HERITAGE EQUITY FUNDS
SUPPLEMENT DATED JUNE 22, 1999 TO THE PROSPECTUS DATED JANUARY 4, 1999
REVISED PAYMENTS OF CLASS A PURCHASES OF $1 MILLION OR MORE
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Effective July 1, 1999, the following replaces the second footnote on
page 23 of the Prospectus:
(2) For purchases of $1 million or more, Heritage may pay from its own
resources to the Distributor, up to 1.00% of the purchase amount
on the first $3 million and 0.80% on assets thereafter. These
shares purchased will then be subject to an 18-month CDSC of 1.00%
and Heritage will retain the initial year's Rule 12b-1 fees.
ADDITION TO WAIVER OF CLASS A SALES CHARGES
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The section "Waiver of Class A Sales Charge" on page 25 of the
Prospectus is supplemented as follows:
Class A shares also may be sold at net asset value without any sales
charge to individual retirement accounts, qualified retirement plans
and taxable accounts that execute transactions through a single omnibus
account per fund that is maintained by a financial institution or
service organization that has entered into an acceptable administrative
or similar agreement with the applicable Heritage mutual fund, Heritage
or the funds' distributor.
GROWTH EQUITY FUND
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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"), started as the portfolio manager for the
Heritage Series Trust - Growth Equity Fund. As a result, the following paragraph
replaces the section titled "Who is the Portfolio Manager" on page 8 of the
Prospectus:
WHO IS THE PORTFOLIO MANAGER. Mr. Ashi Parikh, Managing Director
and Portfolio Manager for the large capitalization Growth Equity
Program at Eagle is responsible for the day-to-day management of the
Fund.
Also, on page 21, the following information replaces the existing
paragraph under "Growth Equity Fund":
o GROWTH EQUITY FUND - Ashi Parikh has been responsible for the
day-to-day management of the Fund since April 1999. Mr. Ashi
Parikh has served as Managing Director and Portfolio Manager for
the large capitalization Growth Equity Program at Eagle since
April 1999. 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.
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HERITAGE EQUITY FUNDS
SUPPLEMENT DATED JUNE 22, 1999 TO THE PROSPECTUS DATED JANUARY 4, 1999
VALUE EQUITY FUND
At their May 14, 1999 special meeting, the shareholders of the Value
Equity Fund approved the appointment of Osprey Partners Investment Management,
LLC to serve as an additional subadviser to Heritage Series Trust - Value Equity
Fund. Osprey commenced management of all of the Fund's assets on May 18, 1999.
As a result, the following paragraph replaces the section titled "Who is the
Portfolio Manager" on page 18 of the Prospectus:
WHO IS THE PORTFOLIO MANAGER. Russell S. Tompkins, a Managing
Partner and the Chief Operating Officer at Osprey Partners Investment
Management, LLC, and Jerome D. Fischer, a Managing Partner and the Head
of Equity Research at Osprey, share responsibility for the day-to-day
management of the fund's investment portfolio.
In addition, the second paragraph in the section titled "Subadvisers"
on page 20 of the Prospectus is modified as follows:
o Eagle Asset Management, Inc. serves as the subadviser to the
Aggressive Growth Fund, the Capital Appreciation Trust, the Growth
Equity Fund, the Income-Growth Trust, the Mid Cap Growth Fund, the
Small Cap Stock Fund and the Value Equity Fund. However, Heritage
Asset Management, Inc., the Funds' manager, currently has not
allocated any of the assets of the Capital Appreciation Trust or
the Value Equity Fund to Eagle.
Also, the following information is included after the fourth paragraph
in the section title "Subadvisers" on page 20 of the Prospectus:
Osprey Partners Investment Management, LLC ("Osprey"),
Shrewsbury Executive Center II, 1040 Broad Street, Shrewsbury, New
Jersey 07702, was approved by the shareholders to serve as an
additional subadviser to the Value Equity Fund. Heritage has allocated
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 manages the Value Equity Fund using a value-oriented
investment style. Osprey uses an investment strategy focusing on:
o bottom-up, in-depth research centering 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.
Osprey 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.
On page 21, the following information replaces the existing paragraph
under "Value Equity Fund":
o VALUE EQUITY FUND - Russell S. Tompkins and Jerome D. Fischer have
shared responsibility for the day-to-day management since May 18,
1999. Mr. Tompkins has been a Managing Partner and Chief Operating
Officer at Osprey since September 1998. At the time of his
departure from Fox Asset Management, Inc. ("Fox"), Mr. Tompkins
was a Managing Director, Director of Compliance and Senior
Portfolio Manager from January 1988 to September 1998. Mr. Fischer
has been a Managing Partner and Head of Equity Research at Osprey
since September 1998. At the time of his departure from Fox, Mr.
Fischer also had served as a Principal, Director of Large Cap
Equity Research and Senior Portfolio Manager. He was employed at
Fox from July 1992 to September 1998.