HERITAGE CAPITAL APPRECIATION TRUST
Supplement dated March 13, 1997 to the
Statement of Additional Information dated January 2, 1997
Heritage Asset Management, Inc. has retained Liberty Investment
Management, a division of Goldman Sachs Asset Management ("GSAM-Liberty"), which
itself is a separate operating division of Goldman, Sachs & Co., as subadviser
to Heritage Capital Appreciation Trust (the "Trust"). The reference to "Liberty
Investment Management ('Liberty')" on page 2 of the Statement of Additional
Information ("SAI") should be replaced with "Liberty Investment Management, a
division of Goldman Sachs Asset Management ('GSAM-Liberty')".
In addition, the reference to "Liberty" in the second paragraph on page
25 of the SAI should be replaced with "GSAM-Liberty".
In addition, the third and fourth paragraphs under "Investment Adviser
and Administrator; Subadvisers" on page 25 of the SAI should be replaced with
the following information:
At a special meeting of shareholders held on February 28,
1997, shareholders approved the appointment of GSAM-Liberty as a
Subadviser to the Trust, replacing Liberty Investment Management
("Liberty"). The appointment of GSAM-Liberty as a Subadviser allows the
Trust to continue to retain the services of Herbert E. Ehlers as the
Trust's portfolio manager. GSAM-Liberty intends to follow
substantially the same investment approach employed by Liberty.
In addition, the reference to "Liberty" in the last partial paragraph
on page 26 of the SAI should be replaced with "GSAM-Liberty".
In addition, the reference to "the Subadvisers" in the first partial
paragraph on page 27 of the SAI should be replaced with "Eagle and Liberty".
