<PAGE> 1
MONEY
MARKET [BAR LOGO]
FUND
[Pictures of People Working & Playing]
From Our Family to Yours: The Intelligent Creation of Wealth.
SEMIANNUAL REPORT
(Unaudited) and Investment Performance
Review for the Six Month Ended
February 28, 1998
[HERITAGE LOGO]
<PAGE> 2
April 13, 1998
Dear Fellow Shareholders:
It is my pleasure to present the semiannual report for Heritage Cash
Trust - Money Market Fund ("the Fund") for the six month period ended February
28, 1998. As of this date, your Fund's seven-day effective yield was 4.97%, an
increase in yield of 0.01% since the beginning of the Fund's fiscal year.
The U.S. economy continues to enjoy one of the longest post-World War II
expansions yet. The current expansion has brought with it very low inflation, an
uncommon occurrence this late in such a long period of growth. This situation
has been dubbed a "Goldilocks" economy - not too hot, not too cold, but just
right. While the Federal Reserve Board (the "Fed") remains committed to raising
interest rates if necessary to slow growth and fight inflation, the recent
economic conditions have allowed them to be neutral on interest rates. The last
change in short-term rates was in March 1997. As a result, there has been very
little movement in the yields on your Fund's portfolio. We continue to see
little need for the Fed to raise rates. In fact, given the historically high
real interest rates (nominal yields less the inflation rate), there may be an
equally strong argument that the Fed's next move would be to lower rates.
In the "old business" category, the Securities and Exchange Commission has
announced the effective dates for the amendments to its rule that governs money
market fund operations. As we have reported previously, these changes will have
very little material effect on the way your Fund is managed.
As we have mentioned before, your Fund maintains 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, 1998
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
BANKERS ACCEPTANCES--2.1%(A)
BANKING--2.1%
$26,000,000 First Union National Bank, 5.53%............................ 05/04/98 $ 25,744,391
12,000,000 First Union National Bank, 5.55%............................ 05/04/98 11,881,600
10,000,000 Wachovia Bank of North Carolina, 5.54%...................... 04/29/98 9,909,206
--------------
Total Bankers Acceptances (cost $47,535,197) 47,535,197
--------------
COMMERCIAL PAPER--82.5%(A)
- -------------------------
DOMESTIC--71.4%
BANKING--5.0%
25,000,000 Bank of America, FSB, 5.39%................................. 04/13/98 24,839,049
37,950,000 Bank of America, FSB, 5.65%................................. 03/20/98 37,836,835
12,000,000 BankAmerica Corporation, 5.50%.............................. 05/05/98 11,880,833
9,500,000 First Union Corporation, 5.37%.............................. 08/10/98 9,270,433
27,400,000 First Union Corporation, 5.40%.............................. 05/26/98 27,046,540
--------------
110,873,690
--------------
BEVERAGES--3.4%
75,000,000 The Coca-Cola Company, 5.43%................................ 04/20/98 74,434,375
--------------
CHEMICALS--3.4%
25,000,000 E.I. du Pont de Nemours & Company, 5.41%.................... 04/20/98 24,812,153
25,000,000 E.I. du Pont de Nemours & Company, 5.41%.................... 07/30/98 24,432,701
19,835,000 E.I. du Pont de Nemours & Company, 5.44%.................... 04/09/98 19,718,106
5,000,000 E.I. du Pont de Nemours & Company, 5.46%.................... 04/03/98 4,974,975
--------------
73,937,935
--------------
COMPUTER/OFFICE EQUIPMENT--0.9%
20,000,000 Xerox Credit Corporation, 5.41%............................. 04/23/98 19,840,706
--------------
CORPORATE FINANCE--13.4%
14,000,000 Ciesco, L.P., 5.43%......................................... 04/07/98 13,921,868
25,000,000 Ciesco, L.P., 5.47%......................................... 05/15/98 24,715,104
36,000,000 Ciesco, L.P., 5.48%......................................... 03/24/98 35,873,960
15,000,000 Corporate Asset Funding Company, Inc., 5.43%................ 05/20/98 14,819,000
25,000,000 Corporate Asset Funding Company, Inc., 5.45%................ 04/22/98 24,803,194
35,000,000 Corporate Asset Funding Company, Inc., 5.47%................ 03/24/98 34,877,685
10,000,000 General Electric Capital Corporation, 5.37%................. 08/14/98 9,752,384
15,000,000 General Electric Capital Corporation, 5.43%................. 04/27/98 14,871,038
50,000,000 General Electric Capital Corporation, 5.43%................. 05/01/98 49,539,958
13,100,000 Private Export Funding Corporation, 5.36%................... 08/14/98 12,776,528
40,000,000 Private Export Funding Corporation, 5.42%................... 04/29/98 39,644,689
13,765,000 Private Export Funding Corporation, 5.68%................... 03/13/98 13,738,938
8,135,000 Private Export Funding Corporation, 5.69%................... 03/13/98 8,119,571
--------------
297,453,917
--------------
DRUGS--6.5%
25,000,000 Abbott Laboratories, 5.45%.................................. 03/24/98 24,912,951
44,000,000 Abbott Laboratories, 5.49%.................................. 04/01/98 43,791,990
75,000,000 Merck & Company, Inc., 5.45%................................ 03/13/98 74,863,750
--------------
143,568,691
--------------
</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, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
ELECTRONICS--4.7%
$25,000,000 Emerson Electric Company, 5.42%............................. 03/06/98 $ 24,981,181
50,000,000 Emerson Electric Company, 5.45%............................. 03/12/98 49,916,736
30,000,000 Motorola, Inc., 5.50%....................................... 03/16/98 29,931,250
--------------
104,829,167
--------------
FOOD--10.8%
30,000,000 Campbell Soup Company, 5.41%................................ 03/26/98 29,887,292
31,000,000 Cargill, Inc., 5.47%........................................ 03/06/98 30,976,449
25,000,000 Cargill, Inc., 5.54%........................................ 03/06/98 24,980,764
19,000,000 Cargill, Inc., 5.64%........................................ 04/06/98 18,892,840
13,500,000 H.J. Heinz Company, 5.43%................................... 03/09/98 13,483,710
34,500,000 H.J. Heinz Company, 5.45%................................... 03/17/98 34,416,432
12,000,000 H.J. Heinz Company, 5.50%................................... 03/05/98 11,992,667
75,000,000 Sara Lee Corporation, 5.65%................................. 03/02/98 74,988,229
--------------
239,618,383
--------------
HOUSEHOLD PRODUCTS--3.2%
10,000,000 Colgate-Palmolive Company, 5.45%............................ 03/05/98 9,993,944
10,000,000 Colgate-Palmolive Company, 5.47%............................ 03/27/98 9,960,494
27,000,000 The Procter & Gamble Company, 5.38%......................... 06/25/98 26,531,940
24,000,000 The Procter & Gamble Company, 5.44%......................... 03/23/98 23,920,214
--------------
70,406,592
--------------
OIL & GAS--6.5%
35,000,000 Amoco Corporation, 5.39%.................................... 07/23/98 34,245,400
40,000,000 Amoco Corporation, 5.43%.................................... 04/24/98 39,674,200
10,000,000 Chevron UK Investment PLC, 5.38%............................ 08/07/98 9,762,382
10,000,000 Chevron UK Investment PLC, 5.55%............................ 03/09/98 9,987,667
15,000,000 Chevron UK Investment PLC, 5.65%............................ 05/15/98 14,823,438
25,000,000 Chevron UK Investment PLC, 5.67%............................ 03/20/98 24,925,188
10,000,000 Chevron UK Investment PLC, 5.69%............................ 03/20/98 9,969,969
--------------
143,388,244
--------------
RECREATION--2.4%
53,678,000 The Walt Disney Company, 5.65%.............................. 03/02/98 53,669,576
--------------
TELEPHONE/UTILITIES--11.2%
66,000,000 Ameritech Capital Funding Corporation, 5.43%................ 05/08/98 65,323,060
9,000,000 Ameritech Capital Funding Corporation, 5.46%................ 03/24/98 8,968,605
75,000,000 AT&T Corporation, 5.62%..................................... 03/02/98 74,988,293
14,300,000 BellSouth Capital Funding Corporation, 5.47%................ 03/02/98 14,297,827
30,000,000 BellSouth Telecommunications Inc., 5.42%.................... 03/17/98 29,927,733
10,000,000 BellSouth Telecommunications Inc., 5.46%.................... 03/19/98 9,972,700
20,000,000 BellSouth Telecommunications Inc., 5.46%.................... 03/24/98 19,930,232
25,000,000 SBC Communications Inc., 5.46%.............................. 04/03/98 24,874,875
--------------
248,283,325
--------------
Total Domestic (cost $1,580,304,601)..................... 1,580,304,601
--------------
</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, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL FINAL AMORTIZED
AMOUNT MATURITY DATE COST
--------- ------------- --------------
<C> <S> <C> <C>
FOREIGN--11.1%(B)
AUTO SALES--2.3%
$50,000,000 Toyota Motor Credit Corporation, 5.54%...................... 03/12/98 $ 49,915,361
--------------
BANKING--4.9%
28,200,000 Abbey National North America, 5.36%......................... 08/10/98 27,519,815
30,000,000 Abbey National North America, 5.55%......................... 03/02/98 29,995,375
16,800,000 Abbey National North America, 5.56%......................... 03/11/98 16,774,053
35,000,000 Deutsche Bank Financial Inc., 5.41%......................... 04/13/98 34,773,832
--------------
109,063,075
--------------
CORPORATE FINANCE--3.9%
12,200,000 Province of British Columbia, 5.38%......................... 05/22/98 12,050,496
20,000,000 The Canadian Wheat Board, 5.41%............................. 04/22/98 19,843,711
15,000,000 The Canadian Wheat Board, 5.43%............................. 05/13/98 14,834,838
40,000,000 The Canadian Wheat Board, 5.65%............................. 03/31/98 39,811,667
--------------
86,540,712
--------------
Total Foreign (cost $245,519,148)........................ 245,519,148
--------------
Total Commercial Paper (cost $1,825,823,749)............. 1,825,823,749
--------------
CORPORATE NOTES--3.4%(A)
- ----------------------
BANKING--2.9%
65,000,000 Wachovia Bank of North Carolina, Bank Note, 5.48%........... 03/20/98 65,000,000
--------------
CORPORATE FINANCE--0.5%
Capita Equipment Receivables Trust 1997-1, Class A-1,
10,315,769 5.79%....................................................... 12/15/98 10,315,769
--------------
Total Corporate Notes (cost $75,315,769)................. 75,315,769
--------------
U.S. GOVERNMENT AGENCIES--9.0%(A)
- -----------------------------
50,000,000 Fannie Mae, 5.36%........................................... 05/21/98 49,397,000
10,000,000 Fannie Mae, 5.37%........................................... 05/05/98 9,903,042
15,000,000 Fannie Mae, 5.41%........................................... 04/07/98 14,916,596
10,000,000 Federal Home Loan Bank, 5.29%............................... 08/07/98 9,766,358
11,500,000 Federal Home Loan Bank, 5.42%............................... 04/03/98 11,442,864
28,500,000 Federal Home Loan Bank, 5.42%............................... 04/08/98 28,336,948
15,000,000 Freddie Mac, 5.37%.......................................... 05/08/98 14,847,850
40,000,000 Freddie Mac, 5.41%.......................................... 03/12/98 39,933,878
20,000,000 Freddie Mac, 5.71%.......................................... 03/17/98 20,000,279
--------------
Total U.S. Government Agencies (cost $198,544,815).......... 198,544,815
--------------
Total Investment Portfolio excluding repurchase agreement (cost
$2,147,219,530).................................................................. 2,147,219,530
--------------
REPURCHASE AGREEMENT--3.7%(A)
- ---------------------------
Repurchase Agreement with State Street Bank and Trust Company, dated February 27,
1998, @ 5.55% to be repurchased at $81,412,636 on March 2, 1998, collateralized
by $62,410,000 United States Treasury Notes, 8.75% due May 15, 2017 (market value
$83,068,928 including interest) (cost $81,375,000)............................... 81,375,000
--------------
TOTAL INVESTMENTS (cost $2,228,594,530)(c), 100.7% (a)........................... 2,228,594,530
OTHER ASSETS AND LIABILITIES, net (0.7%)(a)...................................... (15,122,843)
--------------
NET ASSETS, (consisting of paid-in-capital net of accumulated net realized loss
of $268,840) 100.00%............................................................. $2,213,471,687
==============
</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, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C> <C>
CLASS A SHARES
-------------------
Net asset value, offering and redemption price per share, ($2,213,371,821 divided
by 2,213,640,661 shares outstanding)............................................. $1.00
==============
CLASS B SHARES
- ------------
Net asset value, offering and redemption price per share, ($2,425 divided by
2,425 shares outstanding)........................................................ $1.00
==============
CLASS C SHARES
- ------------
Net asset value, offering and redemption price per share, ($97,441 divided by
97,441 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, 1998
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest.................................................... $59,282,964
Expenses (Notes 1 and 4):
Management fee............................................ $4,809,617
Distribution fee (Class A Shares)......................... 1,571,051
Distribution fee (Class B Shares)......................... 1
Distribution fee (Class C Shares)......................... 106
Shareholder servicing..................................... 1,150,163
State qualification expenses.............................. 97,025
Custodian/Fund Accounting fees............................ 92,426
Reports to shareholders................................... 72,121
Federal registration fees................................. 55,240
Professional fees......................................... 27,540
Insurance expense......................................... 10,345
Trustees' fees and expenses............................... 3,362
Other..................................................... 13,769
----------
Total expenses...................................... 7,902,766
-----------
Net investment income resulting from operations............. $51,380,198
===========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTH
PERIOD ENDED FOR THE
FEBRUARY 28, 1998 YEAR ENDED
(UNAUDITED) AUGUST 31, 1997
----------------- ---------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 51,380,198 $ 88,152,268
Net realized loss from investment transactions............ -- (28,062)
-------------- --------------
Net increase in net assets resulting from operations........ 51,380,198 88,124,206
Distributions to shareholders from:
Net investment income Class A Shares, ($.024 and $.047 per
share, respectively).................................... (51,376,738) (88,101,933)
Net investment income Class B Shares, ($.002 per share)... (1) --
Net investment income Class C Shares, ($.024 and $.047 per
share, respectively).................................... (3,459) (50,335)
Increase in net assets from Fund share transactions (Note
2)........................................................ 197,464,338 375,093,274
-------------- --------------
Increase in net assets...................................... 197,464,338 375,065,212
Net assets, beginning of period............................. 2,016,007,349 1,640,942,137
-------------- --------------
Net assets, end of period................................... $2,213,471,687 $2,016,007,349
============== ==============
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 8
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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 B SHARES CLASS C SHARES
--------------------------------------------------------- -------------- ------------
FOR THE FOR THE
SIX MONTH SIX MONTH
PERIOD FOR THE PERIOD
ENDED PERIOD ENDED ENDED
FEBRUARY 28, FOR THE YEARS ENDED AUGUST 31, FEBRUARY 28, FEBRUARY 28,
1998 ------------------------------------------ 1998++ 1998
(UNAUDITED) 1997 1996 1995 1994 1993 (UNAUDITED) (UNAUDITED)
------------ ------ ------ ------ ------ ------ -------------- ------------
<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)............. .024 .047 .048 .050 .029 .025 .002 .024
LESS DISTRIBUTIONS:
Dividends from net
investment income
and net realized
gains (a).......... (.024) (.047) (.048) (.050) (.029) (.025) (.002) (.024)
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD............... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ====== ====== ======
TOTAL RETURN %......... 2.46(d) 4.85 4.89 5.00 2.87 2.48 .23(d) 2.46(d)
RATIOS TO AVERAGE DAILY NET
ASSETS (%)/SUPPLEMENTAL DATA:
Operating expenses,
net (b)............ .75(c) .76 .78 .79 .79 .78 .75(c) .75(c)
Net investment income
(b)................ 4.91(c) 4.74 4.78 5.00 2.87 2.47 4.96(c) 4.91(c)
Net assets, end of
period ($
millions).......... 2,213 2,016 1,641 1,294 982 925 -- .10
<CAPTION>
CLASS C SHARES
--------------------
FOR THE YEARS ENDED
AUGUST 31,
--------------------
1997 1996+
-------- --------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD............... $1.000 $1.000
------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income
(a)(b)............. .047 .023
LESS DISTRIBUTIONS:
Dividends from net
investment income
and net realized
gains (a).......... (.047) (.023)
------ ------
NET ASSET VALUE, END OF
PERIOD............... $1.000 $1.000
====== ======
TOTAL RETURN %......... 4.85 2.34(d)
RATIOS TO AVERAGE DAILY
ASSETS (%)/SUPPLEMENT
Operating expenses,
net (b)............ .77 .75(c)
Net investment income
(b)................ 4.72 4.62(c)
Net assets, end of
period ($
millions).......... .51 --
</TABLE>
- ---------------
+ For the period February 29, 1996 (commencement of Class C Shares) to August
31, 1996.
++ For the period January 2, 1998 (commencement of Class B Shares) to February
28, 1998.
(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 for fiscal
1997, 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
(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 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 three classes of shares, Class A, Class B
and Class C Shares. Class A Shares, B Shares and C Shares may be
acquired by direct purchase or through exchange of shares of the
corresponding class of another Heritage Mutual Fund. 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 Qualification Expenses: State qualification fees are amortized
based either on the time period covered by the qualification 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 February 28, 1998, there was an unlimited number of
shares of beneficial interest of no par value authorized.
Transactions in Class A and C Shares and dollars of the Fund during the
six month period ended February 28, 1998 and Class B Shares from January
2, 1998 (commencement of Class B Shares) to February 28, 1998 at a
constant net asset value of $1.00 per share, were as follows:
<TABLE>
<CAPTION>
A SHARES B SHARES C SHARES
-------- -------- ----------
<S> <C> <C> <C>
FOR THE PERIOD ENDED FEBRUARY 28, 1998 (UNAUDITED)
------------------------------------------------------------
Shares sold................................................. 4,947,220,498 2,425 508,299
Shares issued on reinvestment of distributions.............. 52,425,716 -- 5,569
Shares redeemed............................................. (4,801,776,288) -- (921,881)
-------------- ----- ----------
Net increase (decrease)................................... 197,869,926 2,425 (408,013)
Shares outstanding:
Beginning of period....................................... 2,015,770,735 -- 505,454
-------------- ----- ----------
End of period............................................. 2,213,640,661 2,425 97,441
============== ===== ==========
</TABLE>
8
<PAGE> 10
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
Transactions in Class A and C Shares and dollars of the Fund during the
year ended August 31, 1997 at a constant net asset value of $1.00 per
share, were as follows.
<TABLE>
<CAPTION>
A SHARES C SHARES
-------------- ----------
<S> <C> <C>
FOR THE YEAR ENDED AUGUST 31, 1997
------------------------------------------------------------
Shares sold................................................. 8,170,400,844 3,602,752
Shares issued on reinvestment of distributions.............. 85,579,732 48,452
Shares redeemed............................................. (7,881,206,649) (3,331,857)
-------------- ----------
Net increase................................................ 374,773,927 319,347
Shares outstanding:
Beginning of year......................................... 1,640,996,808 186,107
-------------- ----------
End of year............................................... 2,015,770,735 505,454
============== ==========
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the period ended
February 28, 1998, purchases and maturities of short-term investment
securities, excluding repurchase agreements, aggregated $30,611,579,817
and $30,309,202,650, respectively. Purchases and maturities of U.S.
Government obligations aggregated $357,036,252 and $484,677,000
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,
1998 was $783,870. Pursuant to the Prospectus dated January 2, 1998, the
Manager voluntarily agreed to waive its fees or other expenses and, if
necessary, reimburse the Fund to the extent that Class A, Class B and
Class C annual operating expenses exceed .75% of the average daily net
assets attributable to that class for the fiscal year ending August 31,
1998.
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, 1998 was $405,000. In addition, the Manager performs Fund
Accounting services for the Fund and charged $19,730 during the period,
of which $6,200 was payable as of February 28, 1998.
Raymond James & Associates, Inc. (the "Distributor") has advised the
Fund that it received $17 in contingent deferred sales charges for Class
C Shares for the six month period ended February 28, 1998.
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, Class B and Class C Fund shares. Such fee is accrued daily
and payable monthly. The amount payable to the Distributor as of
February 28, 1998 was $253,602. 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
$3,000 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
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:
- HERITAGE CASH TRUST
MUNICIPAL MONEY MARKET FUND
- HERITAGE CAPITAL APPRECIATION TRUST
- HERITAGE INCOME-GROWTH TRUST
- HERITAGE INCOME TRUST
INTERMEDIATE GOVERNMENT FUND
HIGH YIELD BOND FUND
- HERITAGE SERIES TRUST
EAGLE INTERNATIONAL EQUITY PORTFOLIO
GROWTH EQUITY FUND
MID CAP GROWTH FUND
SMALL CAP STOCK FUND
VALUE EQUITY FUND
- HERITAGE U.S. GOVERNMENT INCOME FUND
(A CLOSED-END FUND THAT TRADES ON THE
NEW YORK STOCK EXCHANGE)
We are pleased that many of you are also investors in these funds. For
information and a prospectus for any of these mutual funds, please contact your
financial advisor. Please read the Prospectus carefully before you invest in any
of the funds.
<PAGE> 12
[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
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.
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