<PAGE> 1
[MUNICIPAL MONEY MARKET FUND LOGO]
[PHOTO]
From Our Family to Yours: The Intelligent Creation of Wealth.
SEMIANNUAL REPORT
(Unaudited) and Investment Performance
Review for the Six Month Period Ended
February 28, 1997
[HERITAGE LOGO]
--------------
CASH TRUST(TM)
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Municipal Money Market Fund
<PAGE> 2
March 31, 1997
Dear Fellow Shareholders:
It is my pleasure to provide you with the semiannual report for Heritage
Cash Trust - Municipal Money Market Fund (the "Fund") for the six month period
ended February 28, 1997.
During the past year, there was almost constant speculation about what the
Federal Reserve Board would do in an effort to control the growth of the economy
and discourage inflation. The stock and bond markets experienced significant
volatility as investors worried about whether the economy was growing too fast
or too slow. The consensus during most of the year was that we were in a
"Goldilocks" economy, growing neither too fast nor too slow but at just the
right pace. Short-term interest rates remained relatively constant during this
period. One indicator of this consistency is the seven-day effective yield on
your Fund. At the end of February 1996, August 1996 and February 1997, the
seven-day effective yield stood at 2.83%, 2.92% and 2.77%, respectively.
In late March, the Federal Reserve Board ("Fed") finally raised short-term
rates by 0.25% in a preemptive effort to head off inflation. While we continue
to believe that the fundamental economic data do not support further tightening
in the near-term, we are fully aware of the Fed's commitment to fight inflation
(perhaps even before it appears). In light of this, we have reduced slightly the
average maturity of the Fund's portfolio in an effort to take advantage of
further increases in short-term rates.
As we have mentioned in our last two reports to you, the Securities and
Exchange Commission ("SEC") is modifying certain rules under which money market
funds operate. We now expect these rules to become effective later this year. We
do not expect these rules to cause any significant changes in how your Fund is
managed.
Your Fund continues to maintain a AAAm rating from Standard & Poor's
Ratings Group. This rating reflects the fact that we follow even more
restrictive investment criteria in managing your Fund than required by the SEC.
We also continue to provide a wide range of services that, we hope, make your
Fund extremely convenient for you to use. These services include free checking,
daily sweeps to and from your brokerage accounts and automatic payment programs.
If there are ever any ways in which you believe we could better serve you,
please call us at 800-709-3863.
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.
On behalf of all of us at Heritage, thank you for your continuing
investment in Heritage Cash Trust - Municipal Money Market Fund.
Sincerely,
/s/ Stephen G. Hill
Stephen G. Hill
President
<PAGE> 3
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES--98.8%(A)
- -------------------------------------------------
ALASKA--0.8%
$ 3,000,000 Alaska Industrial Development Authority, 3.40%(b)
Revolving Fund, Series 96B
LOC: Bank of America...................................... 03/07/97 $ 3,000,000
------------
ARKANSAS--2.1%
2,100,000 Clark County, 3.40% (b)
Solid Waste Revenue Bond
Reynolds Metals Project, Series 93, AMT
LOC: Trust Company Bank................................... 03/07/97 2,100,000
5,600,000 City of Jacksonville, 3.45% (b)
Industrial Development Revenue Bond
Regalware, Inc.
LOC: NBD Corporation...................................... 03/30/97 5,600,000
------------
7,700,000
------------
ARIZONA--1.4%
5,000,000 Arizona School District, 4.40%
Tax Anticipation Note
Phoenix Union #210, Series 96............................. 07/31/97 5,008,004
------------
CALIFORNIA--5.4%
5,000,000 California GO, 4.50%
Revenue Anticipation Note, Series 96/97................... 06/30/97 5,008,448
5,000,000 California Housing Finance Authority, 4.00%
Single Family Mortgage Revenue Bond
Home Mortgage Revenue, Series 96J
GIC: Financial Guaranty Insurance Company................. 07/24/97 5,000,000
5,000,000 Riverside County GO, 4.625%
Revenue Anticipation Note
School Financing Authority, Series 96..................... 07/17/97 5,010,432
4,600,000 Stanislaus County GO, 4.50%
Tax Revenue Anticipation Note
Office of Education, Series 96............................ 06/30/97 4,607,324
------------
19,626,204
------------
COLORADO--6.1%
8,000,000 Aurora County, 3.60%(b)
Multi-Family Housing Revenue Bond
Aurora Meadows Apartments, Series 96, AMT
LOC: Federal National Mortgage Association................ 03/07/97 8,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
$ 10,400,000 Colorado Student Obligation Authority, 3.35% (b)
Student Loan Revenue Bond, Series 89A, AMT
LOC: Student Loan Marketing Association................... 03/07/97 $ 10,400,000
2,000,000 Colorado Student Obligation Authority, 3.35% (b)
Student Loan Revenue Bond, Series 93B, AMT
LOC: Student Loan Marketing Association................... 03/07/97 2,000,000
1,700,000 El Paso County, 3.30% (b)
Multi Family Housing Revenue Bond
Briar Glen Apartments, Series 95
LOC: General Electric Credit Corporation.................. 03/07/97 1,700,000
------------
22,100,000
------------
FLORIDA--1.2%
1,400,000 Citrus Park Community Development District, 3.40% (b)
Capital Improvement Bond, Series 96
LOC: Dresdner Bank........................................ 03/07/97 1,400,000
3,000,000 Dade County, 4.0%
Single Family Mortgage Revenue Bond
Home Mortgage Revenue, Series 96, AMT
GIC: Financial Guaranty Insurance Company................. 10/01/97 3,000,000
------------
4,400,000
------------
HAWAII--2.9%
10,700,000 Hawaii Housing Finance Authority, 3.30% (b)
Multi Family Housing Revenue Bond
Tropicana West Project A, Series 85
LOC: Federal Home Loan Bank............................... 03/07/97 10,700,000
------------
ILLINOIS--4.1%
1,100,000 City of Bolingbrook, 3.45% (b)
Multi Family Housing Revenue Bond
Amberton Apartments, Series 94, AMT
LOC: Lasalle National Trust, N.A.......................... 03/07/97 1,100,000
2,000,000 Illinois Development Finance Authority, 3.35% (b)
Multi Family Housing Revenue Bond
River Oaks Project, Series 88, AMT
LOC: Credit Suisse........................................ 03/07/97 2,000,000
2,250,000 Illinois Toll Highway Authority, 3.25% (b)
Series 93B
LOC: Societe Generale..................................... 03/07/97 2,250,000
1,120,000 Lake County, 3.40% (b)
Sewer Revenue Bond
Countryside Landfill, Series 96B, AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/97 1,120,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
$ 6,000,000 City of Lisle Housing Finance Authority, 3.55% (b)
Multi Family Housing Revenue Bond
Devonshire Project, Series 91, AMT
LOC: American National Bank of Chicago.................... 03/07/97 $ 6,000,000
2,400,000 Southwestern, 3.40% (b)
Industrial Development Revenue Bond
Robinson Steel Company, Series 91
LOC: American National Bank of Chicago.................... 03/07/97 2,400,000
------------
14,870,000
------------
INDIANA--8.5%
2,240,000 City of Crawfordsville, 3.50% (b)
Industrial Development Revenue Bond
Precision Plastics of Indiana, Series 92
LOC: Northern Trust Company............................... 03/07/97 2,240,000
6,770,000 Hamilton Hospital, 3.35% (b)
Hospital Revenue Bond
St. Vincent's Hospital Care Center, Daughters of
Charity................................................... 03/07/97 6,770,000
2,000,000 City of Indianapolis, 3.50% (b)
Industrial Development Revenue Bond
Altec Industries Inc., Project, Series 89, AMT
LOC: Wachovia Bank and Trust.............................. 03/07/97 2,000,000
8,000,000 City of Jeffersonville, 4.25% (b)
Industrial Development Revenue Bond
Apollo America Corporation, Series 91, AMT
LOC: Chase Manhattan Bank................................. 03/07/97 8,000,000
4,780,000 City of North Vernon, 3.50% (b)
Multi Family Housing Revenue Bond
Oak Meadows Apartments Project, Series 95, AMT
LOC: Federal Home Loan Bank............................... 03/07/97 4,780,000
2,800,000 City of Portage, 3.40% (b)
Multi Family Housing Revenue Bond
Pedcor Investment Apartments Project, Series 95A, AMT
LOC: Federal Home Loan Bank............................... 03/07/97 2,800,000
4,200,000 City of Westfield, 3.40% (b)
Industrial Development Revenue Bond
PL Porter Project, Series 89, AMT
LOC: Bank of America...................................... 03/07/97 4,200,000
------------
30,790,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
LOUISIANA--4.3%
$ 3,770,000 Calcasieu Parish, 3.35% (b)
Sales Tax District No. 4-A, Series 94
LOC: National Westminster................................. 03/07/97 $ 3,770,000
3,750,000 Calcasieu Parish, 3.35% (b)
Sales Tax District No. 4-A, Series 94
LOC: National Westminster................................. 03/07/97 3,750,000
6,700,000 Lincoln Parish, 3.40% (b)
Sewer Revenue Bond
Willamette Industrial Project, Series 96, AMT
LOC: Deutsche Bank........................................ 03/07/97 6,700,000
1,500,000 St. Charles Parish, 3.55% (b)
Pollution Control Revenue Bond
Shell Oil Company Project, Series 91, AMT................. 03/07/97 1,500,000
------------
15,720,000
------------
MICHIGAN--3.0%
5,000,000 Michigan Hospital Finance Authority, 3.35% (b)
St. Mary's Hospital
Daughters of Charity, Series 1984......................... 03/07/97 5,000,000
6,000,000 Wayne County, 3.35% (b)
Airport Revenue Bond
Detroit Wayne County Airport, Series 96B, AMT
LOC: Bayerische Landesbank................................ 03/07/97 6,000,000
------------
11,000,000
------------
MINNESOTA--1.2%
4,300,000 City of St. Paul, 3.65% (b)
Multi Family Housing Revenue Bond
Kendrick Apartments, AMT
LOC: First Bank Systems................................... 03/07/97 4,300,000
------------
MISSOURI--0.5%
2,000,000 City of St. Joseph, 3.50% (b)
Industrial Development Revenue Bond
Altec Industries, Inc., Series 89, AMT
LOC: Wachovia Bank & Trust................................ 03/07/97 2,000,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 7
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
NORTH CAROLINA--0.4%
$ 1,500,000 Union County, 3.25% (b)
Industrial Development Revenue Bond
Square D Company Project, Series 88, AMT
LOC: Morgan Guarantee Trust Company....................... 03/07/97 $ 1,500,000
------------
NEW HAMPSHIRE--6.1%
9,000,000 New Hampshire Business Finance Authority, 3.45% (b)
Pollution Control Revenue Bond
Public Service of New Hampshire, Series 92D, AMT
LOC: Barclays Bank........................................ 03/07/97 9,000,000
5,300,000 New Hampshire, 3.40% (b)
Pollution Control Revenue Bond
Connecticut Light & Power, Series 92
LOC: Canadian Imperial.................................... 03/07/97 5,300,000
2,695,000 New Hampshire Housing Finance Authority, 3.40% (b)
Multi Family Housing Revenue Bond
Countryside LTD Project, Series 94, AMT
LOC: General Electric Credit Corporation.................. 03/07/97 2,695,000
3,600,000 New Hampshire Housing Finance Authority, 3.40% (b)
Multi Family Housing Revenue Bond
Fairways Project, AMT
LOC: General Electric Credit Corporation.................. 03/07/97 3,600,000
1,600,000 New Hampshire Industrial Development Authority, 3.40% (b)
Pollution Control Revenue Bond
Connecticut Light & Power, Series 88, AMT
LOC: Union Bank of Switzerland............................ 03/07/97 1,600,000
------------
22,195,000
------------
OHIO--6.6%
13,265,000 City of Columbus, GO, 3.20% (b)
Series 96-1
LOC: Westdeutsche Landesbank.............................. 03/07/97 13,265,000
3,000,000 Ohio Air Authority, 3.40% (b)
Pollution Control Revenue Bond
JMG Funding Partnership, Series 95A, AMT
LOC: Societe Generale..................................... 03/07/97 3,000,000
7,900,000 Ohio Air Authority, 3.35% (b)
Pollution Control Revenue Bond
JMG Funding Partnership, Series 95B, AMT
LOC: Societe Generale..................................... 03/07/97 7,900,000
------------
24,165,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
OKLAHOMA--2.6%
$ 2,000,000 Oklahoma Development Finance Authority, 3.45% (b)
Shawnee Funding Project, Series 96, AMT
LOC: Bank of Nova Scotia.................................. 03/07/97 $ 2,000,000
7,500,000 Optima Municipal Authority, 3.45% (b)
Industrial Development Revenue Bond
Seaboard Project, Series 94, AMT
LOC: Trust Company Bank................................... 03/07/97 7,500,000
------------
9,500,000
------------
OREGON--2.3%
8,500,000 Port of Portland, 3.40% (b)
Industrial Development Revenue Bond
Portland Bulk Terminal, Series 96
LOC: Canadian Imperial Bank of Commerce................... 03/07/97 8,500,000
------------
PENNSYLVANIA--2.7%
2,400,000 City of Emmaus, 3.35% (b)
Bond Pool Project, Series 89D-10
LOC: Canadian Imperial Bank of Commerce................... 03/07/97 2,400,000
3,700,000 Pennsylvania Higher Education, 3.40% (b)
Student Loan Revenue Bond, Series 88C, AMT
LOC: Student Loan Marketing Association................... 03/07/97 3,700,000
3,900,000 Pennsylvania Higher Education, 3.40% (b)
Student Loan Revenue Bond, Series 94A, AMT
LOC: Student Loan Marketing Association................... 03/07/97 3,900,000
------------
10,000,000
------------
RHODE ISLAND--1.6%
2,600,000 City of Providence, 3.40% (b)
Washington Street Public Parking Garage, Series 91, AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/97 2,600,000
2,000,000 Rhode Island Higher Education, 3.40% (b)
Student Loan Revenue Bond, Series 95-1, AMT
LOC: National Westminster................................. 03/07/97 2,000,000
1,300,000 Rhode Island Higher Education, 3.40% (b)
Student Loan Revenue Bond, Series 96-3, AMT
LOC: National Westminster................................. 03/07/97 1,300,000
------------
5,900,000
------------
TENNESSEE--2.4%
3,700,000 Rutherford County, 3.45% (b)
Industrial Development Revenue Bond
Outboard Marine Project, Series 87, AMT
LOC: NBD Corporation...................................... 03/07/97 3,700,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
$ 5,000,000 Tennessee Housing Development Authority, 4.0% (b)
Single Family Mortgage Revenue Bond
Homeownership Program, Series 1996-5...................... 08/21/97 $ 4,998,533
------------
8,698,533
------------
TEXAS--14.9%
14,600,000 Bexar County Housing Finance Authority, 3.35% (b)
Multi Family Housing Revenue Bond
Altamonte Apartments, Series 96, AMT...................... 03/07/97 14,600,000
3,500,000 Brazos Higher Education, 3.35% (b)
Student Loan Revenue Bond, Series B1, AMT
LOC: Student Loan Marketing Association................... 03/07/97 3,500,000
8,500,000 City of Lago Vista Health Facility, 3.35% (b)
The Island on Lake Travis, Series 86, AMT
LOC: Credit Suisse........................................ 03/07/97 8,500,000
7,300,000 City of Galveston, 3.40% (b)
Industrial Development Revenue Bond
Mitchell Project, Series 93A, AMT
LOC: National Westminster................................. 03/07/97 7,300,000
1,300,000 Panhandle Plains, 3.35% (b)
Student Loan Revenue Bond, Series 91B
LOC: Student Loan Marketing Association................... 03/07/97 1,300,000
1,000,000 Panhandle Plains, 3.35% (b)
Student Loan Revenue Bond, Series 92A
LOC: Student Loan Marketing Association................... 03/07/97 1,000,000
7,000,000 Port of Port Arthur, 3.40% (b)
Industrial Development Revenue Bond
Star Enterprises Project, Series 94, AMT
LOC: Swiss Bank........................................... 03/07/97 7,000,000
1,500,000 Sabine River, 3.60% (b)
Pollution Control Revenue Bond
Texas Utilities, Series 95C, AMT
LOC: Union Bank of Switzerland............................ 03/07/97 1,500,000
9,400,000 South Texas Higher Education, 3.35% (b)
Student Loan Revenue Bond, Series 95A, AMT
LOC: Student Loan Marketing Association................... 03/07/97 9,400,000
------------
54,100,000
------------
UTAH--2.5%
9,100,000 Salt Lake County, 3.50% (b)
Solid Waste Revenue Bond
Kennecott Copper Corporation, AMT......................... 03/07/97 9,100,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
VIRGINIA--10.4%
City of Alexandria Redevelopment and Housing Authority,
$ 2,000,000 3.50% (b)
Multi Family Housing Revenue Bond
Buckingham Village Apartments, Series 96B, AMT
LOC: First Union Bank of North Carolina................... 03/07/97 $ 2,000,000
1,600,000 Amelia County, 3.45% (b)
Solid Waste Revenue Bond, AMT
Chambers Waste Systems, Inc.
LOC: Morgan Guaranty Trust Company........................ 03/07/97 1,600,000
4,450,000 City of Charles, 3.45% (b)
Solid Waste Revenue Bond, AMT
Chambers Development of Virginia, Series 91
LOC: Morgan Guaranty Trust Company........................ 03/07/97 4,450,000
1,500,000 City of Charles, 3.45% (b)
Solid Waste Revenue Bond, AMT
Chambers Development of Virginia, Series 96
LOC: Morgan Guaranty Trust Company........................ 03/07/97 1,500,000
6,505,000 Fairfax County Development Authority, 3.50% (b)
Fair Lakes D&K LTD Partnership, Series 96, AMT
LOC: First Union Bank of North Carolina................... 03/07/97 6,505,000
2,700,000 King George County, 3.55% (b)
Industrial Development Revenue Bond
Birchwood Power Project, Series 94A, AMT
LOC: Credit Suisse........................................ 03/01/97 2,700,000
1,000,000 King George County, 3.55% (b)
Industrial Development Revenue Bond
Birchwood Power Project, Series 94B, AMT
LOC: Credit Suisse........................................ 03/01/97 1,000,000
City of Richmond Redevelopment and Housing Authority, 3.50%
7,500,000 (b)
Multi Family Housing Revenue Bond
Tobacco Row, Series 89B-5, AMT
GIC: Bayerische Landesbank................................ 03/07/97 7,500,000
City of Richmond Redevelopment and Housing Authority, 3.50%
10,660,000 (b) Multi-Family Housing Revenue Bond
Tobacco Row, Series 89B-7, AMT
GIC: Bayerische Landesbank................................ 03/07/97 10,660,000
------------
37,915,000
------------
WASHINGTON--1.2%
1,300,000 City of Bremerton, FGIC, 4.80%
Sewer System Revenue Bond, Series 92A..................... 09/11/97 1,304,724
3,000,000 Washington, 3.35% (b)
Student Loan Revenue Bond, Series 88B, AMT
LOC: National Westminster................................. 03/07/97 3,000,000
------------
4,304,724
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE> 11
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
WEST VIRGINIA--3.4%
$ 3,800,000 Marion County, 3.45% (b)
Solid Waste Revenue Bond
Grant Town Cogen Project, Series 92A, AMT
LOC: National Westminster................................. 03/07/97 $ 3,800,000
4,200,000 Marion County, 3.40% (b)
Solid Waste Revenue Bond
Grant Town Cogen Project, Series 91B, AMT
LOC: National Westminster................................. 03/07/97 4,200,000
4,400,000 Marion County, 3.40% (b)
Solid Waste Revenue Bond
Grant Town Cogen Project, Series 90D, AMT
LOC: National Westminster................................. 03/07/97 4,400,000
------------
12,400,000
------------
WYOMING--0.2%
500,000 Lincoln County, 3.45% (b)
Pollution Control Revenue Bond
Exxon Corporation, Series 84A............................. 03/01/97 500,000
------------
TOTAL INVESTMENTS (cost $359,992,465)(c), 98.8% (a)...................................... 359,992,465
OTHER ASSETS AND LIABILITIES, net, 1.2% (a).............................................. 4,402,751
------------
NET ASSETS (net asset value, offering and redemption price of $1.00 per share;
364,461,592 shares
outstanding), consisting of paid-in-capital net of accumulated net realized loss of
$66,376, 100.00%......................................................................... $364,395,216
============
</TABLE>
- ---------------
* Earlier of the maturity date or the 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) The aggregate identified cost for federal income tax purposes is the same.
AMT--Securities subject to Alternative Minimum Tax
FGIC--Federal Guaranty Insurance Company
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.
10
<PAGE> 12
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED FEBRUARY 28, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income
Interest.................................................... $ 6,138,685
Expenses (Notes 1 and 4):
Management fee............................................ $ 858,053
Distribution fee.......................................... 254,449
Shareholder servicing..................................... 43,407
Custodian/Fund accounting fees............................ 36,681
Amortization of state registration expenses............... 34,846
Professional fees......................................... 20,663
Federal registration fees................................. 9,920
Reports to shareholders................................... 9,888
Insurance................................................. 5,441
Amortization of organization expenses..................... 4,626
Trustees' fees and expenses............................... 3,731
Other..................................................... 3,923
----------
Total expenses.............................................. 1,285,628
-----------
Net investment income resulting from operations............. $ 4,853,057
===========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED FOR THE YEAR
FEBRUARY 28, 1997 ENDED
(UNAUDITED) AUGUST 31, 1996
----------------- ---------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 4,853,057 $ 9,123,484
Distributions to shareholders from net investment income
($.014 and $.030 per share, respectively)................. (4,853,057) (9,123,484)
Increase in net assets from Fund share transactions (Note
2)........................................................ 38,633,744 42,751,733
------------ ------------
Increase in net assets...................................... 38,633,744 42,751,733
Net assets, beginning of period............................. 325,761,472 283,009,739
------------ ------------
Net assets, end of period................................... $364,395,216 $325,761,472
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE> 13
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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 28, 1997 ----------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992+
----------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD:...... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)................. .014 .030 .030 .019 .020 .005
LESS DISTRIBUTIONS:
Dividends from net investment income..... (.014) (.030) (.030) (.019) (.020) (.005)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD:............ $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
TOTAL RETURN %............................. 1.42(c) 2.98 3.04 1.90 2.02 .47(c)
RATIOS TO AVERAGE DAILY NET
ASSETS(%)/SUPPLEMENTAL DATA:
Operating expenses, net(a)............... .76(b) .77 .77 .77 .77 .77(b)
Net investment income.................... 2.86(b) 2.94 3.05 1.89 1.98 2.32(b)
Net assets, end of period ($ millions)... 364 326 283 212 207 102
</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, for the four periods ended August
31, 1995, respectively. The operating expense ratios including such items
would be .79%, .77%, .83% and 1.11% (annualized), respectively. No
management fees were waived or recovered for the year ended August 31, 1996.
The six month period ended February 28, 1997 includes recovery of previously
waived management fees paid to the Manager of less than $.01 per share.
(b) Annualized.
(c) Not annualized.
The accompanying notes are an integral part of the financial statements.
12
<PAGE> 14
- --------------------------------------------------------------------------------
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.
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 28, 1997, 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 28, 1997 and for the year ended August 31, 1996 at a constant
net asset value of $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED
FEBRUARY 28, 1997 FOR THE YEAR ENDED
(UNAUDITED) AUGUST 31, 1996
----------------- ------------------
<S> <C> <C>
Shares sold................................................. 802,403,439 1,388,242,449
Shares issued on reinvestment of distributions.............. 5,753,522 8,254,216
Shares redeemed............................................. (769,523,217) (1,353,744,932)
------------ --------------
Net increase.............................................. 38,633,744 42,751,733
Shares outstanding:
Beginning of period....................................... 325,827,848 283,076,115
------------ --------------
End of period............................................. 364,461,592 325,827,848
============ ==============
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the six month period
ended February 28, 1997, purchases, sales and maturities of short-term
investment securities aggregated $469,147,150, $409,335,000 and
$22,000,000, 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
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 January
2, 1996, the Manager agreed to waive a portion of the management fee so
that the fee does not exceed the following levels as a percentage of
13
<PAGE> 15
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
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 28, 1997 was $156,162.
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. Under this voluntary limitation, management fees of $40,432
($.00002 per share) were waived in the year ended August 31, 1995. In
the current period, the Fund's operating expenses fell below .77% of
average daily assets. Accordingly, the Fund paid the Manager $21,305 of
the fees waived in 1995. If total Fund expenses remain below the expense
limitation agreed to by the Manager during the year ending August 31,
1997, the Fund may be required to pay the Manager a portion or all of
the previously waived management fee.
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 28, 1997 was $16,000. In addition, the Manager performs Fund
accounting services for the Fund and charged $19,424 during the period of
which $6,522 was payable as of February 28, 1997.
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,
1997 was $40,806. 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,
investment companies 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 paid equally by each of the
Heritage Mutual Funds.
Note 5: FEDERAL INCOME TAXES. As of August 31, 1996, the Fund has net tax basis
capital loss carryforwards of $17,824, $2,029 and $46,522 which may be
applied against any realized net taxable gains until their expiration
dates in 2001, 2003 and 2004, respectively.
14
<PAGE> 16
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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.
