<PAGE> 1
MUNICIPAL
MONEY MARKET [BAR LOGO]
FUND
[Pictures of People Working & Playing]
From Our Family to Yours: The Intelligent Creation of Wealth
ANNUAL REPORT
and Investment Performance
Review for the Year Ended
August 31, 1999
[HERITAGE LOGO]
<PAGE> 2
October 11, 1999
Dear Fellow Shareholders:
I am pleased to provide you with the annual report for Heritage Cash
Trust -- Municipal Money Market Fund (the "Fund") for the fiscal year ended
August 31, 1999. After falling to 2.38% at the end of your Fund's semiannual
reporting period in February 1999, the seven-day effective yield for your Fund
increased to 2.64% as of the end of August 1999.
In last year's annual report, we commented on the effects of the 1998 Asian
financial crisis on the revenues and profits of many U.S. businesses. The
Federal Reserve Board (the "Fed") had reduced short-term interest rates three
times last fall in order to help our economic expansion continue. As a result of
these rate cuts, interest rates on all short-term debt securities fell and your
Fund's yield also declined. Recently, the Fed again has focused on controlling
the rate of growth of the economy to help prevent the return of excessive
inflation. As we mentioned in your Fund's semiannual report, the Fed deserves at
least partial credit for the current U.S. economic expansion -- one that has
been remarkable not just for its length, but for its consistent slow steady
growth characterized by very little inflation. The recent actions of the Fed to
boost short-term rates have been made in an effort to allow this expansion to
continue at a moderate rate of growth. One positive result of these rate
increases has been a rise in yields on short-term securities such as those in
which your Fund invests.
As we approach the end of this calendar year, you will continue to read and
hear about possible Y2K problems. While we believe that the Fed has taken
appropriate steps to provide sufficient liquidity in the marketplace,
nonetheless we have continued to focus on only owning extremely high quality
government and corporate debt securities. In fact, our current portfolio exceeds
the standards necessary to retain our AAAm rating from Standard & Poor's Ratings
Group.
As a reminder, your Fund continues to offer many features that make it easy
for you to use. These include free checking (including free checks and returned
cancelled checks), various automated payment programs and daily sweeps to and
from your brokerage accounts.
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 state income tax, the income your Fund
earns from securities issued in your state may be exempt from your state income
tax.
If there are ever any ways in which you believe we could better serve you,
please call us at 800-709-3863 (FUND). On behalf of all of us at Heritage, thank
you for your continuing investment in Heritage Cash Trust -- Municipal Money
Market Fund.
Sincerely,
/s/ STEPHEN G. HILL
-------------------
Stephen G. Hill
President
<PAGE> 3
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES--100.1%(A)(B)
ALABAMA--4.0%
$ 3,800,000 Decatur, 3.35%(c)
Pollution Control Revenue Bond
Trico Steel Company, Series 97,
AMT, 09/07/99
LOC: Chase Manhattan Bank...... $ 3,800,000
8,000,000 Decatur, 3.35%(c)
Pollution Control Revenue Bond
Trico Steel Company, Series 98,
AMT, 09/07/99
LOC: Chase Manhattan Bank...... 8,000,000
11,000,000 Decatur, 3.50%(c)
Pollution Control Revenue Bond
Trico Steel Company, Series 99,
AMT, 09/07/99
LOC: Chase Manhattan Bank...... 11,000,000
2,000,000 Tuscaloosa County, 3.30%(c)
Pollution Control Revenue Bond
Tuscaloosa Steel Project,
Series 95,
AMT, 09/07/99
LOC: Bayerische Landesbank..... 2,000,000
------------
24,800,000
------------
ALASKA--0.9%
5,385,000 Anchorage, GO, 4.00%
Series 99, MBIA, 06/01/00...... 5,416,379
------------
ARIZONA--2.1%
12,850,000 Phoenix Civic Improvement
Authority, 3.30%(c)
Sub Excise Tax, Series 95, AMT
09/07/99
LOC: Hessische Landesbank...... 12,850,000
------------
ARKANSAS--0.3%
1,690,000 Arkansas Development Authority,
3.00%
Single Family Mortgage Revenue
Bond
Series 99C, 03/01/00
GIC: Financial Guaranty
Insurance
Company........................ 1,690,000
------------
CALIFORNIA--3.5%
22,000,000 California Higher Education Loan
Authority, 3.35%(c)
Student Loan Revenue Bond
Series 92E-1, AMT, 09/07/99
LOC: Student Loan Marketing
Association.................... 22,000,000
------------
COLORADO--0.2%
1,250,000 Boulder Colorado Urban Renewal
Authority, 5.70%
Tax Increment Revenue Bond
Series 92, MBIA, 03/01/00...... 1,266,480
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
DELAWARE--2.2%
1,700,000 Delaware Economic Development
Authority, 3.37%(c)
Pollution Control Revenue Bond
Star Enterprise Project, Series
97C,
AMT, 09/07/99
LOC: Canadian Imperial Bank of
Commerce....................... 1,700,000
12,000,000 Delaware Economic Development
Authority, 3.35%(c)
Pollution Control Revenue Bond
Star Enterprise Project,
Series 97A, AMT, 09/07/99
LOC: Canadian Imperial Bank of
Commerce....................... 12,000,000
------------
13,700,000
------------
DISTRICT OF COLUMBIA--1.8%
11,000,000 District of Columbia Housing
Finance
Authority, 3.30%
Single Family Mortgage Revenue
Bond
Series 99B, 06/15/00
GIC: Caisse Des Depots......... 10,980,902
------------
FLORIDA--3.8%
17,200,000 Florida Housing Finance
Authority,
3.30%(c)
Multi Family Housing Revenue
Bond
Hampton Lakes Project, Series
85U, 09/07/99
LOC: Credit Suisse............. 17,200,000
2,200,000 Hillsborough County, 3.35%(c)
Industrial Development Revenue
Bond
Seaboard Tampa, AMT, 09/07/99
LOC: First Union Bank of North
Carolina....................... 2,200,000
4,300,000 Inland Protection Finance
Corporation, 4.50%
Pollution Control Revenue Bond
Series 98, FSA, 01/01/00....... 4,321,095
------------
23,721,095
------------
GEORGIA--1.0%
6,000,000 Georgia Municipal Electrical
Authority, 3.35%(c)
Project One, Series 94-1,
09/07/99
LOC: ABN-AMRO.................. 6,000,000
------------
</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
AUGUST 31, 1999
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
ILLINOIS--7.9%
$ 3,000,000 Chicago, 3.35%(c)
Airport Revenue Bond
Centerpoint O'Hare, LP, Series
97,
AMT, 09/07/99
LOC: First National Bank of
Chicago........................ $ 3,000,000
7,800,000 Chicago Industrial Development
Authority, 3.37%(c)
Industrial Development Revenue
Bond
Evans Food Products, Series 98,
AMT, 09/07/99
LOC: LaSalle National Trust.... 7,800,000
4,000,000 Chicago Housing Finance
Authority,
3.25%
Single Family Mortgage Revenue
Bond
Series 99B, AMT, 04/01/00
GIC: Trinity Funding........... 4,000,000
1,265,000 Cook County, GO, 4.375%
Series 93A, MBIA, 11/15/99..... 1,267,839
10,000,000 Illinois Education Authority,
3.20%(c)
Cultural Pooled Finance Project
Series 99, 09/07/99
LOC: American National Bank of
Chicago........................ 10,000,000
5,355,000 Illinois Education Facility
Authority,
3.20%(c)
Cultural Pooled Finance Project
Series 85, 09/07/99
LOC: First National Bank of
Chicago........................ 5,355,000
5,480,000 Illinois Housing Development
Authority, 3.10%
Single Family Mortgage Revenue
Bond
Series 98A-2, AMT, 01/20/00
GIC: Westdeutsche Landesbank... 5,480,000
2,250,000 Illinois Sports Facility
Authority,
4.00%
Sports Facilities Revenue Bond
Series 99A, MBIA, AMT,
06/15/00....................... 2,261,213
4,800,000 Illinois Student Assistance
Authority,
3.35%(c)
Student Loan Revenue Bond
Series 97A, AMT, 09/07/99
LOC: First National Bank of
Chicago........................ 4,800,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
4,320,000 Lake County, 3.45%(c)
Solid Waste Revenue Bond
Countryside Landfill, Series
96B,
AMT, 09/07/99
LOC: Morgan Guaranty Trust
Company........................ 4,320,000
1,000,000 St. Clair County, 4.80%
Airport Revenue Bond
Airport Improvement, Series 93,
AMT, FGIC, 10/01/99............ 1,001,201
------------
49,285,253
------------
INDIANA--4.4%
2,140,000 Crawfordsville, 3.45%(c)
Industrial Development Revenue
Bond
Precision Plastics of Indiana,
Series 92, 09/07/99
LOC: Northern Trust Company.... 2,140,000
1,000,000 Elkhart County, 3.45%(c)
Multi Family Housing Revenue
Bond
Crossroads Apartments Project,
Series 98A, AMT, 09/07/99
LOC: LaSalle National Trust,
N.A............................ 1,000,000
2,950,000 Elkhart County, 3.50%(c)
Multi Family Housing Revenue
Bond
Johnson St. Apartments Project,
Series 98A, AMT, 09/07/99
LOC: LaSalle National Trust,
N.A............................ 2,950,000
2,050,000 Elkhart County, 3.50%(c)
Multi Family Housing Revenue
Bond
West Plains Apartments Project,
Series 98A, AMT, 09/07/99
LOC: LaSalle National Trust,
N.A............................ 2,050,000
9,075,000 Indiana Housing Finance
Authority,
3.30%(c)
Multi Family Housing Revenue
Bond
Pedcor Investments, Series
97M-A,
AMT, 09/07/99
LOC: Federal Home Loan Bank.... 9,075,000
4,725,000 North Vernon, 3.30%(c)
Multi Family Housing Revenue
Bond
Oak Meadows Apartments Project,
Series 95, AMT, 09/07/99
LOC: Federal Home Loan Bank.... 4,725,000
</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
AUGUST 31, 1999
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 5,600,000 Westfield, 3.40%(c)
Industrial Development Revenue
Bond
PL Porter Project, Series 89,
AMT,
09/07/99
LOC: Bank of America........... $ 5,600,000
------------
27,540,000
------------
KANSAS--0.6%
3,900,000 Shawnee Industrial Development
Authority, 3.37%(c)
Industrial Development Revenue
Bond
Thrall Enterprises, Series 94,
AMT,
09/07/99
LOC: LaSalle National Trust,
N.A............................ 3,900,000
------------
KENTUCKY--0.6%
4,000,000 Fulton, 3.30%(c)
Health Facility Revenue Bond
United Healthcare, Series 85,
09/07/99
LOC: First Union National
Bank........................... 4,000,000
------------
LOUISIANA--4.2%
2,500,000 Jefferson Parish Housing Finance
Authority, 3.63%
Single Family Mortgage Revenue
Bond
Series 98C-2, AMT, 09/01/99
GIC: Westdeutsche Landesbank... 2,500,000
2,000,000 Lincoln Parish, 3.30%(c)
Solid Waste Revenue Bond
Willamette Industries Project,
Series 95, AMT, 09/07/99
LOC: Deutsche Bank............. 2,000,000
10,200,000 Lincoln Parish, 3.30%(c)
Solid Waste Revenue Bond
Willamette Industries Project,
Series 96, AMT, 09/07/99
LOC: Deutsche Bank............. 10,200,000
8,800,000 Louisiana Housing Finance
Authority, 3.35%
Single Family Mortgage Revenue
Bond
Series 99C, AMT, 06/01/00
GIC: Trinity Funding........... 8,790,525
3,045,000 Louisiana Public Facility
Authority,
3.35%
East Baton Rouge School Board,
Series 98A, 10/25/99
GIC: American International
Group.......................... 3,045,000
------------
26,535,525
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
MARYLAND--3.5%
1,025,000 Baltimore, GO, FGIC, 5.13%
Series 97A, 10/15/99........... 1,027,013
14,020,000 Frederick County, 3.30%(c)
Health Facility Revenue Bond
Buckinghams Choice, Series 97E,
09/07/99
LOC: LaSalle National Trust,
N.A............................ 14,020,000
7,000,000 Maryland Health & Education
Authority, 3.30%(c)
Pooled Loan Program,
Series 85A, 09/07/99
LOC: First National Bank of
Chicago........................ 7,000,000
------------
22,047,013
------------
MASSACHUSETTS--0.2%
1,135,000 Massachusetts Development
Finance
Authority, 3.50%
Education Facility Bond
Emerson College, Series 99A,
AMBAC, 01/01/00................ 1,136,845
------------
MICHIGAN--2.5%
3,840,000 Michigan Housing Development
Authority, 3.20%
Single Family Mortgage Revenue
Bond
Series 99A, AMT, 09/07/99
GIC: National Westminster...... 3,840,000
3,900,000 Michigan Strategic Fund,
3.35%(c)
Industrial Development Revenue
Bond
Pelzer Automotive Systems,
Series 97, AMT, 09/07/99
LOC: NBD Corporation........... 3,900,000
7,900,000 Michigan Strategic Fund,
3.30%(c)
Industrial Development Revenue
Bond
Grayling General Project,
Series 90, AMT, 09/07/99
LOC: Barclays Bank............. 7,900,000
------------
15,640,000
------------
MINNESOTA--0.8%
1,500,000 Bloomington Housing Finance
Authority, 3.35%(c)
Multi Family Housing Revenue
Bond
Crow/Bloomington Apartments,
Series 93, 09/07/99
LOC: Credit Suisse............. 1,500,000
</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
AUGUST 31, 1999
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 3,500,000 St. Paul, 3.35%(c)
Multi Family Housing Revenue
Bond
Kendrick Apartments, Series 97,
AMT, 09/07/99
LOC: First Bank Systems........ $ 3,500,000
------------
5,000,000
------------
MISSISSIPPI--0.9%
5,500,000 Mississippi Business Finance
Authority, 3.35%(c)
Solid Waste Revenue Bond
Choctaw Project, Series 98,
AMT, 09/07/99
LOC: Chase Manhattan Bank...... 5,500,000
------------
MISSOURI--0.8%
5,100,000 Missouri Higher Education,
3.35%(c)
Student Loan Revenue Bond
Series 90A, AMT, 09/07/99
LOC: National Westminster...... 5,100,000
------------
NEBRASKA--2.2%
13,500,000 Nebhelp Inc., 3.10%(c)
Student Loan Program Bond
Series 86C, AMT, 09/07/99
LOC: Student Loan Marketing
Association.................... 13,500,000
------------
NEVADA--0.1%
400,000 Washoe County, 3.10%(c)
Industrial Development Revenue
Bond
Sierra Pacific Power
Corporation,
Series 90, 09/07/99
LOC: Union Bank of
Switzerland.................... 400,000
------------
NEW HAMPSHIRE--2.1%
2,000,000 New Hampshire Housing Finance
Authority, 3.35%(c)
Multi Family Housing Revenue
Bond
Countryside Ltd Project,
Series 94, AMT, 09/07/99
LOC: General Electric Credit
Corporation.................... 2,000,000
11,000,000 New Hampshire Housing Finance
Authority, 3.30%(c)
Multi Family Housing Revenue
Bond
Pheasant Run Project,
Series 95, AMT, 09/07/99
LOC: General Electric Credit
Corporation.................... 11,000,000
------------
13,000,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
NEW JERSEY--0.3%
1,610,000 Hudson County, GO, 4.90%
Series 96A, FGIC, 10/01/99..... 1,611,867
------------
OHIO--0.8%
5,000,000 Ohio Water Development
Authority,
3.30%(c)
Pollution Control Revenue Bond
Duquesne Light Company,
Series 89, AMT, 09/07/99
LOC: First National Bank of
Chicago........................ 5,000,000
------------
OKLAHOMA--1.5%
2,000,000 Oklahoma Development Finance
Authority, 3.40%(c)
Shawnee Funding Project,
Series 96, AMT, 09/07/99
LOC: Bank of Nova Scotia....... 2,000,000
7,500,000 Optima Municipal Authority,
3.40%(c)
Industrial Development Revenue
Bond
Seaboard Project, Series 94,
AMT, 09/07/99
LOC: SunTrust Bank............. 7,500,000
------------
9,500,000
------------
OREGON--2.0%
2,850,000 Oregon Housing Finance
Authority,
3.15%
Single Family Mortgage Revenue
Bond
Series 98I, 12/02/99........... 2,850,000
9,900,000 Port of Portland, 3.40%(c)
Industrial Development Revenue
Bond
Portland Bulk Terminal,
Series 96, AMT, 09/07/99
LOC: Canadian Imperial Bank of
Commerce....................... 9,900,000
------------
12,750,000
------------
PENNSYLVANIA--8.4%
13,000,000 Elk County, 3.30%(c)
Industrial Development Revenue
Bond
Willamette Project, Series 92,
AMT, 09/07/99
LOC: Deutsche Bank............. 13,000,000
16,520,000 Montgomery County Higher
Education, 3.40%(c)
Student Loan Revenue Bond
Series 96A, 09/07/99
LOC: Dauphin Deposit Bank...... 16,520,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 7
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 4,625,000 Pennsylvania Economic
Development
Authority, 3.25%
Solid Waste Project Bond
Series 98, AMT, 12/15/99
GIC: Bayerische Landesbank..... $ 4,625,000
14,250,000 Pennsylvania, GO, 5.00%
Series 99, MBIA, 06/01/00...... 14,395,136
4,160,000 Pittsburgh, 3.20%
Single Family Mortgage Revenue
Bond
Urban Redevelopment,
Series 98C, AMT, 12/01/99...... 4,160,000
------------
52,700,136
------------
RHODE ISLAND--1.9%
4,400,000 Rhode Island Higher Education,
3.35%(c)
Student Loan Revenue Bond
Series 95-1, AMT, 09/07/99
LOC: State Street Bank......... 4,400,000
5,000,000 Rhode Island Higher Education,
3.35%(c)
Student Loan Revenue Bond
Series 96J-2, AMT, 09/07/99
LOC: State Street Bank......... 5,000,000
2,600,000 Rhode Island Higher Education,
3.35%(c)
Student Loan Revenue Bond
Series 96-3, AMT, 09/07/99
LOC: State Street Bank......... 2,600,000
------------
12,000,000
------------
SOUTH CAROLINA--0.3%
2,115,000 South Carolina Economic
Development Authority, 3.35%(c)
Industrial Development Revenue
Bond
Bennettsville Print, Series 95,
09/07/99
LOC: First Union National
Bank........................... 2,115,000
------------
SOUTH DAKOTA--3.1%
1,595,000 South Dakota Housing Development
Authority, 3.50%(c)
Single Family Mortgage Revenue
Bond
Series 97E, 09/07/99
GIC: Westdeutsche Landesbank... 1,595,000
7,000,000 South Dakota Housing Development
Authority, 3.20%
Single Family Mortgage Revenue
Bond
Series 99C, 04/07/00........... 7,000,000
9,685,000 South Dakota Housing Development
Authority, 3.45%
Single Family Mortgage Revenue
Bond
Series 99F, AMT, 07/07/00...... 9,685,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
1,000,000 Yankton, 3.35%(c)
Industrial Development Revenue
Bond
Kolberg-Pioneer Project,
Series 98, AMT, 09/07/99
LOC: First National Bank of
Chicago........................ 1,000,000
------------
19,280,000
------------
TENNESSEE--10.4%
1,000,000 Memphis, 6.75%
Electric System Revenue Bond
Series 91, 01/01/00............ 1,017,700
21,300,000 Memphis-Shelby County,
3.30%(c)
Airport System Revenue Bond
Series 96B-2, AMT, 09/07/99
LOC: First Union Bank of North
Carolina....................... 21,300,000
6,000,000 Oak Ridge Economic Development,
3.30%(c)
Industrial Development Revenue
Bond
Manufacturing Science Inc.
Project, Series 89, 09/07/99
LOC: ABN-AMRO.................. 6,000,000
4,925,000 Tennessee, GO, 5.00%
Series 96B, 05/01/00........... 4,982,503
13,900,000 Volunteer Student Funding,
3.35%(c)
Student Loan Revenue Bond
Series 87A-1, AMT, 09/07/99
LOC: Bank of America........... 13,900,000
3,900,000 Volunteer Student Funding,
3.35%(c)
Student Loan Revenue Bond
Series 87A-2, AMT, 09/07/99
LOC: Bank of America........... 3,900,000
3,000,000 Volunteer Student Funding,
3.35%(c)
Student Loan Revenue Bond
Series 88A-1, AMT, 09/07/99
LOC: State Street Bank and
Trust.......................... 3,000,000
6,600,000 Volunteer Student Funding,
3.35%(c)
Student Loan Revenue Bond
Series 88A-2, AMT, 09/07/99
LOC: State Street Bank and
Trust.......................... 6,600,000
4,300,000 Wilson County, 3.40%(c)
Industrial Development Revenue
Bond
Briskin Manufacturing Company
Project,
Series 99, AMT, 09/07/99
LOC: LaSalle National Trust,
N.A............................ 4,300,000
------------
65,000,203
------------
</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
AUGUST 31, 1999
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
TEXAS--4.9%
$ 2,200,000 Austin, 3.30%(c)
Airport System Revenue Notes
Series 95A, AMT, 09/07/99
LOC: Morgan Guaranty Trust
Company........................ $ 2,200,000
8,400,000 Brazos Higher Education,
3.30%(c)
Student Loan Revenue Bond
Series B1, AMT, 09/07/99
LOC: Student Loan Marketing
Association.................... 8,400,000
7,600,000 Calhoun County, 3.35%(c)
Port Facility Formosa Plastics,
Series 94, AMT, 09/07/99
LOC: Bank of America........... 7,600,000
5,200,000 Galveston, 3.40%(c)
Industrial Development Revenue
Bond
Mitchell Project, Series 93A,
AMT, 09/07/99
LOC: Bank One.................. 5,200,000
5,310,000 Lubbock 3.20%
Single Family Mortgage Revenue
Bond
Series 99A, 05/05/00
GIC: Bayerische Landesbank..... 5,310,000
2,200,000 Mineral Wells, 3.30%(c)
Industrial Development Revenue
Bond
Ameron International
Corporation,
Series 96, AMT, 09/07/99
LOC: First National Bank of
Chicago........................ 2,200,000
------------
30,910,000
------------
UTAH--4.1%
10,400,000 Salt Lake County, 3.47%(c)
Solid Waste Revenue Bond
Kennecott Copper Corporation,
Series 95A, AMT, 09/07/99...... 10,400,000
1,100,000 Utah Board of Regents, 3.35%(c)
Student Loan Revenue Bond
Series 93A, AMT, 09/07/99
LOC: Student Loan Marketing
Association.................... 1,100,000
14,000,000 Utah Housing Finance Agency,
3.35%(c)
Single Family Mortgage Revenue
Bond
Series 99-2, 09/07/99
GIC: Bayerische Landesbank..... 14,000,000
------------
25,500,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
VERMONT--0.7%
4,250,000 Vermont Housing Finance
Authority
Single Family Mortgage Revenue
Bond, 3.15%
Series 99-10C, AMT, 04/28/00
GIC: National Westminster...... 4,250,000
------------
VIRGINIA--5.0%
4,050,000 Amelia County, 3.35%(c)
Solid Waste Revenue Bond
Chambers Waste Systems, Inc.,
AMT, 09/07/99
LOC: Morgan Guaranty Trust
Company........................ 4,050,000
7,835,000 Fairfax County Development
Authority, 3.35%(c)
Fair Lakes D&K, LLP
Series 96, AMT, 09/07/99
LOC: First Union Bank of North
Carolina....................... 7,835,000
7,500,000 Richmond Redevelopment and
Housing Authority, 3.45%(c)
Multi Family Housing Revenue
Bond
Tobacco Row, Series 89B-5,
AMT, 09/07/99
GIC: Bayerische Landesbank..... 7,500,000
2,000,000 Richmond Redevelopment and
Housing Authority, 3.45%(c)
Multi Family Housing Revenue
Bond
Tobacco Row, Series 89B-3,
AMT, 09/07/99
GIC: Bayerische Landesbank..... 2,000,000
10,660,000 Richmond Redevelopment and
Housing Authority, 3.45%(c)
Multi Family Housing Revenue
Bond
Tobacco Row, Series 89B-7,
AMT, 09/07/99
GIC: Bayerische Landesbank..... 10,660,000
------------
32,045,000
------------
WASHINGTON--4.8%
6,800,000 Port of Port Angeles, 3.35%(c)
Industrial Development Revenue
Bond
Daishowa America Project,
Series 91, AMT, 09/07/99
LOC: Bank of Nova Scotia....... 6,800,000
5,000,000 Port of Port Angeles, 3.35%(c)
Industrial Development Revenue
Bond
Daishowa America Project,
Series 92, AMT, 09/07/99
LOC: Bank of Nova Scotia....... 5,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 9
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
- --------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 9,500,000 Port of Vancouver, 3.40%(c)
Industrial Development Revenue
Bond
United Grain Corporation,
Series 92, AMT, 09/07/99
LOC: Bank of America........... $ 9,500,000
8,750,000 Washington Housing Finance
Authority, 3.15%
Single Family Mortgage Revenue
Bond
Series 99-2A-S, AMT, 05/01/00
GIC: Trinity Funding........... 8,750,000
------------
30,050,000
------------
WEST VIRGINIA--0.2%
1,500,000 Marion County 3.35%(c)
Grant Town Cogen, Series 90,
AMT, 09/07/99
LOC: National Westminster...... 1,500,000
------------
WISCONSIN--1.1%
3,000,000 Ashland, 3.37%(c)
Industrial Development Revenue
Bond
ABC Rail Products Corporation,
Series 98, AMT, 09/07/99
LOC: LaSalle National Trust,
N.A............................ 3,000,000
2,400,000 Janesville, 3.37%(c)
Industrial Development Revenue
Bond
Freedom Plastics Inc. Project,
Series 95, AMT, 09/07/99
LOC: LaSalle National Trust,
N.A............................ 2,400,000
1,500,000 Wisconsin Health & Education
Facility Authority, 4.50%
Health Facility Revenue Bond
Marshfield Clinic, Series 97,
MBIA, 02/15/00................. 1,508,671
------------
6,908,671
------------
TOTAL INVESTMENTS
(cost $626,130,369)(d), 100.1%(a)........... 626,130,369
OTHER ASSETS AND LIABILITIES, net,
(0.1%)(a)................................... (742,156)
------------
NET ASSETS, (net asset value, offering and
redemption price of $1.00 per share;
625,454,589 shares outstanding), consisting of
paid-in-capital net of accumulated net
realized loss of $66,376, 100%................ $625,388,213
============
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- ------------------------
(a) Percentages are based on net assets.
(b) Earlier of the maturity date or the put date.
(c) Variable 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.
(d) The aggregate identified cost for federal income tax
purposes is the same.
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
AMBAC -- American Municipal Bond Assurance Corporation
AMT -- Securities subject to Alternative Minimum Tax
FGIC -- Federal Guaranty Insurance Company
FSA -- Financial Security Assurance
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
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE> 10
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest.................................................... $ 19,463,931
Expenses (Notes 1 and 4):
Management fee............................................ $ 2,834,414
Distribution fee.......................................... 882,305
State qualification expenses.............................. 199,764
Shareholder servicing fees................................ 151,406
Custodian/Fund accounting fees............................ 106,689
Reports to shareholders................................... 31,280
Professional fees......................................... 30,337
Federal registration fees................................. 15,042
Trustees' fees and expenses............................... 9,941
Insurance................................................. 9,164
Other..................................................... 5,582
------------
Total expenses...................................... 4,275,924
------------
Net investment income from operations....................... $ 15,188,007
============
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
----------------------------------
AUGUST 31, 1999 AUGUST 31, 1998
--------------- ---------------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income..................................... $ 15,188,007 $ 14,555,531
Distributions to shareholders from net investment income
($0.026 and $0.030 per share, respectively)............... (15,188,007) (14,555,531)
Increase in net assets from Fund share transactions (Note
2)........................................................ 60,840,805 145,475,144
------------ ------------
Increase in net assets.................................... 60,840,805 145,475,144
Net assets, beginning of year............................. 564,547,408 419,072,264
------------ ------------
Net assets, end of year................................... $625,388,213 $564,547,408
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE> 11
- --------------------------------------------------------------------------------
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 YEARS ENDED AUGUST 31
---------------------------------------------------
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF YEAR.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)................................... 0.026 0.030 0.030 0.030 0.030
LESS DISTRIBUTIONS:
Dividends from net investment income....................... (0.026) (0.030) (0.030) (0.030) (0.030)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
TOTAL RETURN(%)............................................. 2.62 3.02 3.00 2.98 3.04
RATIOS TO AVERAGE DAILY NET ASSETS(%)/SUPPLEMENTAL DATA:
Operating expenses, net(a)................................. 0.73 0.74 0.75 0.77 0.77
Net investment income...................................... 2.58 2.98 2.96 2.94 3.05
Net assets, end of year ($ millions)....................... 625 565 419 326 283
</TABLE>
- ---------------
(a) Excludes management fees waived by the Manager in the amount of less than
$.001 per share for the year ended August 31, 1995. The operating expense
ratio including such items would have been .79%. 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%. No management fees were waived or recovered
for the years ended August 31, 1998 and 1999.
The accompanying notes are an integral part of the financial statements.
10
<PAGE> 12
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Note 1: SIGNIFICANT ACCOUNTING POLICIES. Heritage Cash Trust (the "Trust") is
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as a 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 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 trustees'
fees, insurance expense, etc., are allocated proportionately among the
Heritage Funds.
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.
Interest income is recorded on the accrual basis.
Note 2: FUND SHARES. At August 31, 1999, 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 years ended August 31, 1999
and 1998 at a constant net asset value of $1.00 per share, were as
follows:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
----------------------------------
AUGUST 31, 1999 AUGUST 31, 1998
--------------- ---------------
<S> <C> <C>
Shares sold................................................. 2,745,386,684 2,634,863,915
Shares issued on reinvestment of distributions.............. 14,881,842 15,359,564
Shares redeemed............................................. (2,699,427,721) (2,504,748,335)
-------------- --------------
Net increase.............................................. 60,840,805 145,475,144
Shares outstanding:
Beginning of year......................................... 564,613,784 419,138,640
-------------- --------------
End of year............................................... 625,454,589 564,613,784
============== ==============
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the year ended
August 31, 1999, purchases, sales and maturities of short-term
investment securities aggregated $1,615,639,151, $1,470,805,000 and
$98,030,000, respectively.
11
<PAGE> 13
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
- --------------------------------------------------------------------------------
Note 4: MANAGEMENT, DISTRIBUTION, SHAREHOLDER SERVICING AGENT, FUND ACCOUNTING
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 the
following management fee schedule: .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 August 31, 1999 was $253,914.
Pursuant to the current registration statement the Manager agreed to
waive its fees and, if necessary, reimburse the Fund to the extent that
total operating expenses exceed .74% of its average daily net assets for
the fiscal year ending August 31, 1999. No fees were waived and no
expenses were reimbursed for the fiscal year ending August 31, 1999.
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
fiscal year ending August 31, 1999 the subadviser earned $444,111 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
August 31, 1999 was $26,600. In addition, the Manager performs Fund
Accounting services for the Fund and charged $52,415 during the year, of
which $8,900 was payable as of August 31, 1999.
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 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 August 31,
1999 was $79,005. 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 employee of the
Manager or an employee of an affiliate of the Manager receives an annual
fee of $8,666 and an additional fee of $3,250 for each combined
quarterly meeting of the Heritage Mutual Funds attended. Trustees' fees
and expenses are paid equally by each portfolio in the Heritage Mutual
Funds.
Note 5: FEDERAL INCOME TAXES. As of August 31, 1999, the Fund has net tax basis
capital loss carryforwards of $66,376, in the aggregate. Capital loss
carryforwards in the amount of $17,824, $2,029, and $46,523 may be
applied to any net taxable gains until their expiration dates in 2001,
2003, and 2004, respectively.
12
<PAGE> 14
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Heritage Cash Trust -- Municipal Money Market Fund
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Heritage Cash Trust -- Municipal Money Market Fund (the "Fund") at August 31,
1999, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended and the financial
highlights for each of the five years in the period then ended, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at August 31, 1999 by
correspondence with the custodian, provide a reasonable basis for the opinion
expressed above.
/s/ PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
Tampa, Florida
October 13, 1999
- --------------------------------------------------------------------------------
TAX INFORMATION
(UNAUDITED)
- --------------------------------------------------------------------------------
Of the dividends paid from net investment income for the year ended August
31, 1999, 100% were exempt interest dividends which are tax exempt for purposes
of regular federal income tax, and a portion were exempt interest dividends
which may be subject to the federal alternative minimum tax. Please consult a
tax adviser if you have questions about federal or state income tax laws, or on
how to prepare your tax return.
13
<PAGE> 15
HERITAGE CASH TRUST-MUNICIPAL 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
MONEY MARKET FUND
- HERITAGE CAPITAL APPRECIATION TRUST
- HERITAGE INCOME-GROWTH TRUST
- HERITAGE INCOME TRUST
HIGH YIELD BOND FUND
INTERMEDIATE GOVERNMENT FUND
- HERITAGE SERIES TRUST
AGGRESSIVE GROWTH FUND
EAGLE INTERNATIONAL EQUITY PORTFOLIO
GROWTH EQUITY FUND
MID CAP GROWTH FUND
SMALL CAP STOCK FUND
VALUE EQUITY FUND
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> 16
[HERITAGE LOGO]
Heritage Cash Trust - Municipal Money Market Fund
P.O. Box 33022
St. Petersburg, FL 33733
Address Service 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
High Yield
Intermediate Government
HERITAGE STOCK FUNDS
Aggressive Growth
Capital Appreciation
Growth Equity
Income-Growth
International
Mid Cap
Small Cap
Value Equity
This report is for the information of shareholders of Heritage Cash Trust -
Municipal Money Market Fund. It may also be used as sales literature when
preceded or accompanied by a prospectus.
16M 8/99 [recycled logo] Printed on recycled paper
