<PAGE> 1
October 12, 1995
Dear Fellow Shareholders:
I am pleased to provide you with the annual report for Heritage Cash
Trust-Municipal Money Market Fund for the fiscal year ended August 31, 1995.
During this period, the net assets of your Fund increased by approximately $71
million to $283 million.
After hovering at or below 2% during much of 1992 and 1993, rates on
municipal money market funds rose steadily during 1994 and early 1995. At the
end of your Fund's most recent fiscal year, the seven-day effective yield was
3.01%. We do not anticipate any near-term action from the Federal Reserve Board
which would cause rates either to increase significantly or to fall to the very
low levels of two years ago.
We continue to believe that investors' short-term cash reserves should be
invested with safety and liquidity as primary investment objectives. With that
in mind, your portfolio is managed under credit quality and average maturity
criteria that are even more restrictive than those required by the current
Securities and Exchange Commission regulations. We also continue to provide you
with a wide range of convenient features including free checks, free unlimited
checkwriting with a $100 minimum per check and daily sweeps of all cash to and
from your brokerage account. In June of this year, the time period to settle
securities trades with your brokerage firm decreased from five to three days.
These new "T+3" rules make even more important the use of a cash holding place
such as Heritage Cash Trust in conjunction with your brokerage account.
Please remember that if you are subject to the alternative minimum tax, a
portion of your Fund's income may be considered a preference item for tax
purposes. Also, if you are subject to a state income tax, a portion of the
income your Fund earns from securities issued in your state may be exempt from
your state income tax. We will send you more information on these items in early
1996.
Thank you for your continuing investment in Heritage Cash Trust-Municipal
Money Market Fund. We look forward to serving your investment needs for years to
come.
Sincerely,
/s/ Stephen G. Hill
------------------------------
Stephen G. Hill
President
Heritage Cash Trust-Municipal Money Market Fund is a member of the Heritage
Family of mutual funds. Other investment alternatives available to you from
Heritage include Heritage Cash Trust-Money Market Fund, Heritage Capital
Appreciation Trust, Heritage Income-Growth Trust, Heritage Income Trust, which
consists of the Diversified and Limited Maturity Government Portfolios and
Heritage Series Trust, which consists of the Small Cap Stock and Value Equity
Portfolios. We are pleased that many of you are also investors in these funds.
For information and a prospectus for any of these funds, please contact your
account executive. Read the Prospectus carefully before you invest in any of the
funds.
<PAGE> 2
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- -------------- ------------- ------------
<C> <S> <C> <C>
ALABAMA--8.4%
$ 5,500,000 Alabama Health and Education Financing Authority, 3.50%(b)
Hospital Revenue Bond
Daughters of Charity, Providence Hospital, Series 84......................... 06/01/14 $ 5,500,000
10,000,000 Jefferson County, 3.65%(b)
Sewer Revenue Bond, Series 95A
LOC: Bayerische Landesbank................................................... 09/01/25 10,000,000
8,300,000 City of McIntosh, 3.75%(b)
Pollution Control Revenue Bond,
Ciba-Geigy Corporation Project, Series 90, AMT
LOC: Union Bank of Switzerland............................................... 07/01/04 8,300,000
------------
23,800,000
------------
ARIZONA--2.0%
5,800,000 Pima County Industrial Development Authority, 3.65%(b)
Pollution Control Revenue Bond
Tucson Electric, Series 82A
LOC: Bank of America......................................................... 07/01/22 5,800,000
------------
ARKANSAS--10.5%
5,000,000 Arkansas Student Loan, 3.65%(b)
Series 93B-2, AMT
GIC: Bayerische Landesbank................................................... 06/01/10 5,000,000
1,100,000 Arkansas Student Loan, 3.65%(b)
Series 93B-4, AMT
GIC: Bayerische Landesbank................................................... 06/01/10 1,100,000
18,000,000 Clark County, 3.75%(b)
Solid Waste Revenue Bond
Reynolds Metals Project, Series 92, AMT
LOC: Trust Company Bank...................................................... 08/01/22 18,000,000
5,600,000 City of Jacksonville, 3.75%(b)
Industrial Development Revenue Bond
Regalware, Inc. Project, Series 85
LOC: NBD Corporation......................................................... 08/01/15 5,600,000
------------
29,700,000
------------
CALIFORNIA--3.6%
5,000,000 Los Angeles County GO, 4.50%
Tax and Revenue Anticipation Note, Series 95
LOC: (c)..................................................................... 07/01/96 5,027,978
5,000,000 San Bernandino County GO, 4.50%
Tax and Revenue Anticipation Note, Series 95
LOC: (d)..................................................................... 07/05/96 5,022,254
------------
10,050,232
------------
COLORADO--6.5%
12,700,000 Colorado Housing Finance Authority, 3.70%(b)
Multi Family Housing Revenue Bond
Central Park Project, Series 85
LOC: Chemical Bank........................................................... 05/01/97 12,700,000
5,600,000 Colorado Student Obligation Authority, 3.55%(b)
Student Loan Revenue Bond, Series 89A, AMT
LOC: Student Loan Marketing Association...................................... 03/01/24 5,600,000
------------
18,300,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 3
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1995
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- -------------- ------------- ------------
<C> <S> <C> <C>
GEORGIA--1.0%
$2,750,000 Cobb County, 3.75%(b)
Industrial Development Revenue Bond
Amoena Corporation Project, Series 92, AMT
LOC: Bayerische Hypobank..................................................... 01/01/07 $ 2,750,000
------------
IDAHO--1.4%
4,000,000 Idaho GO, 4.50%
Tax Anticipation Note, Series 95............................................. 06/27/96 4,022,118
------------
ILLINOIS--0.9%
2,530,000 Illinois Development Finance Authority, 3.60%(b)
Multi Family Housing Revenue Bond
River Oaks Project, Series 88, AMT
LOC: Swiss Bank.............................................................. 12/15/19 2,530,000
------------
INDIANA--6.3%
1,945,000 City of Columbus, 3.80%(b)
Economic Development Revenue Bond
Columbus Container, Series 89A, AMT
LOC: Bank One, Columbus...................................................... 01/01/00 1,945,000
4,350,000 City of Crawfordsville, 3.75%(b)
Industrial Development Revenue Bond
Precision Plastics of Indiana, Series 92
LOC: Northern Trust Company.................................................. 06/01/07 4,350,000
2,000,000 City of Indianapolis, 3.90%(b)
Industrial Development Revenue Bond
Altec Industries, Inc. Project, Series 89, AMT
LOC: First National Bank of Atlanta.......................................... 12/01/04 2,000,000
5,000,000 City of Portage, 3.80%(b)
Multi Family Housing Revenue Bond
Pedcor Investment Apartment Project, Series 95A, AMT
LOC: Federal Home Loan Bank.................................................. 08/01/30 5,000,000
4,600,000 City of Westfield, 4.15%(b)
Industrial Development Revenue Bond
PL Porter Project, Series 89, AMT
LOC: Bank of America......................................................... 12/01/09 4,600,000
------------
17,895,000
------------
KENTUCKY--1.8%
5,000,000 City of Louisville, 3.70%(b)
Airport Revenue Bond
Louisville Airport, Series 89B, AMT
LOC: National City Bank of Louisville........................................ 02/01/19 5,000,000
------------
LOUISIANA--1.7%
3,900,000 St. Charles Parish, 3.65%(b)
Shell Oil Company Project, Series 92A, AMT................................... 10/01/22 3,900,000
1,000,000 St. Charles Parish, 3.65%(b)
Shell Oil Company Project, Series 93, AMT.................................... 09/01/23 1,000,000
------------
4,900,000
------------
MAINE--0.6%
1,700,000 City of Bath GO, 4.375%
Bond Anticipation Note, Series 95A........................................... 06/27/96 1,704,989
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 4
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1995
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- -------------- ------------- ------------
<C> <S> <C> <C>
MICHIGAN--2.4%
$6,900,000 Michigan Higher Education, AMBAC, 3.55%(b)
Student Loan Revenue Bond, Series X11-B
BPA: Kredietbank............................................................. 10/01/13 $ 6,900,000
------------
MISSOURI--0.7%
2,000,000 City of St. Joseph, 3.90%(b)
Industrial Development Revenue Bond
Altec Industries, Inc., Series 89, AMT
LOC: First National Bank of Atlanta.......................................... 11/01/04 2,000,000
------------
MISSISSIPPI--1.1%
3,000,000 City of Olive Branch, 3.80%(b)
Industrial Development Revenue Bond
United Healthcare, Series 86, AMT
LOC: First Union Bank of North Carolina...................................... 11/01/11 3,000,000
------------
NEBRASKA--0.8%
2,200,000 Nebraska Higher Education, 3.65%(b)
Student Loan Revenue Bond, Series 88C, AMT
LOC: Student Loan Marketing Association...................................... 08/01/18 2,200,000
------------
NEW HAMPSHIRE--9.0%
19,000,000 New Hampshire Business Finance Authority, 3.75%(b)
Pollution Control Revenue Bond
Public Service Company of New Hampshire, Series 92D, AMT
LOC: Barclays Bank........................................................... 05/01/21 19,000,000
5,000,000 New Hampshire Housing Finance Authority, 3.75%(b)
Multi Family Housing Revenue Bond
Fairways Project, Series 94, AMT
LOC: General Electric Credit Corporation..................................... 01/01/24 5,000,000
1,600,000 New Hampshire Industrial Development Authority, 3.75%(b)
Pollution Control Revenue Bond
Connecticut Light & Power, Series 88, AMT
LOC: Union Bank of Switzerland............................................... 08/01/18 1,600,000
------------
25,600,000
------------
NEW MEXICO--3.2%
9,000,000 New Mexico Education Assistance Fund, 3.60%(b)
Student Loan Revenue Bond, Series 92
BPA: Internationale Nederlanden.............................................. 04/01/05 9,000,000
------------
NEVADA--2.8%
8,000,000 Clark County, 3.65%(b)
Industrial Development Revenue Bond
Nevada Cogeneration, Association 2, Series 92, AMT
LOC: Swiss Bank.............................................................. 12/01/22 8,000,000
------------
OHIO--1.4%
4,000,000 Ohio Air Authority, 3.70%(b)
Pollution Control Revenue Bond
JMG Funding Partnership, Series 94B, AMT
LOC: Societe Generale........................................................ 04/01/28 4,000,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 5
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1995
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- -------------- ------------- ------------
<C> <S> <C> <C>
OKLAHOMA--3.5%
$2,500,000 Oklahoma Industrial Authority, 4.20%(b)
Industrial Development Revenue Bond
Farley Candy Project, Series 94
LOC: Toronto Dominion........................................................ 05/01/19 $ 2,500,000
7,500,000 Optima Municipal Authority, 3.75%(b)
Industrial Development Revenue Bond
Seaboard Project, Series 94, AMT
LOC: Trust Company Bank...................................................... 09/01/19 7,500,000
------------
10,000,000
------------
PENNSYLVANIA--1.3%
3,700,000 Pennsylvania Higher Education, 3.75%(b)
Student Loan Revenue Bond, Series 88C, AMT
LOC: Student Loan Marketing Association...................................... 07/01/18 3,700,000
------------
RHODE ISLAND--2.5%
5,000,000 Rhode Island Port Authority, 3.60%(b)
Electric Revenue Bond
Newport Electric Corporation, Series 94
LOC: Canadian Imperial....................................................... 09/01/11 5,000,000
2,000,000 Rhode Island Higher Education, 3.65%(b)
Student Loan Revenue Bond, Series 95-1, AMT
LOC: National Westminister................................................... 07/01/19 2,000,000
------------
7,000,000
------------
TEXAS--11.9%
6,500,000 Capital Health Facilities Development, 3.55%(b)
Lake Travis Project, Series 86, AMT
LOC: Credit Suisse........................................................... 12/01/16 6,500,000
6,900,000 City of Galveston, 3.75%(b)
Industrial Development Revenue Bond
Mitchell Project, Series 93A, AMT
LOC: National Westminister................................................... 09/01/13 6,900,000
3,200,000 City of Gulf Coast, 3.70%(b)
Solid Waste Revenue Bond
CITGO Petroleum Corporation, Series 94, AMT
LOC: Wachovia Bank & Trust................................................... 04/01/26 3,200,000
1,000,000 City of Gulf Coast, 3.65%(b)
Port Facility
Amoco Oil Company, Series 93, AMT............................................ 04/08/28 1,000,000
5,000,000 Harris County GO, 4.25%
Tax Anticipation Note, Series 95............................................. 02/28/96 5,016,127
4,500,000 North Texas Higher Education, 3.75%(b)
Student Loan Revenue Bond, Series 90A, AMT
LOC: Student Loan Marketing Association...................................... 04/01/20 4,500,000
6,600,000 Panhandle Plains, 3.55%(b)
Student Loan Revenue Bond, Series 95A, AMT
LOC: Student Loan Marketing Association...................................... 06/01/25 6,600,000
------------
33,716,127
------------
VIRGINIA--1.6%
4,500,000 City of Richmond Housing Authority, 3.90%(b)
Housing-Tobacco Row, Series 89B-5, AMT
GIC: Westdeutsche Landesbank................................................. 10/01/24 4,500,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 6
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1995
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- -------------- ------------- ------------
<C> <S> <C> <C>
WISCONSIN--3.4%
$5,000,000 Wisconsin State GO, 4.50%
Operating Note, Series 95.................................................... 06/17/96 $ 5,028,482
4,600,000 Wisconsin Health and Education Financing Authority, 3.50%(b)
Hospital Revenue Bond
Daughters of Charity, St. Mary's Hospital, Series 92......................... 11/01/22 4,600,000
------------
9,628,482
------------
WEST VIRGINIA--8.6%
12,500,000 Grant County, 3.75%(b)
Industrial Development Revenue Bond
NB Partners LTD, Series 88B, AMT
LOC: Bank of America......................................................... 12/01/16 12,500,000
4,000,000 Marion County, 3.75%(b)
Resource Recovery Revenue Bond
Grant Town Cogen Project, Series 92, AMT
LOC: National Westminister................................................... 10/01/17 4,000,000
4,400,000 Marion County, 3.80%(b)
Resource Recovery Revenue Bond
Grant Town Cogen Project, Series 91B, AMT
LOC: National Westminister................................................... 10/01/17 4,400,000
3,400,000 Marion County, 3.80%(b)
Resource Recovery Revenue Bond
Grant Town Cogen Project, Series 90D, AMT
LOC: National Westminister................................................... 10/01/17 3,400,000
------------
24,300,000
------------
TOTAL INVESTMENTS (cost $279,996,948)(e), 98.9%(a)............................................. 279,996,948
OTHER ASSETS AND LIABILITIES, net, 1.1%(a)..................................................... 3,012,791
------------
NET ASSETS (net asset value, offering and redemption price of $1.00 per share divided by
283,076,115 shares outstanding) consisting of paid-in-capital net of accumulated realized loss $283,009,739
of $66,376, 100.00%........................................................................... ============
</TABLE>
- ---------------
(a) Percentages are based on net assets.
(b) Floating rate notes are securities which are generally payable on demand
within seven calendar days. Put bonds are securities which can be put back
to the issuer or remarketer either at the option of the holder, at a
specified date, or within a specified time period known at the time of
purchase. For these securities, the demand period and the remaining period
to put date, respectively, are used when calculating the weighted average
maturity of the portfolio.
(c) Credit enhancement provided by (all equally weighted): Bank of America,
Credit Suisse, Morgan Guaranty Trust Co., Swiss Bank, Union Bank of
Switzerland, Westdeutsche Landesbank.
(d) Credit enhancement provided by (all equally weighted): Banque Nationale De
Paris, Bank of Nova Scotia, Toronto Dominion.
(e) The aggregate identified cost for federal income tax purposes is the same.
AMBAC -- American Municipal Bond Assurance Corporation.
AMT -- Securities subject to Alternative Minimum Tax.
BPA -- Bond purchase agreement provided by noted institution.
GIC -- Credit enhancement provided by guaranteed investment contract with noted
institution.
GO -- General Obligation.
LOC -- Credit enhancement provided by letter of credit issued by noted
institution.
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 7
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income
Interest.................................................................................. $9,370,040
Expenses (Notes 1 and 4):
Management fee.......................................................................... $1,226,671
Distribution fee........................................................................ 368,392
Shareholder servicing................................................................... 96,963
Amortization of state registration expenses............................................. 81,311
Custodian/Fund accounting fees.......................................................... 61,825
Professional fees....................................................................... 44,775
Federal registration fees............................................................... 16,175
Trustees' fees and expenses............................................................. 9,573
Amortization of organization expenses................................................... 9,252
Insurance............................................................................... 6,727
Reports to shareholders................................................................. 2,759
Other................................................................................... 7,086
----------
Total expenses before waiver...................................................... 1,931,509
Fees waived by Manager (Note 4)........................................................... (40,432) 1,891,077
---------- ----------
Net investment income..................................................................... 7,478,963
Realized Loss on Investments
Net realized loss from investment transactions............................................ (46,523)
----------
Net increase in net assets resulting from operations...................................... $7,432,440
==========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
-----------------------------------
AUGUST 31, 1995 AUGUST 31, 1994
--------------- ---------------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income.......................................................... $ 7,478,963 $ 4,645,067
Net realized loss from investment transactions................................. (46,523) (2,029)
--------------- ---------------
Net increase in net assets resulting from operations............................. 7,432,440 4,643,038
Distributions to shareholders from net investment income ($.030 and $.019 per
share, respectively)........................................................... (7,478,963) (4,645,067)
Increase in net assets from Fund share transactions (Note 2)..................... 70,589,200 5,251,853
--------------- ---------------
Increase in net assets........................................................... 70,542,677 5,249,824
Net assets, beginning of year.................................................... 212,467,062 207,217,238
--------------- ---------------
Net assets, end of year.......................................................... $ 283,009,739 $ 212,467,062
============== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 8
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
FOR THE YEARS ENDED AUGUST 31,
--------------------------------
1995 1994 1993 1992+
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD:.................... $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)............................... .030 .019 .020 .005
LESS DISTRIBUTIONS:
Dividends from net investment income................... (.030) (.019) (.020) (.005)
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD:.......................... $1.000 $1.000 $1.000 $1.000
====== ====== ====== ======
TOTAL RETURN %........................................... 3.04 1.90 2.02 .47(c)
RATIOS TO AVERAGE DAILY NET ASSETS(%)/SUPPLEMENTAL DATA:
Operating expenses, net(a)............................. .77 .77 .77 .77(b)
Net investment income.................................. 3.05 1.89 1.98 2.32(b)
Net assets, end of period ($ millions)................. 283 212 207 102
</TABLE>
- ---------------
+ For the period June 17, 1992 (commencement of operations) to August 31, 1992.
(a) Excludes management fees waived by the Manager in the amount of less than
$.001, $.001, $.001 and $.001, per share, respectively. The operating
expense ratios including such items would be .79%, .77%, .83% and 1.11%
(annualized), respectively.
(b) Annualized.
(c) Not annualized.
8
<PAGE> 9
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Note 1: SIGNIFICANT ACCOUNTING POLICIES. Heritage Cash Trust (the "Trust") is
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as a no-load, diversified,
open-end management investment company consisting of two separate
investment portfolios, the Municipal Money Market Fund (the "Fund") and
the Money Market Fund. The Fund is designed for investors who wish to
participate in a supervised portfolio of federally tax-exempt debt
securities with remaining maturities of not more than 397 days. The
policies described below are followed consistently by the Fund in the
preparation of its financial statements in conformity with generally
accepted accounting principles.
Security Valuation: The Fund uses the amortized cost method of security
valuation (as set forth in Rule 2a-7 under the Investment Company Act of
1940, as amended). The amortized cost of an instrument is determined by
valuing it at cost at the time of purchase and thereafter
accreting/amortizing any purchase discount/premium at a constant rate
until maturity, regardless of the effect of fluctuating interest rates
on the market value of the instrument.
Repurchase Agreements: The Fund enters into repurchase agreements
whereby the Fund, through its custodian, receives delivery of the
underlying securities, the market value of which at the time of purchase
is required to be an amount equal to at least 100% of the resale price.
Federal Income Taxes: The Fund is treated as a single corporate taxpayer
as provided for in the Tax Reform Act of 1986, as amended. The Fund's
policy is to comply with the requirements of the Internal Revenue Code
of 1986, as amended, which are applicable to regulated investment
companies and to distribute substantially all of its taxable income to
its shareholders. Accordingly, no provision has been made for federal
income and excise taxes. As of August 31, 1995, the Fund has net tax
basis capital loss carryforwards of $17,824 and $2,029, which may be
applied against any realized net taxable gains until their expiration
dates in 2001 and 2002, respectively. In addition, the Fund has
post-October losses that the Fund has deferred in the amount of $46,523.
Distribution of Income and Gains: Distributions from net investment
income and net realized gains available for distribution are declared
daily and paid monthly. The Fund uses the identified cost method for
determining realized gain or loss on investments for both financial and
federal income tax reporting purposes.
State Registration Expenses: State registration fees are amortized based
either on the time period covered by the registration or as related
shares are sold, whichever is appropriate for each state.
Organization Expenses: Expenses incurred in connection with the
formation of the Fund were deferred and are being amortized on a
straight-line basis over 60 months from the date of commencement of
operations.
Capital Accounts: The Fund reports the undistributed net investment
income and accumulated net realized gain (loss) accounts on a basis
approximating amounts available for future tax distributions (or to
offset future taxable realized gains when a capital loss carryforward is
available). Accordingly, the Fund may periodically make
reclassifications among certain capital accounts without impacting the
net asset value of the Fund.
Other: Investment transactions are recorded on a trade date basis which
is generally the same as settlement date. Interest income is recorded on
the accrual basis.
Note 2: FUND SHARES. At August 31, 1995, there was an unlimited number of
shares of beneficial interest of no par value authorized. Transactions
in shares of the Fund during the years ended August 31, 1995 and 1994,
at a constant net asset value of $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
-----------------------------------
AUGUST 31, 1995 AUGUST 31, 1994
--------------- ---------------
<S> <C> <C>
Shares sold............................................................ 1,085,052,629 1,243,994,047
Shares issued in reinvestment of distributions......................... 7,350,654 4,609,272
Shares redeemed........................................................ (1,021,814,083) (1,243,351,466)
-------------- --------------
Net increase......................................................... 70,589,200 5,251,853
Shares outstanding:
Beginning of year.................................................... 212,486,915 207,235,062
-------------- --------------
End of year.......................................................... 283,076,115 212,486,915
============== ==============
</TABLE>
9
<PAGE> 10
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
- --------------------------------------------------------------------------------
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the year ended
August 31, 1995, purchases, sales and maturities of short-term
investment securities aggregated $615,213,037, $491,667,045 and
$55,880,000, respectively.
Note 4: MANAGEMENT, SUBADVISORY, DISTRIBUTION, SHAREHOLDER SERVICING AGENT AND
TRUSTEES' FEES. Under the Fund's Investment Advisory and Administration
Agreement with Heritage Asset Management, Inc. (the "Manager"), the Fund
agrees to pay to the Manager for investment advice, portfolio management
services (including the placement of brokerage orders), and certain
compliance and administrative services a fee equal to an annual rate of
0.50% of the first $500,000,000 of the Fund's average daily net assets,
0.475% of the next $500,000,000, 0.45% of the next $500,000,000, 0.425%
of the next $500,000,000, and 0.40% of any excess over $2,000,000,000 of
such net assets, computed daily and payable monthly. Effective February
27, 1995, the Manager agreed to waive management fees so that the fee
does not exceed the following levels, as a percentage of average daily
net assets: .50% of the first $250,000,000, .475% of the next
$250,000,000, .45% of the next $250,000,000, .425% of the next
$250,000,000 and .40% on assets over $1 billion of such net assets. The
annual effective management fee rate after fee waivers, for the year
ended August 31, 1995 was .50%. The amount payable to the Manager as of
August 31, 1995 was $77,839. The agreement also provides for a reduction
in such fees in any year to the extent that operating expenses of the
Fund exceed applicable state expense limitations. Since inception, the
Manager has voluntarily agreed to waive its fee and, if necessary,
reimburse the Fund to the extent that Fund operating expenses exceed
.77%, on an annual basis, of the Fund's average daily net assets. This
agreement is more restrictive than any state expense limitation. Under
the agreement, management fees of $40,432 ($.00002 per share) were
waived in the year ended August 31, 1995. If total Fund expenses fall
below the expense limitation agreed to by the Manager before the end of
the year ending August 31, 1997, the Fund may be required to pay the
Manager a portion or all of the waived management fee. In addition, the
Fund may be required to pay the Manager a portion or all of the
management fee waived ($6,473) in the prior year ended August 31, 1994
if total Fund expenses fall below the annual expense limitation before
the end of the year ending August 31, 1996.
The Manager has entered into an agreement with Alliance Capital
Management L.P. (the "Subadviser") to provide investment advice and
portfolio management services, including placement of brokerage orders,
to the Fund for a fee payable by the Manager equal to an annual rate of
.125% of average daily net assets on assets up to $100 million, .10% of
average daily net assets on assets from $100 million to $250 million, and
.05% on average daily net assets exceeding $250 million.
The Manager is also the Dividend Paying and Shareholder Servicing Agent
for the Fund. The amount payable to the Manager for such expenses as of
August 31, 1995 was $16,600. In addition, the Manager performs Fund
accounting services for the Fund and charged $35,932 during the current
year of which $6,000 was payable as of August 31, 1995.
Pursuant to a plan adopted in accordance with Rule 12b-1 of the
Investment Company Act of 1940, as amended, the Fund pays Raymond James &
Associates, Inc. (the "Distributor") a fee equal to 0.15% of average
daily net assets for the services it provides in connection with the
promotion and distribution of Fund shares. Such fee is accrued daily and
payable monthly. The amount payable to the Distributor as of August 31,
1995 was $35,673. The Manager, Distributor, Fund Accountant and
Shareholder Servicing Agent are all wholly-owned subsidiaries of Raymond
James Financial, Inc.
Trustees of the Trust also serve as Trustees for Heritage Capital
Appreciation Trust, Heritage Income-Growth Trust, Heritage Income Trust,
Heritage Series Trust and Heritage U.S. Government Income Fund, mutual
funds that are also advised by the Manager or its affiliates
(collectively referred to as the Heritage Mutual Funds). Each Trustee of
the Heritage Mutual Funds who is not an interested person of the Manager
receives an annual fee of $8,000 and an additional fee of $2,000 for each
combined quarterly meeting of the Heritage Mutual Funds attended.
Trustees' fees and expenses are shared equally by each of the Heritage
Mutual Funds.
10
<PAGE> 11
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REPORT OF INDEPENDENT ACCOUNTANTS
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To the Shareholders and Board of Trustees of
Heritage Cash Trust-Municipal Money Market Fund:
We have audited the accompanying statement of net assets of Heritage Cash
Trust-Municipal Money Market Fund as of August 31, 1995, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the three years in the period then ended and for the
period June 17, 1992 (commencement of operations) to August 31, 1992. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
August 31, 1995 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Heritage Cash Trust-Municipal Money Market Fund as of August 31, 1995, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the three years in the period then ended and for the period June 17,
1992 (commencement of operations) to August 31, 1992 in conformity with
generally accepted accounting principles.
/s/ Coopers & Lybrand
Boston, Massachusetts
October 12, 1995
- --------------------------------------------------------------------------------
TAX INFORMATION
- --------------------------------------------------------------------------------
Of the dividends paid from net investment income for the year ended August
31, 1995, 100% were exempt interest dividends which are tax exempt for purposes
of regular federal income tax, and a portion were exempt interest dividends
which may be subject to the federal alternative minimum tax. Please consult a
tax adviser if you have questions about federal or state income tax laws, or on
how to prepare your tax return.
11
<PAGE> 12
LOGO
HERITAGE
-------------------------
CASH TRUST(TM)
-------------------------
MUNICIPAL MONEY MARKET FUND
A money market fund seeking
----------------------------------
maximum current income exempt
----------------------------------
from Federal income tax consistent
----------------------------------
with stability of principal
----------------------------------
ANNUAL REPORT
and Investment Performance
Review for the Year Ended
AUGUST 31, 1995
A member of the
Heritage Family of Mutual Funds(TM)
Heritage Cash Trust
Municipal Money Market Fund
P.O. Box 33022
St. Petersburg, FL 33733
- ------------------------------
Address Change Requested
Annual Report
INVESTMENT ADVISOR/
SHAREHOLDER SERVICING AGENT/
FUND ACCOUNTANT
Heritage Asset Management, Inc.
P.O. Box 33022
St. Petersburg, FL 33733
(800) 421-4184
DISTRIBUTOR
Raymond James & Associates, Inc.
P.O. Box 12749
St. Petersburg, FL 33733
(813) 573-3800
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
This report is for the information of shareholders of
Heritage Cash Trust-Municipal Money Market Fund, It may also be used as
sales literature when preceded or accompanied by a prospectus.
10M 10/95
