<PAGE> 1
MONEY
MARKET [BAR LOGO]
FUND
[Pictures of People Working & Playing]
From Our Family to Yours: The Intelligent Creation of Wealth
ANNUAL REPORT
and Investment Performance
Review for the Year Ended
August 31, 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 -- Money Market Fund (the "Fund") for the fiscal year ended August 31,
1999. After falling to 4.24% at the end of your Fund's semiannual reporting
period in February 1999, the seven-day effective yield for your Fund increased
to 4.62% as of the end of August 1999. As of the date of this letter, the
seven-day effective yield stood at 4.86%.
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 has again 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 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.
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 -- Money Market Fund.
Sincerely,
/s/ STEPHEN G. HILL
-------------------
Stephen G. Hill
President
<PAGE> 3
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
COMMERCIAL PAPER--68.4%(a)
DOMESTIC--52.6%
BANKING--3.2%
$ 50,000,000 Bank of America, FSB, 5.14%,
09/10/99..................... $ 49,935,750
50,000,000 Bank of America, FSB, 5.16%,
10/04/99..................... 49,763,500
---------------
99,699,250
---------------
BEVERAGES--2.6%
80,000,000 The Coca-Cola Company, 4.87%,
09/03/99..................... 79,978,356
---------------
COMPUTER/OFFICE EQUIPMENT--0.6%
20,000,000 Xerox Corporation, 5.23%,
09/17/99..................... 19,953,511
---------------
CORPORATE FINANCE--6.0%
100,000,000 General Electric Capital
Corporation, 5.10%,
09/23/99..................... 99,688,333
19,000,000 Private Export Funding
Corporation, 5.12%,
10/07/99..................... 18,902,720
3,500,000 Private Export Funding
Corporation, 5.16%,
10/08/99..................... 3,481,438
34,000,000 Private Export Funding
Corporation, 5.25%,
10/14/99..................... 33,786,791
30,000,000 Private Export Funding
Corporation, 5.14%,
11/04/99..................... 29,725,867
---------------
185,585,149
---------------
FOOD--6.3%
100,000,000 Campbell Soup Company, 5.07%,
09/13/99..................... 99,831,000
40,000,000 H.J. Heinz Company, 5.11%,
09/14/99..................... 39,926,189
12,000,000 H.J. Heinz Company, 5.13%,
09/21/99..................... 11,965,800
8,000,000 H.J. Heinz Company, 5.15%,
09/22/99..................... 7,975,967
16,600,000 Kellogg Company, 5.04%,
09/10/99..................... 16,579,084
18,500,000 Kellogg Company, 5.13%,
09/14/99..................... 18,465,729
---------------
194,743,769
---------------
HOUSEHOLD PRODUCTS--2.5%
31,500,000 The Procter & Gamble Company,
5.14%, 09/17/99.............. 31,428,040
45,000,000 The Procter & Gamble Company,
5.10%, 10/12/99.............. 44,738,625
---------------
76,166,665
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
MEDICAL SUPPLIES--1.1%
15,000,000 Johnson & Johnson, 4.75%,
10/04/99..................... 14,934,687
20,000,000 Johnson & Johnson, 5.15%,
11/03/99..................... 19,819,750
---------------
34,754,437
---------------
NEWSPAPERS/PUBLISHING--0.4%
13,620,000 McGraw-Hill, Inc., 5.24%,
10/01/99..................... 13,560,526
---------------
OIL & GAS--8.9%
35,000,000 Chevron UK Investment PLC,
5.22%, 12/10/99.............. 34,492,500
40,000,000 Chevron USA, Inc., 5.10%,
09/02/99..................... 39,994,333
100,000,000 Exxon Corporation, 5.25%,
09/24/99..................... 99,664,583
25,000,000 Shell Oil Company, 5.10%,
09/01/99..................... 25,000,000
75,000,000 Shell Oil Company, 5.05%,
09/10/99..................... 74,905,312
---------------
274,056,728
---------------
PHARMACEUTICALS--8.4%
31,000,000 Abbott Laboratories, 5.12%,
09/08/99..................... 30,969,138
11,000,000 Abbott Laboratories, 5.18%,
09/21/99..................... 10,968,344
100,000,000 Merck & Company, Inc., 5.30%,
01/31/00..................... 97,762,222
33,000,000 Pfizer, Inc., 5.05%,
09/03/99..................... 32,990,742
40,000,000 Pfizer, Inc., 5.20%,
09/20/99..................... 39,890,222
50,000,000 Schering Corporation, 5.16%,
09/08/99..................... 49,949,833
---------------
262,530,501
---------------
RETAIL--2.7%
50,000,000 Wal-Mart Stores Inc., 5.52%,
09/01/99..................... 50,000,000
35,000,000 Wal-Mart Stores Inc., 5.25%,
09/20/99..................... 34,903,021
---------------
84,903,021
---------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 4
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
TELEPHONE/UTILITIES--6.7%
$ 15,000,000 Ameritech Corporation, 5.16%,
09/22/99..................... $ 14,954,850
50,000,000 AT&T Corporation, 5.26%,
09/28/99..................... 49,802,750
50,000,000 AT&T Corporation, 5.26%,
09/29/99..................... 49,795,444
18,275,000 BellSouth Telecommunications
Inc., 5.15%, 09/02/99........ 18,272,386
28,200,000 BellSouth Telecommunications
Inc., 5.35%, 01/18/00........ 27,617,474
50,000,000 BellSouth Telecommunications
Inc., 5.63%, 02/14/00........ 48,701,972
---------------
209,144,876
---------------
TRANSPORTATION--3.2%
100,000,000 United Parcel Service, 5.26%,
10/01/99..................... 99,561,667
---------------
Total Domestic (cost $1,634,638,456)........ 1,634,638,456
---------------
FOREIGN--15.8%(B)
BANKING--3.2%
100,000,000 Abbey National North America,
5.00%, 09/08/99.............. 99,902,778
---------------
CORPORATE FINANCE--6.2%
45,000,000 Export Development
Corporation,
4.96%, 09/10/99.............. 44,944,200
25,000,000 Province of British Columbia,
4.90%, 09/03/99.............. 24,993,194
19,000,000 Province of British Columbia,
5.26%, 11/09/99.............. 18,808,448
6,400,000 Province of British Columbia,
5.30%, 12/16/99.............. 6,300,124
25,000,000 The Canadian Wheat Board,
5.14%, 11/22/99.............. 24,707,306
19,000,000 The Canadian Wheat Board,
5.24%, 11/29/99.............. 18,753,866
15,000,000 The Canadian Wheat Board,
4.95%, 11/30/99.............. 14,814,375
40,000,000 The Canadian Wheat Board,
5.58%, 02/07/00.............. 39,014,200
---------------
192,335,713
---------------
FOOD--3.2%
100,000,000 Nestle Capital Corporation,
5.49%, 09/01/99.............. 100,000,000
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
PHARMACEUTICALS--3.2%
35,000,000 Glaxo Wellcome, PLC, 5.21%,
09/13/99..................... 34,939,217
50,000,000 Glaxo Wellcome, PLC, 5.10%,
09/29/99..................... 49,801,667
15,000,000 Glaxo Wellcome, PLC, 5.17%,
10/04/99..................... 14,928,912
---------------
99,669,796
---------------
Total Foreign (cost $491,908,287)........... 491,908,287
---------------
Total Commercial Paper (cost
$2,126,546,743)............................ 2,126,546,743
---------------
U.S. AGENCY SECURITIES--18.2%(a)
50,000,000 Fannie Mae, 4.71%, 10/8/99.... 49,757,958
50,000,000 Fannie Mae, 4.69%, 10/21/99... 49,674,306
35,000,000 Fannie Mae, 5.20%, 12/8/99.... 34,504,556
20,000,000 Fannie Mae, 5.34%, 01/20/00... 19,581,700
35,000,000 Federal Home Loan Bank, 4.92%,
09/10/99..................... 34,956,950
25,000,000 Federal Home Loan Bank, 4.56%,
09/16/99..................... 24,952,479
40,000,000 Federal Home Loan Bank, 5.05%,
03/01/00..................... 39,968,400
25,000,000 Federal Home Loan Bank, 5.16%,
03/08/00..................... 25,002,453
50,000,000 Federal Home Loan Bank, 5.01%,
04/28/00..................... 49,961,560
25,000,000 Freddie Mac, 4.78%,
09/09/99..................... 24,973,444
25,515,000 Freddie Mac, 5.18%,
10/07/99..................... 25,382,833
35,350,000 Freddie Mac, 4.71%,
10/12/99..................... 35,160,377
50,000,000 Freddie Mac, 5.15%,
12/17/99..................... 49,234,653
14,135,000 Freddie Mac, 5.16%,
12/17/99..................... 13,918,216
50,000,000 Freddie Mac, 5.14%,
12/20/99..................... 49,214,722
15,000,000 Student Loan Marketing
Association, 5.42%,
10/21/99..................... 15,000,000
25,000,000 Student Loan Marketing
Association, 5.45%,
01/20/00..................... 25,000,000
---------------
Total U.S. Agency Securities (cost
$566,244,607).............................. 566,244,607
---------------
CORPORATE NOTES--5.6%(a)
BANKING--5.6%
50,000,000 Fifth Third Bank, Bank Note
5.14%, 09/07/99.............. 50,000,083
50,000,000 Fifth Third Bank, Bank Note
5.17%, 10/20/99.............. 50,000,672
75,000,000 First Union National Bank,
Bank Note 5.82%, 01/13/00.... 75,000,000
---------------
Total Corporate Notes (cost $175,000,755)... 175,000,755
---------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 5
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 1999
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
ASSET BACKED/RECEIVABLES--1.9%(a)
$ 60,000,000 Ciesco, L.P., 5.17%,
10/6/99...................... $ 59,698,417
---------------
Total Asset Backed/Receivables (cost
$59,698,417).............................. 59,698,417
---------------
Total Investment Portfolio excluding
repurchase agreement
(cost $2,927,490,522)..................... $ 2,927,490,522
---------------
REPURCHASE AGREEMENT -- 6.3%(a)
Repurchase Agreement with State Street Bank
and Trust Company, dated August 31, 1999 @
5.45% to be repurchased at $195,966,663 on
September 1, 1999, collateralized by
$50,500,000 United States Treasury Notes,
5.625% due December 31, 1999, $46,985,000
United States Treasury Notes, 6.5% due
August 15, 2005, $25,565,000 United States
Treasury Bonds, 6.375% due August 15, 2007,
$47,780,000 United States Treasury Notes,
7.5% due February 15, 2005, $24,105,000
United States Treasury Notes, 6.5% due
August 31, 2001, (market value $200,074,918
including interest) (cost $195,937,000)..... 195,937,000
---------------
TOTAL INVESTMENT PORTFOLIO
(cost $3,123,427,522)(c), 100.4%(a)....... 3,123,427,522
OTHER ASSETS AND LIABILITIES, net,
(0.4%)(a)................................. (13,133,320)
---------------
NET ASSETS, (consisting of paid-in-capital
net of accumulated net realized loss of
$267,824) 100.0%............................ $ 3,110,294,202
===============
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
CLASS A SHARES
Net asset value, offering and redemption
price per share, ($3,106,405,456 divided by
3,106,673,280 shares outstanding)............ $1.00
==============
CLASS B SHARES
Net asset value, offering and redemption
price per share, ($772,367 divided by 772,367
shares outstanding).......................... $1.00
==============
CLASS C SHARES
Net asset value, offering and redemption
price per share, ($3,116,379 divided by
3,116,379 shares outstanding)................ $1.00
==============
- ---------------
(a) Percentages indicated are based on net assets.
(b) U.S. dollar denominated.
(c) The aggregate identified cost for federal income tax
purposes is the same.
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 6
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest.................................................... $145,645,737
Expenses (Notes 1 and 4):
Management fee............................................ $ 12,586,737
Distribution fee (Class A Shares)......................... 4,280,724
Distribution fee (Class B Shares)......................... 559
Distribution fee (Class C Shares)......................... 3,412
Shareholder servicing fees................................ 3,098,373
Custodian/Fund accounting fees............................ 309,772
State qualification expenses.............................. 306,587
Federal registration fees................................. 162,441
Reports to shareholders................................... 128,520
Professional fees......................................... 28,837
Insurance expense......................................... 17,310
Trustees' fees and expenses............................... 9,607
Other..................................................... 26,644
------------
Total expenses...................................... 20,959,523
------------
Net investment income....................................... 124,686,214
Realized Gains on Investment
Net realized gain from investment transactions.............. 334
------------
Net increase in net assets resulting from operations........ $124,686,548
============
</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..................................... $ 124,686,214 $ 109,280,818
Net realized gain from investment transactions............ 334 682
-------------- --------------
Net increase in net assets resulting from operations...... 124,686,548 109,281,500
Distributions to shareholders from:
Net investment income and net realized gains Class A
Shares, ($0.044 and $0.049 per share, respectively)..... (124,570,592) (109,250,845)
Net investment income and net realized gains Class B
Shares, ($0.044 and $0.027* per share, respectively).... (16,288) (799)
Net investment income and net realized gains Class C
Shares, ($0.044 and $0.049 per share, respectively)..... (99,334) (29,174)
Increase in net assets from Fund share transactions (Note
2)........................................................ 615,753,625 478,532,212
-------------- --------------
Increase in net assets...................................... 615,753,959 478,532,894
Net assets, beginning of year............................... 2,494,540,243 2,016,007,349
-------------- --------------
Net assets, end of year..................................... $3,110,294,202 $2,494,540,243
============== ==============
</TABLE>
- ---------------
* For the period January 2, 1998 (commencement of Class B Shares) to August 31,
1998.
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 7
- --------------------------------------------------------------------------------
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
----------------------------------------------- --------------------
FOR THE YEARS ENDED FOR THE YEARS ENDED
AUGUST 31, AUGUST 31,
----------------------------------------------- --------------------
1999 1998 1997 1996 1995 1999 1998++
------- ------- ------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net investment income(a)(b)..................... 0.044 0.049 0.047 0.048 0.050 0.044 0.027
Less Distributions:
Dividends from net investment income and net
realized gains(a)............................. (0.044) (0.049) (0.047) (0.048) (0.050) (0.044) (0.027)
------- ------- ------- ------- ------- ------- -------
Net asset value, end of year..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= =======
Total Return(%).................................. 4.46 4.99 4.85 4.89 5.00 4.46 2.70 (c)
Ratios(%)/Supplemental Data:
Operating expenses, net, to average daily net
assets(b)..................................... 0.73 0.75 0.76 0.78 0.79 0.73 0.75 (d)
Net investment income to average daily net
assets(b)..................................... 4.37 4.88 4.74 4.78 5.00 4.37 4.86 (d)
Net assets, end of year ($ millions)............ 3,106 2,492 2,016 1,641 1,294 1 --
<CAPTION>
CLASS C SHARES
-------------------------------------
FOR THE YEARS ENDED
AUGUST 31,
-------------------------------------
1999 1998 1997 1996+
------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- -------
Income from Investment Operations:
Net investment income(a)(b)..................... 0.044 0.049 0.047 0.023
Less Distributions:
Dividends from net investment income and net
realized gains(a)............................. (0.044) (0.049) (0.047) (0.023)
------- ------- ------- -------
Net asset value, end of year..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
Total Return(%).................................. 4.46 4.99 4.85 2.34 (c)
Ratios(%)/Supplemental Data:
Operating expenses, net, to average daily net
assets(b)..................................... 0.73 0.75 0.77 0.75 (d)
Net investment income to average daily net
assets(b)..................................... 4.37 4.87 4.72 4.62 (d)
Net assets, end of year ($ millions)............ 3 3 1 --
</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 August
31, 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 per share, for the year ended August 31, 1995. The operating expense
ratio including such items would have been .81%. 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. No management fees were waived or recovered for the years ended
August 31, 1998 and 1999.
(c) Not annualized.
(d) Annualized.
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 8
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Note 1: SIGNIFICANT ACCOUNTING POLICIES. Heritage Cash Trust (the "Trust") is
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as a 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 trustees'
fees, insurance expense, etc., are allocated proportionately among the
Heritage 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.
Interest income is recorded on the accrual basis.
7
<PAGE> 9
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
- --------------------------------------------------------------------------------
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 Class A, B and C Shares and dollars of the Fund during
the fiscal year ended August 31, 1999 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 YEAR ENDED AUGUST 31, 1999
Shares sold.............................................. 12,243,076,872 1,195,002 15,293,169
Shares issued on reinvestment of distributions........... 123,619,027 16,090 94,112
Shares redeemed.......................................... (11,751,949,340) (650,372) (14,940,935)
--------------- --------- -----------
Net increase........................................... 614,746,559 560,720 446,346
Shares outstanding:
Beginning of year...................................... 2,491,926,721 211,647 2,670,033
--------------- --------- -----------
End of year............................................ 3,106,673,280 772,367 3,116,379
=============== ========= ===========
</TABLE>
Transactions in Class A and C Shares and dollars of the Fund during the
year ended August 31, 1998 and Class B Shares from January 2, 1998
(commencement of Class B Shares) to August 31, 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 YEAR ENDED AUGUST 31, 1998
Shares sold.............................................. 10,388,248,179 413,612 6,488,760
Shares issued on reinvestment of distributions........... 117,451,319 692 30,563
Shares redeemed.......................................... (10,029,543,511) (202,657) (4,354,744)
--------------- --------- -----------
Net increase........................................... 476,155,987 211,647 2,164,579
Shares outstanding:
Beginning of year...................................... 2,015,770,734 -- 505,454
--------------- --------- -----------
End of year............................................ 2,491,926,721 211,647 2,670,033
=============== ========= ===========
</TABLE>
Note 3: PURCHASES AND MATURITIES OF SECURITIES. For the year ended August 31,
1999, purchases and maturities of short-term investment securities,
excluding repurchase agreements, aggregated $32,641,543,570 and
$32,384,822,000, respectively. Purchases and maturities of U.S.
Government obligations, aggregated $1,948,868,217 and $1,722,745,171,
respectively.
8
<PAGE> 10
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HERITAGE CASH TRUST -- 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, 0.40% of the next
$500,000,000, and 0.375% of any excess over $2,500,000,000 of such net
assets, computed daily and payable monthly. The amount payable to the
Manager as of August 31, 1999 was $1,137,634. Pursuant to the current
registration statement, the Manager has 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, 1999. No fees were waived and no expenses were
reimbursed for the fiscal year ending August 31, 1999.
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 $548,000. In addition, the Manager performs Fund
Accounting services for the Fund and charged $50,104 during the year, of
which $9,000 was payable as of August 31, 1999.
Raymond James & Associates, Inc. (the "Distributor") has advised the
Fund that it received $4,864 in contingent deferred sales charges for
Class B Shares and $5,009 in contingent deferred sales charges for Class
C Shares for the fiscal year ending 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 the
Distributor a fee of 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 August
31, 1999 was $391,355. 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 $283,543, in the aggregate. Capital loss
carryforwards in the amount of $334 were utilized in the year ended
August 31, 1999. Capital loss carryforwards in the amount of $8,666,
$6,037, $235,118 and $33,722 may be applied to any net taxable gains
until their expiration dates in 2002, 2003, 2004, and 2005,
respectively.
9
<PAGE> 11
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Heritage Cash Trust -- Money Market Fund
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Heritage Cash Trust -- Money Market Fund (the "Fund") at August 31, 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 periods presented, 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
10
<PAGE> 12
[Heritage Logo]
Heritage Cash Trust - 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 -
Money Market Fund. It may also be used as sales literature when preceded or
accompanied by a prospectus.
225M 8/99 [Recycled Logo] Printed on recycled paper
