<PAGE> 1
[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
---------------
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 - 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 4.71%, 4.82% and 4.78%, 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.
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, 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
FEBRUARY 28, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
COMMERCIAL PAPER--77.1%(A)
- -------------------------
DOMESTIC--65.0%
BREWING--1.8%
$33,915,000 Anheuser-Busch Companies, Inc., 5.30%....................... 03/03/97 $ 33,905,014
--------------
CHEMICALS--1.9%
25,000,000 E.I. du Pont de Nemours & Company, 5.30%.................... 04/17/97 24,827,014
10,000,000 E.I. du Pont de Nemours & Company, 5.27%.................... 04/17/97 9,931,197
--------------
34,758,211
--------------
COMPUTER/OFFICE EQUIPMENT--0.5%
10,000,000 Xerox Corporation, 5.30%.................................... 05/05/97 9,904,306
--------------
CONGLOMERATES--2.3%
23,000,000 Minnesota Mining & Manufacturing Company, 5.26%............. 03/21/97 22,932,789
20,000,000 Minnesota Mining & Manufacturing Company, 5.27%............. 04/24/97 19,841,900
--------------
42,774,689
--------------
CORPORATE FINANCE--10.0%
25,000,000 Ciesco, L.P., 5.30%......................................... 03/05/97 24,985,278
25,442,000 Ciesco, L.P., 5.30%......................................... 04/04/97 24,874,861
10,000,000 Ciesco, L.P., 5.28%......................................... 04/04/97 9,950,133
50,000,000 Corporate Asset Funding Company, Inc., 5.26%................ 04/29/97 49,568,972
10,000,000 Corporate Asset Funding Company, Inc., 5.28%................ 05/14/97 9,891,467
10,000,000 General Electric Capital Corporation, 5.27%................. 04/07/97 9,945,836
25,000,000 General Electric Capital Corporation, 5.34%................. 05/21/97 24,699,625
35,000,000 Private Export Funding Corporation, 5.23%................... 08/25/97 34,100,004
--------------
188,016,176
--------------
DRUGS--11.3%
16,275,000 Abbott Laboratories, 5.29%.................................. 03/10/97 16,253,476
43,725,000 Abbott Laboratories, 5.26%.................................. 03/10/97 43,667,502
20,000,000 Eli Lilly & Company, 5.31%.................................. 07/07/97 19,622,400
30,000,000 Eli Lilly & Company, 5.32%.................................. 08/01/97 29,321,700
30,000,000 Merck & Company, Inc., 5.30%................................ 03/05/97 29,982,333
50,000,000 Pfizer, Inc., 5.28%......................................... 03/19/97 49,868,000
23,900,000 Schering Corporation, 5.27%................................. 03/11/97 23,865,013
--------------
212,580,424
--------------
ELECTRONICS--3.1%
25,000,000 General Electric Company, 5.25%............................. 05/21/97 24,704,687
15,350,000 Motorola Credit Corporation, 5.27%.......................... 04/10/97 15,260,117
19,088,000 Motorola Credit Corporation, 5.30%.......................... 04/11/97 18,972,783
--------------
58,937,587
--------------
</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
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
FOOD--10.7%
$11,000,000 Campbell Soup Company, 5.28%................................ 05/05/97 $ 10,895,134
14,000,000 Campbell Soup Company, 5.25%................................ 08/22/97 13,644,750
25,000,000 Cargill, Inc., 5.30%........................................ 04/08/97 24,860,139
11,000,000 Cargill, Inc., 5.28%........................................ 05/08/97 10,890,293
24,000,000 Cargill, Inc., 5.27%........................................ 05/08/97 23,761,093
23,000,000 H.J. Heinz Company, 5.28%................................... 03/06/97 22,983,133
15,000,000 H.J. Heinz Company, 5.30%................................... 03/07/97 14,986,750
10,550,000 H.J. Heinz Company, 5.26%................................... 04/02/97 10,500,673
28,200,000 Kellogg Company, 5.30%...................................... 03/25/97 28,100,360
25,000,000 Kellogg Company, 5.30%...................................... 03/27/97 24,904,306
17,100,000 Sara Lee Corporation, 5.30%................................. 03/27/97 17,034,545
--------------
202,561,176
--------------
HOUSEHOLD PRODUCTS--3.1%
30,000,000 The Procter & Gamble Company, 5.26%......................... 05/09/97 29,697,550
30,000,000 The Procter & Gamble Company, 5.25%......................... 05/14/97 29,676,250
--------------
59,373,800
--------------
NEWSPAPERS/PUBLISHING--2.0%
37,700,000 Knight-Ridder, Inc., 5.30%.................................. 03/11/97 37,644,497
--------------
OIL & GAS--6.3%
10,000,000 Chevron UK Investment PLC, 5.31%............................ 03/03/97 9,997,050
15,000,000 Chevron UK Investment PLC, 5.29%............................ 03/21/97 14,955,916
8,000,000 Chevron UK Investment PLC, 5.34%............................ 04/11/97 7,951,347
27,000,000 Chevron UK Investment PLC, 5.31%............................ 04/11/97 26,836,718
15,000,000 Shell Oil Company, 5.26%.................................... 03/03/97 14,955,617
45,000,000 Shell Oil Company, 5.26%.................................... 03/07/97 44,960,550
--------------
119,697,198
--------------
PAPER--2.5%
31,300,000 Kimberly-Clark Corporation, 5.27%........................... 03/10/97 31,258,762
15,700,000 Kimberly-Clark Corporation, 5.27%........................... 03/14/97 15,670,122
--------------
46,928,884
--------------
RECREATION--2.3%
43,500,000 The Walt Disney Company, 5.30%.............................. 04/07/97 43,263,046
--------------
RETAIL--0.5%
10,000,000 Albertson's, Inc., 5.30%.................................... 03/14/97 9,980,861
--------------
TELEPHONE/UTILITIES--6.7%
20,000,000 Ameritech Capital Funding Corporation, 5.32%................ 04/11/97 19,878,822
37,000,000 Ameritech Capital Funding Corporation, 5.29%................ 04/25/97 36,700,968
25,000,000 BellSouth Capital Funding Corporation, 5.28%................ 05/06/97 24,758,000
26,000,000 Southwestern Bell Telephone Company, 5.32%.................. 03/06/97 25,980,789
20,000,000 Southwestern Bell Telephone Company, 5.25%.................. 04/24/97 19,842,500
--------------
127,161,079
--------------
Total Domestic Commercial Paper.......................... 1,227,486,948
--------------
</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
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
FOREIGN--12.1%(A)(B)
AUTO SALES--2.6%
$10,000,000 Toyota Motor Credit Corporation, 5.30%...................... 03/14/97 $ 9,980,861
25,000,000 Toyota Motor Credit Corporation, 5.27%...................... 05/12/97 24,736,500
15,000,000 Toyota Motor Credit Corporation, 5.25%...................... 05/27/97 14,809,688
--------------
49,527,049
--------------
CORPORATE FINANCE--5.0%
20,000,000 The Canadian Wheat Board, 5.42%............................. 03/19/97 19,945,800
10,000,000 The Canadian Wheat Board, 5.40%............................. 03/19/97 9,973,000
10,000,000 The Canadian Wheat Board, 5.43%............................. 03/25/97 9,963,800
15,000,000 The Canadian Wheat Board, 5.25%............................. 05/08/97 14,851,250
25,000,000 Province of British Columbia, 5.35%......................... 07/28/97 24,446,424
16,300,000 Province of British Columbia, 5.29%......................... 07/31/97 15,935,930
--------------
95,116,204
--------------
ELECTRONICS--1.3%
25,000,000 Siemens Capital Corporation, 5.28%.......................... 05/09/97 24,747,000
--------------
FOOD--3.2%
40,100,000 Unilever Capital Corporation, 5.32%......................... 04/08/97 39,874,817
19,892,000 Unilever Capital Corporation, 5.33%......................... 04/08/97 19,780,085
--------------
59,654,902
--------------
Total Foreign Commercial Paper........................... 229,045,155
--------------
Total Commercial Paper (cost $1,456,532,103)............. 1,456,532,103
--------------
CORPORATE NOTES--2.8%(A)
- ----------------------
BANKING--1.1%
20,000,000 Wachovia Bank of North Carolina, Bank Note, 5.37%........... 04/17/97 20,000,000
--------------
CORPORATE FINANCE--1.7%
AT&T Capita Equipment Receivable Trust, 1996-1, Class A1,
8,458,061 5.60%....................................................... 10/15/97 8,458,061
14,321,760 Chase Manhattan Auto Owner Trust, 1996-C, Class A1, 5.49%... 01/15/98 14,321,760
2,080,276 Nationsbank Auto Owner Trust, 1996-A, Class A1, 5.78%....... 08/15/97 2,080,276
7,899,679 Navistar Financial Owner Trust, 1996-B, Class A1, 5.49%..... 11/20/97 7,899,679
--------------
32,759,776
--------------
Total Corporate Notes (cost $52,759,776)................. 52,759,776
--------------
U.S. GOVERNMENT AND AGENCY SECURITIES--17.0%(A)
- ------------------------------------------
U.S. GOVERNMENT AGENCIES--11.7%
13,000,000 Federal Home Loan Bank, 5.31%............................... 03/12/97 12,978,908
42,500,000 Federal Home Loan Bank, 5.24%............................... 04/10/97 42,252,792
11,000,000 Federal Home Loan Mortgage Corporation, 5.22%............... 03/06/97 10,992,025
11,975,000 Federal Home Loan Mortgage Corporation, 5.22%............... 03/07/97 11,964,592
22,000,000 Federal Home Loan Mortgage Corporation, 5.24%............... 04/16/97 21,852,698
</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
FEBRUARY 28, 1997
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
$10,000,000 Federal National Mortgage Association, 5.22%................ 03/07/97 $ 9,991,308
20,000,000 Federal National Mortgage Association, 5.29%................ 03/20/97 19,944,161
30,000,000 Federal National Mortgage Association, 5.23%................ 05/05/97 29,716,708
50,000,000 Student Loan Marketing Association, 5.23%................... 03/31/97 49,782,083
10,000,000 Student Loan Marketing Association, 5.24%................... 03/31/97 9,956,333
--------------
Total U.S. Government Agencies.............................. 219,431,608
--------------
U.S. TREASURIES--5.3%
15,000,000 U.S. Treasury Note, 6.625%.................................. 03/31/97 15,012,595
15,000,000 U.S. Treasury Note, 6.50%................................... 04/30/97 15,022,681
25,000,000 U.S. Treasury Note, 6.00%................................... 08/31/97 25,053,697
25,000,000 U.S. Treasury Note, 7.375%.................................. 11/15/97 25,294,142
20,000,000 U.S. Treasury Note, 6.00%................................... 11/30/97 20,079,996
--------------
Total U.S. Treasuries....................................... 100,463,111
--------------
Total U.S. Government and Agency Securities (cost
$319,894,719)............................................... 319,894,719
--------------
REPURCHASE AGREEMENT--3.3%(A)
- ---------------------------
Repurchase Agreement with State Street Bank and Trust Company, dated February 28,
1997, @ 5.28%, to be repurchased at $62,842,639 on March 3, 1997, collateralized
by $63,859,048 United States Treasury Notes, 12.0% due August 15, 2013 (market
value $64,114,076 including interest) (cost $62,815,000)......................... 62,815,000
--------------
TOTAL INVESTMENTS (cost $1,892,001,598)(c), 100.2% (a)........................... 1,892,001,598
OTHER ASSETS AND LIABILITIES, net (0.2%)(a)...................................... (3,123,026)
--------------
NET ASSETS (consisting of paid-in-capital net of accumulated net realized loss of
$284,471), 100.00%............................................................... $1,888,878,572
==============
CLASS A SHARES
- ------------
Net asset value, offering and redemption price per share, ($1,887,694,203 divided
by 1,887,978,666 shares outstanding)............................................. $1.00
=====
CLASS C SHARES
- ------------
Net asset value, offering and redemption price per share, ($1,184,369 divided by
1,184,377 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 SIX MONTH PERIOD ENDED FEBRUARY 28, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest.................................................... $47,838,621
Expenses (Notes 1 and 4):
Management fee............................................ $4,257,802
Distribution fee (Class A Shares)......................... 1,319,310
Distribution fee (Class C Shares)......................... 896
Shareholder servicing..................................... 860,150
Custodian/Fund Accounting fees............................ 81,433
Amortization of state registration expenses............... 67,027
Federal registration fees................................. 65,483
Reports to shareholders................................... 55,494
Professional fees......................................... 22,413
Insurance................................................. 10,882
Trustees' fees and expenses............................... 3,731
Other..................................................... 15,237
----------
Total expenses...................................... 6,759,858
-----------
Net investment income....................................... 41,078,763
Realized Loss on Investments
Net realized loss from investment transactions.......................... (43,693)
-----------
Net increase in net assets resulting from operations.................... $41,035,070
===========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTH
PERIOD ENDED FOR THE
FEBRUARY 28, 1997 YEAR ENDED
(UNAUDITED) AUGUST 31, 1996
----------------- ---------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 41,078,763 $ 73,293,074
Net realized gain (loss) from investment transactions..... (43,693) 28,538
-------------- --------------
Net increase in net assets resulting from operations........ 41,035,070 73,321,612
Distributions to shareholders from:
Net investment income Class A Shares, ($.023 and $.048 per
share, respectively).................................... (41,050,938) (73,291,621)
Net investment income Class C Shares, ($.023 and $.023 per
share, respectively).................................... (27,825) (1,453)
Increase in net assets from Fund share transactions (Note
2)........................................................ 247,980,128 347,173,878
-------------- --------------
Increase in net assets...................................... 247,936,435 347,202,416
Net assets, beginning of period............................. 1,640,942,137 1,293,739,721
-------------- --------------
Net assets, end of period................................... $1,888,878,572 $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 FOR THE
SIX MONTH SIX MONTH
PERIOD ENDED FOR THE YEARS ENDED AUGUST 31, PERIOD ENDED
FEBRUARY 28, 1997 ------------------------------------------ FEBRUARY 28, 1997
(UNAUDITED) 1996 1995 1994 1993 1992 (UNAUDITED) 1996+
----------------- ------ ------ ------ ------ ------ ----------------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD............... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(a)(b)................ $ .023 .048 .050 .029 .025 .038 $ .023 .023
LESS DISTRIBUTIONS:
Dividends from net
investment income and
net realized gains
(a)................... $(.023) (.048) (.050) (.029) (.025) (.038) $(.023) (.023)
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD.................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN %............ 2.31(d) 4.89 5.00 2.87 2.48 3.77 2.31(d) 2.34(d)
RATIOS TO AVERAGE DAILY NET
ASSETS (%)/SUPPLEMENTAL DATA:
Operating expenses, net
(b)................... .77(c) .78 .79 .79 .78 .78 .77(c) .75(c)
Net investment income
(b)................... 4.67(c) 4.78 5.00 2.87 2.47 3.75 4.66(c) 4.62(c)
Net assets, end of
period ($ millions)... 1,888 1,641 1,294 982 925 953 1.18 --
</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, $.001 and $.001, per share, for the four years ended August
31, 1995, respectively. The operating expense ratios including such items
would have been .81%, .81%, .81% and .78%, 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.
(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
(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 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 allocated 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.
8
<PAGE> 10
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
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 Class A 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 FOR THE YEAR
FEBRUARY 28, 1997 ENDED
CLASS A SHARES (UNAUDITED) AUGUST 31, 1996
-------------- ----------------- ---------------
<S> <C> <C>
Shares sold................................................. 3,964,139,646 6,431,599,812
Shares issued on reinvestment of distributions.............. 48,454,742 66,519,647
Shares redeemed............................................. (3,765,612,530) (6,151,131,688)
-------------- --------------
Net increase.............................................. 246,981,858 346,987,771
Shares outstanding:
Beginning of period....................................... 1,640,996,808 1,294,009,037
-------------- --------------
End of period............................................. 1,887,978,666 1,640,996,808
============== ==============
</TABLE>
Transactions in Class C Shares and dollars of the Fund during the six
month period ended February 28, 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 SIX
MONTH PERIOD
ENDED FOR THE PERIOD
FEBRUARY 28, 1997 ENDED
CLASS C SHARES (UNAUDITED) AUGUST 31, 1996
-------------- ----------------- ---------------
<S> <C> <C>
Shares sold................................................. 2,404,182 458,920
Shares issued on reinvestment of distributions.............. 28,569 660
Shares redeemed............................................. (1,434,481) (273,473)
---------- --------
Net increase.............................................. 998,270 186,107
Shares outstanding:
Beginning of period....................................... 186,107 --
---------- --------
End of period............................................. 1,184,377 186,107
========== ========
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the period ended
February 28, 1997, purchases, sales and maturities of short-term
investment securities, excluding repurchase agreements, aggregated
$7,318,298,687, $184,441,935 and 7,022,939,000, respectively. Purchases,
sales and maturities of U.S. Government obligations aggregated
$484,452,819, $46,110,730 and $322,900,000, 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 February 28,
1997 was $819,370. 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 period, the
Fund's operating expenses fell below .79% of average daily assets.
Accordingly, the Fund paid the Manager $145,301 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 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 $296,000. In addition, the Manager performs Fund
Accounting services for the Fund and charged $19,501 during the period
of which $6,600 was payable as of February 28, 1997.
9
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HERITAGE CASH TRUST -- MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
Pursuant to plans 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 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 February 28, 1997 was $217,600. 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 $9,682, $6,037 and $235,118 which may be
applied to any net taxable gains until their expiration dates in 2002,
2003 and 2004, respectively.
10
<PAGE> 12
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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
High Yield
Intermediate Government
HERITAGE STOCK FUNDS
Income-Growth
Value Equity
Growth Equity
Capital Appreciation
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.
