<PAGE> 1
April 16, 1996
Dear Fellow Shareholders:
I am pleased to provide you with the semiannual report for Heritage Cash
Trust-Municipal Money Market Fund (the "Fund") for the six month period ended
February 29, 1996. During this period, the net assets of your Fund increased by
approximately $30 million to $313 million.
During the past six months the Federal Reserve Board has lowered the
discount rate on two occasions by a combined total of 0.50%. This action has
helped to lower most other short-term interest rates, including those on
municipal securities such as those that are the principal investments of your
fund. At the end of February 1996, the seven-day effective yield for your Fund
stood at 2.83% down from 3.01% six months earlier. We do not expect the Federal
Reserve Board to take any actions to cause short-term rates to either increase
or decrease significantly over the next several months.
The Securities and Exchange Commission has recently issued regulations that
modify certain of the credit quality and portfolio diversification requirements
for municipal money market funds. We have always strongly believed that
investors' short-term cash reserves should be invested with safety and liquidity
as primary investment objectives. Thus, these regulatory changes should have few
significant effects on the way your Fund is managed. 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 1995, the time period to settle
securities trades with your brokerage firm decreased from five to three days.
These new "T+3" rules make the use of a cash holding place such as Heritage Cash
Trust even more important to help facilitate any transactions in your brokerage
accounts.
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.
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 High Yield and Intermediate Government Portfolios and Heritage
Series Trust, which consists of the Small Cap Stock, Value Equity, Growth Equity
and Eagle International 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
FEBRUARY 29, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
- ------------- ------------ ------------
<C> <S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES--95.1%(A)
ALASKA--0.3%
$ 1,000,000 Alaska International Airport, 3.70%
Series 93H, MBIA........................................................ 10/01/96 $ 999,677
------------
ALABAMA--5.8%
10,000,000 Jefferson County, 3.35% (b)
Sewer Revenue Bond, Series 95A
LOC: Bayerische Landesbank.............................................. 03/07/96 10,000,000
8,300,000 City of McIntosh, 3.35% (b)
Pollution Control Revenue Bond
Ciba-Geigy Corporation Project, Series 90, AMT
LOC: Union Bank of Switzerland.......................................... 03/07/96 8,300,000
------------
18,300,000
------------
ARKANSAS--5.4%
11,300,000 Arkansas Student Loan, 3.25% (b)
Series 93B-2, AMT
GIC: Bayerische Landesbank.............................................. 03/07/96 11,300,000
5,600,000 City of Jacksonville, 3.55% (b)
Industrial Development Revenue Bond
Regalware, Inc. Project, Series 85
LOC: NBD Corporation.................................................... 03/30/96 5,600,000
------------
16,900,000
------------
CALIFORNIA--3.2%
5,000,000 Los Angeles County, GO, 4.50%
Tax and Revenue Anticipation Note, Series 95
LOC: (c)................................................................ 07/01/96 5,011,228
5,000,000 San Bernardino County, GO, 4.50%
Tax and Revenue Anticipation Note, Series 95
LOC: (d)................................................................ 07/05/96 5,009,103
------------
10,020,331
------------
COLORADO--3.2%
5,000,000 Colorado Student Obligation Authority, 3.20% (b)
Student Loan Revenue Bond, Series 89A, AMT
LOC: Student Loan Marketing Association................................. 03/07/96 5,000,000
5,000,000 El Paso County, GO, 3.95%
Colorado Springs School District No. 11
Tax Anticipation Note, Series 95........................................ 06/28/96 5,000,783
------------
10,000,783
------------
FLORIDA--0.8%
2,400,000 Florida, GO, MBIA, 5.75%
Department of Environmental Protection
Preservation 2000 Project, Series 92A
Noncallable............................................................. 07/01/96 2,415,188
------------
</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 29, 1996
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
- ------------- ------------ ------------
<C> <S> <C> <C>
GEORGIA--0.8%
$ 2,550,000 Cobb County, 3.35% (b)
Industrial Development Revenue Bond
Amoena Corporation Project, Series 92, AMT
LOC: Bayerische Hypobank................................................ 03/07/96 $ 2,550,000
------------
IOWA--0.7%
2,000,000 Iowa Higher Education, AMBAC, 6.125%
Student Loan Revenue Bond, Series 91C................................... 12/01/96 2,030,943
------------
IDAHO--3.4%
5,000,000 Boise GO, 4.0%
Revenue Anticipation Note, Series 95B................................... 09/13/96 5,016,941
5,500,000 Idaho GO, 4.5%
Tax Anticipation Note, Series 95........................................ 06/27/96 5,513,044
------------
10,529,985
------------
ILLINOIS--8.2%
6,685,000 Illinois Development Finance Authority, 3.20% (b)
Multi Family Housing Revenue Bond
River Oaks Project, Series 88, AMT
LOC: Swiss Bank......................................................... 03/07/96 6,685,000
9,200,000 Illinois Development Finance Authority, 3.25% (b)
Multi Family Housing Revenue Bond
Williamsburg Apartments, Series 91, AMT
LOC: Landesbank Hessen-Thueringen....................................... 03/07/96 9,200,000
6,000,000 Lisle Housing Finance Authority, 3.40% (b)
Multi Family Housing Revenue Bond
Devonshire Project, Series 91, AMT
LOC: American National Bank of Chicago.................................. 07/07/96 6,000,000
1,050,000 Southwestern, 3.55% (b)
Solid Waste Revenue Bond
Shell Oil/Wood River Project, Series 91, AMT............................ 03/01/96 1,050,000
2,700,000 Southwestern, 3.55% (b)
Industrial Development Revenue Bond
Robinson Steel Co, Series 91
LOC: American National Bank of Chicago.................................. 03/07/96 2,700,000
------------
25,635,000
------------
</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 29, 1996
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
- ------------- ------------ ------------
<C> <S> <C> <C>
INDIANA--7.9%
$ 1,815,000 City of Columbus, 3.5% (b)
Economic Development Revenue Bond
Columbus Container, Series 89A, AMT
LOC: Bank One, Columbus................................................. 03/07/96 $ 1,815,000
2,640,000 City of Crawfordsville, 3.55% (b)
Industrial Development Revenue Bond
Precision Plastics of Indiana, Series 92
LOC: Northern Trust Company............................................. 03/07/96 2,640,000
4,000,000 Indiana Bond Bank, GO, 4.25%
Advance Funding Program Note, Series 96
GIC: Westdeutsche--Landesbank........................................... 01/09/97 4,024,937
2,300,000 Indiana Development Finance Authority, 3.50%
Mid-America Energy Resources, Series 95, AMT
LOC: Union Bank of Switzerland.......................................... 03/07/96 2,300,000
2,000,000 City of Indianapolis, 3.60% (b)
Industrial Development Revenue Bond
Altec Industries Inc. Project, Series 89, AMT
LOC: Wachovia Bank and Trust............................................ 03/07/96 2,000,000
7,500,000 City of Portage, 3.30% (b)
Multi Family Housing Revenue Bond
Pedcor Investment Apartment Project, Series 95A, AMT
LOC: Federal Home Loan Bank............................................. 03/07/96 7,500,000
4,400,000 City of Westfield, 3.60% (b)
Industrial Development Revenue Bond
PL Porter Project, Series 89, AMT
LOC: Bank of America.................................................... 03/07/96 4,400,000
------------
24,679,937
------------
KENTUCKY--6.1%
19,000,000 City of Louisville, 3.45% (b)
Airport Revenue Bond
Louisville Airport, Series 89B, AMT
LOC: National City Bank of Louisville................................... 03/07/96 19,000,000
------------
LOUISIANA--0.4%
1,200,000 St. Charles Parish, 3.55% (b)
Industrial Development Revenue Bond
Shell Oil Company Project, Series 92A, AMT.............................. 03/01/96 1,200,000
------------
MAINE--0.5%
1,700,000 City of Bath, GO, 4.375%
Bond Anticipation Note, Series 95A...................................... 06/27/96 1,701,963
------------
MISSOURI--0.6%
2,000,000 City of St. Joseph, 3.60% (b)
Industrial Development Revenue Bond
Altec Industries, Inc., Series 89, AMT
LOC: Wachovia Bank & Trust.............................................. 03/07/96 2,000,000
------------
MISSISSIPPI--1.0%
3,000,000 City of Olive Branch, 3.45% (b)
United Healthcare, Series 86, AMT
LOC: First Union Bank of North Carolina................................. 03/07/96 3,000,000
------------
</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
FEBRUARY 29, 1996
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
- ------------- ------------ ------------
<C> <S> <C> <C>
NEW HAMPSHIRE--7.5%
$19,000,000 New Hampshire Business Finance Authority, 3.45% (b)
Pollution Control Revenue Bond
Public Service of New Hampshire, Series 92D, AMT
LOC: Barclays Bank...................................................... 03/07/96 $ 19,000,000
3,000,000 New Hampshire, GO, 5.0%
Capital Improvement, Series 95A......................................... 10/01/96 3,026,443
1,600,000 New Hampshire Industrial Development Authority, 3.40%
Pollution Control Revenue Bond
Connecticut Light & Power, Series 88, AMT
LOC: Union Bank of Switzerland.......................................... 03/07/96 1,600,000
------------
23,626,443
------------
NEW MEXICO--2.2%
6,000,000 Albuquerque Airport Facility, 3.30% (b)
Airport Revenue Bond
Albuquerque International, Series 96A, AMT
LOC: Bayerische Landesbank.............................................. 03/07/96 6,000,000
1,000,000 Santa Fe Mortgage Revenue, 4.0%
Single Family Mortgage Revenue Bond, AMT
Home Mortgage Revenue, FNMA & GNMA, Series 95B
GIC: Financial Guaranty Insurance Company............................... 11/15/96 1,000,000
------------
7,000,000
------------
OKLAHOMA--3.2%
2,500,000 Oklahoma Industrial Development Authority, 3.65% (b)
Industrial Development Revenue Bond
Farley Candy Project, Series 94
LOC: Toronto Dominion................................................... 03/07/96 2,500,000
7,500,000 Optima Municipal Authority, 3.45% (b)
Industrial Development Revenue Bond
Seaboard Project, Series 94, AMT
LOC: Trust Company Bank................................................. 03/07/96 7,500,000
------------
10,000,000
------------
PENNSYLVANIA--2.4%
3,700,000 Pennsylvania Higher Education, 3.40% (b)
Student Loan Revenue Bond, Series 88C, AMT
LOC: Student Loan Marketing Association................................. 03/07/96 3,700,000
3,900,000 Pennsylvania Higher Education, 3.40% (b)
Student Loan Revenue Bond, Series 94A, AMT
LOC: Student Loan Marketing Association................................. 03/07/96 3,900,000
------------
7,600,000
------------
RHODE ISLAND--3.4%
2,600,000 City of Providence, 3.40% (b)
Washington Street Public Parking Garage, Series 91, AMT
LOC: Morgan Guaranty Trust Company...................................... 03/07/96 2,600,000
5,000,000 Rhode Island Port Authority, 3.30% (b)
Electric Revenue Bond
Newport Electric Corporation, Series 94
LOC: Canadian Imperial.................................................. 03/07/96 5,000,000
3,000,000 Rhode Island Higher Education, 3.30% (b)
Student Loan Revenue Bond, Series 95-1, AMT
LOC: National Westminster............................................... 03/07/96 3,000,000
------------
10,600,000
------------
</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 29, 1996
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
- ------------- ------------ ------------
<C> <S> <C> <C>
SOUTH DAKOTA--1.1%
$ 3,500,000 South Dakota Housing Development Authority, 4.05%
Single Family Mortgage Revenue Bond
Homeownership Mortgage, Series 95E, AMT................................. 10/24/96 $ 3,500,000
------------
TEXAS--13.0%
1,000,000 Brazos River Authority, 3.55% (b)
Pollution Control Revenue Bond
Texas Utility Electric Revenue Bond, Series 95C, AMT
LOC: Swiss Bank......................................................... 03/01/96 1,000,000
8,500,000 Lago Vista Health Facility, 3.20% (b)
The Island on Lake Travis, Series 86, AMT
LOC: Credit Suisse...................................................... 03/07/96 8,500,000
6,800,000 City of Galveston, 3.45% (b)
Industrial Development Revenue Bond
Mitchell Project, Series 93A, AMT
LOC: National Westminster............................................... 03/07/96 6,800,000
4,500,000 North Texas Higher Education, 3.40% (b)
Student Loan Revenue Bond, Series 93A, AMT
LOC: Student Loan Marketing Association................................. 03/07/96 4,500,000
3,000,000 Panhandle Plains, 3.20% (b)
Student Loan Revenue Bonds, Series 95A, AMT
LOC: Student Loan Marketing Association................................. 03/07/96 3,000,000
3,000,000 Port of Port Arthur, 3.40% (b)
Star Enterprises Project, Series 94, AMT
LOC: Swiss Bank......................................................... 03/07/96 3,000,000
6,200,000 San Antonio Housing Finance Authority, 3.25% (b)
Multi Family Housing Revenue Bond
Cape Cod Apartments, Series 90, AMT
LOC: Landesbank Hessen-Thueringen....................................... 03/07/96 6,200,000
2,700,000 San Antonio Housing Finance Authority, 3.25% (b)
Multi Family Housing Revenue Bond
Mesa Ridge Apartments, Series 90, AMT
LOC: Landesbank Hessen-Thueringen....................................... 03/07/96 2,700,000
5,000,000 Texas, GO, 4.75%
Tax and Revenue Anticipation Note, Series 95A........................... 08/30/96 5,015,550
------------
40,715,550
------------
UTAH--5.4%
1,750,000 Utah Intermountain Power Agency, 6.90%
Series 88B, Noncallable................................................. 07/01/96 1,768,779
15,035,000 Utah Housing Finance Agency, 3.50% (b)
Single Family Mortgage Revenue Bond
Home Mortgage Revenue, Series 4, AMT
GIC: Trinity Funding.................................................... 03/07/96 15,035,000
------------
16,803,779
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 7
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
- ------------- ------------ ------------
<C> <S> <C> <C>
VIRGINIA--3.0%
$ 2,000,000 City of Alexandria Redevelopment, 3.60% (b)
Multi Family Housing Revenue Bond
Buckingham Village Apartments, Series 96B, AMT
LOC: First Union Bank of North Carolina................................. 03/07/96 $ 2,000,000
7,500,000 City of Richmond Redevelopment, 3.55% (b)
Multi Family Housing Revenue Bond
Tobacco Row, Series 89B-5, AMT
GIC: Westdeutsche-Landesbank............................................ 03/07/96 7,500,000
------------
9,500,000
------------
WISCONSIN--1.6%
5,000,000 Wisconsin, GO, 4.50%
Operating Notes, Series 95.............................................. 07/17/96 5,010,607
------------
WEST VIRGINIA--4.0%
3,900,000 Marion County, 3.45% (b)
Solid Waste Revenue Bond
Grant Town Cogen Project, Series 92A, AMT
LOC: National Westminster............................................... 03/07/96 3,900,000
4,300,000 Marion County, 3.40% (b)
Solid Waste Revenue Bond
Grant Town Cogen Project, Series 91B, AMT
LOC: National Westminster............................................... 03/07/96 4,300,000
4,400,000 Marion County, 3.40% (b)
Solid Waste Revenue Bond
Grant Town Cogen Project, Series 90D, AMT
LOC: National Westminster............................................... 03/07/96 4,400,000
------------
12,600,000
------------
TOTAL INVESTMENTS (cost $297,920,186)(e), 95.1% (a).................................................... 297,920,186
OTHER ASSETS AND LIABILITIES, net, 4.9% (a)............................................................ 15,436,584
------------
NET ASSETS (net asset value, offering and redemption price of $1.00 per share; 313,423,146 shares
outstanding), consisting of paid-in-capital net of accumulated net realized loss of $66,376,
100.00%.............................................................................................. $313,356,770
============
</TABLE>
- ---------------
* Earlier of the maturity date or put date.
(a) Percentages are based on net assets.
(b) Floating rate notes are securities that generally are 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.
(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.
7
<PAGE> 8
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED FEBRUARY 29, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income
Interest.................................................................................... $5,717,827
Expenses (Notes 1 and 4):
Management fee............................................................................ $736,475
Distribution fee.......................................................................... 222,756
Shareholder servicing..................................................................... 48,330
Amortization of state registration expenses............................................... 40,743
Custodian/Fund accounting fees............................................................ 36,535
Professional fees......................................................................... 20,068
Federal registration fees................................................................. 10,465
Reports to shareholders................................................................... 9,398
Amortization of organization expenses..................................................... 4,626
Trustees' fees and expenses............................................................... 4,252
Insurance................................................................................. 3,992
Other..................................................................................... 5,019
--------
Total expenses.............................................................................. 1,142,659
----------
Net investment income....................................................................... 4,575,168
----------
Net increase in net assets resulting from operations........................................ $4,575,168
=========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED FOR THE
FEBRUARY 29, 1996 YEAR ENDED
(UNAUDITED) AUGUST 31, 1995
----------------- ---------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income....................................................... $ 4,575,168 $ 7,478,963
Net realized loss from investment transactions.............................. -- (46,523)
----------------- ---------------
Net increase in net assets resulting from operations.......................... 4,575,168 7,432,440
Distributions to shareholders from net investment income ($.015 and $.030 per
share, respectively)........................................................ (4,575,168) (7,478,963)
Increase in net assets from Fund share transactions (Note 2).................. 30,347,031 70,589,200
----------------- ---------------
Increase in net assets........................................................ 30,347,031 70,542,677
Net assets, beginning of period............................................... 283,009,739 212,467,062
----------------- ---------------
Net assets, end of period..................................................... $ 313,356,770 $ 283,009,739
================= ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE> 9
- --------------------------------------------------------------------------------
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
PERIOD ENDED FOR THE YEARS ENDED AUGUST 31,
FEBRUARY 29, 1996 ---------------------------------------
(UNAUDITED) 1995 1994 1993 1992+
----------------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD:...... $ 1.000 $1.000 $1.000 $1.000 $1.000
------- ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)................. .015 .030 .019 .020 .005
LESS DISTRIBUTIONS:
Dividends from net investment income..... (.015) (.030) (.019) (.020) (.005)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD:............ $ 1.000 $1.000 $1.000 $1.000 $1.000
======= ====== ====== ====== ======
TOTAL RETURN %............................. 1.54(c) 3.04 1.90 2.02 .47(c)
RATIOS TO AVERAGE DAILY NET
ASSETS(%)/SUPPLEMENTAL DATA:
Operating expenses, net.................. .77(b) .77(a) .77(a) .77(a) .77(a)(b)
Net investment income.................... 3.08(b) 3.05 1.89 1.98 2.32(b)
Net assets, end of period ($ millions)... 313 283 212 207 102
</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.
9
<PAGE> 10
- --------------------------------------------------------------------------------
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 portfolio of federally tax-exempt debt securities with
remaining maturities of not more than 397 days. The preparation of
financial statements in accordance with generally accepted accounting
principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ
from those estimates. The following is a summary of significant
accounting policies.
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.
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.
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 investment transactions 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 February 29, 1996 there was an unlimited number of
shares of beneficial interest of no par value authorized. Transactions
in shares and dollars of the Fund during the six month period ended
February 29, 1996 and the year ended August 31, 1995 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 29, 1996 YEAR ENDED
(UNAUDITED) AUGUST 31, 1995
----------------- ---------------
<S> <C> <C>
Shares sold.......................................................... 673,710,558 1,085,052,629
Shares issued in reinvestment of distributions....................... 4,516,523 7,350,654
Shares redeemed...................................................... (647,880,050) (1,021,814,083)
----------------- --------------
Net increase....................................................... 30,347,031 70,589,200
Shares outstanding:
Beginning of period................................................ 283,076,115 212,486,915
----------------- --------------
End of period...................................................... 313,423,146 283,076,115
================= ==============
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the six month period
ended February 29, 1996, purchases, sales and maturities of short-term
investment securities aggregated $308,856,321, $285,780,000 and
$5,000,000, 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
10
<PAGE> 11
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
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
amount payable to the Manager as of February 29, 1996 was $125,221. 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 limitation is more restrictive than any
state expense limitation. Under this voluntary limitation, 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
February 29, 1996 was $15,800. In addition, the Manager performs Fund
accounting services for the Fund and charged $21,164 during the six month
period of which $7,000 was payable as of February 29, 1996.
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 29,
1996 was $37,998. 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.
Note 5: FEDERAL INCOME 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.
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
SEMIANNUAL REPORT
(Unaudited) and Investment
Performance Review for the
Six Month Period Ended
FEBRUARY 29, 1996
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
SEMIANNUAL 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
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.
