<PAGE> 1
April 18, 1995
Dear Fellow Shareholder:
I am pleased to provide to you the semiannual report for Heritage Cash
Trust-Municipal Money Market Fund for the six-month period ended February 28,
1995. Your Fund's assets increased by approximately $31 million during this
period to a total of $243 million.
Yields on municipal money market securities continued to increase during the
six-month reporting period in response to the actions of the Federal Reserve
Board and to the perception of additional risk in these securities due to the
bankruptcy filing by Orange County, California. The seven-day effective yield
for your Fund was 3.31% on February 28, compared to 2.48% on August 31, 1994,
and 1.85% a year ago. In the weeks since the end of the reporting period, rates
have continued to increase slightly, with the seven-day effective yield standing
at 3.43% as of the date of this letter.
As we mentioned a year ago, money market funds should be among the best
performing categories of fixed income funds in an increasing interest rate
environment. Last year certainly was no exception as most fixed income funds
actually lost money for the first time in a number of years. Investors in money
market funds such as yours generally fared better as their net asset values
remained stable and yields on their funds increased.
At Heritage Cash Trust-Municipal Money Market Fund, we continue to take a
conservative approach to investing your portfolio. For example, your Fund's
portfolio does not include any securities affected by the recent problems in the
Orange County, California investment pool. Over 85% of your Fund's portfolio is
invested in floating rate notes whose interest rates adjust on a weekly basis.
The remainder of the portfolio consists of municipal obligations with maturity
dates in June and July of this year. This strategy of maintaining a relatively
short average maturity should allow the yield on your Fund to rise quickly if
the Federal Reserve Board, as we expect, raises rates again in May.
Your Fund continues to offer a number of convenient features such as free
checks, free unlimited checkwriting with a $100 minimum per check, monthly
statements which may be consolidated with your brokerage accounts and daily
sweeps of cash to and from your brokerage accounts to help facilitate your other
investment needs. With respect to this last point, you should be aware that
beginning in June 1995, you will be required to settle securities trades with
your brokerage firm within three business days rather than the current
requirement of five business days. This new "T+3" requirement may make the use
of a holding place for your cash which is coordinated with your brokerage
activity even more important. Please call your account executive or financial
advisor -- or call us at 800/421-4184 -- if you have any questions about these
features.
Please remember that if you are subject to the alternative minimum tax, a
portion of your Fund's income may be taxable to you. Also, if you are subject to
a state income tax, the income your Fund earns from securities issued in your
state may be exempt from your state income tax.
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,
Stephen G. Hill
President
<PAGE> 2
- - - - --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- - - - -------------- ------------- ------------
<C> <S> <C> <C>
ALABAMA--3.7%
- - - - -------------
$ 2,400,000 City of Auburn, 4.25%
Industrial Development Revenue Bond
Auburn University Hotel, Series A, FRN, AMT
LOC: Lloyds Bank............................................................. 12/01/16 $ 2,400,000
6,700,000 City of McIntosh, 4.05%
Pollution Control Revenue Bond
Ciba-Geigy Corporation Project, FRN, AMT
LOC: Union Bank of Switzerland............................................... 07/01/04 6,700,000
------------
9,100,000
------------
ARIZONA--1.1%
- - - - -------------
2,600,000 Pima County, 4.2%
Pollution Control Revenue Bond
Tucson Electric Series 83A, FRN
LOC: Barclays Bank........................................................... 03/15/18 2,600,000
------------
ARKANSAS--6.0%
- - - - --------------
7,800,000 Clark County, 4.1%
Solid Waste Revenue Bond Series 92
Reynolds Metals Company Project, FRN, AMT
LOC: Trust Company Bank...................................................... 08/01/22 7,800,000
5,600,000 City of Jacksonville, 3.5%
Industrial Development Revenue Bond, FRN
Regalware Inc. Project
LOC: NBD Corporation......................................................... 08/01/15 5,600,000
1,100,000 Arkansas Student Loan 4.15%
Series 93B-4 AMT, FRN
LOC: Bayerische Landesbank................................................... 08/01/22 1,100,000
------------
14,500,000
------------
CALIFORNIA--11.5%
- - - - -----------------
2,500,000 City of Anaheim, 3.9%
Police Facility Project, FRN
LOC: Industrial Bank of Japan................................................ 08/01/08 2,500,000
11,200,000 Riverside County, G.O., 4.25%
Tax and Revenue Anticipation Notes
Municipal Note............................................................... 06/30/95 11,223,269
10,700,000 San Diego Community College District, 4.25%
Tax and Revenue Anticipation Notes
Municipal Note............................................................... 06/30/95 10,722,169
2,200,000 Southern California Public Power 3.7%
Transmission Project, FRN
LOC: Swiss Bank.............................................................. 07/01/19 2,200,000
1,445,000 City of Vista, 4.2%
Industrial Development Revenue Bond
Professional Care Product, FRN, AMT
LOC: NBD Corporation......................................................... 06/01/22 1,445,000
------------
28,090,438
------------
COLORADO--.5%
- - - - -------------
1,200,000 Colorado Student Loan Revenue 4.05%
Series 89A AMT, FRN
LOC: Student Loan Marketing Association...................................... 03/01/24 1,200,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 3
- - - - --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
(CONTINUED)
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- - - - -------------- ------------- ------------
<C> <S> <C> <C>
CONNECTICUT--2.7%
- - - - -----------------
$ 5,500,000 Connecticut, GO, 4.1%
Series 91B Economic Recovery Notes, FRN
BPA: Canadian Imperial
Industrial Bank of Japan
National Westminster................................................... 06/01/96 $ 5,500,000
1,100,000 Hartford Redevelopment 4.15%
MFHR: Underwood Towers Project
Series 90 FSA FRN
BPA: Sumitomo Trust.......................................................... 06/01/20 1,100,000
------------
6,600,000
------------
DISTRICT OF COLUMBIA--1.6%
- - - - --------------------------
3,850,000 District of Columbia, 4.15%
Georgetown University Series B, FSA, FRN
BPA: Sanwa................................................................... 04/01/04 3,850,000
------------
FLORIDA--7.0%
- - - - -------------
15,800,000 Dade County FGIC, 3.95%
Water & Sewer System, Series 94, FRN
BPA: Industrial Bank of Japan................................................ 10/05/22 15,800,000
1,200,000 Pinellas County FGIC, 3.95%
Water & Sewer System, Series 89, FRN
BPA: Barnett Bank............................................................ 06/01/09 1,200,000
------------
17,000,000
------------
GEORGIA--6.8%
- - - - -------------
9,600,000 Burke County FGIC, 3.9%
PCR: Oglethorpe Power Series 94A, FRN
BPA: Credit Local De France.................................................. 01/01/19 9,600,000
2,750,000 Cobb County, 4.15%
Industrial Development Revenue Bond
Amoena Corporation Project, FRN, AMT
LOC: Bayerische Hypobank..................................................... 01/01/07 2,750,000
4,300,000 City of College Park, 3.85%
Industrial Development Revenue Bond, FRN, AMT
Wynefield One Project
LOC: Sumitomo Bank........................................................... 12/01/16 4,300,000
------------
16,650,000
------------
IOWA--4.9%
- - - - ----------
11,000,000 Iowa School Cap Warrants, 4.25%
Cash Anticipation Project Series A
Municipal Note............................................................... 07/17/95 11,026,040
900,000 Polk County, 4.5%
Industrial Development Revenue Bond
Kemin Ind Project, FRN, AMT
LOC: Norwest Bank of Minnesota............................................... 07/01/03 900,000
------------
11,926,040
------------
</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
FEBRUARY 28, 1995
(UNAUDITED)
(CONTINUED)
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- - - - -------------- ------------- ------------
<C> <S> <C> <C>
INDIANA--5.3%
- - - - -------------
$ 1,945,000 City of Columbus, 4.35%
Economic Development, FRN, AMT
Columbus Container Series A
LOC: Bank One, Columbus...................................................... 01/01/00 $ 1,945,000
4,350,000 City of Crawfordsville, 4.35%
Industrial Development Revenue Bond, FRN
Precision Plastics
LOC: Northern Trust Company.................................................. 06/01/07 4,350,000
2,000,000 City of Indianapolis, 4.2%
Industrial Development Revenue Bond, Series 89, FRN, AMT
Altec Industries, Inc. Project
LOC: First National Bank of Atlanta.......................................... 12/01/04 2,000,000
4,600,000 City of Westfield, 4.4%
Industrial Development Revenue Bond, Series 89, FRN, AMT
PL Porter Project
LOC: Bank of America......................................................... 12/01/09 4,600,000
------------
12,895,000
------------
KENTUCKY--6.5%
- - - - --------------
5,000,000 Kentucky Higher Education, 4.25%
Student Loan Revenue Bond, Series 91E, FRN, AMT
LOC: Sumitomo Bank........................................................... 12/01/11 5,000,000
10,700,000 City of Louisville, 4.25%
Airport Revenue Bond, Series 89B, FRN, AMT
Louisville Airport
LOC: National City Bank of Kentucky.......................................... 02/01/19 10,700,000
------------
15,700,000
------------
MICHIGAN--5.7%
- - - - --------------
10,600,000 Michigan Higher Education, AMBAC, 4.05%
Student Loan Revenue Bond, Series XII-B, FRN, AMT
BPA: Kredietbank............................................................. 10/01/13 10,600,000
3,200,000 Michigan Higher Education, AMBAC, 4.05%
Student Loan Revenue Bond, Series XII-D, FRN, AMT
BPA: Fuji Bank............................................................... 10/01/15 3,200,000
------------
13,800,000
------------
MISSOURI--.8%
- - - - -------------
2,000,000 City of St. Joseph, 4.2%
Industrial Development Revenue Bond, FRN, AMT
Altec Industries, Inc., Series 89
LOC: First National Bank of Atlanta.......................................... 11/01/04 2,000,000
------------
MISSISSIPPI--1.2%
- - - - -----------------
3,000,000 Olive Branch, 4.7%
Industrial Development Revenue Bond, FRN, AMT
United Healthcare
LOC: First Union Bank of North Carolina...................................... 07/01/16 3,000,000
------------
NEBRASKA--2.8%
- - - - --------------
6,800,000 Nebraska Higher Education 4.1%
Student Loan Revenue Bond, Series 88C, FRN, AMT
LOC: Student Loan Marketing Association...................................... 08/01/18 6,800,000
------------
</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
FEBRUARY 28, 1995
(UNAUDITED)
(CONTINUED)
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- - - - -------------- ------------- ------------
<C> <S> <C> <C>
NEW HAMPSHIRE--5.8%
- - - - -------------------
$14,000,000 New Hampshire Business Finance Authority, 4.2%
Pollution Control, FRN, AMT
Public Service Company of New Hampshire, Series 92D
LOC: Barclays Bank........................................................... 05/01/21 $ 14,000,000
------------
NEW MEXICO--2.3%
- - - - ----------------
5,500,000 New Mexico Education, AMBAC, 4.1%
Student Loan Revenue Bond Series 92, FRN, AMT
BPA: Internationale Nederlanden.............................................. 04/01/05 5,500,000
------------
NEW YORK--0.8%
- - - - --------------
2,000,000 New York State Energy Research & Development, 3.8%
Utilities Revenue Bond, Series B, FRN, AMT
Long Island Lighting
LOC: Toronto Dominion Bank................................................... 11/01/23 2,000,000
------------
NORTH CAROLINA--0.1%
- - - - --------------------
300,000 City of Charlotte, MBIA, 3.10%
Airport Refunding Revenue Bond, Series 93A, FRN
LOC: Industrial Bank of Japan................................................ 07/01/16 300,000
------------
OHIO--1.6%
- - - - ----------
4,000,000 Ohio Air Quality, 4.1%
Pollution Control, FRN, AMT
JMG Funding Program, Series 94B
LOC: Societe Generale........................................................ 04/01/28 4,000,000
------------
OKLAHOMA--1.0%
- - - - --------------
2,500,000 Oklahoma Industrial Authority, 4.5%
Industrial Development Revenue Bond, FRN
Farley Candy Project Series 94
LOC: Toronto Dominion Bank................................................... 05/01/19 2,500,000
------------
PENNSYLVANIA--1.5%
- - - - ------------------
3,700,000 Pennsylvania Higher Education, 4.1%
Student Loan Revenue Bond, Series 88C, FRN, AMT
LOC: Student Loan Marketing Association...................................... 07/01/18 3,700,000
------------
TEXAS--9.0%
- - - - -----------
5,400,000 Greater East Texas Higher Education, AMBAC, 4.0%
Student Loan Bond, FRN, AMT
BPA: Citibank................................................................ 03/01/08 5,400,000
6,900,000 City of Galveston, 4.05%
Industrial Development Revenue Bond, FRN, AMT
Mitchell Project Series 1993 A
LOC: National Westminister................................................... 09/01/13 6,900,000
5,000,000 North Texas Higher Education, 4.1%
Student Loan Revenue Bond, FRN, AMT
LOC: Student Loan Marketing Association...................................... 03/01/05 5,000,000
4,500,000 North Texas Higher Education, 4.1%
Student Loan Revenue Bond, Series A, FRN, AMT
LOC: Student Loan Marketing Association...................................... 04/01/24 4,500,000
------------
21,800,000
------------
</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
FEBRUARY 28, 1995
(UNAUDITED)
(CONTINUED)
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL
AMOUNT MATURITY DATE VALUE
- - - - -------------- ------------- ------------
<C> <S> <C> <C>
VIRGINIA--1.2%
- - - - --------------
$ 3,000,000 City of Richmond, 4.65%
Housing -- Tobacco Row Series B-5, FRN, AMT
BPA: Bayerische Landesbank................................................... 10/01/24 $ 3,000,000
------------
WASHINGTON--1.2%
- - - - ----------------
3,000,000 Washington Public Power, 4.0%
Nuclear Project #1, FRN
LOC: Bank of America......................................................... 07/01/17 3,000,000
------------
WISCONSIN--2.3%
- - - - ---------------
4,600,000 Wisconsin Health and Education Financing Authority 4.05%
Hospital Revenue Bond, FRN
ACES -- Daughters of Charity, St. Mary's Hospital............................ 11/01/22 4,600,000
1,000,000 Wisconsin Health Facility 4.05%
Franciscan Health Care, FRN
LOC: Toronto Dominion Bank................................................... 01/01/16 1,000,000
------------
5,600,000
WEST VIRGINIA--4.5%
- - - - -------------------
3,900,000 Grant County, 4.2%
IDR: NB Partners LTD Series 88B, FRN, AMT
LOC: Bank of America......................................................... 12/01/16 3,900,000
4,400,000 Marion County, 4.3%
Resource Recovery Revenue Bond, FRN, AMT
Grant Town Project, Series 91B
LOC: National Westminster.................................................... 10/01/17 4,400,000
2,700,000 Marion County, 4.3%
Resource Recovery Revenue Bond
Grant Town Project, Series 90D, FRN, AMT
LOC: National Westminster.................................................... 10/01/17 2,700,000
------------
11,000,000
------------
TOTAL INVESTMENTS (cost $242,111,478)(b), 99.5%(a) 242,111,478
OTHER ASSETS AND LIABILITIES, net, 0.5%(a) 1,272,695
------------
NET ASSETS (net asset value, offering and redemption price of $1.00 per share divided by 243,450,549 shares
outstanding), consisting of paid-in-capital net of accumulated net realized loss of $66,376, 100.00% $243,384,173
==============
</TABLE>
- - - - ---------------
(a) Percentages are based on net assets.
(b) The aggregate identified cost for Federal income tax purposes is the same.
AMT--Securities subject to Alternative Minimum Tax
BPA--Bond purchase agreement provided by noted institution.
FRN-- Floating Rate Note -- securities that are generally payable on demand
within seven calendar days. Put bonds are securities that 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.
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 SIX MONTH PERIOD ENDED FEBRUARY 28, 1995
(UNAUDITED)
- - - - --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
- - - - ------------------
Interest................................................................................ $4,224,579
Expenses (Notes 1 and 4):
Management fee.......................................................................... $ 577,323
Distribution fee........................................................................ 173,197
Shareholder servicing................................................................... 47,568
Amortization of state registration expenses............................................. 33,769
Custodian/Fund accounting fees.......................................................... 30,247
Professional Fees....................................................................... 21,002
Federal registration fees............................................................... 9,538
Reports to shareholders................................................................. 5,033
Trustees' fees and expenses............................................................. 4,727
Amortization of organization expenses................................................... 4,626
Insurance............................................................................... 2,931
Other................................................................................... 1,751
----------
Total expenses before waiver...................................................... 911,712
Fees waived by Manager (Note 4)......................................................... (22,636) 889,076
---------- ----------
Net investment income..................................................................... 3,335,503
Realized Loss on Investments
Net realized loss from investment transactions............................................ (46,523)
----------
Net increase in net assets resulting from operations...................................... $3,288,980
=========
</TABLE>
- - - - --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- - - - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED FOR THE
FEBRUARY 28, 1995 YEAR ENDED
(UNAUDITED) AUGUST 31, 1994
----------------- ------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income................................................... $ 3,335,503 $ 4,645,067
Net realized loss from investment transactions.......................... (46,523) (2,029)
----------------- ------------------
Net increase in net assets resulting from operations...................... 3,288,980 4,643,038
Distributions to shareholders ($.014 and $.019 per share, respectively)... (3,335,503) (4,645,067)
Increase in net assets from Fund share transactions (Note 2).............. 30,963,634 5,251,853
----------------- ------------------
Increase in net assets.................................................... 30,917,111 5,249,824
Net assets, beginning of period........................................... 212,467,062 207,217,238
----------------- ------------------
Net assets, end of period................................................. $ 243,384,173 $212,467,066
================= ==================
</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 SIX MONTH FOR THE YEARS
PERIOD ENDED ENDED AUGUST 31,
FEBRUARY 28, 1995 -----------------
(UNAUDITED) 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)..................... .014 .019 .020 .005
LESS DISTRIBUTIONS:
Dividends from net investment income......... (.014) (.019) (.020) (.005)
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD:................ $1.000 $1.000 $1.000 $1.000
================== ====== ====== ======
TOTAL RETURN %................................. 1.43(c) 1.90 2.02 .47(c)
RATIOS TO AVERAGE DAILY NET
ASSETS(%)/SUPPLEMENTAL DATA:
Operating expenses, net(a)................... .77(b) .77 .77 .77(b)
Net investment income........................ 2.89(b) 1.89 1.98 2.32(b)
Net assets, end of period ($ millions)....... 243 212 207 102
</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% (annualized), .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
(UNAUDITED)
- - - - --------------------------------------------------------------------------------
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 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 in 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, 1994, the Fund has a 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.
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.
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.
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.
Note 2: FUND SHARES. At February 28, 1995, there was an unlimited number of
shares of beneficial interest of no par value authorized. Transactions
in shares of the Fund during six month period ended February 28, 1995
and the year ended August 31, 1994 at a constant net asset value of
$1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED FOR THE
FEBRUARY 28, 1995 YEAR ENDED
(UNAUDITED) AUGUST 31, 1994
------------------ ----------------
<S> <C> <C>
Shares sold........................................................ 536,333,571 1,243,994,047
Shares issued in reinvestments of distributions.................... 3,303,673 4,609,272
Shares redeemed.................................................... (508,673,610) (1,243,351,466)
------------------ ----------------
Net increase..................................................... 30,963,634 5,251,853
Shares outstanding:
Beginning of period.............................................. 212,486,915 207,235,062
------------------ ----------------
End of period.................................................... 243,450,549 212,486,915
================== ===============
</TABLE>
9
<PAGE> 10
- - - - --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- - - - --------------------------------------------------------------------------------
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the six month period
ended February 28, 1995, purchases, sales and maturities of short-term
investment securities aggregated $221,910,000, $189,367,045 and
$2,880,000, 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 April 3,
1995 the fee is equal to an annual rate of .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% of any excess over
1,000,000,000 of such net assets. The amount payable to the Manager as
of February 28, 1995 was $72,347. 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 $22,636 ($.0001 per share) were
waived in the six month period ended February 28, 1995. If total Fund
expenses fall below the expense limitation agreed to by the Manager
before 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 ($106,464, for the year ended August 31, 1993)
($6,473, for the year ended August 31, 1994) if total Fund expenses fall
below the annual expense limitation before the end of the years ending
August 31, 1995 and 1996, respectively.
The Manager has entered into an agreement with Alliance Capital
Management L.P. (the "Subadviser") for 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
February 28, 1995 was $17,000. In addition the Manager performs Fund
Accounting services for the Fund and charged $18,222 during the current
period of which $6,000 was payable as of February 28, 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 February 28,
1995 was $28,495. The Manager, the Distributor and the Shareholder
Servicing Agent are all wholly-owned subsidiaries of Raymond James
Financial, Inc.
Trustees of the Fund 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 which are also advised by the Manager (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
HERITAGE CASH TRUST-MUNICIPAL MONEY MARKET FUND is a member of the Heritage
family of mutual funds. Other investment alternatives managed by Heritage
include:
- HERITAGE CASH TRUST
MONEY MARKET FUND
- HERITAGE CAPITAL APPRECIATION TRUST
- HERITAGE INCOME-GROWTH TRUST
- HERITAGE INCOME TRUST
DIVERSIFIED PORTFOLIO
LIMITED MATURITY GOVERNMENT PORTFOLIO
INSTITUTIONAL GOVERNMENT PORTFOLIO
- HERITAGE SERIES TRUST
SMALL CAP STOCK FUND
VALUE EQUITY FUND
- HERITAGE U.S. GOVERNMENT INCOME FUND
(A CLOSED-END FUND THAT TRADES ON THE
NEW YORK STOCK EXCHANGE)
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. Please read the Prospectus carefully before you invest in any of the
funds.
11
<PAGE> 12
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[LOGO]
HERITAGE
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CASH TRUST(TM)
--------------
MUNICIPAL MONEY MARKET FUND
<S> <C>
A money market fund seeking
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maximum current income exempt
---------------------------------------------
from Federal income tax consistent
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with stability of principal
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SEMIANNUAL REPORT
(Unaudited) and Investment
Performance Review for the
Six Month Period Ended
FEBRUARY 28, 1995
A member of the
Heritage Family of Mutual Funds(TM)
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<TABLE>
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Heritage Cash Trust -- Municipal Money Market Fund -----------------
P.O. Box 33022 BULK RATE
St. Petersburg, FL 33733 U.S. POSTAGE
- - - - --------------------------------------- PAID
PERMIT NO. 39
Address Change Requested ATLANTA, GA
-----------------
Semiannual Report
INVESTMENT ADVISOR/
SHAREHOLDER SERVICING AGENT
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
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.
15M 04/95 HAM055
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