<PAGE> 1
MUNICIPAL
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 Months 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 - Municipal 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
2.74%, an increase in yield of 0.02% 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.
Please remember that if you are subject to the alternative minimum tax, a
portion of your Fund's income may be considered a preference item for tax
purposes. Also, if you are subject to a state income tax, a portion of the
income your Fund earns from securities issued in your state may be exempt from
your state income tax.
On behalf of all of us at Heritage, thank you for your continuing
investment in Heritage Cash Trust - Municipal Money Market Fund.
Sincerely,
/s/ STEPHEN G. HILL
Stephen G. Hill
President
<PAGE> 3
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES--100.1%(A)
- --------------------------------------------------
ALABAMA--2.3%
- -------------
$ 2,200,000 Decatur, 3.55% (b)
Pollution Control Revenue Bond
Trico Steel Company, Series 98, AMT
LOC: Chase Manhattan Bank................................. 03/07/98 $ 2,200,000
2,300,000 Decatur Industrial Development Authority, 3.70% (b)
Solid Waste Revenue Bond
Amoco Chemical, Series 95, AMT............................ 03/07/98 2,300,000
4,000,000 Selma, 3.50% (b)
Industrial Development Revenue Bond
Specialty Minerals, Series 94
LOC: Wachovia Bank and Trust.............................. 03/07/98 4,000,000
3,500,000 Tuscaloosa County, 3.50%(b)
Pollution Control Revenue Bond
Tuscaloosa Steel Project, AMT
LOC: Bayerische Landesbank................................ 03/07/98 3,500,000
------------
12,000,000
------------
ALASKA--3.9%
- -------------
20,000,000 Alaska Industrial Development Authority, 3.50% (b)
Healy Clean Coal Project, Series 96A, AMT
LOC: Bank of America...................................... 03/07/98 20,000,000
------------
ARIZONA--1.6%
- -------------
3,180,000 Navajo County, 3.45% (b)
Utility Revenue Bond
Citizens Utilities, Series 97B, AMT....................... 03/07/98 3,180,000
5,100,000 Phoenix Civic Improvement Authority, 3.50% (b)
Sub Excise Tax, Series 95, AMT
LOC: Hessische Landesbank................................. 03/07/98 5,100,000
------------
8,280,000
------------
ARKANSAS--2.1%
- --------------
5,600,000 City of Jacksonville, 3.70% (b)
Industrial Development Revenue Bond
Regalware, Inc., Series 85
LOC: NBD Corporation...................................... 03/30/98 5,600,000
3,500,000 Clark County, 3.60% (b)
Solid Waste Revenue Bond
Reynolds Metals Project, Series 92, AMT
LOC: Sun Bank............................................. 03/07/98 3,500,000
1,605,000 Russellville, 3.95%
Sales and Use Tax, FSA, Series 97......................... 11/01/98 1,605,000
------------
10,705,000
------------
COLORADO--5.6%
- --------------
2,000,000 Colorado Student Obligation Authority, 3.50% (b)
Student Loan Revenue Bond, Series 97D, AMT
LOC: Student Loan Marketing Association................... 03/07/98 2,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 4
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
$ 9,500,000 Colorado Student Obligation Authority, 3.50% (b)
Student Loan Revenue Bond, Series 89A, AMT
LOC: Student Loan Marketing Association................... 03/07/98 $ 9,500,000
5,400,000 Colorado Student Obligation Authority, 3.50% (b)
Student Loan Revenue Bond, Series 90A, AMT
LOC: Student Loan Marketing Association................... 03/07/98 5,400,000
9,000,000 Denver Airport Revenue Bond, 3.40% (b)
Airport System Revenue, Series 91C
LOC: Credit Local de France............................... 03/07/98 9,000,000
1,400,000 Denver Housing Finance Authority, 3.45% (b)
Multi Family Housing Revenue Bond
Seasons Apartments Project, Series 90
LOC: Rabobank Nederland................................... 03/07/98 1,400,000
1,700,000 El Paso County, 3.40% (b)
Multi Family Housing Revenue Bond
Briar Glen Apartments, Series 95
LOC: General Electric Credit Corporation.................. 03/07/98 1,700,000
------------
29,000,000
------------
DELAWARE--3.3%
- --------------
10,000,000 Delaware Economic Development Authority, 3.45% (b)
Pollution Control Revenue Bond
Star Enterprise Project, Series 97A, AMT
LOC: Canadian Imperial Bank of Commerce................... 03/07/98 10,000,000
7,000,000 Delaware Economic Development Authority, 3.45% (b)
Pollution Control Revenue Bond
Star Enterprise Project, Series 97B, AMT
LOC: Canadian Imperial Bank of Commerce................... 03/07/98 7,000,000
------------
17,000,000
------------
DISTRICT OF COLUMBIA--2.0%
- --------------------------
1,000,000 District of Columbia Education Facility, 3.60% (b)
American University, Series 86
LOC: National Westminster................................. 03/07/98 1,000,000
3,500,000 District of Columbia Housing Finance Authority, 4.05%
Single Family Mortgage Revenue Bond
Home Mortgage Revenue, Series 97C, AMT
GIC: American International Group......................... 09/01/98 3,500,000
1,000,000 District of Columbia, GO, 6.63%
MBIA, Series 89B.......................................... 06/01/98 1,006,952
5,000,000 District of Columbia, GO, 4.50%
Tax Revenue Anticipation Note, Series 98B
LOC: Union Bank of Switzerland, Morgan Guaranty Trust
Company................................................... 09/30/98 5,017,755
------------
10,524,707
------------
FLORIDA--1.9%
- -------------
5,000,000 Dade County Housing Finance Authority, 4.05%
Single Family Mortgage Revenue Bond
Home Mortgage, Series 97C, AMT
GIC: Financial Guaranty Insurance Company................. 10/16/98 5,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 5
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
$ 3,400,000 Florida Housing Finance Authority, 3.60% (b)
Multi Family Housing Revenue Bond
Ashley Lake II, Series 89J, AMT
LOC: Barclays Bank........................................ 03/07/98 $ 3,400,000
1,350,000 Greater Orlando Aviation Authority, 3.90%
Signature Flight, Series 97, AMT
LOC: Bayerische Landesbank................................ 06/01/98 1,350,000
------------
9,750,000
------------
HAWAII--0.6%
- ------------
3,400,000 Hawaii Housing Finance Authority, 3.40% (b)
Multi Family Housing Revenue Bond
Tropicana West Project A, Series 85
LOC: Federal Home Loan Bank............................... 03/07/98 3,400,000
------------
ILLINOIS--8.7%
- --------------
15,000,000 Chicago, 3.50% (b)
Airport Revenue Bond
Centerpoint, LP, Series 97, AMT
LOC: First National Bank of Chicago....................... 03/07/98 15,000,000
1,300,000 Chicago, 3.36% (b)
CSX Beckett Corporation, Series 84
LOC: First Chicago Corporation............................ 03/30/98 1,300,000
2,140,000 Hoffman Estates, 4.50%
Economic Development Project Area
AMBAC, Series 97.......................................... 11/15/98 2,148,053
7,000,000 Jackson-Union County, 3.50% (b)
Enron Transportation Services
LOC: First Union Bank of North Carolina................... 03/07/98 7,000,000
4,320,000 Lake County, 3.50% (b)
Sewer Revenue Bond
Countryside Landfill, Series 96B, AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/98 4,320,000
12,630,000 Madison County, 3.45% (b)
Solid Waste Revenue Bond
Shell Oil/Wood River Project, Series 97, AMT.............. 03/07/98 12,630,000
800,000 Southwestern, 3.70% (b)
Solid Waste Revenue Bond
Shell Oil/Wood River Project, Series 92, AMT.............. 03/07/98 800,000
2,100,000 Southwestern, 3.60% (b)
Industrial Development Revenue Bond
Robinson Steel Company, Series 91, AMT
LOC: American National Bank of Chicago.................... 03/07/98 2,100,000
------------
45,298,053
------------
INDIANA--5.6%
- -------------
2,140,000 City of Crawfordsville, 3.55% (b)
Industrial Development Revenue Bond
Precision Plastics of Indiana, Series 92
LOC: Northern Trust Company............................... 03/07/98 2,140,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 6
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
$ 2,000,000 City of Indianapolis, 3.60% (b)
Industrial Development Revenue Bond
Altec Industries Inc., Project, Series 89, AMT
LOC: Wachovia Bank and Trust.............................. 03/07/98 $ 2,000,000
8,000,000 City of Jeffersonville, 3.30% (b)
Industrial Development Revenue Bond
Apollo America Corporation, Series 91, AMT
LOC: Chase Manhattan Bank................................. 03/07/98 8,000,000
4,780,000 City of North Vernon, 3.50% (b)
Multi Family Housing Revenue Bond
Oak Meadows Apartments Project, Series 95, AMT
LOC: Federal Home Loan Bank............................... 03/07/98 4,780,000
6,000,000 City of Portage, 3.50% (b)
Multi Family Housing Revenue Bond
Pedcor Investment Apartments Project, Series 95A, AMT
LOC: Federal Home Loan Bank............................... 03/07/98 6,000,000
6,000,000 City of Westfield, 3.50% (b)
Industrial Development Revenue Bond
PL Porter Project, Series 89, AMT
LOC: Bank of America...................................... 03/07/98 6,000,000
------------
28,920,000
------------
KENTUCKY--0.6%
- --------------
3,100,000 Louisville, 3.60% (b)
Airport Revenue Bond
Louisville Airport, Series 89B, AMT
LOC: National City Bank of Louisville..................... 03/07/98 3,100,000
------------
LOUISIANA--4.5%
- ---------------
3,770,000 Calcasieu Parish, 3.40% (b)
Sales Tax District No. 4-A, Series 94
LOC: National Westminster................................. 03/07/98 3,770,000
3,750,000 Calcasieu Parish, 3.45% (b)
Sales Tax District No. 4-A, Series 94
LOC: National Westminster................................. 03/07/98 3,750,000
1,910,000 Jefferson Parish, GO, 6.15%
Drainage Improvement, FGIC, Series 97..................... 09/01/98 1,930,065
6,700,000 Lincoln Parish, 3.50% (b)
Sewer Revenue Bond
Willamette Industrial Project, Series 96, AMT
LOC: Deutsche Bank........................................ 03/07/98 6,700,000
5,000,000 New Orleans, 3.92%
Single Family Mortgage Revenue Bond
Home Mortgage, Series 97C-2, AMT
GIC: Trinity Funding...................................... 06/01/98 5,000,000
2,000,000 St. Charles Parish, 3.70% (b)
Pollution Control Revenue Bond
Shell Oil Company Project, Series 91, AMT................. 03/01/98 2,000,000
------------
23,150,065
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 7
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
MARYLAND--1.4%
- --------------
$ 1,500,000 Maryland Energy Finance Administration, 3.50% (b)
Industrial Development Revenue Bond
Keywell Project, Series 96, AMT
LOC: Bank of America...................................... 03/07/98 $ 1,500,000
5,700,000 Montgomery County, 3.50% (b)
Multi Family Housing Revenue Bond
Falklands Apartments, AMT
Guarantee: Connecticut General Life....................... 03/07/98 5,700,000
------------
7,200,000
------------
MASSACHUSETTS--3.2%
- -------------------
16,750,000 Massachusetts Education Finance Authority, 3.55% (b)
Student Loan Revenue Bond, Series 97E, AMT
GIC: Trinity Funding...................................... 03/07/98 16,750,000
------------
MINNESOTA--0.7%
- ---------------
3,600,000 City of St. Paul, 3.80% (b)
Multi Family Housing Revenue Bond
Kendrick Apartments, Series 97, AMT
LOC: First Bank Systems................................... 03/07/98 3,600,000
------------
MONTANA--0.8%
- -------------
4,000,000 Montana Board of Investments, 3.50% (b)
Colstrip Project, Series 89A, AMT
LOC: Credit Local de France............................... 03/07/98 4,000,000
------------
NEBRASKA--0.3%
- --------------
1,600,000 Nebraska Higher Education, 3.50% (b)
Student Loan Revenue Bond, Series 86A, AMT
LOC: Student Loan Marketing Association................... 03/07/98 1,600,000
------------
NEW HAMPSHIRE--3.3%
- -------------------
1,600,000 New Hampshire, 3.45% (b)
Pollution Control Revenue Bond
Connecticut Light & Power, Series 92
LOC: Canadian Imperial.................................... 03/07/98 1,600,000
9,000,000 New Hampshire Business Finance Authority, 3.55% (b)
Pollution Control Revenue Bond
Public Service of New Hampshire, Series 92D, AMT
LOC: Barclays Bank........................................ 03/07/98 9,000,000
500,000 New Hampshire Housing Finance Authority, 3.45% (b)
Multi Family Housing Revenue Bond
Pheasant Run, Series 95, AMT
LOC: General Electric Credit Corporation.................. 03/07/98 500,000
2,695,000 New Hampshire Housing Finance Authority, 3.65% (b)
Multi Family Housing Revenue Bond
Countryside LTD Project, Series 94, AMT
LOC: General Electric Credit Corporation.................. 03/07/98 2,695,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 8
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
$ 3,600,000 New Hampshire Housing Finance Authority, 3.60% (b)
Multi Family Housing Revenue Bond
Fairways Project, AMT
LOC: General Electric Credit Corporation.................. 03/07/98 $ 3,600,000
------------
17,395,000
------------
NEW YORK--0.3%
- --------------
1,400,000 New York Trust Cultural Restoration, 3.00% (b)
Carnegie Hall, Series 85
LOC: Westdeutsche Landesbank.............................. 03/07/98 1,400,000
------------
NORTH CAROLINA--1.5%
- --------------------
1,800,000 Halifax County, 3.80% (b)
Pollution Control Revenue Bond
Louisville, G & E, Series 93, AMT
LOC: Credit Suisse........................................ 03/07/98 1,800,000
2,200,000 North Carolina Medical Care Commission, 3.70% (b)
Health Facility Revenue Bond
Lexington Memorial Hospital, Series 97
LOC: First Union Bank of North Carolina................... 03/01/98 2,200,000
3,600,000 Union County, 3.10% (b)
Industrial Development Revenue Bond
Square D Company Project, Series 88
LOC: Morgan Guaranty Trust Company........................ 03/07/98 3,600,000
------------
7,600,000
------------
NORTH DAKOTA--1.0%
- ------------------
5,000,000 North Dakota Housing Finance Authority, 4.00%
Single Family Mortgage Revenue Bond
Home Mortgage, Series 97C, AMT
GIC: Bayerische Landesbank................................ 08/04/98 5,000,000
------------
OHIO--2.5%
- ----------
1,000,000 Lucas County, 3.40% (b)
Health Facility Revenue Bond
Lutheran Homes, Series 96
LOC: Bank One Corporation................................. 03/07/98 1,000,000
5,000,000 Ohio Housing Finance Authority, 3.80%
Single Family Mortgage Revenue Bond
Home Mortgage, Series 98A-2, AMT
GIC: Trinity Funding...................................... 03/01/99 5,000,000
6,800,000 Ohio Water Development Authority, 3.45% (b)
Industrial Development Revenue Bond
Timken Company, Series 97, AMT
LOC: Wachovia Bank and Trust.............................. 03/07/98 6,800,000
------------
12,800,000
------------
OKLAHOMA--1.8%
- --------------
2,000,000 Oklahoma Development Finance Authority, 3.60% (b)
Shawnee Funding Project, Series 96, AMT
LOC: Bank of Nova Scotia.................................. 03/07/98 2,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 9
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
$ 7,500,000 Optima Municipal Authority, 3.60% (b)
Industrial Development Revenue Bond
Seaboard Project, Series 94, AMT
LOC: Trust Company Bank................................... 03/07/98 $ 7,500,000
------------
9,500,000
------------
OREGON--1.9%
- ------------
9,900,000 Port of Portland, 3.50% (b)
Industrial Development Revenue Bond
Portland Bulk Terminal, Series 96, AMT
LOC: Canadian Imperial Bank of Commerce................... 03/07/98 9,900,000
------------
PENNSYLVANIA--4.4%
- ------------------
3,300,000 Delaware Valley, 3.35% (b)
Regional Finance Authority, Series 86
LOC: Credit Suisse........................................ 03/07/98 3,300,000
3,350,000 Delaware Valley, 3.35% (b)
Regional Finance Authority, Series 85D
LOC: Credit Suisse........................................ 03/07/98 3,350,000
3,000,000 Emmaus Local Government, 3.45% (b)
Bond Pool Project, Series 89G-10
LOC: Kredietbank.......................................... 03/07/98 3,000,000
8,000,000 Indiana County, 3.45% (b)
Industrial Development Revenue Bond
Conemaugh Project, Series 97A, AMT
LOC: Union Bank of Switzerland............................ 03/07/98 8,000,000
5,000,000 Philadelphia, GO, 4.50%
Tax Revenue Anticipation Note, Series 97A................. 06/30/98 5,007,967
------------
22,657,967
------------
RHODE ISLAND--2.8%
- ------------------
2,500,000 City of Providence, 3.50% (b)
Washington Street Public Parking Garage, Series 91, AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/98 2,500,000
5,000,000 Rhode Island Higher Education, 3.55% (b)
Student Loan Revenue Bond, Series 96-2, AMT
LOC: National Westminster................................. 03/07/98 5,000,000
2,600,000 Rhode Island Higher Education, 3.55% (b)
Student Loan Revenue Bond, Series 96-3, AMT
LOC: National Westminster................................. 03/07/98 2,600,000
4,400,000 Rhode Island Higher Education, 3.55% (b)
Student Loan Revenue Bond, Series 95-1, AMT
LOC: National Westminster................................. 03/07/98 4,400,000
------------
14,500,000
------------
SOUTH CAROLINA--1.4%
- --------------------
7,500,000 Charleston County, 3.70% (b)
Industrial Development Revenue Bond
Ziegler Coal Project, Series 97, AMT
LOC: Bank of America...................................... 03/07/98 7,500,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE> 10
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
SOUTH DAKOTA--4.0%
- ------------------
$ 15,600,000 South Dakota Housing Development Authority, 3.65% (b)
Single Family Mortgage Revenue Bond
Home Mortgage Revenue, Series 97E
GIC: Westdeutsche Landesbank.............................. 03/07/98 $ 15,600,000
5,000,000 South Dakota Housing Development Authority, 3.95%
Single Family Mortgage Revenue Bond
Home Mortgage Revenue, Series 97G, AMT.................... 08/13/98 5,000,000
------------
20,600,000
------------
TEXAS--10.9%
- ------------
8,500,000 Brazos Higher Education, 3.50% (b)
Student Loan Revenue Bond, Series B1, AMT
LOC: Student Loan Marketing Association................... 03/07/98 8,500,000
7,600,000 Calhoun County, 3.55% (b)
Port Facility
Formosa Plastics, Series 94, AMT
LOC: Bank of America...................................... 03/07/98 7,600,000
5,700,000 City of Galveston, 3.40% (b)
Industrial Development Revenue Bond
Mitchell Project, Series 93A, AMT
LOC: National Westminster................................. 03/07/98 5,700,000
1,700,000 Gulf Coast, 3.70% (b)
Pollution Control Revenue Bond
Amoco Oil Company, Series 94, AMT......................... 03/07/98 1,700,000
1,565,000 North Texas Higher Education, 4.85%
Student Loan Revenue Bond, Series 93B, AMT................ 04/01/98 1,566,091
1,500,000 Panhandle Plains, 3.50% (b)
Student Loan Revenue Bond, Series 92B, AMT
LOC: Student Loan Marketing Association................... 03/07/98 1,500,000
19,600,000 Panhandle Plains, 3.50% (b)
Student Loan Revenue Bond, Series 97X, AMT
LOC: Student Loan Marketing Association................... 03/07/98 19,600,000
4,400,000 Port of Corpus Christi, 3.35% (b)
Industrial Development Revenue Bond
Valero Refining, Series 97B
LOC: Bank of Montreal..................................... 03/07/98 4,400,000
5,785,000 Port of Port Arthur, 3.55% (b)
Pollution Control Revenue Bond
Star Enterprises, Series 97, AMT
LOC: Bank of Montreal..................................... 03/07/98 5,785,000
------------
56,351,091
------------
UTAH--1.7%
- ----------
9,100,000 Salt Lake County, 3.60% (b)
Solid Waste Revenue Bond
Kennecott Copper Corporation, AMT......................... 03/07/98 9,100,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE> 11
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
VIRGINIA--9.7%
- --------------
$ 3,000,000 Amelia County, 3.50% (b)
Solid Waste Revenue Bond
Chambers Waste Systems, Inc., AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/98 $ 3,000,000
1,455,000 Charles City, 3.50% (b)
Solid Waste Revenue Bond
Chambers Development, Series 90, AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/98 1,455,000
2,500,000 Charles City, 3.50% (b)
Solid Waste Revenue Bond
Chambers Development, Series 89, AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/98 2,500,000
City of Alexandria Redevelopment and Housing Authority,
2,700,000 3.55% (b)
Multi Family Housing Revenue Bond
Buckingham Village Apartments, Series 96B, AMT
LOC: First Union Bank of North Carolina................... 03/07/98 2,700,000
4,800,000 City of Charles, 3.50% (b)
Solid Waste Revenue Bond
Chambers Development of Virginia, Series 91, AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/98 4,800,000
4,000,000 City of Charles, 3.50% (b)
Solid Waste Revenue Bond
Chambers Development of Virginia, Series 96, AMT
LOC: Morgan Guaranty Trust Company........................ 03/07/98 4,000,000
1,025,000 City of Richmond Housing Finance Authority, 3.40% (b)
Old Manchester Project, Series 95A
LOC: Wachovia Bank and Trust.............................. 03/07/98 1,025,000
City of Richmond Redevelopment and Housing Authority, 3.80%
10,660,000 (b)
Multi Family Housing Revenue Bond
Tobacco Row, Series 89B-7, AMT
GIC: Bayerische Landesbank................................ 03/07/98 10,660,000
City of Richmond Redevelopment and Housing Authority, 3.80%
7,500,000 (b)
Multi Family Housing Revenue Bond
Tobacco Row, Series 89B-5, AMT
GIC: Bayerische Landesbank................................ 03/07/98 7,500,000
City of Richmond Redevelopment and Housing Authority, 3.80%
2,000,000 (b)
Multi Family Housing Revenue Bond
Tobacco Row, Series 89B-3, AMT
GIC: Bayerische Landesbank................................ 03/07/98 2,000,000
8,295,000 Fairfax County Development Authority, 3.55%
Fair Lakes D&K Ltd Partnership, Series 96, AMT
LOC: First Union Bank of North Carolina................... 03/07/98 8,295,000
2,100,000 King George County, 3.80%
Industrial Development Revenue Bond
Birchwood Power Project, Series 94A, AMT
LOC: Credit Suisse........................................ 03/01/98 2,100,000
------------
50,035,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE> 12
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL MATURITY/PUT
AMOUNT DATE* VALUE
--------- ------------ ------------
<C> <S> <C> <C>
WASHINGTON--3.8%
- ----------------
$ 1,500,000 Washington, 3.40% (b)
Student Loan Revenue Bond, Series 88B, AMT
LOC: National Westminster................................. 03/07/98 $ 1,500,000
18,400,000 Washington, 3.40% (b)
Student Loan Revenue Bond, Series 88A, AMT
LOC: National Westminster................................. 03/07/98 18,400,000
------------
19,900,000
------------
TOTAL INVESTMENTS (cost $518,516,883)(c), 100.1% (a)..................................... 518,516,883
OTHER ASSETS AND LIABILITIES, net, (0.1%) (a)............................................ (636,581)
------------
NET ASSETS (net asset value, offering and redemption price of $1.00 per share;
517,946,678 shares outstanding), consisting of paid-in-capital net of accumulated net
realized loss of $66,376, 100%........................................................... $517,880,302
============
</TABLE>
- ---------------
* Earlier of the maturity date or the put date.
(a) Percentages are based on net assets.
(b) Floating rate notes are securities that generally are payable on demand
within seven calendar days. Put bonds are securities that can be put back to
the issuer or remarketer either at the option of the holder, at a specified
date, or within a specified time period known at the time of purchase. For
these securities, the demand period and the remaining period to put date,
respectively, are used when calculating the weighted average maturity of the
portfolio.
(c) The aggregate identified cost for federal income tax purposes is the same.
AMBAC--American Municipal Bond Assurance Corporation
AMT--Securities subject to Alternative Minimum Tax
FGIC--Federal Guaranty Insurance Company
FSA--Financial Security Assurance, Inc.
GIC--Credit enhancement provided by guaranteed investment contract with noted
institution
GO--General Obligation
LOC--Credit enhancement provided by letter of credit issued by noted institution
MBIA--Municipal Bond Investors Assurance
The accompanying notes are an integral part of the financial statements.
11
<PAGE> 13
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTH PERIOD ENDED FEBRUARY 28, 1998
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income
- -----------------
Interest.................................................... $8,631,615
Expenses (Notes 1 and 4):
Management fee............................................ $1,120,939
Distribution fee.......................................... 344,220
Shareholder servicing..................................... 64,357
Custodian/Fund accounting fees............................ 43,611
State qualification expenses.............................. 30,344
Professional fees......................................... 28,540
Federal registration fees................................. 28,399
Reports to shareholders................................... 12,869
Insurance expense......................................... 5,172
Trustees' fees and expenses............................... 3,362
Other..................................................... 2,505
----------
Total expenses.............................................. 1,684,318
----------
Net investment income resulting from operations............. $6,947,297
==========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED FOR THE YEAR
FEBRUARY 28, 1998 ENDED
(UNAUDITED) AUGUST 31, 1997
----------------- -----------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 6,947,297 $ 10,768,959
Distributions to shareholders from net investment income
($.015 and $.030 per share, respectively)................. (6,947,297) (10,768,959)
Increase in net assets from Fund share transactions (Note
2)........................................................ 98,808,038 93,310,792
------------ ------------
Increase in net assets...................................... 98,808,038 93,310,792
Net assets, beginning of period............................. 419,072,264 325,761,472
------------ ------------
Net assets, end of period................................... $517,880,302 $419,072,264
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
12
<PAGE> 14
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED FOR THE YEARS ENDED AUGUST 31,
FEBRUARY 28, 1998 ------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------------------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD:................. $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)............................ .015 .030 .030 .030 .019 .020
LESS DISTRIBUTIONS:
Dividends from net investment income................ (.015) (.030) (.030) (.030) (.019) (.020)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD:....................... $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
====== ====== ====== ====== ====== ======
TOTAL RETURN %........................................ 1.51(c) 3.00 2.98 3.04 1.90 2.02
RATIOS TO AVERAGE DAILY NET ASSETS(%)/SUPPLEMENTAL
DATA:
Operating expenses, net(a).......................... .73(b) .75 .77 .77 .77 .77
Net investment income............................... 3.03(b) 2.96 2.94 3.05 1.89 1.98
Net assets, end of period ($ millions).............. 518 419 326 283 212 207
</TABLE>
- ---------------
(a)Excludes management fees waived by the Manager in the amount of less than
$.001, $.001 and $.001, per share, for the three periods ended August 31,
1995, respectively. The operating expense ratios including such items would
have been .79%, .77% and .83%, 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 $.01 per share. The operating expense ratios excluding such items
would have been 74%.
(b)Annualized.
(c)Not annualized.
The accompanying notes are an integral part of the financial statements.
13
<PAGE> 15
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
- --------------------------------------------------------------------------------
Note 1: SIGNIFICANT ACCOUNTING POLICIES. Heritage Cash Trust (the "Trust") is
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company consisting of two separate investment
portfolios, the Municipal Money Market Fund (the "Fund") and the Money
Market Fund. The Fund is designed for investors who wish to participate
in a portfolio of federally tax-exempt debt securities with remaining
maturities of not more than 397 days. The preparation of financial
statements in accordance with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
reported amounts and disclosures. Actual results could differ from those
estimates. The following is a summary of significant accounting
policies:
Security Valuation: The Fund uses the amortized cost method of security
valuation (as set forth in Rule 2a-7 under the Investment Company Act of
1940, as amended). The amortized cost of an instrument is determined by
valuing it at cost at the time of purchase and thereafter
accreting/amortizing any purchase discount/premium at a constant rate
until maturity, regardless of the effect of fluctuating interest rates
on the market value of the instrument.
Federal Income Taxes: The Fund is treated as a single corporate taxpayer
as provided for in the Tax Reform Act of 1986, as amended. The Fund's
policy is to comply with the requirements of the Internal Revenue Code
of 1986, as amended, which are applicable to regulated investment
companies and to distribute substantially all of its taxable income to
its shareholders. Accordingly, no provision has been made for federal
income and excise taxes.
Distribution of Income and Gains: Distributions from net investment
income and net realized gains available for distribution are declared
daily and paid monthly. The Fund uses the identified cost method for
determining realized gain or loss on investment transactions for both
financial and federal income tax reporting purposes.
State 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 shares and dollars of the Fund during the six month period ended
February 28, 1998 and for the year ended August 31, 1997 at a constant
net asset value of $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED
FEBRUARY 28, 1998 FOR THE YEAR ENDED
(UNAUDITED) AUGUST 31, 1997
----------------- ------------------
<S> <C> <C>
Shares sold................................................. 1,292,968,914 1,753,225,618
Shares issued on reinvestment of distributions.............. 6,982,399 10,474,052
Shares redeemed............................................. (1,201,143,275) (1,670,388,878)
-------------- --------------
Net increase.............................................. 98,808,038 93,310,792
Shares outstanding:
Beginning of period....................................... 419,138,640 325,827,848
-------------- --------------
End of period............................................. 517,946,678 419,138,640
============== ==============
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the six month period
ended February 28, 1998, purchases, sales and maturities of short-term
investment securities aggregated $603,270,679, $506,365,000 and
$9,300,000, respectively.
Note 4: MANAGEMENT, SUBADVISORY, DISTRIBUTION, SHAREHOLDER SERVICING AGENT AND
TRUSTEES' FEES. Under the Fund's Investment Advisory and Administration
Agreement with Heritage Asset Management, Inc. (the "Manager"), the Fund
agrees to pay to the Manager for investment advice, portfolio management
services (including the placement of brokerage orders), and certain
compliance and administrative services a fee equal to an annual rate of
0.50% of the first $500,000,000 of the Fund's average daily net assets,
0.475% of the next $500,000,000, 0.45% of the next $500,000,000, 0.425%
of the next $500,000,000, and 0.40% of any excess over $2,000,000,000 of
such net assets, computed daily and payable monthly. Effective January
2, 1996, the Manager agreed to waive a portion of the management fee so
that the fee does not exceed the following levels as a percentage of
average daily net assets: .50% of the first $250,000,000, .475% of the
next $250,000,000, .45% of the next $250,000,000, .425% of the next
$250,000,000 and .40% on assets over $1 billion of such net assets. The
amount payable to the Manager as of February 28, 1998 was $176,618.
Pursuant to the Prospectus dated January 2, 1998, the Manager
voluntarily will waive its fees
14
<PAGE> 16
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
and, if necessary, reimburse the Fund to the extent that operating
expenses exceed .75% of its average daily net assets for the fiscal year
ending August 31, 1998. The Manager further agreed to waive its fees
and, if necessary, reimburse the Fund to the extent that operating
expenses exceed .74% of its average daily net assets for the fiscal year
ending August 31, 1998.
The Manager has entered into an agreement with Alliance Capital
Management L.P. (the "Subadviser") to provide investment advice and
portfolio management services, including placement of brokerage orders,
to the Fund for a fee payable by the Manager equal to an annual rate of
.125% of average daily net assets on assets up to $100 million, .10% of
average daily net assets on assets from $100 million to $250 million,
and .05% on average daily net assets exceeding $250 million. For the
period ended February 28, 1998 the subadviser earned $189,124 for
subadviser fees, which were paid by the Manager.
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 $21,000. In addition, the Manager performs Fund
accounting services for the Fund and charged $22,228 during the period,
of which $7,000 was payable as of February 28, 1998.
Pursuant to a plan adopted in accordance with Rule 12b-1 of the
Investment Company Act of 1940, as amended, the Fund pays Raymond James
& Associates, Inc. (the "Distributor") a fee equal to 0.15% of average
daily net assets for the services it provides in connection with the
promotion and distribution of Fund shares. Such fee is accrued daily and
payable monthly. The amount payable to the Distributor as of February
28, 1998 was $57,718. 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 $17,824, $2,029 and $46,523 which may be
applied against any realized net taxable gains until their expiration
dates in 2001, 2003 and 2004, respectively.
15
<PAGE> 17
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Heritage Cash Trust - Municipal Money Market Fund
P.O. Box 33022
St. Petersburg, FL 33733
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preceded or accompanied by a prospectus.
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