<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, 2000
[HERITAGE LOGO]
<PAGE> 2
October 6, 2000
Dear Fellow Shareholders:
I am pleased to provide you with the annual report for the Heritage Cash
Trust -- Money Market Fund (the "Fund") for the fiscal year ended August 31,
2000. The seven-day effective yield rose from a level of 4.62% on September 1,
1999 to 5.32% on February 29, 2000, increasing to 6.10% as of August 31, 2000.
This continued rise was due mostly to attempts by Federal Reserve policymakers
to slow down the economy and head off inflation by raising short-term interest
rates four times during the Fund's fiscal year by a total of 1.25%.
We believe that the interest rate hikes by the Federal Reserve Open Market
Committee, along with higher oil prices, have resulted in the desired
effect -- a modest slowing in the growth of the U.S. economy. Consequently, we
suspect that this may help curtail future interest-rate increases by the Federal
Reserve.
Our current portfolio exceeds the standards necessary to retain our AAAm
rating from Standard & Poor's Ratings Group. 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.
Effective October 5, 2000, I have assumed the position of President of the
Heritage Cash Trust -- 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 -- 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
--------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MONEY MARKET FUND
STATEMENT OF NET ASSETS
AUGUST 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- --------------
<S> <C> <C>
COMMERCIAL PAPER--69.8%(A)
DOMESTIC--58.4%
BANKS--4.2%
$ 50,000,000 Bank of America Corporation,
6.66%, 11/07/00............... $ 49,380,250
75,000,000 First Union Corporation, 6.75%,
10/27/00...................... 74,212,500
40,000,000 Wachovia Corporation, 6.48%,
09/06/00...................... 39,964,000
--------------
163,556,750
--------------
BEVERAGES--2.6%
100,000,000 The Coca-Cola Company, 6.49%,
09/07/00...................... 99,891,833
--------------
CHEMICALS--2.5%
50,000,000 E.I. du Pont de Nemours &
Company, 6.47%, 09/28/00...... 49,757,375
50,000,000 E.I. du Pont de Nemours &
Company, 6.60%, 11/22/00...... 49,248,333
--------------
99,005,708
--------------
COMMUNICATION SERVICES--4.1%
100,000,000 AT&T Corporation, 6.59%,
09/21/00...................... 99,633,889
24,193,000 Verizon Network Funding
Corporation, 6.50%,
09/12/00...................... 24,144,950
5,000,000 Verizon Network Funding
Corporation, 6.48%,
10/12/00...................... 4,963,100
30,000,000 Verizon Network Funding
Corporation, 6.48%,
10/13/00...................... 29,773,200
--------------
158,515,139
--------------
COMMUNICATIONS EQUIPMENT--2.5%
100,000,000 Motorola, Inc., 6.49%,
09/29/00...................... 99,495,222
--------------
COMPUTER EQUIPMENT--2.6%
52,000,000 Hewlett-Packard Company, 6.45%,
09/08/00...................... 51,934,783
48,000,000 Hewlett-Packard Company, 6.45%,
09/11/00...................... 47,914,000
--------------
99,848,783
--------------
CONSUMER PRODUCTS--6.1%
50,000,000 The Clorox Company, 6.51%,
09/05/00...................... 49,963,833
16,000,000 The Clorox Company, 6.51%,
09/06/00...................... 15,985,533
22,000,000 The Clorox Company, 6.48%,
09/15/00...................... 21,944,560
49,500,000 Colgate-Palmolive, 6.47%,
09/27/00...................... 49,268,698
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
99,823,000 The Procter & Gamble Company,
6.48%, 09/05/00............... 99,751,131
--------------
236,913,755
--------------
FINANCIAL INSTITUTIONS--6.2%
50,000,000 General Electric Capital
Corporation, 6.50%,
09/05/00...................... 49,963,889
100,000,000 General Electric Capital
Corporation, 6.51%,
09/05/00...................... 99,927,667
9,000,000 Private Export Funding
Corporation, 6.52%,
11/17/00...................... 8,874,490
20,000,000 Private Export Funding
Corporation, 6.52%,
11/27/00...................... 19,684,867
30,000,000 Private Export Funding
Corporation, 6.54%,
11/27/00...................... 29,525,850
30,000,000 Private Export Funding
Corporation, 6.52%,
11/29/00...................... 29,516,433
--------------
237,493,196
--------------
FOOD--4.9%
18,018,000 H.J. Heinz Company, 6.48%,
09/12/00...................... 17,982,324
40,000,000 H.J. Heinz Company, 6.48%,
09/13/00...................... 39,913,600
14,900,000 Kellogg Company, 6.48%,
09/01/00...................... 14,900,000
17,500,000 Kellogg Company, 6.48%,
09/05/00...................... 17,487,400
30,700,000 Kellogg Company, 6.58%,
09/14/00...................... 30,627,053
20,000,000 Kellogg Company, 6.47%,
09/27/00...................... 19,906,544
50,000,000 Sara Lee Corporation, 6.45%,
09/07/00...................... 49,946,250
--------------
190,763,171
--------------
MANUFACTURING--0.9%
10,000,000 Minnesota Mining &
Manufacturing Co., 6.53%,
09/06/00...................... 9,990,931
15,000,000 Minnesota Mining &
Manufacturing Co., 6.55%,
09/27/00...................... 14,929,042
11,918,000 Minnesota Mining &
Manufacturing Co., 6.54%,
10/17/00...................... 11,818,405
--------------
36,738,378
--------------
OIL & GAS--1.4%
45,000,000 Chevron UK Investment PLC,
6.52%, 10/04/00............... 44,731,050
10,000,000 Chevron UK Investment PLC,
6.60%, 11/17/00............... 9,858,833
--------------
54,589,883
--------------
</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, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
PAPER PRODUCTS--0.5%
$ 19,000,000 Kimberly-Clark Corporation,
6.47%, 10/12/00............... $ 18,859,996
--------------
PHARMACEUTICAL--14.6%
20,000,000 Abbott Laboratories, 6.47%,
09/12/00...................... 19,960,461
63,000,000 Abbott Laboratories, 6.47%,
09/12/00...................... 62,875,453
150,000,000 Merck & Company, Inc., 6.47%,
09/21/00...................... 149,460,833
25,000,000 Pfizer, Inc., 6.47%,
09/14/00...................... 24,941,590
125,000,000 Pfizer, Inc., 6.47%,
10/13/00...................... 124,056,458
22,000,000 Pharmacia Corporation, 6.50%,
10/02/00...................... 21,876,861
30,000,000 Pharmacia Corporation, 6.51%,
10/02/00...................... 29,831,825
13,000,000 Pharmacia Corporation, 6.49%,
10/10/00...................... 12,908,599
35,000,000 Pharmacia Corporation, 6.50%,
10/10/00...................... 34,753,542
41,700,000 Schering-Plough Corporation,
6.47%, 09/14/00............... 41,602,573
15,000,000 Schering Corporation, 6.68%,
10/24/00...................... 14,852,483
32,900,000 Schering Corporation, 6.50%,
12/05/00...................... 32,335,674
--------------
569,456,352
--------------
PRINTING & PUBLISHING--0.5%
13,600,000 McGraw-Hill, Inc., 6.48%,
11/13/00...................... 13,421,296
5,655,000 McGraw-Hill, Inc., 6.48%,
11/20/00...................... 5,573,568
--------------
18,994,864
--------------
RETAIL STORES--4.8%
7,500,000 Albertson's Inc., 6.45%,
09/07/00...................... 7,491,938
35,000,000 Albertson's Inc., 6.47%,
09/14/00...................... 34,918,226
25,000,000 Albertson's Inc., 6.47%,
09/22/00...................... 24,905,646
15,000,000 Albertson's Inc., 6.47%,
10/05/00...................... 14,908,342
10,000,000 Albertson's Inc., 6.48%,
10/16/00...................... 9,919,000
65,000,000 Wal-Mart Stores Inc., 6.48%,
09/06/00...................... 64,941,500
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -------------
<S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
20,000,000 Wal-Mart Stores Inc., 6.48%,
09/12/00...................... 19,960,400
10,700,000 Wal-Mart Stores Inc., 6.55%,
09/12/00...................... 10,678,585
--------------
187,723,637
--------------
Total Domestic (cost $2,271,846,667).......... 2,271,846,667
--------------
FOREIGN--11.4%(B)
BANKS--2.5%
40,000,000 Abbey National North America,
6.55%, 10/05/00............... 39,752,556
60,000,000 Abbey National North America,
6.52%, 10/17/00............... 59,500,133
--------------
99,252,689
--------------
FOOD--3.8%
150,000,000 Nestle Capital Corporation,
6.45%, 09/11/00............... 149,731,250
--------------
GOVERNMENT AGENCIES--5.1%
100,000,000 Export Development Corporation,
6.53%, 09/25/00............... 99,564,667
50,000,000 The Canadian Wheat Board,
6.57%, 12/06/00............... 49,124,000
50,000,000 The Canadian Wheat Board,
6.57%, 12/12/00............... 49,069,250
--------------
197,757,917
--------------
Total Foreign (cost $446,741,856)............. 446,741,856
--------------
Total Commercial Paper (cost
$2,718,588,523).............................. 2,718,588,523
--------------
CORPORATE NOTES--2.6%(A)
BANKS--2.6%
50,000,000 Bank of America, N.A., 6.65%,
10/10/00...................... 50,000,000
50,000,000 Wachovia Bank, N.A., 6.52%,
10/05/00...................... 50,000,000
--------------
Total Corporate Notes (cost $100,000,000)..... 100,000,000
--------------
U.S. AGENCY SECURITIES--24.1%(A)
25,000,000 Fannie Mae, 6.12%, 09/07/00.... 24,974,500
95,888,000 Fannie Mae, 6.39%, 09/07/00.... 95,785,879
149,470,000 Fannie Mae, 6.41%, 11/09/00.... 147,633,636
35,000,000 Federal Home Loan Bank, 6.11%,
09/06/00...................... 34,970,303
150,000,000 Federal Home Loan Bank, 6.42%,
10/25/00...................... 148,555,500
75,000,000 Federal Home Loan Bank, 6.53%,
11/24/00...................... 73,857,250
40,000,000 Federal Home Loan Bank, 6.48%,
12/22/00...................... 39,193,600
</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, 2000
(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -------------
<S> <C> <C>
U.S. AGENCY SECURITIES (CONTINUED)
$ 50,000,000 Freddie Mac, 6.50%, 09/21/00... $ 49,819,444
85,000,000 Freddie Mac, 6.41%, 10/12/00... 84,379,476
39,551,000 Freddie Mac, 6.48%, 12/07/00... 38,860,013
100,000,000 Freddie Mac, 6.52%, 12/07/00... 98,244,031
100,000,000 Student Loan Marketing
Association, 6.67%,
09/05/00(c)................... 100,000,000
--------------
Total U.S. Agency Securities
(cost $936,273,632).......................... 936,273,632
--------------
Total Investment Portfolio excluding
repurchase agreement (cost $3,754,862,155)... 3,754,862,155
--------------
REPURCHASE AGREEMENT--4.0%(A)
Repurchase Agreement with State Street Bank
and Trust Company, dated August 31, 2000 @
6.55% to be repurchased at $156,364,444 on
September 1, 2000, collateralized by
$72,915,000 United States Treasury Notes,
6.625% due July 31, 2001, $24,375,000 United
States Treasury Notes, 6.25% due January 31,
2002 and $64,510,000 United States Treasury
Bonds, 5.5% due August 15, 2028 (market value
$159,554,363 including interest) (cost
$156,336,000)................................. 156,336,000
--------------
TOTAL INVESTMENT PORTFOLIO
(cost $3,911,198,155)(d), 100.5%(a).......... 3,911,198,155
OTHER ASSETS AND LIABILITIES, net,
(0.5%)(a).................................... (18,986,635)
--------------
NET ASSETS, (consisting of paid-in-capital net
of accumulated net realized loss of $273,871)
100.0%........................................ $3,892,211,520
==============
</TABLE>
<TABLE>
<S> <C>
CLASS A SHARES
Net asset value, offering and redemption price
per share, ($3,889,951,467 divided by
3,890,225,335 shares outstanding)............. $1.00
==============
CLASS B SHARES
Net asset value, offering and redemption price
per share, ($834,396 divided by 834,397 shares
outstanding).................................. $1.00
==============
CLASS C SHARES
Net asset value, offering and redemption price
per share, ($1,425,657 divided by 1,425,659
shares outstanding)........................... $1.00
==============
---------------
(a) Percentages indicated are based on net assets.
(b) U.S. dollar denominated.
(c) Variable rate note that resets on a weekly basis. 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>
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, 2000
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest.................................................... $229,158,138
Expenses (Notes 1 and 4):
Management fee............................................ $16,121,722
Distribution fee (Class A Shares)......................... 5,694,428
Distribution fee (Class B Shares)......................... 1,206
Distribution fee (Class C Shares)......................... 3,054
Shareholder servicing fees................................ 4,448,273
Custodian/Fund accounting fees............................ 363,962
State qualification expenses.............................. 340,644
Federal registration fees................................. 197,807
Reports to shareholders................................... 193,287
Professional fees......................................... 41,521
Insurance expense......................................... 18,012
Trustees' fees and expenses............................... 8,861
Other..................................................... 27,964
-----------
Total expenses...................................... 27,460,741
------------
Net investment income from operations....................... $201,697,397
============
</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..................... $ 201,697,397 $ 124,686,548
Distributions to shareholders from:
Net investment income and net realized gains Class A
Shares, ($0.053 and $0.044
per share, respectively)................................ (201,555,656) (124,570,592)
Net investment income and net realized gains Class B
Shares, ($0.053 and $0.044
per share, respectively)................................ (42,201) (16,288)
Net investment income and net realized gains Class C
Shares, ($0.053 and $0.044
per share, respectively)................................ (105,587) (99,334)
Increase in net assets from Fund share transactions (Note
2)........................................................ 781,923,365 615,753,625
-------------- --------------
Increase in net assets...................................... 781,917,318 615,753,959
Net assets, beginning of year............................... 3,110,294,202 2,494,540,243
-------------- --------------
Net assets, end of year..................................... $3,892,211,520 $3,110,294,202
============== ==============
</TABLE>
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,
--------------------------------------------------- -----------------------------
2000 1999 1998 1997 1996 2000 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 $ 1.00
------- ------- ------- ------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income(a)(b).... 0.053 0.044 0.049 0.047 0.048 0.053 0.044 0.027
Less Distributions:
Dividends from net investment
income and net realized
gains(a)..................... (0.053) (0.044) (0.049) (0.047) (0.048) (0.053) (0.044) (0.027)
------- ------- ------- ------- ------- ------- ------- -------
Net asset value, end of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= ======= =======
Total Return(%)................. 5.43 4.46 4.99 4.85 4.89 5.43 4.46 2.70(c)
Ratios(%)/Supplemental Data:
Operating expenses, net, to
average daily net
assets(b).................... 0.72 0.73 0.75 0.76 0.78 0.72 0.73 0.75(d)
Net investment income to
average daily net
assets(b).................... 5.31 4.37 4.88 4.74 4.78 5.25 4.37 4.86(d)
Net assets, end of year ($
millions).................... 3,890 3,106 2,492 2,016 1,641 1 1 0
<CAPTION>
CLASS C SHARES
---------------------------------------------------
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(a)(b).... 0.053 0.044 0.049 0.047 0.023
Less Distributions:
Dividends from net investment
income and net realized
gains(a)..................... (0.053) (0.044) (0.049) (0.047) (0.023)
------- ------- ------- ------- -------
Net asset value, end of year.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return(%)................. 5.43 4.46 4.99 4.85 2.34 (c)
Ratios(%)/Supplemental Data:
Operating expenses, net, to
average daily net
assets(b).................... 0.72 0.73 0.75 0.77 0.75 (d)
Net investment income to
average daily net
assets(b).................... 5.19 4.37 4.87 4.72 4.62 (d)
Net assets, end of year ($
millions).................... 1 3 3 1 --
</TABLE>
---------------
+ For the period January 2, 1998 (commencement of Class B Shares) to August
31, 1998.
++ For the period February 29, 1996 (commencement of Class C Shares) to August
31, 1996.
(a) Includes net realized gains and losses which were less than $.001 per share
for each of the periods.
(b) 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.
(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, which may be acquired by direct purchase or through
exchange of shares of the corresponding class of another Heritage Mutual
Fund. Class A, B and C Shares have no front end sales charges, but when
redeemed, may be subject to a contingent deferred sales charge (CDSL) if
they were acquired through an exchange from another Heritage Mutual
Fund. 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.
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.
Repurchase agreements involve the risk that the seller will fail to
repurchase the security, as agreed. In that case, the Fund will bear the
risk of market value fluctuations until the security can be sold and may
encounter delays and incur costs in liquidating the security. In the
event of bankruptcy or insolvency of the seller, delays and costs are
incurred.
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 fees, custodian fees,
distribution fees, etc., while other expenses such as insurance expense,
are allocated proportionately among the Heritage Funds. Expenses of the
Fund are allocated to each class of shares based upon their relative
percentage of 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, 2000, 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, 2000 at a 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, 2000
Shares sold............................................. 17,127,216,918 1,158,336 3,615,992
Shares issued on reinvestment of distributions.......... 198,178,271 41,450 102,246
Shares redeemed......................................... (16,541,843,134) (1,137,756) (5,408,958)
--------------- ---------- -----------
Net increase (decrease)............................... 783,552,055 62,030 (1,690,720)
Shares outstanding:
Beginning of year..................................... 3,106,673,280 772,367 3,116,379
--------------- ---------- -----------
End of year........................................... 3,890,225,335 834,397 1,425,659
=============== ========== ===========
</TABLE>
Transactions in Class A, B and C Shares and dollars of the Fund during
the fiscal year ended August 31, 1999 at a 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>
Note 3: PURCHASES AND MATURITIES OF SECURITIES. For the year ended August 31,
2000, purchases and sales/maturities of short-term investment
securities, excluding repurchase agreements, aggregated $44,623,924,474
and $44,413,507,155, respectively. Purchases and maturities of U.S.
Government obligations, aggregated $5,702,465,029 and $5,285,318,804,
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, 2000 was $1,406,808. 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 .74% of
the average daily net assets attributable to that class 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 is also the Dividend Paying, Shareholder Servicing Agent and
Fund Accountant for the Fund. The Manager charged $4,448,273 for
Dividend Paying and Shareholder Servicing fees and $54,133 for Fund
Accounting services, of which $784,000 and $9,200 were payable as of
August 31, 2000, respectively.
Raymond James & Associates, Inc. (the "Distributor") has advised the
Fund that it received $2,909, $2,550 and $2,876 in contingent deferred
sales charges for Class A, Class B and Class C Shares, respectively,
during the fiscal year ended August 31, 2000.
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, 2000 was $494,375. 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 $283,043. Capital loss
carryforwards in the amount of $500 were utilized in the year ended
August 31, 2000. Capital loss carryforwards in the amount of $8,166,
$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. In addition, from November 1, 1999 to August 31, 2000, the
Fund incurred $6,547 of net realized capital losses which will be
deferred and treated as arising on October 1, 2000 in accordance with
regulations under the Internal Revenue Code.
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, 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 periods presented, 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
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
Technology
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.
340M 08/00 [Recycled Logo] Printed on recycled paper AR5361MM
