<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, 1999
[HERITAGE LOGO]
<PAGE> 2
April 12, 1999
Dear Fellow Shareholders:
It is my pleasure to provide you with the semiannual report for the
Heritage Cash Trust - Municipal Money Market Fund (the "Fund") for the six month
period from September 1, 1998 through February 28, 1999. After remaining
reasonably stable over the prior twelve months, the seven day effective yield
for your Fund declined from 2.70% on August 31, 1998 to 2.38% on February 28,
1999. Rates on most short-term investments trended lower over this period as a
result of the actions taken last fall by the Federal Reserve Board (the "Fed")
to reduce short-term rates to help prevent a slowdown in our economy.
The Fed's action seems to have had the desired effect of forestalling an
economic downturn. In fact, the argument now is over whether the rate reductions
have contributed to a situation in which the U.S. economy may be expanding too
rapidly, bringing the concern over inflation back into the forefront of economic
policy discussions. The history of the Fed under current Chairman Alan Greenspan
indicates that controlling inflation will be the Fed's primary focus in the
near-term. Thus, unless the rate of domestic economic growth slows, the next
moves by the Fed are likely to be to increase rates slightly. To at least the
partial credit of this Fed, our current period of economic expansion is
beginning its ninth year. In addition to its unusual length, this expansion has
been remarkable for its relative consistency, featuring slow, steady growth with
very little inflation.
The past few years have featured a stock market that has moved generally
upward, at least if we simply focus on the returns from major stock market
indexes. Volatility has continued to be significant, and more importantly, many
segments of the market have not really participated in the gains indicated by
those index returns. In particular, smaller market capitalization stocks and
value stocks have not enjoyed the increases of many large cap growth stocks and
technology stocks. During volatile market periods -- and maybe all markets
qualify as volatile -- an allocation of a portion of your assets to high quality
short-term securities can help stabilize portfolio returns and provide some
measure of comfort. As a reminder, your Fund continues to maintain a AAAm rating
from Standard & Poor's Rating Group. Your Fund also offers a wide range of
features that, we hope, make your Fund convenient for you to use. These include
free checking (including free checks and return cancelled checks), daily sweeps
to and from your brokerage accounts and various automated payment programs.
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. If there are
ever any suggestions you would like to share with us about how we can better
serve you, please call us at 800/709-3863 (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
FEBRUARY 28, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES--100.2%(a)
ALABAMA--1.7%
$ 8,000,000 Decatur, 3.05%(b)
Pollution Control Revenue Bond
Trico Steel Company, Series 98,
AMT, 03/07/99*
LOC: Chase Manhattan Bank......... $ 8,000,000
400,000 Decatur, 3.05%(b)
Pollution Control Revenue Bond
Trico Steel Company, Series 97,
AMT, 03/07/99*
LOC: Chase Manhattan Bank......... 400,000
2,000,000 Tuscaloosa County, 3.00%(b)
Pollution Control Revenue Bond
Tuscaloosa Steel Project, AMT,
03/07/99*
LOC: Bayerische Landesbank........ 2,000,000
------------
10,400,000
------------
ALASKA--0.4%
1,590,000 Alaska Industrial Development
Authority, 4.50%
Healy Clean Coal Project, Series
98A, MBIA, AMT, 04/01/99*......... 1,590,978
1,000,000 Anchorage, GO, 6.30%
Series 91, MBIA 7/01/99*.......... 1,009,486
------------
2,600,464
------------
ARKANSAS--0.5%
3,100,000 Arkansas Development Authority, 3.00%
Single Family Mortgage Revenue
Bond
Mortgage Revenue, Series 99C,
03/01/00*
GIC: Financial Guaranty Insurance
Company........................... 3,100,000
------------
CALIFORNIA--3.7%
22,000,000 California Higher Education Loan
Authority, 3.10%(b)
Student Loan Revenue Bond,
Series 92E-1, AMT, 03/07/99*
LOC: Student Loan Marketing
Association....................... 22,000,000
------------
COLORADO--2.8%
1,250,000 Boulder Colorado Urban Renewal
Authority, 5.70%
Tax Increment Revenue Bond, Series
92, MBIA, 03/01/00*............... 1,283,142
1,500,000 Colorado Student Obligation
Authority, 3.05%(b)
Student Loan Revenue Bond, Series
97D, AMT, 03/07/99*
LOC: Student Loan Marketing
Association....................... 1,500,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
8,000,000 Colorado Student Obligation
Authority, 3.05%(b)
Student Loan Revenue Bond, Series
89A, AMT, 03/07/99*
LOC: Student Loan Marketing
Association....................... 8,000,000
6,000,000 Colorado Student Obligation
Authority, 3.05%(b)
Student Loan Revenue Bond,
Series 90A, AMT, 03/07/99*
LOC: Student Loan Marketing
Association....................... 6,000,000
------------
16,783,142
------------
DELAWARE--4.6%
21,500,000 Delaware Economic Development
Authority, 2.97%(b)
Pollution Control Revenue Bond
Star Enterprise Project, Series
97C,
AMT, 03/07/99*
LOC: Canadian Imperial Bank of
Commerce.......................... 21,500,000
6,000,000 Delaware Economic Development
Authority, 3.05%(b)
Industrial Development Revenue
Bond
Delaware Clean Power Project,
Series 97A, AMT, 03/07/99*
LOC: Canadian Imperial Bank of
Commerce.......................... 6,000,000
------------
27,500,000
------------
DISTRICT OF COLUMBIA--1.6%
9,525,000 District of Columbia Education
Facility, 2.95%(b)
Washington University,
Series 85A, 03/07/99*
LOC: First National Bank
of Chicago........................ 9,525,000
------------
FLORIDA--3.1%
3,400,000 Florida Housing Finance Authority,
3.00%(b)
Multi Family Housing Revenue Bond
Ashley Lake II, Series 89J, AMT,
03/07/99*
LOC: Morgan Guaranty Trust
Company........................... 3,400,000
4,300,000 Inland Protection Finance
Corporation Florida, 4.50%
Pollution Control Revenue Bond,
Series 98, FSA, 01/01/00*......... 4,352,910
2,910,000 Jacksonville, 2.90%(b)
YMCA, First Coast Project,
Series 98, 03/07/99*
LOC: First Union National Bank.... 2,910,000
</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, 1999
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
$ 3,000,000 Orange County, 2.90%(b)
Health Facility Revenue Bond
Adventist Health Systems, Series
92,
03/07/99*
LOC: Sun Bank...................... $ 3,000,000
4,750,000 Palm Beach County Education
Facility Authority, 2.90%(b)
Education Facility Bond
Lynn University, Series 98,
03/07/99*
LOC: First Union National Bank..... 4,750,000
------------
18,412,910
------------
GEORGIA--0.5%
3,200,000 Georgia Housing Development
Authority, 3.25%
Single Family Mortgage Revenue
Bond, Series 98C-2, 10/01/99*
GIC: Financial Guaranty Insurance
Company............................ 3,200,000
------------
IDAHO--0.7%
4,400,000 Idaho Health Facility Authority,
3.00%(b)
Pooled Financing Program, Series
85, 03/07/99*
LOC: US Bank N.A................... 4,400,000
------------
ILLINOIS--7.6%
3,000,000 Chicago, 2.95%(b)
Airport Revenue Bond
Centerpoint, LP, Series 97, AMT,
03/07/99*
LOC: First National Bank
of Chicago......................... 3,000,000
7,800,000 Chicago Industrial Development
Authority, 3.01%(b)
Industrial Development Revenue
Bond
Evans Food Products, Series 98,
03/07/99*
LOC: LaSalle National Trust........ 7,800,000
1,265,000 Cook County, GO, 4.37%
Series 93A, MBIA, 11/15/99*........ 1,274,804
3,600,000 Illinois Development Finance
Authority, 2.85%(b)
Industrial Development Revenue
Bond
Goodman Theatre Project, Series
99, 03/07/99*
LOC: Northern Trust Co., Harris
Trust, First National Bank of
Chicago............................ 3,600,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
6,000,000 Illinois Housing Development
Authority, 3.45%
Single Family Mortgage Revenue
Bond
Series 98F-2, 10/07/99*
GIC: National Westminister......... 6,000,000
5,480,000 Illinois Housing Development
Authority, 3.10%
Single Family Mortgage Revenue
Bond
Series 98A-2, 01/20/00*
GIC: Westdeutsche Landesbank...... 5,480,000
4,320,000 Lake County, 3.10%(b)
Sewer Revenue Bond
Countryside Landfill, Series 96B,
AMT, 03/07/99*
LOC: Morgan Guaranty Trust
Company............................ 4,320,000
2,000,000 Lockport, 2.90%(b)
Industrial Development Revenue
Bond
Panduit Corporation, Series 90
AMT, 03/07/99*
LOC: Commerzbank AG................ 2,000,000
5,830,000 Madison County, 3.30%(b)
Solid Waste Revenue Bond
Shell Oil/Wood River Project,
Series 97, AMT, 03/07/99*.......... 5,830,000
2,500,000 Sauget, 4.70%
Solid Waste Revenue Bond
Pfizer, Series 93, 05/01/99*....... 2,503,652
2,400,000 Southwestern Illinois, 3.30%(b)
Solid Waste Revenue Bond
Shell Oil/Wood River Project,
Series 91, 03/07/99*............... 2,400,000
1,000,000 St. Clair County, 4.80%
Airport Revenue Bond
Airport Improvement, Series 93,
FGIC, 10/01/99*.................... 1,008,566
------------
45,217,022
------------
INDIANA--4.0%
2,140,000 Crawfordsville, 3.10%(b)
Industrial Development Revenue
Bond
Precision Plastics of Indiana,
Series 92, 03/07/99*
LOC: Northern Trust Company........ 2,140,000
2,950,000 Elkhart County, 3.15%(b)
Multi Family Housing Revenue Bond
Johnson St. Apartments Project,
Series 98A, AMT, 03/07/99*
LOC: Lasalle National Trust, N.A... 2,950,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 5
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1999
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
$ 2,050,000 Elkhart County, 3.15%(b)
Multi Family Housing Revenue Bond
West Plains Apartments Project,
Series 98A, AMT, 03/07/99*
LOC: Lasalle National Trust, N.A... $ 2,050,000
6,300,000 Indiana Development Finance
Authority, 3.05%(b)
Mid-America Energy Resources,
Series 95, 03/07/99*
LOC: ABN-AMRO...................... 6,300,000
4,725,000 North Vernon, 3.00%(b)
Multi Family Housing Revenue Bond
Oak Meadows Apartments Project,
Series 95, AMT, 03/07/99*
LOC: Federal Home Loan Bank........ 4,725,000
5,600,000 Westfield, 3.00%(b)
Industrial Development Revenue
Bond
PL Porter Project, Series 89, AMT,
03/07/99*
LOC: Bank of America............... 5,600,000
------------
23,765,000
------------
KANSAS--0.7%
3,900,000 Shawnee Industrial Development
Authority, 3.01%(b)
Industrial Development Revenue
Bond
Thrall Enterprises, Series 94,
AMT, 03/07/99*
LOC: LaSalle National Trust,
N.A............................... 3,900,000
------------
KENTUCKY--1.3%
8,000,000 Kentucky Asset/Liability
Commission, 4.00%
Series 98B, TRAN, 06/25/99*....... 8,016,645
------------
LOUISIANA--1.5%
2,500,000 Jefferson Parish Housing Finance
Authority, 3.62%
Single Family Mortgage Revenue
Bond
Series 98C-2, 09/01/99*
GIC: Westdeutsche Landesbank...... 2,500,000
3,500,000 Lincoln Parish, 3.05%(b)
Solid Waste Revenue Bond
Willamette Industries Project,
Series 96, AMT, 03/07/99*
LOC: Deutsche Bank................ 3,500,000
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
------------
9,045,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
MARYLAND--4.4%
1,010,000 Baltimore Water Authority, 4.50%
Water Revenue Bond
Water Project, Series 93A,
MBIA, 07/01/99*................... 1,014,091
1,025,000 Baltimore, GO, FGIC, 5.12%
Series 97A, 10/15/99*............. 1,035,429
19,020,000 Fredrick County, 2.95%(b)
Health Facility Revenue Bond
Buckinghams Choice, Series 97E,
03/07/99*
LOC: Lasalle National Trust,
N.A............................... 19,020,000
5,100,000 Maryland Health & Education
Authority, 3.00%(b)
Hospital Revenue Bond
Deacon Specialty Hospital, Series
97,
03/07/99*
LOC: First National Bank of
Maryland.......................... 5,100,000
------------
26,169,520
------------
MASSACHUSETTS--0.2%
1,135,000 Massachusetts Development Finance
Authority, 3.50%
Education Facility Bond
Emerson College, Series 99A, AMBAC
01/01/00*......................... 1,139,627
------------
MICHIGAN--0.7%
3,900,000 Michigan Strategic Fund, 2.95%(b)
Industrial Development Revenue
Bond
Pelzer Automotive Systems,
Series 97, 03/07/99*
LOC: NBD Corporation.............. 3,900,000
------------
MINNESOTA--1.1%
3,000,000 Bloomington Minnesota Housing
Finance Authority, 3.00%(b)
Multi Family Housing Revenue Bond
Crow/Bloomington Apartments,
Series 93, 03/07/99*
LOC: Credit Suisse................ 3,000,000
3,500,000 St. Paul, 3.20%(b)
Multi Family Housing Revenue Bond
Kendrick Apartments, Series 97,
AMT, 03/07/99*
LOC: First Bank Systems........... 3,500,000
------------
6,500,000
------------
MISSISSIPPI--0.8%
4,600,000 Jackson, 3.35%(b)
Pollution Control Revenue Bond
Chevron USA Inc., Series 94,
03/07/99*......................... 4,600,000
------------
</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, 1999
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
MISSOURI--0.9%
$ 5,100,000 Missouri Higher Education, 3.10%(b)
Student Loan Revenue Bond
Series 90, AMT, 03/07/99*
LOC: National Westminister........ $ 5,100,000
------------
MONTANA--4.5%
26,800,000 Montana Board of Investments, 3.05%(b)
Colstrip Project, Series 89A,
AMT, 03/07/99*
LOC: Credit Local de France....... 26,800,000
------------
NEBRASKA--1.8%
10,700,000 Nebhelp Inc., 3.15%(b)
Student Loan Program Bond
Series 86C, AMT, 03/07/99*
LOC: Student Loan Marketing
Association....................... 10,700,000
------------
NEVADA--0.3%
2,000,000 Washoe County, 3.35%(b)
Industrial Development Revenue
Bond
Sierra Pacific Power Corporation,
Series 90, 03/07/99*
LOC: Union Bank of Switzerland.... 2,000,000
------------
NEW HAMPSHIRE--0.7%
1,200,000 New Hampshire Business Finance
Authority, 3.05%(b)
Pollution Control Revenue Bond
Wheelabrator Corporation Project,
Series 97B, AMT, 03/07/99*
LOC: Wachovia Bank & Trust........ 1,200,000
2,695,000 New Hampshire Housing Finance
Authority, 3.00%(b)
Multi Family Housing Revenue Bond
Countryside LTD Project,
Series 94, AMT, 03/07/99*
LOC: General Electric Credit
Corporation....................... 2,695,000
------------
3,895,000
------------
NEW JERSEY--0.3%
1,610,000 Hudson County, GO, 4.90%(b)
Series 96A, FGIC, 03/07/99*....... 1,623,320
------------
NORTH DAKOTA--1.7%
10,000,000 North Dakota Housing Finance
Authority, 3.90%
Single Family Mortgage Revenue
Bond
Series 98C, AMT, 06/01/99*
GIC: American International
Group............................. 10,000,000
------------
OHIO--2.9%
7,300,000 Ohio Air Quality Development, 3.35%(b)
Solid Waste Revenue Bond
British Petroleum Project, Series
98, 03/07/99*..................... 7,300,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
5,000,000 Ohio Housing Finance Authority,
3.80%
Single Family Mortgage Revenue
Bond
Home Mortgage, Series 98A-2, AMT,
03/01/99*
GIC: Trinity Funding.............. 5,000,000
5,000,000 Ohio Water Development Authority,
3.00%(b)
Pollution Control Revenue Bond
Duquesne Light Company, Series 89,
03/07/99*
LOC: First National Bank of
Chicago........................... 5,000,000
------------
17,300,000
------------
OKLAHOMA--2.1%
3,000,000 Oklahoma Capital Improvements
Authority, 4.25%
Highway Capital Improvement,
Series 98, MBIA, 06/01/99*........ 3,007,003
2,000,000 Oklahoma Development Finance
Authority, 3.10%(b)
Shawnee Funding Project,
Series 96, AMT, 03/07/99*
LOC: Bank of Nova Scotia.......... 2,000,000
7,500,000 Optima Municipal Authority,
3.10%(b)
Industrial Development Revenue
Bond
Seaboard Project, Series 94, AMT,
03/07/99*
LOC: Sun Bank..................... 7,500,000
------------
12,507,003
------------
OREGON--2.8%
3,560,000 Klamath Falls, 3.80%
Electric Utility Revenue Bond
Salt Caves, Series 86A,
05/03/99*......................... 3,560,000
3,000,000 Oregon Housing Finance Authority,
3.15%
Single Family Mortgage Revenue
Bond
Series 98I, 12/02/99*............. 3,000,000
9,900,000 Port of Portland, 3.05%(b)
Industrial Development Revenue
Bond
Portland Bulk Terminal,
Series 96, AMT, 03/07/99*
LOC: Canadian Imperial Bank of
Commerce.......................... 9,900,000
------------
16,460,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 7
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1999
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
PENNSYLVANIA--9.1%
$ 5,000,000 Delaware Finance Authority,
3.00%(b)
Local Government Revenue Bond,
Series 86, 03/07/99*
LOC: Credit Suisse................ $ 5,000,000
10,300,000 Emmaus Pennsylvania Local
Government, 2.95%(b)
General Authority Revenue Bond,
Series 89B-6, 03/07/99*
GIC: Goldman Sachs Group.......... 10,300,000
7,000,000 Indiana County, 3.00%(b)
Industrial Development Revenue
Bond
Conemaugh Project,
Series 97A, AMT, 03/07/99*
LOC: Union Bank of Switzerland.... 7,000,000
17,475,000 Montgomery County Higher
Education, 2.95%(b)
Student Loan Revenue Bond,
Series 96A, 03/07/99*
LOC: Dauphin Deposit Bank......... 17,475,000
4,625,000 Pennsylvania Economic Development
Authority, 3.25%
Solid Waste Project Bond,
Series 98, 12/15/99*
GIC: Bayerische Landesbank........ 4,625,000
4,425,000 Philadelphia Redevelopment
Authority, 2.85%(b)
Multi-Family Housing Revenue Bond
Courts Apartments Project,
Series 95A, 03/07/99*
LOC: First Union National Bank.... 4,425,000
4,160,000 Pittsburgh, 3.20%
Single Family Mortgage Revenue
Bond
Urban Redevelopment,
Series 98C, 12/01/99*............. 4,160,000
1,185,000 Pittsburgh, GO, 5.00%
Series 96A, MBIA, 03/01/99*....... 1,185,000
------------
54,170,000
------------
RHODE ISLAND--2.8%
2,900,000 Providence, 3.00%(b)
Washington Street Public Parking
Garage, Series 91, AMT, 03/07/99*
LOC: Morgan Guaranty Trust
Company........................... 2,900,000
2,000,000 Rhode Island Depositors Economic
Protection Corporation, 6.15%
Series 91A, MBIA, 08/01/99*....... 2,022,255
4,400,000 Rhode Island Higher Education,
3.10%(b)
Student Loan Revenue Bond,
Series 95-1, AMT, 03/07/99*
LOC: National Westminster......... 4,400,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
5,000,000 Rhode Island Higher
Education, 3.10%(b)
Student Loan Revenue Bond,
Series 96J-2, AMT, 03/07/99*
LOC: National Westminster......... 5,000,000
2,600,000 Rhode Island Higher
Education, 3.10%(b)
Student Loan Revenue Bond,
Series 96-3, AMT, 03/07/99*
LOC: National Westminster......... 2,600,000
------------
16,922,255
------------
SOUTH CAROLINA--0.1%
400,000 Marlboro County South Carolina,
3.05%(b)
Solid Waste Revenue Bond
Willamette Industries, Series 96,
03/07/99*
LOC: Deutsche Bank................ 400,000
------------
SOUTH DAKOTA--2.4%
4,380,000 South Dakota Housing Development
Authority, 3.20%(b)
Single Family Mortgage Revenue
Bond
Series 97E, 03/07/99
GIC: Westdeutsche Landesbank...... 4,380,000
10,000,000 South Dakota Housing Development
Authority, 3.75%
Single Family Mortgage Revenue
Bond
Series 98C, 08/05/99.............. 10,000,000
------------
14,380,000
------------
TENNESSEE--4.7%
1,500,000 Education Funding Of the South,
3.05%(b)
Student Funding Corporation Bond,
Series 88A-2, 03/07/99*
LOC: State Street Bank & Trust
Co................................ 1,500,000
1,500,000 Jackson, 4.50%
Hospital Revenue Bond
Jackson-Madison Hospital, Series
98, AMBAC, 04/01/99*.............. 1,501,315
1,000,000 Memphis, 6.75%
Electric System Revenue Bond
Series 91, 01/01/00*.............. 1,044,395
21,300,000 Memphis-Shelby County, 3.05%(b)
Airport System Revenue Bond,
Series 96B-2, AMT, 03/07/99* LOC:
First Union Bank of North
Carolina.......................... 21,300,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 8
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 28, 1999
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
$ 3,100,000 Oak Ridge Economic Development,
2.90%(b)
Industrial Development Revenue
Bond
Manufacturing Science Inc.,
Project, Series 89, 03/07/99*
LOC: ABN-AMRO..................... $ 3,100,000
------------
28,445,710
------------
TEXAS--5.5%
6,500,000 Austin, 3.05%(b)
Airport System Revenue Notes,
Series 95A, AMT, 03/07/99*
LOC: Morgan Guaranty Trust
Company........................... 6,500,000
8,500,000 Brazos Higher Education, 3.05%(b)
Student Loan Revenue Bond,
Series B1, AMT, 03/07/99*
LOC: Student Loan Marketing
Association....................... 8,500,000
7,600,000 Calhoun County, 3.10%(b)
Port Facility
Formosa Plastics, Series 94, AMT,
03/07/99*
LOC: Bank of America.............. 7,600,000
2,600,000 Gulf Coast Waste Disposal
Authority, 3.35%(b)
Solid Waste Revenue Bond
Amoco Oil, Series 94, 03/07/99*... 2,600,000
2,100,000 Gulf Coast Waste Disposal
Authority, 3.40%(b)
Solid Waste Revenue Bond,
Citgo Petro Corporation,
Series 95, 03/07/99*
LOC: Nationsbank.................. 2,100,000
4,000,000 Midlothian 2.95%(b)
Industrial Development Revenue
Bond
Box-Crow Cement Company,
Series 84, 03/07/99*
LOC: Union Bank of Switzerland.... 4,000,000
2,200,000 Mineral Wells, 2.90%(b)
Industrial Development Revenue
Bond
Ameron International Corporation
Series 96, AMT, 03/07/99*
LOC: Commerzbank AG............... 2,200,000
------------
33,500,000
------------
UTAH--4.8%
10,400,000 Salt Lake County, 3.15%(b) Solid
Waste Revenue Bond Kennecott
Copper Corporation, AMT,
03/07/99*......................... 10,400,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
1,100,000 Utah Board of Regents, 3.10%(b)
Student Loan Revenue Bond Series
93A, AMT, 03/07/99* LOC: Student
Loan Marketing Association........ 1,100,000
2,755,000 Utah Housing Finance Agency,
3.00%(b) Single Family Mortgage
Revenue Bond Mortgage Revenue,
Series 98-1, 03/07/99* GIC:
Bayerische Landesbank............. 2,755,000
4,560,000 Utah Housing Finance Agency,
3.00%(b) Single Family Mortgage
Revenue Bond Mortgage Revenue,
Series 98-3, 03/07/99* GIC:
Bayerische Landesbank............. 4,560,000
10,000,000 Utah Housing Finance Agency,
3.10%(b) Single Family Mortgage
Revenue Bond Mortgage Revenue,
Series 98-4, 03/07/99* GIC:
Bayerische Landesbank............. 10,000,000
------------
28,815,000
------------
VIRGINIA--5.8%
3,600,000 Amelia County, 3.00%(b)
Solid Waste Revenue Bond
Chambers Waste Systems, Inc., AMT,
03/07/99*
LOC: Morgan Guaranty Trust
Company........................... 3,600,000
8,075,000 Fairfax County Development
Authority, 3.05%(b)
Fair Lakes D&K Limited
Partnership,
Series 96, AMT, 03/07/99*
LOC: First Union Bank of North
Carolina.......................... 8,075,000
3,500,000 Peninsula Port Authority, 3.35%(b)
Industrial Development Revenue
Bond
Ziegler Coal Project,
Series 97, AMT, 03/07/99*
LOC: Union Bank of Switzerland.... 3,500,000
7,500,000 Richmond Redevelopment and Housing
Authority, 3.15%(b)
Multi Family Housing Revenue Bond
Tobacco Row, Series 89B-5, AMT,
03/07/99*
GIC: Bayerische Landesbank........ 7,500,000
</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
FEBRUARY 28, 1999
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
2,000,000 Richmond Redevelopment and Housing
Authority, 3.15%(b)
Multi Family Housing Revenue Bond
Tobacco Row, Series 89B-3, AMT,
03/07/99*
GIC: Bayerische Landesbank........ $ 2,000,000
10,660,000 Richmond Redevelopment and Housing
Authority, 3.15%(b)
Multi Family Housing Revenue Bond
Tobacco Row, Series 89B-7, AMT,
03/07/99*
GIC: Bayerische Landesbank........ 10,660,000
------------
35,335,000
------------
WASHINGTON--4.0%
7,000,000 Pierce County Economic Development
3.00%(b)
Industrial Development Revenue
Bond
Weyerhaeuser Real Estate,
Series 97A, 03/07/99*
LOC: ABN-AMRO..................... 7,000,000
9,500,000 Port of Vancouver, 3.00%(b)
Industrial Development Revenue
Bond
United Grain Corporation, Series
92, AMT, 03/07/99*
LOC: Bank of America.............. 9,500,000
7,500,000 Washington Health Facility
Authority, 3.60%(b)
Health Facility Revenue Bond
Fred Hutchinson Cancer Center,
Series 99, 03/07/99*
LOC: Bank of America.............. 7,500,000
------------
24,000,000
------------
WEST VIRGINIA--0.3%
1,500,000 Marion County 3.10%(b) Grant
Town Cogen, Series 90, AMT,
03/07/99*
LOC: National Westminster......... 1,500,000
------------
WISCONSIN--0.8%
3,000,000 Ashland, 3.01%(b)
Industrial Development Revenue
Bond
ABC Rail Products Corporation,
Series 98, AMT, 03/07/99*
LOC: LaSalle National Trust,
N.A............................... 3,000,000
1,500,000 Wisconsin Health & Education
Facility Authority, 4.50%
Health Facility Revenue Bond
Marshfield Clinic, Series 97,
MBIA, 02/15/00*................... 1,518,225
------------
4,518,225
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE DEMAND NOTES (CONTINUED)
TOTAL INVESTMENTS(cost $598,545,843)(c),
100.2%(a)......................................... 598,545,843
OTHER ASSETS AND LIABILITIES, NET, (0.2%)(a)...... (1,021,445)
------------
NET ASSETS, (net asset value, offering and
redemption price of $1.00 per share; 597,590,774
shares outstanding), consisting of paid-in-capital
net of accumulated net realized loss of $66,376,
100%.............................................. $597,524,398
============
</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
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
TRAN -- Tax Revenue Anticipation Note
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 SIX MONTH PERIOD ENDED FEBRUARY 28, 1999
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income
Interest.................................................... $ 9,355,957
Expenses (Notes 1 and 4):
Management fee............................................ $1,367,829
Distribution fee.......................................... 424,950
Shareholder servicing fees................................ 71,955
State qualification expenses.............................. 84,218
Custodian/Fund accounting fees............................ 53,620
Professional fees......................................... 26,929
Reports to shareholders................................... 14,365
Federal registration fees................................. 7,296
Trustees' fees and expenses............................... 5,276
Insurance expense......................................... 4,544
Other..................................................... 2,791
----------
Total expenses.............................................. 2,063,773
-------------
Net investment income resulting from operations............. $ 7,292,184
=============
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX MONTH
PERIOD ENDED
FEBRUARY 28, 1999 FOR THE YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
----------------- ------------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income..................................... $ 7,292,184 $ 14,555,531
Distributions to shareholders from net investment income
($.013 and $.030 per share, respectively)................. (7,292,184) (14,555,531)
Increase in net assets from Fund share transactions (Note
2)........................................................ 32,976,990 145,475,144
------------ ------------
Increase in net assets...................................... 32,976,990 145,475,144
Net assets, beginning of period............................. 564,547,408 419,072,264
------------ ------------
Net assets, end of period................................... $597,524,398 $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 SIX MONTH
PERIOD ENDED FOR THE YEARS ENDED AUGUST 31,
FEBRUARY 28, 1999 ------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------------- ------ ------ ------ ------ ------
<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)................................. .013 .030 .030 .030 .030 .019
LESS DISTRIBUTIONS:
Dividends from net investment income..................... (.013) (.030) (.030) (.030) (.030) (.019)
------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD:............................ $ 1.000 $1.000 $1.000 $1.000 $1.000 $1.000
======= ====== ====== ====== ====== ======
TOTAL RETURN %............................................. 1.29(c) 3.02 3.00 2.98 3.04 1.90
RATIOS (%)/SUPPLEMENTAL DATA:
Operating expenses, net(a)............................... .73(b) .74 .75 .77 .77 .77
Net investment income.................................... 2.57(b) 2.98 2.96 2.94 3.05 1.89
Net assets, end of period ($ millions)................... 598 565 419 326 283 212
</TABLE>
- ---------------
(a) Excludes management fees waived by the Manager in the amount of less than
$.001 and $.001, per share, for the two years ended August 31, 1995 and
1994, respectively. The operating expense ratios including such items would
have been .79% and .77%, 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%. No management fees were waived or recovered for
the year ended August 31, 1998, and for the six month period ended February
28, 1999.
(b) Annualized.
(c) Not annualized.
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
(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.
EXPENSES: The Fund is charged for those expenses which are directly
attributable to it, such as management fee, custodian/fund accounting
fees, distribution fee, while other expenses such as professional fees,
insurance expense, 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.
11
<PAGE> 13
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
Note 2: FUND SHARES. At February 28, 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 six month period ended
February 28, 1999 and for the year ended August 31, 1998 at a constant
net asset value of $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE
SIX MONTH
PERIOD ENDED
FEBRUARY 28, 1999 FOR THE YEAR ENDED
(UNAUDITED) AUGUST 31, 1998
----------------- ------------------
<S> <C> <C>
Shares sold.............................................. 1,325,273,227 2,634,863,915
Shares issued on reinvestment of distributions........... 6,307,788 15,359,564
Shares redeemed.......................................... (1,298,604,025) (2,504,748,335)
-------------- --------------
Net increase........................................... 32,976,990 145,475,144
Shares outstanding:
Beginning of period.................................... 564,613,784 419,138,640
-------------- --------------
End of period.......................................... 597,590,774 564,613,784
============== ==============
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the six month period
ended February 28, 1999, purchases, sales and maturities of short-term
investment securities aggregated $783,380,447, $752,203,000 and
$12,245,000, respectively.
Note 4: MANAGEMENT, SUBADVISORY, 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 February 28, 1999 was $222,724.
Per the Statement of Additional Information 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 six month period ended February 28, 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 six
month period ended February 28, 1999 the subadviser earned $216,043 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, 1999 was $25,000. In addition, the Manager performs Fund
12
<PAGE> 14
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
accounting services for the Fund and charged $26,209 during the six
month period, of which $8,400 was payable as of February 28, 1999.
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, 1999 was $68,353. 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 of the Heritage Mutual Funds.
Note 5: FEDERAL INCOME TAXES. As of August 31, 1998, 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.
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
[ ] HERITAGE U.S. GOVERNMENT INCOME FUND
(A CLOSED-END FUND THAT TRADES ON THE
NEW YORK STOCK EXCHANGE)
We are pleased that many of you are also investors in these funds. For
information and a prospectus for any of these mutual funds, please contact your
financial advisor. Please read the Prospectus carefully before you invest in any
of the funds.
<PAGE> 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.
15M 2/99 [recycled logo] Printed on recycled paper AR53715MU
