<PAGE> 1
MONEY
MARKET [BAR LOGO]
FUND
[Pictures of People Working & Playing]
From Our Family to Yours: The Intelligent Creation of Wealth.
ANNUAL REPORT
and Investment Performance
Review for the Year Ended
August 31, 1997
[HERITAGE LOGO]
<PAGE> 2
October 13, 1997
Dear Fellow Shareholders:
I am pleased to provide you with the annual report for Heritage Cash
Trust - Money Market Fund (the "Fund") for the fiscal year ended August 31,
1997. During the past fiscal year, rates on short-term investments fluctuated
within a relatively narrow range. The seven-day effective yield for your Fund
began the fiscal year at 4.82%, fell to 4.78% at the end of the semi-annual
reporting period at the end of February, and stood at 4.96% on August 31. As of
the date of this letter, the seven-day effective yield was 4.99%.
The primary reason for the stability of short-term rates has been the lack
of any drastic action by the Federal Reserve Board (the "Fed") to attempt to
slow down or speed up the economy. As our domestic economy has continued to grow
at a slow, steady rate with minimal inflationary pressures, the Fed has been
content to leave rates relatively unchanged. We continue to believe that the Fed
will act quickly to raise rates at the first evidence of increasing inflation,
and have structured your portfolio to allow us room to lengthen your portfolio
maturity to take advantage of this situation, should it occur.
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
Securities and Exchange Commission. 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.
On behalf of all of us at Heritage Asset Management, thank you for your
continuing investment in Heritage Cash Trust - Money Market Fund.
Sincerely,
/s/ Stephen G. Hill
Stephen G. Hill
President
<PAGE> 3
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1997
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
COMMERCIAL PAPER--82.0%(A)
- -------------------------
DOMESTIC--69.3%
BEVERAGES--0.8%
$16,750,000 PepsiCo, Inc., 5.48%........................................ 09/05/97 $ 16,739,801
--------------
CHEMICALS--3.1%
5,000,000 E.I. du Pont de Nemours & Company, 5.45%.................... 09/05/97 4,996,972
5,000,000 E.I. du Pont de Nemours & Company, 5.45%.................... 10/16/97 4,965,938
22,000,000 E.I. du Pont de Nemours & Company, 5.47%.................... 09/18/97 21,943,173
20,000,000 E.I. du Pont de Nemours & Company, 5.48%.................... 10/16/97 19,863,000
10,000,000 Monsanto Company, 5.48%..................................... 10/20/97 9,925,411
--------------
61,694,494
--------------
COMPUTER/OFFICE EQUIPMENT--1.0%
20,000,000 Xerox Credit Corporation, 5.47%............................. 09/04/97 19,990,883
--------------
CORPORATE FINANCE--10.0%
60,000,000 Ciesco, L.P., 5.52%......................................... 09/12/97 59,898,800
10,000,000 Corporate Asset Funding Company, Inc., 5.48%................ 10/07/97 9,945,200
32,000,000 Corporate Asset Funding Company, Inc., 5.55%................ 09/10/97 31,955,600
50,000,000 General Electric Capital Corporation, 5.55%................. 09/18/97 49,868,958
15,000,000 General Electric Capital Corporation, 5.55%................. 01/26/98 14,660,063
10,000,000 General Electric Capital Corporation, 5.58%................. 09/05/97 9,993,800
5,000,000 Private Export Funding Corporation, 5.48%................... 10/16/97 4,965,750
20,000,000 Private Export Funding Corporation, 5.50%................... 10/10/97 19,880,833
--------------
201,169,004
--------------
DRUGS--7.4%
50,000,000 Abbott Laboratories, 5.45%.................................. 09/23/97 49,833,472
8,035,000 Abbott Laboratories, 5.46%.................................. 09/18/97 8,014,283
40,000,000 Eli Lilly & Company, 5.48%.................................. 09/16/97 39,908,667
10,000,000 Pfizer, Inc., 5.48%......................................... 10/10/97 9,940,633
41,900,000 Schering Corporation, 5.52%................................. 09/09/97 41,848,603
--------------
149,545,658
--------------
ELECTRONICS--6.2%
52,000,000 Emerson Electric Company, 5.46%............................. 09/02/97 51,992,113
22,710,000 Motorola Credit Corporation, 5.45%.......................... 10/03/97 22,599,983
50,000,000 Motorola, Inc., 5.47%....................................... 10/30/97 49,551,764
--------------
124,143,860
--------------
FOOD--12.7%
19,000,000 Campbell Soup Company, 5.47%................................ 11/03/97 18,818,123
30,000,000 Campbell Soup Company, 5.48%................................ 09/18/97 29,922,367
25,000,000 Campbell Soup Company, 5.55%................................ 11/17/97 24,703,229
20,000,000 Cargill, Inc., 5.47%........................................ 10/22/97 19,845,017
25,000,000 Cargill, Inc., 5.50%........................................ 10/10/97 24,851,042
30,000,000 Cargill, Inc., 5.55%........................................ 09/02/97 29,995,375
8,362,000 H.J. Heinz Company, 5.47%................................... 09/15/97 8,344,212
30,000,000 H.J. Heinz Company, 5.48%................................... 09/09/97 29,963,467
14,500,000 H.J. Heinz Company, 5.50%................................... 09/19/97 14,460,125
5,350,000 Kellogg Company, 5.48%...................................... 09/19/97 5,335,340
50,000,000 Sara Lee Corporation, 5.51%................................. 09/25/97 49,816,333
--------------
256,054,630
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 4
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
HOUSEHOLD PRODUCTS--3.0%
$20,000,000 The Procter & Gamble Company, 5.45%......................... 10/17/97 $ 19,860,721
9,000,000 The Procter & Gamble Company, 5.45%......................... 12/01/97 8,876,013
31,000,000 The Procter & Gamble Company, 5.47%......................... 10/01/97 30,858,692
--------------
59,595,426
--------------
NEWSPAPERS/PUBLISHING--1.0%
20,000,000 McGraw-Hill, Inc., 5.54%.................................... 09/19/97 19,944,600
--------------
OIL & GAS--8.3%
10,000,000 Amoco Corporation, 5.45%.................................... 11/05/97 9,901,597
25,000,000 Amoco Corporation, 5.52%.................................... 10/01/97 24,885,000
25,000,000 Amoco Corporation, 5.52%.................................... 10/01/97 24,885,000
10,000,000 Atlantic Richfield Company, 5.54%........................... 09/02/97 9,998,461
15,000,000 Chevron UK Investment PLC, 5.52%............................ 11/03/97 14,855,100
10,000,000 Chevron UK Investment PLC, 5.53%............................ 10/06/97 9,946,237
35,000,000 Chevron UK Investment PLC, 5.58%............................ 10/10/97 34,788,425
14,000,000 Shell Oil Company, 5.48%.................................... 09/15/97 13,970,164
25,000,000 Shell Oil Company, 5.53%.................................... 09/02/97 24,996,160
--------------
168,226,144
--------------
RETAIL--1.0%
20,000,000 J.C. Penney Funding Corporation, 5.50%...................... 09/10/97 19,972,500
--------------
TELEPHONE/UTILITIES--12.3%
30,000,000 Ameritech Corporation, 5.48%................................ 10/21/97 29,771,667
20,000,000 AT&T Corporation, 5.46%..................................... 09/04/97 19,990,900
40,000,000 AT&T Corporation, 5.47%..................................... 11/04/97 39,611,022
9,649,000 Bell Atlantic Network Funding Corporation, 5.47%............ 09/02/97 9,647,533
25,055,000 Bell Atlantic Network Funding Corporation, 5.47%............ 09/10/97 25,020,737
10,750,000 Bell Atlantic Network Funding Corporation, 5.48%............ 09/11/97 10,733,636
29,500,000 Bell Atlantic Network Funding Corporation, 5.51%............ 09/18/97 29,423,243
16,000,000 BellSouth Capital Funding Corporation, 5.48%................ 11/07/97 15,836,818
19,000,000 BellSouth Capital Funding Corporation, 5.50%................ 11/12/97 18,791,000
25,000,000 BellSouth Capital Funding Corporation, 5.53%................ 09/15/97 24,946,236
5,000,000 BellSouth Telecommunications Inc., 5.47%.................... 09/11/97 4,992,403
20,000,000 SBC Communications Inc., 5.48%.............................. 09/26/97 19,923,889
--------------
248,689,084
--------------
TRANSPORTATION--2.5%
40,000,000 United Parcel Service, 5.45%................................ 10/24/97 39,679,056
11,000,000 United Parcel Service, 5.48%................................ 11/07/97 10,887,812
--------------
50,566,868
--------------
Total Domestic (cost $1,396,332,952)..................... 1,396,332,952
--------------
FOREIGN--12.7%(B)
AUTO SALES--3.7%
15,000,000 Toyota Motor Credit Corporation, 5.46%...................... 09/17/97 14,963,600
15,000,000 Toyota Motor Credit Corporation, 5.47%...................... 09/24/97 14,947,579
20,000,000 Toyota Motor Credit Corporation, 5.48%...................... 09/16/97 19,954,333
25,000,000 Toyota Motor Credit Corporation, 5.48%...................... 10/10/97 24,851,583
--------------
74,717,095
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 5
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
BANKING--3.0%
$28,200,000 Abbey National North America, 5.55%......................... 10/16/97 $ 28,004,363
20,000,000 Deutsche Bank Financial, Inc. 5.47%......................... 09/05/97 19,987,844
13,250,000 Deutsche Bank Financial, Inc. 5.50%......................... 09/05/97 13,241,903
--------------
61,234,110
--------------
CORPORATE FINANCE--5.3%
20,000,000 Export Development Corporation, 5.46%....................... 09/03/97 19,993,933
22,200,000 Province of British Columbia, 5.55%......................... 02/23/98 21,601,063
21,500,000 The Canadian Wheat Board, 5.47%............................. 10/09/97 21,375,861
8,500,000 The Canadian Wheat Board, 5.48%............................. 12/10/97 8,370,611
5,000,000 The Canadian Wheat Board, 5.50%............................. 11/20/97 4,938,889
30,000,000 The Canadian Wheat Board, 5.53%............................. 09/15/97 29,935,484
--------------
106,215,841
--------------
ELECTRONICS--0.7%
15,000,000 Siemens Capital Corporation, 5.47%.......................... 09/05/97 14,990,883
--------------
Total Foreign (cost $257,157,929)........................ 257,157,929
--------------
Total Commercial Paper (cost $1,653,490,881)............. 1,653,490,881
--------------
CORPORATE NOTES--1.0%(A)
- ----------------------
BANKING--1.0%
20,000,000 Wachovia Bank of North Carolina, Bank Note, 5.53%........... 10/27/97 20,000,000
--------------
CORPORATE FINANCE--0.0%
AT&T Capita Equipment Receivable Trust, 1996-1, Class A1,
200,066 5.60%....................................................... 10/15/97 200,066
--------------
Total Corporate Notes (cost $20,200,066)................. 20,200,066
--------------
U.S. GOVERNMENT AND AGENCY SECURITIES--15.9%(A)
- ------------------------------------------
U.S. GOVERNMENT AGENCIES--12.4%
30,000,000 Fannie Mae, 5.42%........................................... 11/12/97 29,674,800
15,000,000 Fannie Mae, 5.42%........................................... 12/18/97 14,756,100
30,000,000 Fannie Mae, 5.43%........................................... 11/10/97 29,683,250
20,000,000 Federal Home Loan Bank, 5.38%............................... 12/09/97 19,704,100
15,000,000 Federal Home Loan Bank, 5.42%............................... 11/12/97 14,837,400
25,000,000 Federal Home Loan Bank, 5.49%............................... 09/19/97 24,931,375
20,000,000 Freddie Mac, 5.43%.......................................... 10/03/97 19,903,467
20,000,000 Freddie Mac, 5.44%.......................................... 10/01/97 19,909,333
15,000,000 Freddie Mac, 5.44%.......................................... 10/01/97 14,932,000
20,000,000 Freddie Mac, 5.71%.......................................... 03/17/98 20,003,440
42,575,000 Student Loan Marketing Association, 5.39%................... 11/26/97 42,027,308
--------------
250,362,573
--------------
U.S. TREASURIES--3.5%
25,000,000 U.S. Treasury Note, 5.37%................................... 11/30/97 24,990,694
20,000,000 U.S. Treasury Note, 6.00%................................... 11/30/97 20,026,276
25,000,000 U.S. Treasury Note, 7.37%................................... 11/15/97 25,085,176
--------------
70,102,146
--------------
Total U.S. Government and Agency Securities (cost
$320,464,719)............................................... 320,464,719
--------------
Total Investment Portfolio excluding repurchase agreement (cost
$1,994,155,666).................................................................. 1,994,155,666
--------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 6
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
--------- --------------
<C> <S> <C> <C>
REPURCHASE AGREEMENT--0.7%(A)
- ---------------------------
Repurchase Agreement with State Street Bank and Trust Company, dated August 29,
1997, @ 5.5% to be repurchased at $14,088,604 on September 2, 1997,
collateralized by $11,070,000 United States Treasury Notes, 9.125% due May 15,
2018 (market value $14,366,032 including interest) (cost $14,080,000)............ $14,080,000
--------------
TOTAL INVESTMENTS (cost $2,008,235,666)(c), 99.6% (a)............................ 2,008,235,666
OTHER ASSETS AND LIABILITIES, net 0.4%(a)........................................ 7,771,683
--------------
NET ASSETS, (consisting of paid-in-capital net of accumulated net realized loss
of $268,840) 100.00%............................................................. $2,016,007,349
==============
CLASS A SHARES
- ------------
Net asset value, offering and redemption price per share, ($2,015,501,895 divided
by 2,015,770,734 shares outstanding)............................................. $1.00
==============
CLASS C SHARES
- ------------
Net asset value, offering and redemption price per share, ($505,454 divided by
505,454 shares outstanding)...................................................... $1.00
==============
</TABLE>
- ---------------
(a) Percentages are based on net assets.
(b) U.S. dollar denominated.
(c) The aggregate identified cost for federal income tax purposes is the same.
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 7
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1997
<TABLE>
<S> <C> <C>
Investment Income:
Interest.................................................... $102,287,360
Expenses (Notes 1 and 4):
Management fee............................................ $8,891,273
Distribution fee (Class A Shares)......................... 2,785,331
Distribution fee (Class C Shares)......................... 1,599
Shareholder servicing..................................... 1,830,438
State registration expenses............................... 177,472
Custodian/Fund Accounting fees............................ 173,765
Federal registration fees................................. 104,003
Reports to shareholders................................... 74,232
Professional fees......................................... 37,384
Insurance expense......................................... 21,443
Trustees' fees and expenses............................... 7,678
Other..................................................... 30,474
----------
Total expenses...................................... 14,135,092
------------
Net investment income....................................... 88,152,268
Realized Loss on Investments
Net realized loss from investment transactions.......................... (28,062)
------------
Net increase in net assets resulting from operations.................... $ 88,124,206
============
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
----------------------------------
AUGUST 31, 1997 AUGUST 31, 1996
--------------- ---------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 88,152,268 $ 73,293,074
Net realized gain (loss) from investment transactions..... (28,062) 28,538
-------------- --------------
Net increase in net assets resulting from operations........ 88,124,206 73,321,612
Distributions to shareholders from:
Net investment income Class A Shares, ($.047 and $.048 per
share, respectively).................................... (88,101,933) (73,291,621)
Net investment income Class C Shares, ($.047 and $.023 per
share, respectively).................................... (50,335) (1,453)
Increase in net assets from Fund share transactions (Note
2)........................................................ 375,093,274 347,173,878
-------------- --------------
Increase in net assets...................................... 375,065,212 347,202,416
Net assets, beginning of year............................... 1,640,942,137 1,293,739,721
-------------- --------------
Net assets, end of year..................................... $2,016,007,349 $1,640,942,137
============== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 8
HERITAGE CASH TRUST -- 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>
CLASS A SHARES CLASS C SHARES
------------------------------------------ ---------------
FOR THE YEARS
ENDED
FOR THE YEARS ENDED AUGUST 31, AUGUST 31,
------------------------------------------ ---------------
1997 1996 1995 1994 1993 1997 1996+
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR.................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (a)(b)........................ $ .047 .048 .050 .029 .025 $ .047 .023
LESS DISTRIBUTIONS:
Dividends from net investment income and net
realized gains (a)................................ $(.047) (.048) (.050) (.029) (.025) $(.047) (.023)
------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF YEAR.......................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ======
TOTAL RETURN %........................................ 4.85 4.89 5.00 2.87 2.48 4.85 2.34(d)
RATIOS TO AVERAGE DAILY NET
ASSETS (%)/SUPPLEMENTAL DATA:
Operating expenses, net (b)......................... .76 .78 .79 .79 .78 .77 .75(c)
Net investment income (b)........................... 4.74 4.78 5.00 2.87 2.47 4.72 4.62(c)
Net assets, end of year ($ millions)................ 2,016 1,641 1,294 982 925 .51 --
</TABLE>
- ---------------
+ For the period February 29, 1996 (commencement of Class C Shares) to August
31, 1996.
(a) Includes net realized gains and losses which were less than $.001 per share
for each of the periods.
(b) Excludes management fees waived by the Manager in the amount of less than
$.001, $.001, and $.001, per share, for the three years ended August 31,
1995, respectively. The operating expense ratios including such items would
have been .81%, .81% and .81%, respectively. No management fees were waived
or recovered for the year ended August 31, 1996. The year ended August 31,
1997 includes recovery of previously waived management fees paid to the
manager of less than $.01 per share. The operating expense ratios excluding
such items would have been .75% for class A and C Shares.
(c) Annualized.
(d) Not annualized.
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 9
HERITAGE CASH TRUST -- MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
Note 1: SIGNIFICANT ACCOUNTING POLICIES. Heritage Cash Trust (the "Trust") is
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as a no-load, diversified,
open-end management investment company consisting of two separate
investment portfolios, the Money Market Fund (the "Fund") and the
Municipal Money Market Fund. The Fund is designed for investors who wish
to participate in a portfolio of debt securities with remaining
maturities of not more than 397 days. The Fund offers two classes of
shares, Class A and Class C Shares. Class C Shares may be acquired only
through exchanges of Class C Shares of other Heritage Mutual Funds. 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.
Repurchase Agreements: The Fund enters into repurchase agreements
whereby the Fund, through its custodian, receives delivery of the
underlying securities, the market value of which at the time of purchase
is required to be an amount equal to at least 100% of the resale price.
Federal Income Taxes: The Fund is treated as a single corporate taxpayer
as provided for in the Tax Reform Act of 1986, as amended. The Fund's
policy is to comply with the requirements of the Internal Revenue Code
of 1986, as amended, which are applicable to regulated investment
companies and to distribute substantially all of its taxable income to
its shareholders. Accordingly, no provision has been made for federal
income and excise taxes.
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.
Expenses: The Fund is charged for those expenses which are directly
attributable to it, such as management fee, custodian/fund accounting
fees, distribution fee, etc., while other expenses such as professional
fees, insurance expense, etc., are allocated proportionately among the
funds. Expenses of the Fund are allocated to each class of shares based
upon their relative percentage of current net assets. All expenses that
are directly attributable to a specific class of shares, such as
distribution fees, are charged directly to that class.
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.
Other: Investment transactions are recorded on a trade date basis which
is generally the same as settlement date. Interest income is recorded on
the accrual basis.
Note 2: FUND SHARES. At August 31, 1997, there was an unlimited number of
shares of beneficial interest of no par value authorized.
Transactions in Class A Shares and dollars of the Fund during the years
ended August 31, 1997 and 1996, at a constant net asset value of $1.00
per share, were as follows:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
------------------------------------
CLASS A SHARES AUGUST 31, 1997 AUGUST 31, 1996
-------------- --------------- ---------------
<S> <C> <C>
Shares sold................................................. 8,170,400,843 6,431,599,812
Shares issued on reinvestment of distributions.............. 85,579,732 66,519,647
Shares redeemed............................................. (7,881,206,649) (6,151,131,688)
-------------- --------------
Net increase.............................................. 374,773,926 346,987,771
Shares outstanding:
Beginning of year......................................... 1,640,996,808 1,294,009,037
-------------- --------------
End of year............................................... 2,015,770,734 1,640,996,808
============== ==============
</TABLE>
8
<PAGE> 10
HERITAGE CASH TRUST -- MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
Transactions in Class C Shares and dollars of the Fund during the year
ended August 31, 1997 and for the period from February 29, 1996
(commencement of C Shares) to August 31, 1996, at a constant net asset
value of $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
------------------------------------
CLASS C SHARES AUGUST 31, 1997 AUGUST 31, 1996
-------------- --------------- ---------------
<S> <C> <C>
Shares sold................................................. 3,602,752 458,920
Shares issued on reinvestment of distributions.............. 48,452 660
Shares redeemed............................................. (3,331,857) (273,473)
---------- --------
Net increase.............................................. 319,347 186,107
Shares outstanding:
Beginning of year......................................... 186,107 --
---------- --------
End of year............................................... 505,454 186,107
========== ========
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the year ended
August 31, 1997, purchases, sales and maturities of short-term
investment securities, excluding repurchase agreements, aggregated
$17,661,424,918, $189,438,130 and $17,223,036,000, respectively.
Purchases, sales and maturities of U.S. Government obligations
aggregated $1,127,904,230, $106,049,855 and $870,870,000, respectively.
Note 4: MANAGEMENT, 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, 0.40% of the next $500,000,000, and 0.375% of any
excess over $2,500,000,000 of such net assets, computed daily and
payable monthly. The amount payable to the Manager as of August 31, 1997
was $1,042,294. For the period January 2, 1992 to December 31, 1992, the
Manager voluntarily agreed to waive its fees and, if necessary,
reimburse the Fund to the extent that the Fund's annual operating
expenses exceeded .77%, on an annual basis, of the Fund's average daily
net assets. Effective January 1, 1993, this voluntary expense limitation
was changed to .79%, on an annual basis, of the Fund's average daily net
assets. Under these arrangements, management fees of $244,972 were
waived during the year ended August 31, 1995. In the current year, the
Fund's operating expenses fell below .79% of average daily assets.
Accordingly, the Fund paid the Manager all of the fees waived in 1995.
The Manager is also the Dividend Paying and Shareholder Servicing Agent
for the Fund. The amount payable to the Manager for such expenses as of
August 31, 1997 was $304,000. In addition, the Manager performs Fund
Accounting services for the Fund and charged $39,804 during the year of
which $6,600 was payable as of August 31, 1997.
Raymond James & Associates, Inc. (the "Distributor") has advised the
Fund that it received $2,232 in contingent deferred sales charges for
the year ended August 31, 1997.
Pursuant to plans adopted in accordance with Rule 12b-1 of the
Investment Company Act of 1940, as amended, the Fund pays the
Distributor a fee up to 0.15% of average daily net assets for the
services it provides in connection with the promotion and distribution
of Class A and Class C Fund shares. Such fee is accrued daily and
payable monthly. The amount payable to the Distributor as of August 31,
1997 was $254,794. 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, 1997, the Fund has net tax basis
capital loss carryforwards of $9,682, $6,037, $235,118 and $33,722 which
may be applied to any net taxable gains until their expiration dates in
2002, 2003, 2004 and 2005, respectively.
9
<PAGE> 11
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees of
Heritage Cash Trust - Money Market Fund
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Heritage Cash Trust - Money Market Fund (the "Fund") at August 31, 1997, the
results of its operations for the year then ended and the changes in its net
assets and the financial highlights for each of the two years in the period then
ended, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1997 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above. The financial statements of the Fund for the year
ended August 31, 1995, including the financial highlights for each of the
periods indicated, were audited by other independent accountants whose report
dated October 12, 1995 expressed an unqualified opinion on those statements.
/s/ Price Waterhouse
Price Waterhouse LLP
Tampa, Florida
October 15, 1997
10
<PAGE> 12
HERITAGE CASH TRUST-MONEY MARKET FUND is a member of the Heritage family of
mutual funds. Other investment alternatives available to you from Heritage
include:
M HERITAGE CASH TRUST
MUNICIPAL MONEY MARKET FUND
M HERITAGE CAPITAL APPRECIATION TRUST
M HERITAGE INCOME-GROWTH TRUST
M HERITAGE INCOME TRUST
HIGH YIELD BOND FUND
INTERMEDIATE GOVERNMENT FUND
M HERITAGE SERIES TRUST
EAGLE INTERNATIONAL EQUITY PORTFOLIO
GROWTH EQUITY FUND
MID CAP GROWTH FUND (EFFECTIVE
SEPTEMBER 29, 1997)
SMALL CAP STOCK FUND
VALUE EQUITY FUND
M 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 mutual funds, please contact your
financial advisor. Please read the Prospectus carefully before you invest in any
of the funds.
<PAGE> 13
[Heritage Logo]
Heritage Cash Trust - Money Market Fund
P.O. Box 33022
St. Petersburg, FL 33733
Address Change Requested
HERITAGE FAMILY OF FUNDS [TM]
From Our Family to Yours:
The Intelligent Creation of Wealth
HERITAGE MONEY MARKET FUNDS
Cash Trust Money Market
Cash Trust Municipal Money Market
HERITAGE BOND FUNDS
Intermediate Government
High Yield
HERITAGE STOCK FUNDS
Income-Growth
Value Equity
Growth Equity
Capital Appreciation
Mid Cap (effective September 29, 1997)
Small Cap
International
This report is for the information of shareholders of Heritage Cash Trust -
Money Market Fund. It may also be used as sales literature when preceded or
accompanied by a prospectus.
