HERITAGE EQUITY FUNDS
SUPPLEMENT DATED MARCH 26, 1999 TO THE PROSPECTUS DATED JANUARY 4, 1999
GROWTH EQUITY FUND
Effective April 1, 1999, Mr. Ashi Parikh, Managing Director and Portfolio
Manager for the large capitalization Growth Equity Program at Eagle Asset
Management, Inc. ("Eagle"), is the portfolio manager for the Heritage Series
Trust - Growth Equity Fund. Mr. Parikh joined Eagle from Bank One Investment
Advisors, Inc. where he was Managing Director of their Growth Equity Team and
lead manager for the One Group Large Company Growth Fund and the One Group
Growth Opportunities Fund. He joined Bank One Corporation in 1992 and Bank One
Investment Advisors in 1994.
VALUE EQUITY FUND
At its February 26, 1999 meeting, the Board of Trustees approved the
appointment of Osprey Partners Investment Management, LLC to serve as an
additional subadviser to Heritage Series Trust - Value Equity Fund. This
appointment is subject to shareholder approval at a Special Shareholders Meeting
to be held on or about May 14, 1999. Thus, the following information is added
immediately before the last paragraph in the section titled "Subadvisers" on
page 20:
If approved by the shareholders, Osprey Partners Investment
Management, LLC ("Osprey"), Shrewsbury Executive Center II, 1040
Broad Street, Shrewsbury, New Jersey 07702, will serve as an
additional subadviser to the Value Equity Fund. Heritage Asset
Management, Inc., the Fund's manager, initially intends to allocate
all of the Fund's assets to Osprey. As of February 26, 1999, Osprey
had approximately $2 billion of assets under its discretionary
management.
Osprey would manage the Value Equity Fund through an investment
committee using a value-oriented investment style. The investment
committee would use an investment strategy focusing on:
o employing a bottom-up approach with in-depth research focusing
on company fundamentals
o selecting undervalued stocks with low price/earnings ratios,
high dividend yields, low debt to total capital ratios,
significant operating cash flow and excellent prospects for
growth
o identifying financially strong, well-managed companies with
market leading domestic and global products.
The investment committee anticipates including the stocks of
approximately 30 to 50 issuers in the Value Equity Fund's portfolio.
Under normal conditions, each of these companies will have a market
capitalization of at least $1 billion at the time of purchase.
