred sales charge of 1%.
Class B shares are currently sold with a contingent deferred sales charge which
declines from 3% to zero depending on the period of time the shares are held.
Class B shares will automatically convert to Class A shares six years after the
end of the calendar month of purchase. Class C shares purchased on or after
July 1, 1996 are subject to a contingent deferred sales charge of 1% on
redemptions made within the first year after purchase. All three classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that each class bears different distribution
expenses and has exclusive voting rights with respect to its distribution plan.
The following is a summary of the significant accounting policies followed by
the Fund.
1. SECURITY VALUATION
The Fund values municipal securities at fair value based on prices provided by
a recognized pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in
comparable securities and various relationships between securities in
determining values.
If market quotations are not readily available from such pricing service, a
municipal security is valued at its fair value as determined in good faith by
the Fund's Adviser, Alliance Capital Management, L.P., under procedures
established by the Fund's Board of Trustees. Short-term securities which mature
in 60 days or less are valued at amortized cost, which approximates market
value, unless this method does not represent fair value.
2. ORGANIZATION EXPENSES
Organization expenses of approximately $68,000 for the Minnesota, $68,000 for
the New Jersey, $87,200 for the Pennsylvania, $71,000 for the Ohio, and $72,000
for the Florida Portfolios have been deferred and are being amortized on a
straight-line basis through June, 1998. Organization expenses of approximately
$25,550 for the Michigan, $31,450 for the Massachusetts, $27,200 for the
Virginia and $41,750 for the Arizona Portfolios have been deferred and are
being amortized on a straight-line basis through February, March, April and
June, 1999, respectively.
3. TAXES
It is the policy of each 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 applicable,
to its shareholders. Therefore, no provisions for federal income or excise
taxes are required.
4. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued daily. Investment transactions are accounted for on
the date securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis. The Fund amortizes premium and accrues
original issue discount and market discount as adjustments to interest income.
The Portfolios follow an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Portfolios.
5. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date and are determined in accordance with income tax regulations.
23
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P., (the "Adviser") an advisory fee at an annual rate of
.625 of 1% of each Portfolio's average daily net assets. Such fees are accrued
daily and paid monthly. For the six months ended March 31, 1997 the Adviser
voluntarily agreed to waive all or a portion of its advisory fees. The
aggregate amounts of such fee waivers were: Arizona Portfolio, $38,763; Florida
Portfolio, $169,411; Massachusetts Portfolio, $39,768; Michigan Portfolio,
$44,335; Minnesota Portfolio, $57,715; New Jersey Portfolio, $163,388; Ohio
Portfolio, $146,106; Pennsylvania Portfolio, $115,702; and Virginia Portfolio
$22,226.
Pursuant to the advisory agreement, the Adviser provides to each Portfolio
certain legal and accounting services. For the six months ended March 31, 1997,
the Adviser voluntarily agreed to waive its fees for such services. In
addition, the Adviser agreed to reimburse each Portfolio for certain operating
expenses. Such expenses amounted to: Arizona Portfolio, $73,589; Massachusetts
Portfolio, $61,320; Michigan Portfolio, $41,913; Minnesota Portfolio, $44,737;
Ohio Portfolio, $3,583 and Virginia Portfolio, $67,134. There was no such
reimbursement for the Florida Portfolio, New Jersey Portfolio and the
Pennsylvania Portfolio.
Each Portfolio compensates Alliance Fund Services, Inc. (a wholly-owned
subsidiary of the Adviser) under a Services Agreement for providing personnel
and facilities to perform transfer agency services for each Portfolio. Such
compensation amounted to: Arizona Portfolio, $9,000; Florida Portfolio,
$12,221; Massachusetts Portfolio, $9,000; Michigan Portfolio, $9,000; Minnesota
Portfolio, $9,000; New Jersey Portfolio, $19,409; Ohio Portfolio, $12,323;
Pennsylvania Portfolio, $17,458; and Virginia Portfolio, $9,000.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The amount of front-end sales
charges received by the Distributor from sales of each respective Portfolio's
Class A shares for the six months ended March 31, 1997 were: Arizona Portfolio,
$1,460; Florida Portfolio, $1,738; Massachusetts Portfolio, $2,549; Michigan
Portfolio, $802; Minnesota Portfolio, $1,002; New Jersey Portfolio, $2,737;
Ohio Portfolio, $1,461; Pennsylvania Portfolio, $3,859; and Virginia Portfolio,
$906. The amount of contingent deferred sales charges imposed upon redemptions
by shareholders of Class B shares for the same period were: Arizona Portfolio,
$7,779; Florida Portfolio, $19,619; Massachusetts Portfolio, $429; Michigan
Portfolio, $3,266; Minnesota Portfolio, $8,909; New Jersey Portfolio, $22,315;
Ohio Portfolio, $15,806; Pennsylvania Portfolio, $7,156; and Virginia
Portfolio, $2,202. The amount of contingent deferred sales charges imposed upon
redemptions by shareholders of Class C shares for the same period were: Arizona
Portfolio, $751; Florida Portfolio, $606; Michigan Portfolio, $881; Minnesota
Portfolio, $673; New Jersey Portfolio, $869; Ohio Portfolio, $905 and
Pennsylvania Portfolio, $344. Massachusetts and Virginia portfolios had no
contingent deferred sales charges.
24
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
NOTE C: DISTRIBUTION SERVICES AGREEMENT
Each Portfolio has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, each Portfolio pays a distribution fee to the Distributor at an
annual rate of up to .30 of 1% of each Portfolio's average daily net assets
attributable to Class A shares and 1% of each Portfolio's average daily net
assets attributable to both Class B and Class C shares. Such fee is accrued
daily and paid monthly. The Agreement provides that the Distributor will use
such payments in their entirety for distribution assistance and promotional
activities. Since the commencement of operations of each Portfolio the
Distributor has incurred expenses in excess of the distribution costs
reimbursed by each Portfolio as follows:
PORTFOLIO CLASS B CLASS C
- -------------- ---------- ----------
Arizona $ 658,401 $ 146,078
Florida 978,900 1,033,728
Massachusetts 530,422 519,788
Michigan 545,553 636,495
Minnesota 901,046 647,835
New Jersey 1,686,329 662,747
Ohio 1,339,591 709,029
Pennsylvania 1,184,682 602,857
Virginia 716,585 193,753
Such costs may be recovered from each Portfolio in future periods so long as
the Agreement is in effect. In accordance with the Agreement, there is no
provision for recovery of unreimbursed distribution costs incurred by the
Distributor beyond the current fiscal year for Class A shares. The Agreement
also provides that the Adviser may use its own resources to finance the
distribution of each Portfolio's shares.
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) for the six months ended March 31, 1997 were as
follows:
PORTFOLIO PURCHASES SALES
- -------------- ----------- -----------
Arizona $11,803,904 $12,069,581
Florida 58,251,702 62,274,820
Massachusetts 7,543,931 4,590,632
Michigan 8,795,627 7,655,207
Minnesota 13,139,466 12,293,573
New Jersey 4,930,797 9,671,814
Ohio 18,152,268 21,978,442
Pennsylvania 22,695,622 21,957,028
Virginia 5,288,927 3,990,470
NOTE E: TAXES
For Federal income tax purposes at September 30, 1996, the Fund had capital
loss carryforwards for the following Portfolios: $7,679 expiring in 2002,
$5,261,150 expiring in 2003, $349,704 expiring 2004, for New Jersey Portfolio;
$6,340,331 expiring in 2003, for Florida Portfolio; $3,714,202 expiring in
2003, $331,999 expiring in 2004, for Ohio Portfolio; $2,750,115 expiring in
2003, for Pennsylvania Portfolio; and $1,185,373 expiring in 2003, $492,981
expiring in 2004, for Minnesota Portfolio. Any net capital losses incurred
after October 31 ("Post October losses") within the taxable year are deemed to
arise on the first business day of each Portfolio's next taxable year. None of
the portfolios had post October losses.
25
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
At March 31, 1997, the cost of securities for federal income tax purposes,
gross unrealized appreciation, gross unrealized depreciation and net unrealized
appreciation of investments for each Portfolio were as follows:
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
PORTFOLIO TAX COST APPRECIATION (DEPRECIATION) APPRECIATION
- -------------- ------------ ------------ ------------ ------------
Arizona $11,289,697 $ 62,245 $ (30,513) $ 31,732
Florida 64,920,515 393,590 (341,309) 52,281
Massachusetts 13,976,598 140,018 (78,180) 61,838
Michigan 14,267,707 176,668 (49,180) 127,488
Minnesota 18,016,233 335,824 (47,670) 288,154
New Jersey 69,486,781 1,941,542 (268,727) 1,672,815
Ohio 43,671,923 1,020,595 (39,851) 980,744
Pennsylvania 63,540,854 1,317,372 (208,033) 1,109,339
Virginia 7,574,216 27,016 (24,693) 2,323
NOTE F: SHARES OF BENEFICIAL INTEREST
There is an unlimited number of $.01 par value shares of beneficial interest
authorized for Class A, Class B and Class C shares.
Transactions in shares of beneficial interest in each Portfolio were as follows:
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
ARIZONA PORTFOLIO (UNAUDITED) SEP. 30,1996 (UNAUDITED) SEP. 30,1996
- ----------------- ------------- ------------ -------------- --------------
CLASS A
Shares sold 222,180 245,077 $2,320,893 $2,497,924
Shares issued in
reinvestment of
dividends and
distributions 4,827 7,348 50,293 75,448
Shares converted
from Class B 5,552 8,585 58,577 85,589
Shares redeemed (21,617) (65,056) (224,650) (660,264)
Net increase 210,942 195,954 $2,205,113 $1,998,697
CLASS B
Shares sold 104,728 222,576 $1,091,315 $2,277,718
Shares issued in
reinvestment of
dividends and
distributions 7,069 9,322 73,650 95,597
Shares converted
to Class A (5,552) (8,585) (58,577) (85,589)
Shares redeemed (54,148) (27,452) (565,368) (280,976)
Net increase 52,097 195,861 $ 541,020 $2,006,750
CLASS C
Shares sold 76,923 44,293 $ 800,045 $ 451,216
Shares issued in
reinvestment of
dividends and
distributions 1,467 2,349 15,280 24,160
Shares redeemed (11,088) (24,564) (115,298) (247,584)
Net increase 67,302 22,078 $ 700,027 $ 227,792
26
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
FLORIDA PORTFOLIO (UNAUDITED) SEP. 30,1996 (UNAUDITED) SEP. 30,1996
- ----------------- ------------- ------------ -------------- --------------
CLASS A
Shares sold 83,380 519,985 $ 817,477 $ 5,045,697
Shares issued in
reinvestment of
dividends and
distributions 16,503 29,497 161,985 286,857
Shares converted
from Class B 37,552 22,916 368,264 219,737
Shares redeemed (125,528) (351,639) (1,230,540) (3,406,503)
Net increase 11,907 220,759 $ 117,186 $ 2,145,788
CLASS B
Shares sold 328,583 649,530 $ 3,223,153 $ 6,337,001
Shares issued in
reinvestment of
dividends and
distributions 24,334 44,597 238,839 434,054
Shares converted
to Class A (37,552) (22,916) (368,264) (219,737)
Shares redeemed (349,521) (544,509) (3,431,326) (5,277,524)
Net increase (decrease) (34,156) 126,702 $ (337,598) $ 1,273,794
CLASS C
Shares sold 349,230 594,748 $ 3,426,334 $ 5,803,084
Shares issued in
reinvestment of
dividends and
distributions 29,745 85,081 291,996 834,227
Shares redeemed (460,662) (800,351) (4,530,667) (7,816,531)
Net decrease (81,687) (120,522) $ (812,337) $(1,179,220)
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
MASSACHUSETTS MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
PORTFOLIO (UNAUDITED) SEP. 30,1996 (UNAUDITED) SEP. 30,1996
- ------------- ------------- ------------ -------------- --------------
CLASS A
Shares sold 196,030 172,711 $2,127,271 $1,833,733
Shares issued in
reinvestment of
dividends and
distributions 9,034 4,244 97,203 45,329
Shares redeemed (37,448) (8,362) (405,589) (89,000)
Net increase 167,616 168,593 $1,818,885 $1,790,062
CLASS B
Shares sold 66,040 191,547 $ 714,015 $2,024,593
Shares issued in
reinvestment of
dividends and
distributions 8,515 5,666 91,626 60,463
Shares redeemed (3,143) (24,584) (33,746) (264,300)
Net increase 71,412 172,629 $ 771,895 $1,820,756
CLASS C
Shares sold 121,019 371,867 $1,308,184 $3,967,597
Shares issued in
reinvestment of
dividends and
distributions 17,341 18,527 186,818 197,520
Shares redeemed (77,222) (217,586) (836,778) (2,303,514)
Net increase 61,138 172,808 $ 658,224 $1,861,603
27
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
Michigan Portfolio (unaudited) Sep. 30,1996 (unaudited) SEP. 30,1996
- ------------------ ------------- ------------ -------------- --------------
CLASS A
Shares sold 31,391 101,489 $ 318,392 $1,014,340
Shares issued in
reinvestment of
dividends and
distributions 12,845 25,151 130,336 255,525
Shares converted
from Class B 28 8,229 286 81,522
Shares redeemed (37,946) (40,577) (389,059) (412,901)
Net increase 6,318 94,292 $ 59,955 $ 938,486
CLASS B
Shares sold 68,176 159,283 $ 690,333 $1,598,649
Shares issued in
reinvestment of
dividends and
distributions 7,646 9,868 79,179 100,283
Shares converted
to Class A (28) (8,229) (286) (81,522)
Shares redeemed (15,606) (49,958) (158,141) (499,250)
Net increase 60,188 110,964 $ 611,085 $1,118,160
CLASS C
Shares sold 92,096 250,006 $ 935,269 $2,504,024
Shares issued in
reinvestment of
dividends and
distributions 12,501 16,967 131,225 171,824
Shares redeemed (51,753) (163,569) (524,304) (1,643,073)
Net increase 52,844 103,404 $ 542,190 $1,032,775
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
MINNESOTA MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
PORTFOLIO (UNAUDITED) SEP. 30,1996 (UNAUDITED) SEP. 30,1996
- --------- ------------- ------------ -------------- --------------
CLASS A
Shares sold 41,044 92,916 $ 397,547 $ 881,265
Shares issued in
reinvestment of
dividends and
distributions 6,512 12,846 62,923 122,393
Shares converted
from Class B 4,151 387 39,850 3,685
Shares redeemed (13,604) (30,018) (131,532) (284,383)
Net increase 38,103 76,131 $ 368,788 $ 722,960
CLASS B
Shares sold 61,719 222,829 $ 595,935 $2,141,082
Shares issued in
reinvestment of
dividends and
distributions 13,730 28,415 132,679 270,706
Shares converted
to Class A (4,151) (387) (39,850) (3,685)
Shares redeemed (115,146) (154,177) (1,114,635) (1,473,158)
Net increase(decrease) (43,848) 96,680 $ (425,871) $ 934,945
CLASS C
Shares sold 112,812 123,688 $1,090,705 $1,186,392
Shares issued in
reinvestment of
dividends and
distributions 13,764 30,164 132,998 287,651
Shares redeemed (56,966) (238,952) (550,389) (2,271,861)
Net increase(decrease) 69,610 (85,100) $ 673,314 $ (797,818)
28
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
NEW JERSEY MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
PORTFOLIO (UNAUDITED) SEP. 30,1996 (UNAUDITED) SEP. 30,1996
- ---------- ------------- ------------ -------------- --------------
CLASS A
Shares sold 144,831 625,486 $ 1,419,187 $ 6,081,158
Shares issued in
reinvestment of
dividends and
distributions 21,961 52,967 215,802 512,440
Shares converted
from Class B 9,274 10,942 91,007 110,519
Shares redeemed (338,414) (295,089) (3,329,764) (2,850,599)
Net increase(decrease) (162,348) 394,306 $(1,603,768) $ 3,853,518
CLASS B
Shares sold 181,975 1,079,052 $ 1,786,179 $10,515,892
Shares issued in
reinvestment of
dividends and
distributions 54,516 109,643 535,947 1,062,642
Shares converted
to Class A (9,274) (10,942) (91,007) (110,519)
Shares redeemed (456,944) (749,409) (4,490,255) (7,256,786)
Net increase(decrease) (229,727) 428,344 $(2,259,136) $ 4,211,229
CLASS C
Shares sold 157,261 633,743 $ 1,545,844 $ 6,162,975
Shares issued in
reinvestment of
dividends and
distributions 34,197 78,732 336,182 763,028
Shares redeemed (277,326) (591,207) (2,725,040) (5,695,937)
Net increase(decrease) (85,868) 121,268 $ (843,014) $ 1,230,066
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
OHIO PORTFOLIO (UNAUDITED) SEP. 30,1996 (UNAUDITED) SEP. 30,1996
- -------------- ------------- ------------ -------------- --------------
CLASS A
Shares sold 74,951 254,120 $ 728,653 $ 2,463,924
Shares issued in
reinvestment of
dividends and
distributions 11,538 20,355 112,323 195,466
Shares converted
from Class B 925 6,776 9,067 64,703
Shares redeemed (37,239) (88,508) (361,877) (851,889)
Net increase 50,175 192,743 $ 488,166 $ 1,872,204
CLASS B
Shares sold 205,881 708,116 $ 2,007,719 $ 6,793,206
Shares issued in
reinvestment of
dividends and
distributions 42,757 84,542 416,431 813,053
Shares converted
to Class A (925) (6,776) (9,067) (64,703)
Shares redeemed (348,683) (437,800) (3,393,114) (4,210,177)
Net increase(decrease) (100,970) 348,082 $ (978,031) $ 3,331,379
CLASS C
Shares sold 78,327 306,053 $ 760,735 $ 2,943,537
Shares issued in
reinvestment of
dividends and
distributions 25,940 58,817 252,550 566,008
Shares redeemed (458,034) (553,963) (4,451,953) (5,331,297)
Net decrease (353,767) (189,093) $(3,438,668) $(1,821,752)
29
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
PENNSYLVANIA MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
PORTFOLIO (UNAUDITED) SEP. 30,1996 (UNAUDITED) SEP. 30,1996
- ------------ ------------- ------------ -------------- --------------
CLASS A
Shares sold 320,377 1,374,963 $ 3,192,180 $13,527,078
Shares issued in
reinvestment of
dividends and
distributions 39,268 22,540 392,181 220,725
Shares converted
from Class B 9,158 48,579 91,719 472,346
Shares redeemed (122,053) (208,292) (1,217,232) (2,034,747)
Net increase 246,750 1,237,790 $ 2,458,848 $12,185,402
CLASS B
Shares sold 221,063 533,742 $ 2,204,603 $ 5,244,693
Shares issued in
reinvestment of
dividends and
distributions 40,162 81,750 401,044 800,878
Shares converted
to Class A (9,158) (48,579) (91,719) (472,346)
Shares redeemed (335,387) (440,056) (3,350,279) (4,312,987)
Net increase(decrease) (83,320) 126,857 $ (836,351) $ 1,260,238
CLASS C
Shares sold 118,217 325,151 $ 1,180,544 $ 3,213,975
Shares issued in
reinvestment of
dividends and
distributions 21,938 45,719 219,042 448,507
Shares redeemed (173,352) (511,735) (1,733,307) (5,019,063)
Net decrease (33,197) (140,865) $ (333,721) $(1,356,581)
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
MARCH 31,1997 YEAR ENDED MARCH 31,1997 YEAR ENDED
VIRGINIA PORTFOLIO (UNAUDITED) SEP. 30,1996 (UNAUDITED) SEP. 30,1996
- ------------------ ------------- ------------ -------------- --------------
CLASS A
Shares sold 40,167 71,182 $ 420,177 $ 740,685
Shares issued in
reinvestment of
dividends and
distributions 8,007 8,689 83,671 90,991
Shares converted
from Class B -0- 103 -0- 1,094
Shares redeemed (10,219) (28,103) (106,552) (294,511)
Net increase 37,955 51,871 $ 397,296 $ 538,259
CLASS B
Shares sold 67,685 226,100 $ 711,922 $2,369,231
Shares issued in
reinvestment of
dividends and
distributions 12,862 7,632 134,287 79,869
Shares converted
to Class A -0- (103) -0- (1,094)
Shares redeemed (13,637) (33,245) (143,145) (345,773)
Net increase 66,910 200,384 $ 703,064 $2,102,233
CLASS C
Shares sold 36,647 59,047 $ 390,890 $ 615,683
Shares issued in
reinvestment of
dividends and
distributions 3,793 2,054 39,572 21,491
Shares redeemed (8,795) (12,272) (91,451) (129,249)
Net increase 31,645 48,829 $ 339,011 $ 507,925
30
FINANCIAL HIGHLIGHTS ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
------------------------------------------------------
CLASS A
------------------------------------------------------
SIX MONTHS JUNE 1,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.32 $10.29 $ 9.77 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .29(c) .55(c) .56 .20
Net realized and unrealized gain (loss)
on investments .02 .14 .53 (.23)
Net increase (decrease) in net asset
value from operations .31 .69 1.09 (.03)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.29) (.55) (.56) (.20)
Distributions in excess of net
investment income -0- (.03) (.01) -0-
Distributions from net realized gains (.02) (.08) -0- -0-
Total dividends and distributions (.31) (.66) (.57) (.20)
Net asset value, end of period $10.32 $10.32 $10.29 $ 9.77
TOTAL RETURN
Total investment return based on net
asset value (d) 3.02% 6.84% 11.56% (.35)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $6,583 $4,409 $2,379 $930
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .78%(e) .78% .78% .78%(e)
Expenses, before waivers/reimbursements 3.03%(e) 3.69% 4.88% 7.71%(e)
Net investment income, net of waivers/
reimbursements 5.54%(e) 5.33% 5.56% 5.82%(e)
Portfolio turnover rate 99% 244% 85% 81%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------
SIX MONTHS JUNE 1,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.32 $10.29 $9.77 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .25(c) .47(c) .49 .18
Net realized and unrealized gain (loss)
on investments .02 .14 .53 (.24)
Net increase (decrease) in net asset
value from operations .27 .61 1.02 (.06)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.25) (.47) (.49) (.17)
Distributions in excess of net
investment income -0- (.03) (.01) -0-
Distributions from net realized gains (.02) (.08) -0- -0-
Total dividends and distributions (.27) (.58) (.50) (.17)
Net asset value, end of period $10.32 $10.32 $10.29 $ 9.77
TOTAL RETURN
Total investment return based on net
asset value (d) 2.67% 6.10% 10.78% (.58)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $5,732 $5,199 $3,166 $1,677
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.48%(e) 1.48% 1.48% 1.48%(e)
Expenses, before waivers/reimbursements 3.73%(e) 4.40% 5.58% 8.41%(e)
Net investment income, net of waivers/
reimbursements 4.83%(e) 4.62% 4.89% 5.13%(e)
Portfolio turnover rate 99% 244% 85% 81%
</TABLE>
See footnote summary on page 48.
31
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
------------------------------------------------------
CLASS C
------------------------------------------------------
SIX MONTHS JUNE 1,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.32 $10.30 $ 9.77 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .25(c) .47(c) .49 .17
Net realized and unrealized gain (loss)
on investments .02 .13 .54 (.23)
Net increase (decrease) in net asset
value from operations .27 .60 1.03 (.06)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.25) (.47) (.49) (.17)
Distributions in excess of net
investment income -0- (.03) (.01) -0-
Distributions from net realized gains (.02) (.08) -0- -0-
Total dividends and distributions (.27) (.58) (.50) (.17)
Net asset value, end of period $10.32 $10.32 $10.30 $ 9.77
TOTAL RETURN
Total investment return based on net
asset value (d) 2.67% 6.00% 10.89% (.58)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $1,404 $710 $481 $485
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.48%(e) 1.48% 1.48% 1.48%(e)
Expenses, before waivers/reimbursements 3.72%(e) 4.41% 5.58% 8.41%(e)
Net investment income, net of waivers/
reimbursements 4.83%(e) 4.61% 4.90% 4.70%(e)
Portfolio turnover rate 99% 244% 85% 81%
</TABLE>
See footnote summary on page 48.
32
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
-------------------------------------------------------------------
CLASS A
-------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.73 $ 9.58 $ 8.89 $10.25 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .28(c) .54(c) .55 .55 .16
Net realized and unrealized gain (loss)
on investments (.03) .16 .69 (1.35) .25
Net increase (decrease) in net asset
value from operations .25 .70 1.24 (.80) .41
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.27) (.54) (.55) (.55) (.16)
Distributions in excess of net
investment income -0- (.01) -0- -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.27) (.55) (.55) (.56) (.16)
Net asset value, end of period $ 9.71 $ 9.73 $ 9.58 $ 8.89 $10.25
TOTAL RETURN
Total investment return based on net
asset value (d) 2.63% 7.45% 14.44% (8.03)% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $14,386 $14,297 $11,956 $8,227 $4,145
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .73%(e) .73% .73% .38% -0-%(e)
Expenses, before waivers/reimbursements 1.32%(e) 1.33% 1.33% 1.27% 1.30%(e)
Net investment income, net of waivers/
reimbursements 5.65%(e) 5.52% 5.91% 5.70% 5.44%(e)
Portfolio turnover rate 85% 237% 146% 185% 82%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30,TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.74 $9.58 $8.89 $10.25 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .24(c) .47(c) .47 .48 .14
Net realized and unrealized gain (loss)
on investments (.03) .17 .70 (1.35) .25
Net increase (decrease) in net asset
value from operations .21 .64 1.17 (.87) .39
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.24) (.47) (.47) (.48) (.14)
Distributions in excess of net
investment income -0- (.01) (.01) -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.24) (.48) (.48) (.49) (.14)
Net asset value, end of period $ 9.71 $ 9.74 $ 9.58 $ 8.89 $10.25
TOTAL RETURN
Total investment return based on
net asset value (d) 2.16% 6.78% 13.56% (8.72)% 3.91%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $21,851 $22,235 $20,660 $18,048 $9,588
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.43%(e) 1.43% 1.42% 1.08% .61%(e)
Expenses, before waivers/reimbursements 2.02%(e) 2.03% 2.03% 1.98% 2.00%(e)
Net investment income, net of waivers/
reimbursements 4.94%(e) 4.81% 5.22% 4.99% 4.74%(e)
Portfolio turnover rate 85% 237% 146% 185% 82%
</TABLE>
See footnote summary on page 48.
33
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
-------------------------------------------------------------------
CLASS C
-------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.74 $ 9.58 $ 8.89 $10.25 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .24(c) .47(c) .47 .48 .14
Net realized and unrealized gain (loss)
on investments (.03) .17 .70 (1.35) .25
Net increase (decrease) in net asset
value from operations .21 .64 1.17 (.87) .39
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.24) (.47) (.47) (.48) (.14)
Distributions in excess of net
investment income -0- (.01) (.01) -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.24) (.48) (.48) (.49) (.14)
Net asset value, end of period $ 9.71 $ 9.74 $ 9.58 $ 8.89 $10.25
TOTAL RETURN
Total investment return based on net
asset value (d) 2.15% 6.78% 13.56% (8.72)% 3.91%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $29,252 $30,121 $30,787 $42,405 $28,249
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.43%(e) 1.43% 1.42% 1.08% .61%(e)
Expenses, before waivers/reimbursements 2.02%(e) 2.02% 2.03% 1.97% 2.00%(e)
Net investment income, net of waivers
/reimbursements 4.94%(e) 4.81% 5.27% 4.97% 4.74%(e)
Portfolio turnover rate 85% 237% 146% 185% 82%
</TABLE>
See footnote summary on page 48.
34
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
-------------------------------------------------------
CLASS A
-------------------------------------------------------
SIX MONTHS MARCH 29,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.85 $10.50 $10.12 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .30(c) .60(c) .58 .31
Net realized and unrealized gain (loss)
on investments (.01) .44 .41 .11
Net increase in net asset value from
operations .29 1.04 .99 .42
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.31) (.59) (.58) (.30)
Distributions in excess of net
investment income -0- (.02) (.03) -0-
Distributions from net realized gains (.20) (.08) -0- -0-
Total dividends and distributions (.51) (.69) (.61) (.30)
Net asset value, end of period $10.63 $10.85 $10.50 $10.12
TOTAL RETURN
Total investment return based on
net asset value (d) 2.69% 10.25% 10.19% 4.14%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $4,927 $3,211 $1,337 $565
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .72%(e) .62% .60% .60%(e)
Expenses, before waivers/reimbursements 2.73%(e) 3.15% 6.44% 13.20%(e)
Net investment income, net of waivers/
reimbursements 5.60%(e) 5.62% 5.67% 5.98%(e)
Portfolio turnover rate 37% 246% 155% 146%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------
SIX MONTHS MARCH 29,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- --------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.84 $10.49 $10.12 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .26(c) .52(c) .52 .27
Net realized and unrealized gain
on investments -0- .45 .39 .11
Net increase in net asset value
from operations .26 .97 .91 .38
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.27) (.52) (.52) (.26)
Distributions in excess of net
investment income -0- (.02) (.02) -0-
Distributions from net realized gains (.20) (.08) -0- -0-
Total dividends and distributions (.47) (.62) (.54) (.26)
Net asset value, end of period $10.63 $10.84 $10.49 $10.12
TOTAL RETURN
Total investment return based on
net asset value (d) 2.45% 9.52% 9.32% 3.78%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $4,370 $3,683 $1,754 $725
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.42%(e) 1.32% 1.30% 1.30%(e)
Expenses, before waivers/reimbursements 3.44%(e) 3.85% 7.14% 13.90%(e)
Net investment income, net of waivers/
reimbursements 4.90%(e) 4.93% 4.90% 5.13%(e)
Portfolio turnover rate 37% 246% 155% 146%
</TABLE>
See footnote summary on page 48.
35
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
--------------------------------------------------------
CLASS C
--------------------------------------------------------
SIX MONTHS MARCH 29,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.84 $10.49 $10.12 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .26(c) .52(c) .52 .25
Net realized and unrealized gainon
investments -0- .45 .39 .13
Net increase in net asset value from
operations .26 .97 .91 .38
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.27) (.52) (.52) (.26)
Distributions in excess of net
investment income -0- (.02) (.02) -0-
Distributions from net realized gains (.20) (.08) -0- -0-
Total dividends and distributions (.47) (.62) (.54) (.26)
Net asset value, end of period $10.63 $10.84 $10.49 $10.12
TOTAL RETURN
Total investment return based on
net asset value (d) 2.45% 9.52% 9.32% 3.78%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $5,074 $4,514 $2,556 $774
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.42%(e) 1.31% 1.30% 1.30%(e)
Expenses, before waivers/reimbursements 3.45%(e) 3.84% 7.14% 13.90%(e)
Net investment income, net of waivers/
reimbursements 4.90%(e) 4.88% 4.85% 4.00%(e)
Portfolio turnover rate 37% 246% 155% 146%
</TABLE>
See footnote summary on page 48.
36
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
MICHIGAN PORTFOLIO
------------------------------------------------------
CLASS A
------------------------------------------------------
SIX MONTHS FEBRUARY 25,
ENDED YEAR ENDED SEPTEMBER 30, 1994(a) TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.12 $10.10 $ 9.35 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .26(c) .52(c) .52 .33
Net realized and unrealized gain (loss)
on investments .01 .22 .78 (.65)
Net increase (decrease) in net asset
value from operations .27 .74 1.30 (.32)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.28) (.52) (.52) (.33)
Distributions in excess of net
investment income -0- (.03) (.03) -0-
Distributions from net realized gains (.13) (.17) -0- -0-
Total dividends and distributions (.41) (.72) (.55) (.33)
Net asset value, end of period $ 9.98 $10.12 $10.10 $ 9.35
TOTAL RETURN
Total investment return based on net
asset value (d) 2.59% 7.54% 14.40% (3.24)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $6,103 $6,123 $5,158 $2,473
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .96%(e) .96% 1.36% .93%(e)
Expenses, before waivers/reimbursements 2.56%(e) 2.77% 3.43% 3.97%(e)
Net investment income, net of waivers/
reimbursements 5.22%(e) 5.21% 5.27% 5.83%(e)
Portfolio turnover rate 54% 242% 151% 222%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------
SIX MONTHS FEBRUARY 25,
ENDED YEAR ENDED SEPTEMBER 30, 1994(a) TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.12 $10.10 $ 9.35 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .23(c) .45(c) .45 .29
Net realized and unrealized gain (loss)
on investments -0- .22 .78 (.65)
Net increase (decrease) in net asset
value from operations .23 .67 1.23 (.36)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.24) (.45) (.45) (.29)
Distributions in excess of net
investment income -0- (.03) (.03) -0-
Distributions from net realized gains (.13) (.17) -0- -0-
Total dividends and distributions (.37) (.65) (.48) (.29)
Net asset value, end of period $ 9.98 $10.12 $10.10 $ 9.35
TOTAL RETURN
Total investment return based on net
asset value (d) 2.24% 6.80% 13.58% (3.65)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $4,106 $3,553 $2,424 $1,722
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.66%(e) 1.66% 2.06% 1.63%(e)
Expenses, before waivers/reimbursements 3.26%(e) 3.48% 4.12% 4.67%(e)
Net investment income, net of waivers/
reimbursements 4.51%(e) 4.51% 4.57% 4.93%(e)
Portfolio turnover rate 54% 242% 151% 222%
</TABLE>
See footnote summary on page 48.
37
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
MICHIGAN PORTFOLIO
------------------------------------------------------
CLASS C
------------------------------------------------------
SIX MONTHS FEBRUARY 25,
ENDED YEAR ENDED SEPTEMBER 30, 1994(a) TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.12 $10.10 $ 9.35 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .23(c) .45(c) .45 .29
Net realized and unrealized gain (loss)
on investments -0- .22 .78 (.65)
Net increase (decrease) in net asset
value from operations .23 .67 1.23 (.36)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.24) (.45) (.45) (.29)
Distributions in excess of net
investment income -0- (.03) (.03) -0-
Distributions from net realized gains (.13) (.17) -0- -0-
Total dividends and distributions (.37) (.65) (.48) (.29)
Net asset value, end of period $ 9.98 $10.12 $10.10 $ 9.35
TOTAL RETURN
Total investment return based on net
asset value (d) 2.24% 6.80% 13.58% (3.65)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $4,413 $3,940 $2,886 $2,778
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.66%(e) 1.66% 2.06% 1.63%(e)
Expenses, before waivers/reimbursements 3.26%(e) 3.48% 4.13% 4.67%(e)
Net investment income, net of waivers/
reimbursements 4.52%(e) 4.50% 4.69% 4.92%(e)
Portfolio turnover rate 54% 242% 151% 222%
</TABLE>
See footnote summary on page 48.
38
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO
--------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.58 $9.49 $9.19 $10.28 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .27(c) .53(c) .53 .55 .15
Net realized and unrealized gain (loss)
on investments (.04) .11 .32 (1.09) .28
Net increase (decrease) in net asset
value from operations .23 .64 .85 (.54) .43
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.27) (.53) (.53) (.55) (.15)
Distributions in excess of net
investment income -0- (.02) (.02) -0- -0-
Total dividends and distributions (.27) (.55) (.55) (.55) (.15)
Net asset value, end of period $9.54 $9.58 $9.49 $9.19 $10.28
TOTAL RETURN
Total investment return based on net
asset value (d) 2.38% 6.95% 9.63% (5.35)% 4.34%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $3,515 $3,165 $2,414 $2,125 $994
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .75%(e) .72% .71% .09% -0-%(e)
Expenses, before waivers/reimbursements 2.16%(e) 2.19% 2.30% 2.12% 1.89%(e)
Net investment income, net of waivers/
reimbursements 5.63%(e) 5.54% 5.71% 5.71% 5.20%(e)
Portfolio turnover rate 67% 195% 117% 143% 61%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.58 $ 9.49 $ 9.18 $10.28 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .24(c) .46(c) .46 .48 .13
Net realized and unrealized gain (loss)
on investments (.05) .11 .33 (1.10) .28
Net increase (decrease) in net asset
value from operations .19 .57 .79 (.62) .41
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.23) (.46) (.46) (.48) (.13)
Distributions in excess of net
investment income -0- (.02) (.02) -0- -0-
Total dividends and distributions (.23) (.48) (.48) (.48) (.13)
Net asset value, end of period $ 9.54 $ 9.58 $ 9.49 $ 9.18 $10.28
TOTAL RETURN
Total investment return based on net
asset value (d) 2.00% 6.15% 8.90% (6.15)% 4.16%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $7,840 $8,291 $7,299 $6,150 $2,665
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.46%(e) 1.42% 1.42% .80% .43%(e)
Expenses, before waivers/reimbursements 2.87%(e) 2.89% 3.02% 2.83% 2.59%(e)
Net investment income, net of waivers/
reimbursements 4.92%(e) 4.82% 4.97% 5.00% 4.50%(e)
Portfolio turnover rate 67% 195% 117% 143% 61%
</TABLE>
See footnote summary on page 48.
39
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO
--------------------------------------------------------------------
CLASS C
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.58 $ 9.50 $ 9.19 $10.27 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .24(c) .46(c) .46 .48 .13
Net realized and unrealized gain (loss)
on investments (.05) .10 .33 (1.08) .27
Net increase (decrease) in net asset
value from operations .19 .56 .79 (.60) .40
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.23) (.46) (.46) (.48) (.13)
Distributions in excess of net
investment income -0- (.02) (.02) -0- -0-
Total dividends and distributions (.23) (.48) (.48) (.48) (.13)
Net asset value, end of period $ 9.54 $ 9.58 $ 9.50 $ 9.19 $10.27
TOTAL RETURN
Total investment return based on net
asset value (d) 2.00% 6.03% 8.89% (5.95)% 4.06%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $7,191 $6,553 $7,305 $9,489 $6,697
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.45%(e) 1.41% 1.41% .79% .43%(e)
Expenses, before waivers/reimbursements 2.86%(e) 2.88% 3.00% 2.82% 2.59%(e)
Net investment income, net of waivers/
reimbursements 4.93%(e) 4.82% 5.05% 4.90% 4.50%(e)
Portfolio turnover rate 67% 195% 117% 143% 61%
</TABLE>
See footnote summary on page 48.
40
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
--------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.72 $ 9.65 $ 9.07 $10.29 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .26(c) .51(c) .54 .55 .15
Net realized and unrealized gain (loss)
on investments (.01) .11 .59 (1.22) .29
Net increase (decrease) in net asset
value from operations .25 .62 1.13 (.67) .44
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.26) (.51) (.54) (.55) (.15)
Distributions in excess of net
investment income -0- (.04) (.01) -0- -0-
Total dividends and distributions (.26) (.55) (.55) (.55) (.15)
Net asset value, end of period $ 9.71 $ 9.72 $ 9.65 $ 9.07 $10.29
TOTAL RETURN
Total investment return based on net
asset value (d) 2.58% 6.57% 12.91% (6.67)% 4.44%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $13,941 $15,520 $11,612 $9,257 $6,679
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .82%(e) .82% .82% .20% -0-%(e)
Expenses, before waivers/reimbursements 1.33%(e) 1.35% 1.35% 1.33% 1.29%(e)
Net investment income, net of waivers/
reimbursements 5.21%(e) 5.26% 5.73% 5.65% 5.37%(e)
Portfolio turnover rate 7% 132% 86% 171% 47%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.72 $ 9.66 $ 9.07 $10.28 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .22(c) .44(c) .47 .48 .13
Net realized and unrealized gain (loss)
on investments (.01) .10 .60 (1.21) .28
Net increase (decrease) in net asset
value from operations .21 .54 1.07 (.73) .41
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.22) (.45) (.47) (.48) (.13)
Distributions in excess of net
investment income -0- (.03) (.01) -0- -0-
Total dividends and distributions (.22) (.48) (.48) (.48) (.13)
Net asset value, end of period $ 9.71 $ 9.72 $ 9.66 $ 9.07 $10.28
TOTAL RETURN
Total investment return based on net
asset value (d) 2.19% 5.66% 12.15% (7.28)% 4.16%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $36,838 $39,099 $34,695 $30,459 $15,637
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.53%(e) 1.53% 1.53% .91% .63%(e)
Expenses, before waivers/reimbursements 2.04%(e) 2.05% 2.06% 2.03% 1.99%(e)
Net investment income, net of waivers/
reimbursements 4.50%(e) 4.56% 5.03% 4.96% 4.67%(e)
Portfolio turnover rate 7% 132% 86% 171% 47%
</TABLE>
See footnote summary on page 48.
41
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
--------------------------------------------------------------------
CLASS C
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.72 $ 9.66 $ 9.07 $10.28 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .22(c) .44(c) .47 .48 .13
Net realized and unrealized gain (loss)
on investments (.01) .10 .60 (1.21) .28
Net increase (decrease) in net asset
value from operations .21 .54 1.07 (.73) .41
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.22) (.45) (.47) (.48) (.13)
Distributions in excess of net
investment income -0- (.03) (.01) -0- -0-
Total dividends and distributions (.22) (.48) (.48) (.48) (.13)
Net asset value, end of period $ 9.71 $ 9.72 $ 9.66 $ 9.07 $10.28
TOTAL RETURN
Total investment return based on net
asset value (d) 2.19% 5.66% 12.14% (7.28)% 4.16%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $21,726 $22,579 $21,255 $26,472 $21,193
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.52%(e) 1.52% 1.52% .90% .63%(e)
Expenses, before waivers/reimbursements 2.03%(e) 2.04% 2.06% 2.02% 1.99%(e)
Net investment income, net of waivers/
reimbursements 4.51%(e) 4.56% 5.09% 4.93% 4.67%(e)
Portfolio turnover rate 7% 132% 86% 171% 47%
</TABLE>
See footnote summary on page 48.
42
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
OHIO PORTFOLIO
--------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.61 $9.53 $9.06 $10.26 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .26(c) .52(c) .54 .55 .15
Net realized and unrealized gain (loss)
on investments .08 .11 .48 (1.19) .26
Net increase (decrease) in net asset
value from operations .34 .63 1.02 (.64) .41
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.27) (.53) (.54) (.55) (.15)
Distributions in excess of net
investment income -0- (.02) (.01) -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.27) (.55) (.55) (.56) (.15)
Net asset value, end of period $9.68 $9.61 $9.53 $9.06 $10.26
TOTAL RETURN
Total investment return based on net
asset value (d) 3.54% 6.72% 11.63% (6.44)% 4.15%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $6,589 $6,054 $4,170 $2,810 $1,050
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .75%(e) .75% .75% .04% -0-%(e)
Expenses, before waivers/reimbursements 1.51%(e) 1.48% 1.51% 1.42% 1.32%(e)
Net investment income, net of waivers/
reimbursements 5.28%(e) 5.47% 5.74% 5.67% 5.30%(e)
Portfolio turnover rate 39% 182% 108% 161% 55%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.61 $9.54 $9.06 $10.26 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .22(c) .46(c) .47 .48 .13
Net realized and unrealized gain (loss)
on investments .09 .09 .49 (1.19) .26
Net increase (decrease) in net asset
value from operations .31 .55 .96 (.71) .39
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.23) (.46) (.47) (.48) (.13)
Distributions in excess of net
investment income -0- (.02) (.01) -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.23) (.48) (.48) (.49) (.13)
Net asset value, end of period $ 9.69 $ 9.61 $ 9.54 $ 9.06 $10.26
TOTAL RETURN
Total investment return based on net
asset value (d) 3.27% 5.82% 10.88% (7.13)% 3.97%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $24,553 $25,334 $21,821 $20,267 $8,952
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.46%(e) 1.46% 1.46% .74% .17%(e)
Expenses, before waivers/reimbursements 2.22%(e) 2.18% 2.21% 2.13% 2.02%(e)
Net investment income, net of waivers/
reimbursements 4.57%(e) 4.77% 5.08% 4.95% 4.60%(e)
Portfolio turnover rate 39% 182% 108% 161% 55%
</TABLE>
See footnote summary on page 48.
43
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
OHIO PORTFOLIO
--------------------------------------------------------------------
CLASS C
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.61 $ 9.54 $ 9.06 $10.26 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .22(c) .46(c) .47 .48 .13
Net realized and unrealized gain (loss)
on investments .09 .09 .49 (1.19) .26
Net increase (decrease) in net asset
value from operations .31 .55 .96 (.71) .39
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.23) (.46) (.47) (.48) (.13)
Distributions in excess of net
investment income -0- (.02) (.01) -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.23) (.48) (.48) (.49) (.13)
Net asset value, end of period $ 9.69 $ 9.61 $ 9.54 $ 9.06 $10.26
TOTAL RETURN
Total investment return based on net
asset value (d) 3.27% 5.82% 10.88% (7.13)% 3.97%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $13,910 $17,203 $18,874 $26,294 $19,894
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.45%(e) 1.45% 1.45% .74% .17%(e)
Expenses, before waivers/reimbursements 2.21%(e) 2.16% 2.20% 2.12% 2.02%(e)
Net investment income, net of waivers/
reimbursements 4.58%(e) 4.78% 5.14% 4.89% 4.60%(e)
Portfolio turnover rate 39% 182% 108% 161% 55%
</TABLE>
See footnote summary on page 48.
44
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
--------------------------------------------------------------------
CLASS A
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.85 $ 9.64 $ 9.18 $10.25 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .27(c) .49(c) .54 .56 .16
Net realized and unrealized gain (loss)
on investments .02 .28 .48 (1.06) .25
Net increase (decrease) in net asset
value from operations .29 .77 1.02 (.50) .41
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.28) (.53) (.54) (.56) (.16)
Distributions in excess of net
investment income -0- (.03) (.02) -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.28) (.56) (.56) (.57) (.16)
Net asset value, end of period $ 9.86 $ 9.85 $ 9.64 $ 9.18 $10.25
TOTAL RETURN
Total investment return based on net
asset value (d) 2.95% 8.17% 11.53% (5.02)% 4.12%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $23,554 $21,104 $8,721 $7,149 $4,170
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .95%(e) 1.00% 1.00% .45% -0-%(e)
Expenses, before waivers/reimbursements 1.39%(e) 1.45% 1.47% 1.46% 1.31%(e)
Net investment income, net of waivers/
reimbursements 5.47%(e) 5.40% 5.78% 5.73% 5.67%(e)
Portfolio turnover rate 33% 185% 114% 156% 75%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.86 $ 9.65 $ 9.18 $10.25 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .24(c) .46(c) .47 .49 .14
Net realized and unrealized gain (loss)
on investments -0- .24 .49 (1.06) .25
Net increase (decrease) in net asset
value from operations .24 .70 .96 (.57) .39
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.24) (.46) (.47) (.49) (.14)
Distributions in excess of net
investment income -0- (.03) (.02) -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.24) (.49) (.49) (.50) (.14)
Net asset value, end of period $ 9.86 $ 9.86 $ 9.65 $ 9.18 $10.25
TOTAL RETURN
Total investment return based on net
asset value (d) 2.48% 7.38% 10.78% (5.72)% 3.94%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $29,621 $30,440 $28,559 $25,637 12,173
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.66%(e) 1.71% 1.71% 1.16% .40%(e)
Expenses, before waivers/reimbursements 2.09%(e) 2.15% 2.17% 2.16% 2.01%(e)
Net investment income, net of waivers/
reimbursements 4.76%(e) 4.69% 5.09% 5.01% 4.97%(e)
Portfolio turnover rate 33% 185% 114% 156% 75%
</TABLE>
See footnote summary on page 48.
45
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
--------------------------------------------------------------------
CLASS C
--------------------------------------------------------------------
SIX MONTHS JUNE 25,1993(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.86 $ 9.65 $ 9.18 $10.24 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .24(c) .46(c) .47 .49 .14
Net realized and unrealized gain (loss)
on investments -0- .24 .49 (1.05) .24
Net increase (decrease) in net asset
value from operations .24 .70 .96 (.56) .38
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.24) (.46) (.47) (.49) (.14)
Distributions in excess of net
investment income -0- (.03) (.02) -0- -0-
Distributions from net realized gains -0- -0- -0- (.01) -0-
Total dividends and distributions (.24) (.49) (.49) (.50) (.14)
Net asset value, end of period $ 9.86 $ 9.86 $ 9.65 $ 9.18 $10.24
TOTAL RETURN
Total investment return based on net
asset value (d) 2.48% 7.37% 10.78% (5.63)% 3.84%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $13,668 $13,996 $15,052 $18,198 $13,541
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.65%(e) 1.70% 1.70% 1.15% .40%(e)
Expenses, before waivers/reimbursements 2.08%(e) 2.14% 2.17% 2.15% 2.01%(e)
Net investment income, net of waivers/
reimbursements 4.76%(e) 4.69% 5.09% 4.99% 4.97%(e)
Portfolio turnover rate 33% 185% 114% 156% 75%
</TABLE>
See footnote summary on page 48.
46
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
VIRGINIA PORTFOLIO
--------------------------------------------------------
CLASS A
--------------------------------------------------------
SIX MONTHS APRIL 29,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.58 $10.29 $9.69 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .29(c) .57(c) .56 .24
Net realized and unrealized gain (loss)
on investments -0- .37 .61 (.31)
Net increase (decrease) in net asset
value from operations .29 .94 1.17 (.07)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.29) (.57) (.56) (.24)
Distributions in excess of net
investment income -0- -0- (.01) -0-
Distributions from net realized gains (.25) (.08) -0- -0-
Total dividends and distributions (.54) (.65) (.57) (.24)
Net asset value, end of period $10.33 $10.58 $10.29 $9.69
TOTAL RETURN
Total investment return based on net
asset value (d) 2.74% 9.39% 12.46% (.71)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $2,789 $2,455 $1,855 $1,249
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .67%(e) .67% .67% .57%(e)
Expenses, before waivers/reimbursements 3.96%(e) 5.18% 8.96% 12.29%(e)
Net investment income, net of waivers/
reimbursements 5.47%(e) 5.39% 5.59% 5.62%(e)
Portfolio turnover rate 57% 298% 128% 65%
</TABLE>
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------
SIX MONTHS APRIL 29,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.57 $10.29 $9.69 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .25(c) .50(c) .49 .22
Net realized and unrealized gain (loss)
on investments .01 .36 .61 (.32)
Net increase (decrease) in net asset
value from operations .26 .86 1.10 (.10)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.25) (.50) (.49) (.21)
Distributions in excess of net
investment income -0- -0- (.01) -0-
Distributions from net realized gains (.25) (.08) -0- -0-
Total dividends and distributions (.50) (.58) (.50) (.21)
Net asset value, end of period $10.33 $10.57 $10.29 $ 9.69
TOTAL RETURN
Total investment return based on
net asset value (d) 2.50% 8.57% 11.67% (1.01)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $3,957 $3,345 $1,193 $224
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.37%(e) 1.37% 1.37% 1.27%(e)
Expenses, before waivers/reimbursements 4.66%(e) 5.88% 9.66% 12.99%(e)
Net investment income, net of waivers/
reimbursements 4.76%(e) 4.70% 4.80% 4.97%(e)
Portfolio turnover rate 57% 298% 128% 65%
</TABLE>
See footnote summary on page 48.
47
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
VIRGINIA PORTFOLIO
--------------------------------------------------------
CLASS C
--------------------------------------------------------
SIX MONTHS APRIL 29,1994(a)
ENDED YEAR ENDED SEPTEMBER 30, TO
MARCH 31,1997 ------------------------ SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.57 $10.29 $ 9.70 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .26(c) .50(c) .49 .21
Net realized and unrealized gain (loss)
on investments -0- .36 .60 (.30)
Net increase (decrease) in net asset
value from operations .26 .86 1.09 (.09)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.25) (.50) (.49) (.21)
Distributions in excess of net
investment income -0- -0- (.01) -0-
Distributions from net realized gains (.25) (.08) -0- -0-
Total dividends and distributions (.50) (.58) (.50) (.21)
Net asset value, end of period $10.33 $10.57 $10.29 $ 9.70
TOTAL RETURN
Total investment return based on net
asset value (d) 2.50% 8.58% 11.56% (.91)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $954 $642 $122 $43
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.37%(e) 1.37% 1.37% 1.27%(e)
Expenses, before waivers/reimbursements 4.65%(e) 5.88% 9.66% 12.99%(e)
Net investment income, net of waivers/
reimbursements 4.76%(e) 4.73% 4.81% 4.67%(e)
Portfolio turnover rate 57% 298% 128% 65%
</TABLE>
(a) Commencement of operations.
(b) Net of fee waived and expenses reimbursed by the Adviser.
(c) Based on average shares.
(d) 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. Initial sales charge or contingent
deferred sales charge is not reflected in the calculation of total investment
return. Total investment return calculated for a period less than one year is
not annualized.
(e) Annualized.
48
ALLIANCE MUNICIPAL INCOME FUND II
_______________________________________________________________________________
BOARD OF TRUSTEES
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JAMES R. GREEN (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
DONALD J. ROBINSON (1)
OFFICERS
SUSAN P. KEENAN, SENIOR VICE PRESIDENT
DAVID DOWDEN, VICE PRESIDENT
TERRANCE HULTS, VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
WILLIAM E. OLIVER, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JUAN J. RODRIGUEZ, CONTROLLER
CUSTODIAN
THE BANK OF NEW YORK
48 Wall Street
New York, NY 10286
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800) 221-5672
(1) Member of the Audit Committee.
49
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Small Cap Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
Alliance Global Environment Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
50
ALLIANCE MUNICIPAL INCOME FUND II
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
MUNIIISR
