ALLIANCE MUNICIPAL TRUST -VIRGINIA PORTFOLIO
ALLIANCE CAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1998
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1998 (UNAUDITED) ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(A) YIELD VALUE
- -------------------------------------------------------------------------
MUNICIPAL BONDS-92.1%
VIRGINIA-92.1%
ALEXANDRIA IDR
(Supervisors/Curriculum)
VRDN
$5,710 7/01/22 (b) 4.00% $ 5,710,000
AMELIA COUNTY IDA
(Chambers Waste
Systems, Inc)
AMT VRDN
4,990 7/01/07 (b) 4.15 4,990,000
ARLINGTON COUNTY
(Ballston Public Parking
Facility Project)
Series '84 VRDN
5,400 8/01/17 (b) 3.85 5,400,000
BOTETOURT COUNTY IDA
(Emkay Holdings L.L.C.
Project)
Series '95
AMT VRDN
5,672 10/01/05 (b) 4.10 5,671,500
BOTETOURT COUNTY IDA
(Virginia Forge Co.
Project)
Series '96
AMT VRDN
1,000 7/01/11 (b) 4.05 1,000,000
BRISTOL IDA
(Bristol Health Care
Center)
Series '86 VRDN
2,085 6/01/10 (b) 5.00 2,085,000
CAMPBELL COUNTY PCR
(Georgia Pacific Power)
AMT VRDN
3,000 12/01/19 (b) 4.10 3,000,000
CHARLES CITY IDA
(Chambers Dev. of VA,
Inc.)
Series '89
AMT VRDN
1,100 10/01/04 (b) 4.15 1,100,000
CHARLES CITY IDA
(Chambers Dev. of VA,
Inc.)
Series '96
AMT VRDN
1,500 4/01/16 (b) 4.15 1,500,000
CHESAPEAKE GO
(Public Improvement)
Series '90
2,700 7/01/99 3.00 2,776,808
CHESAPEAKE IDA
(LTD Associates)
VRDN
1,770 3/01/11 (b) 4.05 1,770,000
CHESTERFIELD COUNTY IDA
(Philip Morris Co.)
VRDN
6,000 4/01/09 (b) 4.10 6,000,000
FAIRFAX COUNTY GO
Public Improvement
Series A
1,700 6/01/99 5.00 1,713,884
FAIRFAX COUNTY IDA
HOSPITAL REVENUE
(Fairfax Hospital
Systems)
Series '88A VRDN
1,695 10/01/25 (b) 4.00 1,695,000
FLUVANNA COUNTY IDA
(Edgecomb Metals Co.)
VRDN
2,100 12/01/09 (b) 4.00 2,100,000
HAMPTON
REDEVELOPMENT HFA
(TWP Apts. Project)
Series '98 VRDN
3,300 2/01/28 (b) 4.00 3,300,000
HAMPTON ROADS JAIL
AUTHORITY
Regional Jail Fac.
Series '96B VRDN
4,600 7/01/16 (b) 4.00 4,600,000
HAMPTON ROADS
SANITATION DISTRICT
VIRGINIA
(Sewer Rev.)
Series '89
2,360 7/01/99 3.73 2,398,422
HENRICO COUNTY HEALTH
FACILITY REVENUE
(Hermitage)
Series '98 VRDN
3,500 8/01/23 (b) 4.05 3,500,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(A) YIELD VALUE
- -------------------------------------------------------------------------
HENRICO COUNTY IDA
(White Oak
Semiconductor-A)
AMT VRDN
$6,000 10/01/27 (b) 4.20% $ 6,000,000
HENRICO COUNTY IDA
(White Oak
Semiconductor-B)
AMT VRDN
3,000 10/01/27 (b) 4.20 3,000,000
HENRY COUNTY IDA
(Amfibe, Inc. Project)
Series '98
AMT VRDN
3,000 1/01/13 (b) 4.15 3,000,000
JAMES CITY IDR
(Greystone of Virginia,
Inc.)
Series '98
AMT VRDN
6,500 9/01/08 (b) 4.20 6,500,000
KING GEORGE COUNTY IDA
(Birchwood Power
Partners)
AMT VRDN
1,700 4/01/26 (b) 5.20 1,700,000
KING GEORGE COUNTY IDA
(Birchwood Power
Project)
Series '94A
AMT VRDN
2,400 10/01/24 (b) 5.15 2,400,000
KING GEORGE COUNTY IDA
(Garnet of VA, Inc.)
Series '96
AMT VRDN
800 9/01/21 (b) 4.05 800,000
LOUDOUN COUNTY IDA
Residential Care Facility:
(Falcons Landing Project)
Series '98 VRDN
7,000 11/01/28 (b) 3.90 7,000,000
LOUDOWN COUNTY IDA
(Kinder-Care Learning
Centers)
Series A VRDN
394 6/01/02 (b) 4.30 394,000
LOUISA COUNTY IDA
Series '95 VRDN
2,145 1/01/20 (b) 4.05 2,145,000
NORFOLK GO
Series A
1,680 2/01/99 3.78 1,681,675
NORFOLK IDA
(Children Hospital of
King's Daughter Project)
Series '98 VRDN
2,000 9/01/05 (b) 4.05 2,000,000
PORTSMOUTH IDA
(Fairwood Homes
Project)
Series A VRDN
3,705 11/01/27 (b) 4.05 3,705,000
RICHMOND
REDEVELOPMENT MFHR
(Tobacco Row)
Series '89B-2
AMT VRDN
1,000 10/01/24 (b) 4.35 1,000,000
RICHMOND
REDEVELOPMENT MFHR
(Tobacco Row)
Series '89B-8
AMT VRDN
3,555 10/01/24 (b) 4.35 3,555,000
SMYTHE COUNTY IDA
(Summit Products
Project)
AMT VRDN
800 3/01/06 (b) 4.15 800,000
VIRGINIA BEACH
DEVELOPMENT AUTHORITY
(Kinder-Care Learning
Centers)
Series D VRDN
866 10/01/00 (b) 4.30 866,000
VIRGINIA BEACH GO
1,000 2/01/99 3.60 1,001,526
VIRGINIA BEACH MFHR
(Dam Neck Square Apts.)
Series '97 VRDN
900 2/01/17 (b) 4.05 900,000
VIRGINIA HDA
Series G
Subseries G-1 AMT
4,700 7/01/99 3.20 4,751,346
-------------
Total Municipal Bonds
(amortized cost
$113,510,161) 113,510,161
2
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(A) YIELD VALUE
- -------------------------------------------------------------------------
COMMERCIAL PAPER-6.9%
VIRGINIA-6.9%
LOUISA IDA PCR
(Virginia Electric &
Power Co.)
Series '85
$4,000 1/15/99 3.30% $ 4,000,000
PENNINSULA PORT
AUTHORITY
(CSX Transportation,
Inc.)
Series '92
4,450 2/01/99 3.10 4,450,000
-------------
Total Commercial Paper
(amortized cost
$8,450,000) 8,450,000
TOTAL INVESTMENTS-99.0%
(amortized cost
$121,960,161) 121,960,161
Other assets less
liabilities-1.0% 1,289,844
-------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
123,258,030 shares
outstanding) $ 123,250,005
(a) All securities either mature or their interest rate changes in one year or
less.
(b) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as the
prime interest rate). These instruments are payable on demand and are secured
by letters of credit or other credit support agreements from major banks.
Periodic Put Bonds (PPB) are payable on demand quarterly, semi-annually or
annually and their interest rates change less frequently than rates on Variable
Rate Demand Notes.
Glossary of Terms:
AMT Alternative Minimum Tax
GO General Obligation
HDA Housing Development Authority
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
See notes to financial statements.
3
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1998 (UNAUDITED)
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $ 2,291,685
EXPENSES
Advisory fee (Note B) $ 331,129
Distribution assistance and administrative
service (Note C) 278,546
Custodian fees 35,510
Transfer agency (Note B) 23,018
Printing 6,135
Audit and legal fees 6,134
Registration fees 2,952
Trustees' fees 1,227
Amortization of organization expense 857
Miscellaneous 829
Total expenses 686,337
Less: expense reimbursement (24,079)
Net expenses 662,258
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 1,629,427
STATEMENT OF CHANGES IN NET ASSETS
_______________________________________________________________________________
SIX MONTHS ENDED
DECEMBER 31, 1998 YEAR ENDED
(UNAUDITED) JUNE 30, 1998
----------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 1,629,427 $ 3,123,359
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,629,427) (3,123,359)
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST
Net increase (decrease) (Note E) (571,983) 45,046,894
Total increase (decrease) (571,983) 45,046,894
NET ASSETS
Beginning of year 123,821,988 78,775,094
End of period $ 123,250,005 $ 123,821,988
See notes to financial statements.
4
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (UNAUDITED) ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Municipal Trust (the "Fund") is registered under the Investment
Company Act of 1940 as an open-end investment company. The Fund operates as a
series company currently consisting of: Alliance Municipal Trust-General
Portfolio, Alliance Municipal Trust-New York Portfolio, Alliance Municipal
Trust-California Portfolio, Alliance Municipal Trust-Connecticut Portfolio,
Alliance Municipal Trust-New Jersey Portfolio, Alliance Municipal
Trust-Virginia Portfolio (the "Portfolio"), Alliance Municipal Trust-Florida
Portfolio and Alliance Municipal Trust-Massachusetts Portfolio. Each series is
considered to be a separate entity for financial reporting and tax purposes.
The Portfolio pursues its objectives by maintaining a portfolio of high-quality
money market securities all of which, at the time of investment, have remaining
maturities of 397 days or less. The financial statements have been prepared in
conformity with generally accepted accounting principles which require
management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities in the financial statements and amounts of
income and expenses during the reporting period. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies followed by the Portfolio.
1. VALUATION OF SECURITIES
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity. Amortization of premium is charged to income.
Accretion of market discount is credited to unrealized gains.
2. ORGANIZATION EXPENSES
The organization expenses of the Portfolio are being amortized against income
on a straight-line basis through October, 1999.
3. TAXES
It is the policy of the Portfolio to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. DIVIDENDS
The Portfolio declares dividends daily from net investment income and
automatically reinvests such dividends in additional shares at net asset value.
Net realized capital gains on investments, if any, are expected to be
distributed near year end. Dividends paid from net investment income for the
six months ended December 31, 1998, are exempt from federal income taxes.
However, certain shareholders may be subject to the alternative minimum tax.
5. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued as earned. Investment transactions are recorded on a
trade date basis. Realized gain (loss) from investment transactions is recorded
on the identified cost basis.
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50% on the first $1.25 billion of average daily net
assets; .49% on the next $.25 billion; .48% on the next $.25 billion; .47% on
the next $.25 billion; .46% on the next $1 billion; and .45% in excess of $3
billion. The Adviser has agreed, pursuant to the advisory agreement, to
reimburse the Portfolio to the extent that its annual aggregate expenses
(excluding taxes, brokerage, interest and, where permitted, extraordinary
expenses) exceed 1% of its average daily net assets for any fiscal year. For
the six months ended December 31, 1998, the reimbursement amounted to $24,079.
The Portfolio compensates Alliance Fund Services, Inc., a wholly-owned
subsidiary of the Adviser, under a Transfer Agency Agreement for providing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amounted to $9,000 for the six months ended December 31, 1998.
5
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this Plan, the Portfolio pays Alliance Fund Distributors, Inc., (the
"Distributor"), a wholly-owned subsidiary of the Adviser, a distribution fee at
the annual rate of up to .25% of the average daily value of the Portfolio's net
assets. The Plan provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. For the six
months ended December 31, 1998, the distribution fee amounted to $165,565. In
addition, the Portfolio may reimburse certain broker-dealers for administrative
costs incurred in connection with providing shareholder services, and may
reimburse the Adviser for accounting and bookkeeping, and legal and compliance
support. For the six months ended December 31, 1998, such payments by the
Portfolio amounted to $112,981, of which $46,000 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1998, the cost of investments for federal income tax purposes
was the same as the cost for financial reporting purposes. At June 30, 1998,
the Portfolio had a capital loss carryforward of $8,025, of which $7,897
expires in 2004 and $128 expires in the year 2005.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.01 par value) are authorized. At December 31,
1998, capital paid-in aggregated $123,258,030. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1998 JUNE 30,
(UNAUDITED) 1998
----------------- ---------------
Shares sold 103,040,727 278,295,208
Shares issued on reinvestments
of dividends 1,629,427 3,123,359
Shares redeemed (105,242,137) (236,371,673)
Net increase (decrease) (571,983) 45,046,894
6
FINANCIAL HIGHLIGHTS ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
SIX MONTHS OCTOBER 25,
ENDED 1994(A)
DECEMBER 31, YEAR ENDED JUNE 30, THROUGH
1998 ------------------------------------- JUNE 30,
(UNAUDITED) 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .012 .029 .028 .029 .023
LESS: DIVIDENDS
Dividends from net investment income (.012) (.029) (.028) (.029) (.023)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (c) 2.43%(d) 2.90% 2.83% 2.97% 3.48%(d)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $123,250 $123,822 $78,775 $89,557 $66,921
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements 1.00%(d) .93% .80% .78% .44%(d)
Expenses, before waivers and
reimbursements 1.04%(d) 1.03% 1.15% 1.15% 1.30%(d)
Net investment income (b) 2.46%(d) 2.86% 2.78% 2.91% 3.48%(d)
</TABLE>
(a) Commencement of operations.
(b) Net of expenses reimbursed or waived by the Adviser.
(c) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(d) Annualized.
7
ALLIANCE MUNICIPAL TRUST - VIRGINIA PORTFOLIO
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
YIELDS. For current recorded yield information on Alliance
Municipal Trust, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
1 # 1 # 2 1 #
For non-touch-tone telephones, call toll-free (800) 221-9513
ALLIANCE CAPITAL
DISTRIBUTION OF THIS REPORT OTHER THAN TO SHAREHOLDERS MUST
BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS,
WHICH CONTAINS FURTHER INFORMATION ABOUT THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM
THE OWNER, ALLIANCE CAPITAL MANAGEMENT L.P.
AVASR
