<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, 2000
[HERITAGE LOGO]
<PAGE> 2
October 6, 2000
Dear Shareholders:
I am pleased to provide you with the annual report for the Heritage Cash
Trust -- Municipal Money Market Fund (the "Fund") for the fiscal year ended
August 31, 2000. The seven-day effective yield rose from a level of 2.64% on
September 1, 1999 to 3.21% on February 29, 2000, increasing to 3.69% as of
August 31, 2000. This continued rise was the direct result of attempts by
Federal Reserve policymakers to slow down the economy and head off inflation,
raising interest rates six times since mid 1999.
At its recent meeting, the Fed noted that economic growth has moderated. In
fact, many economists believe that growth has slowed to 3.5% or less, which is
below the 4% target the Fed has used to justify its tightening policy. Since the
index of leading economic indicators has not risen for the past five months, we
believe that interest rate increases are not likely in the near term.
Effective October 5, 2000, I have assumed the position of President of the
Heritage Cash Trust -- Municipal Money Market Fund replacing Brian Lee. I have
served as a member of the Heritage Board of Trustees since the inception of the
Fund and look forward to communicating with you in the future.
Thank you for your continuing investment in Heritage Cash
Trust -- Municipal Money Market Fund. Please call your financial advisor or
Heritage at (800) 421-4184 if you have any questions.
Sincerely,
/s/ Richard K. Riess
-----------------------------------
Richard K. Riess
President
<PAGE> 3
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES--99.3%(a)(b)
ALABAMA--3.4%
$ 3,800,000 Decatur Industrial Development
Board 4.30%(c)
Pollution Control Revenue Bond
Trico Steel Company Project,
Series 97, AMT, 09/07/00
LOC: Chase Manhatten Bank...... $ 3,800,000
8,000,000 Decatur Industrial Development
Board, 4.30%(c)
Pollution Control Revenue Bond
Trico Steel Company Project,
Series 98, AMT, 09/07/00
LOC: Chase Manhatten Bank...... 8,000,000
11,000,000 Decatur Industrial Development
Board, 4.30%(c)
Pollution Control Revenue Bond
Trico Steel Company Project,
Series 99, AMT, 09/07/00
LOC: Chase Manhatten Bank...... 11,000,000
1,100,000 Stevenson, 4.45%(c)
Industrial Development Revenue
Bond
Mead Corporation Project,
Series 99A, AMT, 09/01/00
LOC: Bank of Austria........... 1,100,000
2,000,000 Tuscaloosa County Industrial
Development Authority, 4.25%(c)
Pollution Control Revenue Bond
Tuscaloosa Steel Corporation
Project,
Series 95, AMT, 09/07/00
LOC: Bayerische Landesbank..... 2,000,000
------------
25,900,000
------------
ALASKA--0.3%
2,100,000 Alaska Housing Finance
Corporation, 4.00%
State Capital Project, Series
99B-1, MBIA, 12/01/00.......... 2,100,000
------------
ARIZONA--2.4%
18,700,000 Phoenix Civic Improvement
Authority, 4.25%(c)
Sub Excise Tax,
Series 95, AMT, 09/07/00
LOC: Landesbank Hessen-
Theuringen..................... 18,700,000
------------
ARKANSAS--3.2%
15,000,000 Arkansas Development Finance
Authority, 4.40%(c)
Industrial Development Revenue
Bond
Ensco Project,
Series 00, AMT, 09/07/00
LOC: Wachovia Bank and Trust... 15,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
10,000,000 Union County, 4.30%(c)
Pollution Control Revenue Bond
Del-Tin Fiber Project,
Series 97B, AMT, 09/07/00
LOC: First National Bank of
Chicago........................ 10,000,000
------------
25,000,000
------------
CALIFORNIA--6.2%
11,000,000 California Higher Education Loan
Authority, 4.30%(c)
Student Loan Revenue Bond
Series 87A, 09/07/00
LOC: National Westminister
PLC............................ 11,000,000
14,000,000 California Higher Education Loan
Authority, 4.30%(c)
Student Loan Revenue Bond
Series 92E-1, AMT, 09/07/00
LOC: Student Loan Marketing
Association.................... 14,000,000
10,000,000 California Higher Education Loan
Authority, 4.70%(c)
Student Loan Revenue Bond
Series 95E-5, AMT, 06/27/01
LOC: Student Loan Marketing
Association.................... 10,000,000
8,000,000 Los Angeles County Schools,
4.00%
Pooled Financing Program
Series 99B, 09/29/00........... 8,001,456
5,000,000 Los Angeles Unified School
District, GO, 6.00%
Series 99B, 09/29/00........... 5,008,350
------------
48,009,806
------------
DELAWARE--3.1%
16,500,000 Delaware Economic
Development Authority, 4.30%(c)
Pollution Control Revenue Bond
Star Enterprises Project,
Series 97A, AMT, 09/07/00
LOC: Canadian Imperial Bank of
Commerce....................... 16,500,000
1,700,000 Delaware State Economic
Development Authority, 4.30%(c)
Pollution Control Revenue Bond
Star Enterprises Project,
Series 97C, AMT, 09/07/00
LOC: Canadian Imperial Bank of
Commerce....................... 1,700,000
6,000,000 Delaware State Economic
Development Authority, 4.35%(c)
Pollution Control Revenue Bond
Star Enterprises Project,
Series 97B, AMT, 09/07/00
LOC: Canadian Imperial Bank of
Commerce....................... 6,000,000
------------
24,200,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
DISTRICT OF COLUMBIA--1.7%
$ 13,000,000 District of Columbia Housing
Finance Agency, 4.35%
Single Family Mortgage Revenue
Bond
Series 00B, AMT, 03/21/01
GIC: Trinity Funding........... $ 13,000,000
------------
GEORGIA--3.9%
8,850,000 Cobb County, 4.35%(c)
Multi Family Housing Revenue
Bond
Walton Trails Apartments
Project,
Series 00, AMT, 09/07/00
LOC: Federal Home Loan Mortgage
Corporation.................... 8,850,000
13,600,000 Fulton County Housing Authority,
4.30%(c)
Multi Family Housing Revenue
Bond
Spring Creek Crossing,
Series 94, 09/07/00
LOC: Wachovia Bank and Trust... 13,600,000
4,500,000 Rockmart Development Authority,
4.35%(c)
Industrial Development Revenue
Bond
C.W. Mathews Project,
Series 00, AMT, 09/07/00
LOC: Wachovia Bank and Trust... 4,500,000
3,000,000 St. Mary's Georgia Development
Authority, 4.25%(c)
Pollution Control Revenue Bond
Trigen-BioPower Inc. Project,
Series 99, AMT, 09/07/00
LOC: Toronto-Dominion Bank..... 3,000,000
------------
29,950,000
------------
IDAHO--2.2%
17,000,000 Idaho Health Facilities
Authority, 4.25%(c)
Pooled Financing Program,
Series 85, AMT, 09/07/00
LOC: U.S. Bank N.A............. 17,000,000
------------
ILLINOIS--8.1%
5,000,000 Chicago, 4.50%(c)
Airport Revenue Bond
Midway Airport Project,
Series 99, AMT, 09/07/00
LOC: Bank One, Indiana, N.A.... 5,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
2,300,000 Chicago, 4.45%(c)
Industrial Development Revenue
Bond
Eli's Chicago Inc.,
Series 96, AMT, 09/07/00
LOC: American National Bank of
Chicago........................ 2,300,000
5,500,000 Chicago, 4.25%(c)
Single Family Mortgage Revenue
Bond
Series 01B, AMT, 03/01/01
GIC: Trinity Funding........... 5,500,000
7,500,000 Chicago Gas Supply, 4.25%(c)
Industrial Development Revenue
Bond
Peoples Gas, Light, and Coke,
Series 00D, AMT, 09/07/00...... 7,500,000
7,315,000 Chicago Industrial Development
Authority, 4.30%(c)
Industrial Development Revenue
Bond
Evans Food Products Company,
Series 98, AMT, 09/07/00
LOC: LaSalle National Trust,
N.A............................ 7,315,000
26,000,000 Illinois Development Finance
Authority, 4.35%(c)
Pollution Control Revenue Bond
Public Service,
Series 93C-1, 09/07/00......... 26,000,000
4,800,000 Illinois Student Assistance
Commission, 4.30%(c)
Student Loan Revenue Bond
Series 97A, AMT, 09/07/00
LOC: First National Bank of
Chicago........................ 4,800,000
4,320,000 Lake County, 4.45%(c)
Pollution Control Revenue Bond
Countryside Landfill Project,
Series 96B, AMT, 09/07/00
LOC: Morgan Guaranty Trust
Company........................ 4,320,000
------------
62,735,000
------------
INDIANA--2.0%
2,140,000 Crawfordsville, 4.35%(c)
Industrial Development Revenue
Bond
Precision Plastics of Indiana,
Series 92, 09/07/00
LOC: Northern Trust Company.... 2,140,000
1,000,000 Elkhart County, 4.40%(c)
Multi Family Housing Revenue
Bond
Crossroads Apartments Project,
Series 98A, AMT, 09/07/00
LOC: Federal Home Loan Bank.... 1,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 5
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 2,950,000 Elkhart County, 4.40%(c)
Multi Family Housing Revenue
Bond
Johnson Street Apartment
Project
Series 98A, AMT, 09/07/00
LOC: Federal Home Loan Bank.... $ 2,950,000
2,050,000 Elkhart County, 4.40%(c)
Multi Family Housing Revenue
Bond
West Plains Apartments Project,
Series 98A, AMT, 09/07/00
LOC: Federal Home Loan Bank.... 2,050,000
3,346,000 Indiana Housing Finance
Authority, 4.35%(c)
Multi Family Housing Revenue
Bond
Pedcor Investments,
Series 97M-A, AMT, 09/07/00
LOC: Federal Home Loan Bank.... 3,346,000
3,900,000 Portage, 4.30%(c)
Multi Family Housing Revenue
Bond
Pedcor Investments Apartments
Project,
Series 95A, AMT, 09/07/00
LOC: Federal Home Loan Bank.... 3,900,000
------------
15,386,000
------------
KANSAS--0.5%
3,600,000 Shawnee Industrial Revenue
Authority, 4.30%(c)
Industrial Development Revenue
Bond
Thrall Enterprises,
Series 94, AMT, 09/07/00
LOC: LaSalle National Trust,
N.A............................ 3,600,000
------------
KENTUCKY--1.0%
8,000,000 Kentucky Housing Corporation,
4.40%
Housing Revenue Note
Series 00D, AMT, 01/01/01
GIC: Trinity Plus.............. 8,000,000
------------
LOUISIANA--3.1%
5,100,000 Calcasieu Parish Industrial
Development Board, 4.30%(c)
Industrial Development Revenue
Bond
Hydroserve Westlake Project,
Series 99, AMT, 09/07/00
LOC: Bank One, Arizona......... 5,100,000
6,889,000 Calcasieu Parish Industrial
Development Board, 4.30%(c)
Pollution Control Revenue Bond
W.P.T. Corporation,
Series 97, 09/07/00
LOC: Morgan Guaranty
Trust Company.................. 6,889,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
2,000,000 Lincoln Parish, 4.25%(c)
Industrial Development Revenue
Bond
Willamette Industries Project,
Series 95, AMT, 09/07/00
LOC: Deutsche Bank............. 2,000,000
10,200,000 Lincoln Parish, 4.25%(c)
Pollution Control Revenue Bond
Willamette Industries Project,
Series 96, AMT, 09/07/00
LOC: Deutsche Bank............. 10,200,000
------------
24,189,000
------------
MARYLAND--1.6%
5,000,000 Maryland Community Development
Authority, 4.05%
Single Family Mortgage Revenue
Bond
Series 99I, AMT, 12/14/00...... 5,000,000
7,100,000 Maryland Community Development
Authority, 4.70%
Single Family Mortgage Revenue
Bond
Series 99I, AMT, 06/14/01...... 7,100,000
------------
12,100,000
------------
MICHIGAN--1.4%
7,600,000 Michigan Strategic Fund,
4.25%(c)
Industrial Development Revenue
Bond
Grayling General Project,
Series 90, AMT, 09/07/00
LOC: Barclays Bank............. 7,600,000
3,300,000 Michigan Strategic Fund,
4.35%(c)
Industrial Development Revenue
Bond
True Industries Warren Project,
Series 00, AMT, 09/07/00
LOC: Banc One Corporation...... 3,300,000
------------
10,900,000
------------
MINNESOTA--0.6%
4,700,000 Bloomington Housing Finance
Authority, 4.30%(c)
Multi Family Housing Revenue
Bond
Crow/Bloomington Apartments,
Series 93, 09/07/00
LOC: Credit Suisse First
Boston......................... 4,700,000
------------
</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, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
MISSOURI--0.7%
$ 5,100,000 Missouri Higher Education,
4.30%(c)
Student Loan Revenue Bond
Series 90A, AMT, 09/07/00
LOC: Bank of America........... $ 5,100,000
------------
NEVADA--0.6%
4,350,000 Nevada Housing Division,
4.40%(c)
Hospital Revenue Bond
Oakmont Project,
Series 96, AMT, 09/07/00
LOC: U.S. Bank, N.A............ 4,350,000
------------
NEW HAMPSHIRE--1.7%
2,500,000 New Hampshire Housing
Development Authority, 4.00%
Single Family Mortgage Revenue
Bond
Series 99D, AMT, 12/01/00
GIC: Transamerica.............. 2,500,000
10,985,000 New Hampshire Housing Finance
Authority, 4.30%(c)
Multi Family Housing Revenue
Bond
Pheasant Run Project,
Series 95, AMT, 09/07/00
LOC: General Electric Credit
Corporation.................... 10,985,000
------------
13,485,000
------------
NEW MEXICO--0.5%
4,000,000 New Mexico Mortgage Finance
Authority, 4.20%
Single Family Mortgage Revenue
Bond
Series 00-1, AMT, 10/01/00
GIC: Trinity Funding........... 4,000,000
------------
NORTH CAROLINA--1.7%
2,700,000 Cleveland County, 4.40%(c)
Curtiss-Wright Flight Systems
Project, AMT, 09/07/00
LOC: Bank of Nova Scotia....... 2,700,000
10,360,000 North Carolina Educational
Facilities Finance Agency,
4.30%(c)
Brevard College Corporation,
Series 97, 09/07/00
LOC: Wachovia Bank and Trust... 10,360,000
------------
13,060,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
NORTH DAKOTA--1.2%
9,000,000 North Dakota Housing Finance
Authority, 3.80%
Single Family Mortgage Revenue
Bond
Series 99E, AMT, 09/29/00
GIC: Bayerische Landesbank..... 8,999,986
------------
OHIO--5.2%
7,350,000 Cleveland, 4.35%(c)
Airport Revenue Bond
Series 97D, AMT, 09/07/00
LOC: Toronto Dominion Bank..... 7,350,000
33,000,000 Ohio Housing Finance Authority,
4.25%
Single Family Mortgage Revenue
Bond
Series 00A-3, AMT, 03/01/01
GIC: Hypo Vereins Bank......... 33,000,000
------------
40,350,000
------------
OKLAHOMA--1.2%
2,000,000 Oklahoma Development Finance
Authority, 4.35%(c)
Industrial Development Revenue
Bond
Shawnee Funding Project, Series
96, AMT, 09/07/00
LOC: Bank of Nova Scotia....... 2,000,000
7,500,000 Optima Municipal Authority,
4.35%(c)
Industrial Development Revenue
Bond
Seaboard Project,
Series 94, AMT, 09/07/00
LOC: Sun Trust Bank............ 7,500,000
------------
9,500,000
------------
PENNSYLVANIA--7.2%
14,200,000 Elk County, 4.25%(c)
Industrial Development Revenue
Bond
Willamette Industries Project,
Series 92, AMT, 09/07/00
LOC: Deutsche Bank............. 14,200,000
4,000,000 Emmaus, GO, 4.25%(c)
Series 89C-18, 09/07/00
LOC: Bayerische Landesbank..... 4,000,000
4,975,000 Emmaus, GO, 4.30%(c)
Series 89A-9, 09/07/00
LOC: Bayerische Hypo und
Vereinsbank.................... 4,975,000
10,000,000 Emmaus, GO, 4.25%(c)
Series 89F-16, 09/07/00
LOC: Bayerische Landesbank..... 10,000,000
5,000,000 Emmaus, GO, 4.25%(c)
Series 89G-12, 09/07/00
LOC: Bayerische Landesbank..... 5,000,000
</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, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 3,800,000 Emmaus, GO, 4.25%(c)
Series 89H-11, 09/07/00
LOC: Canadian Imperial......... $ 3,800,000
3,730,000 Montgomery County Higher
Education, 4.35%(c)
Series 96A, 09/07/00
LOC: Dauphin Deposit Bank...... 3,730,000
5,300,000 Pennsylvania Higher Education,
4.20%(c)
University of Pennsylvania
Series 94B, AMT, 09/07/00
LOC: Bayerische Landesbank..... 5,300,000
4,730,000 Pittsburgh Urban Development
Authority, 4.70%
Single Family Mortgage Revenue
Bond
Series 00C, AMT, 05/22/01...... 4,730,000
------------
55,735,000
------------
RHODE ISLAND--1.6%
4,400,000 Rhode Island Higher Education,
4.40%(c)
Student Loan Revenue Bond
Series 95-1, AMT, 09/07/00
LOC: State Street Bank......... 4,400,000
5,000,000 Rhode Island Higher Education,
4.40%(c)
Student Loan Revenue Bond
Series 96J-2, AMT, 09/07/00
LOC: State Street Bank......... 5,000,000
2,600,000 Rhode Island Higher Education,
4.40%(c)
Student Loan Revenue Bond
Series 96-3, AMT, 09/07/00
LOC: State Street Bank......... 2,600,000
------------
12,000,000
------------
SOUTH CAROLINA--1.1%
4,000,000 South Carolina Jobs, 4.40%(c)
Industrial Development Revenue
Bond
Elec City Printing Project,
Series 2000, AMT, 09/07/00
LOC: Wachovia Bank and Trust... 4,000,000
4,200,000 South Carolina Economic
Development Authority, 4.40%(c)
Industrial Development Revenue
Bond
King Company Project,
Series 99, AMT, 09/07/00
LOC: Wachovia Bank and Trust... 4,200,000
------------
8,200,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
SOUTH DAKOTA--0.1%
1,000,000 Yankton, 4.35%(c)
Industrial Development Revenue
Bond
Kolberg-Pioneer Project,
Series 98, AMT, 09/07/00
LOC: First National Bank of
Chicago........................ 1,000,000
------------
TENNESSEE--6.7%
10,000,000 Education Funding of the South,
4.35%(c)
Student Funding Corporation,
Series 87A-1, AMT, 09/07/00
LOC: Bank of America........... 10,000,000
10,600,000 Education Funding of the South,
4.35%(c)
Student Funding Corporation,
Series 87A-2, AMT, 09/07/00
LOC: Bank of America........... 10,600,000
13,300,000 Education Funding of the South,
4.35%(c)
Student Funding Corporation,
Series 87A-3, AMT, 09/07/00
LOC: Bank of America........... 13,300,000
18,150,000 Stewart County, 4.30%(c)
Industrial Development Revenue
Bond
Standard Gypsum Project, Series
99, AMT, 09/07/00
LOC: Toronto-Dominion Bank..... 18,150,000
------------
52,050,000
------------
TEXAS--11.7%
7,200,000 Austin, 4.35%(c)
Airport System Revenue Notes
Series 95A, AMT, 09/07/00
LOC: Morgan Guaranty Trust
Company........................ 7,200,000
8,400,000 Brazos Higher Education,
4.35%(c)
Student Loan Revenue Bond
Series B1, AMT, 09/07/00
LOC: Student Loan Marketing
Association.................... 8,400,000
10,200,000 Brazos River, 4.25%(c)
Pollution Control Revenue Bond
Texas Utility Electric Project,
Series 99B, AMT, 09/07/00
LOC: Morgan Guaranty Trust
Company........................ 10,200,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 8
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 7,600,000 Calhoun County, 4.40%(c)
Port Facility Formosa Plastics,
Series 94, AMT, 09/07/00
LOC: Bank of America........... $ 7,600,000
4,600,000 Galveston, 4.45%(c)
Industrial Development Revenue
Bond
Mitchell Project,
Series 93A, AMT, 09/07/00
LOC: Bank One Corporation...... 4,600,000
1,200,000 Gulf Coast Waste Disposal
Authority, 4.45%(c)
Pollution Control Revenue Bond
Amoco Oil Company Project,
Series 95, AMT, 09/01/00....... 1,200,000
1,500,000 Gulf Coast Waste Disposal
Authority, 4.45%(c)
Pollution Control Revenue Bond
Amoco Oil Company Project,
Series 93, AMT, 09/07/00....... 1,500,000
11,780,000 Houston, 7.00%
Water & Sewer Revenue Bond
Series 90, MBIA, 12/01/00...... 12,099,292
5,000,000 Midlothian, 4.45%(c)
Pollution Control Revenue Bond
Holnam Texas,
Series 99, AMT, 09/07/00
LOC: Bank One Corporation...... 5,000,000
4,500,000 North Texas Higher Education
Authority, 4.30%(c)
Student Loan Revenue Bond
Series 93A, AMT, 09/07/00
LOC: Student Loan Marketing
Association.................... 4,500,000
15,000,000 North Texas Higher Education
Authority, 4.25%(c)
Student Loan Revenue Bond
Series 00A, AMT, 09/07/00
LOC: Bank of America........... 15,000,000
5,400,000 Panhandle Plains, 4.35%(c)
Student Loan Revenue Bond
Series 97, AMT, 09/07/00
LOC: Student Loan Marketing
Association.................... 5,400,000
4,000,000 Port Arthur, 4.30%(c)
Industrial Development Revenue
Bond
Air Products and Chemical
Project,
Series 00, AMT, 09/07/00
LOC: Bayerische Hypo und
Vereinsbank.................... 4,000,000
2,400,000 Trinity River, 4.30%(c)
Pollution Control Revenue Bond
Texas Utility Electric Project,
Series 00A, AMT, 09/07/00
LOC: Commerzbank A.G........... 2,400,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
1,000,000 Westside Calhoun, 4.45%(c)
Industrial Development Revenue
Bond
British Petroleum Chemical
Project,
Series 96, AMT, 09/01/00....... 1,000,000
------------
90,099,292
------------
UTAH--1.3%
10,400,000 Salt Lake County, 4.45%(c)
Pollution Control Revenue Bond
Kennecott Copper Corporation,
Series 95A, AMT, 09/07/00...... 10,400,000
------------
VIRGINIA--5.4%
4,050,000 Amelia County, 4.35%(c)
Pollution Control Revenue Bond
Chambers Waste Systems, Inc.,
Series 91, AMT, 09/07/00
LOC: Morgan Guaranty Trust
Company........................ 4,050,000
4,250,000 Fairfax County Development
Authority, 4.35%(c)
Industrial Development Revenue
Bond
Sandy Rock Project,
Series 99, AMT, 09/07/00
LOC: Wachovia Bank and Trust... 4,250,000
1,125,000 King George County Industrial
Development Authority, 4.45%(c)
Electric Utility Bond
Birchwood Power Project,
Series 94B, AMT, 09/01/00
LOC: Credit Suisse............. 1,125,000
3,400,000 Norfolk Industrial Development
Authority, 4.40%(c)
Industrial Development Revenue
Bond
Norfolk Ship Repair Project,
Series 00, AMT, 09/07/00
LOC: Wachovia Bank and Trust... 3,400,000
2,000,000 Richmond Redevelopment and
Housing Authority, 4.40%(c)
Multi Family Housing Revenue
Bond
Tobacco Row,
Series 89B-3, AMT, 09/07/00
GIC: Bayerische Landesbank..... 2,000,000
7,500,000 Richmond Redevelopment and
Housing Authority, 4.40%(c)
Multi Family Housing Revenue
Bond
Tobacco Row,
Series 89B-5, AMT, 09/07/00
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
AUGUST 31, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 10,660,000 Richmond Redevelopment and
Housing Authority, 4.40%(c)
Multi Family Housing Revenue
Bond
Tobacco Row,
Series 89B-7, AMT, 09/07/00
GIC: Bayerische Landesbank..... $ 10,660,000
4,000,000 Spotsylvania County, 4.35%(c)
Industrial Development Revenue
Bond
Anthony Kane Project,
Series 99, AMT, 09/07/00
LOC: Wachovia Bank and Trust... 4,000,000
4,630,000 Virginia Beach, 4.40%(c)
Industrial Development Revenue
Bond
Architectural Graphics Project,
Series 00, AMT, 09/07/00
LOC: Wachovia Bank and Trust... 4,630,000
------------
41,615,000
------------
WASHINGTON--5.6%
6,800,000 Port of Port Angeles, 4.45%(c)
Industrial Development Revenue
Bond
Daishowa America Project,
Series 91, AMT, 09/07/00
LOC: Bank of Nova Scotia....... 6,800,000
5,000,000 Port of Port Angeles, 4.45%(c)
Industrial Development Revenue
Bond
Daishowa America Project,
Series 92, AMT, 09/07/00
LOC: Bank of Nova Scotia....... 5,000,000
5,000,000 Port Seattle, 4.45%(c)
Harbor Island Terminal 18
Project,
Series 97, AMT, 09/07/00
LOC: Canadian Imperial Bank of
Commerce....................... 5,000,000
5,400,000 Port of Vancouver, 4.35%(c)
Industrial Development Revenue
Bond
United Grain Corporation,
Series 92, AMT, 09/07/00
LOC: Bank of America........... 5,400,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
2,065,000 Washington Development Finance
Authority, 4.35%(c)
Industrial Development Revenue
Bond
TRON Project,
Series 97A, AMT, 09/07/00
LOC: U.S. Bank, N.A............ 2,065,000
2,415,000 Washington Economic Development
Authority, 4.35%(c)
Economic Development Revenue
Bond
Mercer Island Project,
Series 97, AMT, 09/07/00
LOC: U.S. Bank, N.A............ 2,415,000
6,200,000 Washington Economic Development
Authority, 4.35%(c)
Industrial Development Revenue
Bond
Pacific Coast Shredding
Project,
Series 99D, AMT, 09/07/00
LOC: U.S. Bank, N.A............ 6,200,000
2,500,000 Washington Housing Finance
Commission, 4.45%(c)
Multi Family Housing Revenue
Bond
Mill Pointe Apartments Project,
Series 99A, AMT, 09/01/00
LOC: U.S. Bank, N.A............ 2,500,000
3,400,000 Washington Housing Finance
Commission, 4.35%(c)
Multi Family Housing Revenue
Bond
Cedar Landing Apartments
Project,
Series 98A, AMT, 09/07/00
LOC: U.S. Bank, N.A............ 3,400,000
4,485,000 Washington Housing Finance
Commission, 4.35%(c)
Multi Family Housing Revenue
Bond
Summerglen Project,
Series 95, AMT, 09/07/00
LOC: U.S. Bank, N.A............ 4,485,000
------------
43,265,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
8
<PAGE> 10
--------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- ------------
<S> <C> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
WISCONSIN--1.1%
$ 3,000,000 Ashland, 4.30%(c)
Industrial Development Revenue
Bond
ABC Rail Products Corporation,
Series 98, AMT, 09/07/00
LOC: LaSalle National Trust,
N.A............................ $ 3,000,000
2,550,000 Janesville, 4.30%(c)
Industrial Development Revenue
Bond
Freedom Plastics Inc. Project,
Series 95, AMT, 09/07/00
LOC: LaSalle National Trust,
N.A............................ 2,550,000
2,600,000 Wisconsin Health & Education
Facilities Authority, 4.25%(c)
Health Facility Revenue Bond
Wheaton Franciscan Services,
Series 97, AMT, 09/07/00
LOC: Toronto Dominion Bank..... 2,600,000
------------
8,150,000
------------
TOTAL INVESTMENTS
(cost $766,829,084)(d), 99.3%(a)............ 766,829,084
OTHER ASSETS AND LIABILITIES, net, 0.7%(a).... 5,511,348
------------
NET ASSETS, (net asset value, offering and
redemption price of $1.00 per share;
772,405,923 shares outstanding), consisting of
paid-in-capital net of accumulated net
realized loss of $65,491, 100%................ $772,340,432
============
</TABLE>
<TABLE>
<S> <C>
-----------------------------------------------------------
(a) Percentages are based on net assets.
(b) Earlier of the maturity date or the put date.
(c) Variable rate demand 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 at the option of the holder,
either at a specified date, or within a specified time
period known at the time of purchase. For these
securities, dates shown represent the demand date or
earliest put date. The interest rate shown represents
the rate in effect at August 31, 2000.
(d) The aggregate identified cost for federal income tax
purposes is the same.
</TABLE>
<TABLE>
<S> <C> <C>
AMT -- Securities subject to Alternative Minimum Tax
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.
9
<PAGE> 11
--------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest.................................................... $ 29,869,633
Expenses (Notes 1 and 4):
Management fee............................................ $ 3,582,847
Distribution fee.......................................... 1,133,042
Shareholder servicing fees................................ 206,291
State qualification expenses.............................. 219,876
Custodian/Fund accounting fees............................ 120,462
Professional fees......................................... 41,805
Federal registration fees................................. 37,944
Reports to shareholders................................... 26,298
Trustees' fees and expenses............................... 8,870
Insurance................................................. 8,338
Other..................................................... 6,083
------------
Total expenses...................................... 5,391,856
------------
Net investment income from operations....................... $ 24,477,777
============
</TABLE>
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
------------------------------------
AUGUST 31, 2000 AUGUST 31, 1999
----------------- ---------------
<S> <C> <C>
Increase in net assets:
Operations:
Net Investment income from operations..................... $ 24,477,777 $ 15,188,007
Distributions to shareholders from net investment income
($0.032 and $0.026 per share, respectively)............. (24,476,892) (15,188,007)
Increase in net assets from Fund share transactions (Note
2)...................................................... 146,951,334 60,840,805
------------ ------------
Increase in net assets...................................... 146,952,219 60,840,805
Net assets, beginning of year............................... 625,388,213 564,547,408
------------ ------------
Net assets, end of year..................................... $772,340,432 $625,388,213
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
10
<PAGE> 12
--------------------------------------------------------------------------------
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,
-------------------------------------------------------
2000 1999 1998 1997 1996
------- ------- ------- ------- -------
<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.................................... 0.032 0.026 0.030 0.030(a) 0.030
LESS DISTRIBUTIONS:
Dividends from net investment income..................... (0.032) (0.026) (0.030) (0.030) (0.030)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
TOTAL RETURN(%)............................................ 3.29 2.62 3.02 3.00 2.98
RATIOS TO AVERAGE DAILY NET ASSETS(%)/SUPPLEMENTAL DATA
Operating expenses, net.................................. 0.71 0.73 0.74 0.75(a) 0.77
Net investment income.................................... 3.24 2.58 2.98 2.96 2.94
Net assets, end of year ($ millions)..................... 772 625 565 419 326
</TABLE>
---------------
(a) The year ended August 31, 1997 includes recovery of previously waived
management fees paid to the Manager of $.01 per share. The operating expense
ratio excluding such item would have been .74%.
The accompanying notes are an integral part of the financial statements.
11
<PAGE> 13
--------------------------------------------------------------------------------
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 accounting principles generally accepted
in the United States of America 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 fees, custodian fees,
distribution fees, etc., while other expenses such as 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.
Note 2: FUND SHARES. At August 31, 2000, 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, 2000
and 1999 at a net asset value of $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
------------------------------------
AUGUST 31, 2000 AUGUST 31, 1999
----------------- ---------------
<S> <C> <C>
Shares sold................................................ 3,457,659,865 2,745,386,684
Shares issued on reinvestment of distributions............. 23,901,055 14,881,842
Shares redeemed............................................ (3,334,609,586) (2,699,427,721)
-------------- --------------
Net increase............................................. 146,951,334 60,840,805
Shares outstanding:
Beginning of year........................................ 625,454,589 564,613,784
-------------- --------------
End of year.............................................. 772,405,923 625,454,589
============== ==============
</TABLE>
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the year ended
August 31, 2000, purchases, sales and maturities of short-term
investment securities aggregated $1,565,674,738, $1,322,606,000 and
$101,750,000, respectively.
12
<PAGE> 14
--------------------------------------------------------------------------------
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, 2000 was $311,413.
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 total operating expenses exceed .74% of its
average daily net assets for the fiscal year ending August 31, 2000. No
fees were waived and no expenses were reimbursed for the fiscal year
ending August 31, 2000.
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, 2000, the subadviser earned $527,908 for
subadviser fees, which were paid by the Manager.
The Manager is also the Dividend Paying, Shareholder Servicing Agent and
Fund Accountant for the Fund. The Manager charged $206,291 for Dividend
Paying and Shareholder Servicing fees and $58,516 for Fund Accounting
services, of which $36,500 and $10,000 was payable as of August 31,
2000, respectively.
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,
2000 was $97,559. 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
and Heritage Series Trust, 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, 2000, the Fund has net tax basis
capital loss carryforwards in the aggregate of $65,491. Capital loss
carryforwards in the amount of $885 were utilized in the year ended
August 31, 2000. Capital loss carryforwards in the amount of $16,939,
$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
--------------------------------------------------------------------------------
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,
2000, 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 accounting principles generally accepted in the United States of America.
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 auditing standards generally accepted in the United States of America,
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, 2000 by correspondence with the
custodian, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
------------------------------
PricewaterhouseCoopers LLP
Tampa, Florida
October 6, 2000
14
<PAGE> 16
--------------------------------------------------------------------------------
TAX INFORMATION
(UNAUDITED)
--------------------------------------------------------------------------------
Of the dividends paid from net investment income for the year ended August
31, 2000, 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.
15
<PAGE> 17
[HERITAGE LOGO]
Heritage Cash Trust - Municipal Money Market Fund
P.O. Box 33022
St. Petersburg, FL 33733
Address Service Requested
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preceded or accompanied by a prospectus.
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