<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 29, 2000
[HERITAGE LOGO]
<PAGE> 2
April 19, 2000
Dear Fellow Shareholders:
I am very pleased 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, 1999 through February 29, 2000. From a level
of 2.64% on September 1, 1999, the seven-day effective yield for your Fund
increased steadily during the six-month period to 3.21% as of February 29, 2000.
This increase resulted from the efforts of the Federal Reserve Board to slow the
growth rate of the economy by raising short-term interest rates. One positive
result of these rate increases has been an increase in yields on short-term
securities such as those in which your Fund invests.
The past few years have featured a stock market that has moved generally
upward, although with extreme volatility relative to historical levels. Also,
many segments of the market have not participated in the gains indicated by
index returns. Especially during volatile market periods, an allocation of a
portion of your assets to high quality short-term assets such as money market
mutual funds can help stabilize portfolio returns and provide some measure of
comfort.
As a reminder, your Fund continues to offer many features that make it easy
for you to use. These include free checking (including free checks and returned
cancelled checks), various automated payment programs and daily sweeps to and
from your brokerage accounts. Also, our current portfolio exceeds the standards
necessary to retain our AAAm rating from Standard & Poor's Ratings Group.
Please remember that if you are subject to the alternative minimum tax, a
portion of your Fund's income may be considered a preference item for tax
purposes. Also, if you are subject to state income tax, the income your Fund
earns from securities issued in your state may be exempt from your state income
tax.
Effective April 3, 2000, I accepted a position as President and Chief
Operating Officer of Eagle Asset Management, Inc. ("Eagle"), an affiliate of
Heritage Asset Management, Inc. ("Heritage"), and a subadviser to several of the
Heritage mutual funds. Brian Lee, formerly Executive Vice-President of Eagle is
now President of Heritage. At the next meeting of your Fund's Board of Trustees,
we anticipate that Brian will be named President of the various Heritage mutual
funds, including Heritage Cash Trust. I have enjoyed communicating with you over
the past several years and am sure you will enjoy reading Brian's comments in
the future.
On behalf of all of us at Heritage, thank you for your continuing
investment in Heritage Cash Trust -- Municipal Money Market Fund.
Sincerely,
/s/ STEPHEN G. HILL
Stephen G. Hill
President
Heritage Cash Trust
<PAGE> 3
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HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 29, 2000
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES--100.8%(A)(B)
ALABAMA--3.2%
$ 3,800,000 Decatur Industrial Development
Board, 4.00%(c)
Pollution Control Revenue Bond
Trico Steel Company Project,
Series 97, AMT, 03/07/00
LOC: Chase Manhattan Bank...... $ 3,800,000
8,000,000 Decatur Industrial Development
Board, 4.00%(c)
Pollution Control Revenue Bond
Trico Steel Company Project,
Series 98, AMT, 03/07/00
LOC: Chase Manhattan Bank...... 8,000,000
11,000,000 Decatur Industrial Development
Board, 4.00%(c)
Pollution Control Revenue Bond
Trico Steel Company Project,
Series 99, AMT, 03/07/00
LOC: Chase Manhattan Bank...... 11,000,000
2,000,000 Tuscaloosa County Industrial
Development Authority, 3.95%(c)
Pollution Control Revenue Bond
Tuscaloosa Steel Corporation
Project, Series 95, AMT,
03/07/00
LOC: Bayerische Landesbank..... 2,000,000
------------
24,800,000
------------
ALASKA--1.0%
2,100,000 Alaska Housing Finance
Corporation, 4.00%
State Capital Project,
Series 98B-1, MBIA, 12/01/00... 2,100,000
5,385,000 Anchorage Electric Utility
Revenue, 4.00%
Series 99, MBIA, 06/01/00...... 5,395,536
------------
7,495,536
------------
ARIZONA--0.2%
1,400,000 Maricopa County Pollution
Control Corporation, 3.85%(c)
Pollution Control Revenue Bond
Palo Verde Project, Series 94E,
03/01/00
LOC: Bank of America........... 1,400,000
------------
ARKANSAS--0.7%
5,375,000 Arkansas Development Finance
Authority, 4.30%
Single Family Mortgage Revenue
Bond
Series 00D, AMT, 03/01/01...... 5,375,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
CALIFORNIA--3.3%
14,000,000 California Higher Education Loan
Authority, 4.00%(c)
Student Loan Revenue Bond
Series 92E-1, AMT, 03/07/00
LOC: Student Loan Marketing
Association.................... 14,000,000
8,000,000 Los Angeles County Schools,
4.00%
Pooled Financing Program
Series 99B, 09/29/00........... 8,011,020
5,000,000 Los Angeles Unified School
District, GO, 6.00%
Series 99B, 09/29/00........... 5,063,223
------------
27,074,243
------------
COLORADO--0.2%
1,250,000 Boulder Urban Renewal Authority,
5.70%
Tax Increment Revenue Bond
Series 92, MBIA, 03/01/00...... 1,250,000
------------
DELAWARE--4.8%
16,500,000 Delaware State Economic
Development Authority, 4.00%(c)
Industrial Development Revenue
Bond
Delaware Clean Power Project,
Series 97A, AMT, 03/07/00
LOC: Canadian Imperial Bank of
Commerce....................... 16,500,000
1,700,000 Delaware State Economic
Development Authority, 3.93%(c)
Industrial Development Revenue
Bond
Delaware Clean Power Project,
Series 97C, AMT, 03/07/00
LOC: Canadian Imperial Bank of
Commerce....................... 1,700,000
20,000,000 Delaware State Economic
Development Authority, 3.90%(c)
Industrial Development Revenue
Bond
Star Enterprise Project, Series
97B, AMT, 03/07/00
LOC: Canadian Imperial Bank of
Commerce....................... 20,000,000
------------
38,200,000
------------
DISTRICT OF COLUMBIA--3.0%
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
</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 29, 2000
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 11,000,000 District of Columbia Housing
Finance Agency, 3.30%
Single Family Mortgage Revenue
Bond, GNMA
Series 99B, AMT, 06/15/00
GIC: Caisse Des Depots......... $ 10,992,971
------------
23,992,971
------------
FLORIDA--1.3%
4,000,000 Orange County Health Facilities
Authority, 3.95%(c)
Health Facility Revenue Bond
Adventist Health Systems,
Series 92, 03/07/00
LOC: SunTrust Bank............. 4,000,000
3,065,000 Polk County Industrial
Development Authority, 3.95%(c)
Industrial Development Revenue
Bond
Ytong Florida Project, Series
96, 03/07/00
LOC: First Union National
Bank........................... 3,065,000
2,900,000 West Orange, 3.90%(c)
Healthcare District Revenue
Bond
Series 99B, 03/07/00
LOC: SunTrust Bank............. 2,900,000
------------
9,965,000
------------
GEORGIA--2.7%
1,500,000 Atlanta Urban Residential
Finance Authority, 3.95%(c)
Multi Family Housing Revenue
Bond
Parcel 25 Project, Series 93A,
AMT, 03/07/00
LOC: First Union National
Bank........................... 1,500,000
3,000,000 DeKalb Private Hospital
Authority, 3.90%(c)
Hospital Revenue Bond
Egleston Childrens Hospital,
03/07/00
LOC: SunTrust Bank............. 3,000,000
13,600,000 Fulton County Housing Authority,
3.95%(c)
Multi Family Housing Revenue
Bond
Spring Creek Crossing, Series
94, 03/07/00
LOC: Wachovia Bank and Trust... 13,600,000
3,000,000 St Mary's Georgia Development
Authority, 3.95%(c)
Pollution Control Revenue Bond
Trigen-BioPower Inc. Project,
Series 99, AMT, 03/07/00
LOC: Toronto-Dominion Bank..... 3,000,000
------------
21,100,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
ILLINOIS--8.5%
7,315,000 Chicago Industrial Development
Authority, 3.95%(c)
Industrial Development Revenue
Bond
Evans Food Products Company,
Series 98, AMT, 03/07/00
LOC: LaSalle National Trust,
N.A............................ 7,315,000
3,000,000 Chicago, 3.90%(c)
Airport Special Facilities
Revenue Bond
Centerpoint O'Hare, LLP, Series
97, AMT, 03/07/00
LOC: First National Bank of
Chicago........................ 3,000,000
5,000,000 Chicago, 4.10%(c)
Airport Special Facilities
Revenue Bond
Midway Airport Project, Series
99, AMT, 03/07/00
LOC: Bank One Indiana N.A...... 5,000,000
26,000,000 Illinois Development Finance
Authority, 3.95%(c)
Pollution Control Revenue Bond
Public Service, Series 93C-1,
03/07/00....................... 26,000,000
6,500,000 Illinois Educational Facilities
Authority, 3.85%(c)
Cultural Pooled Finance
Project, Series 98, 03/07/00
LOC: American National Bank of
Chicago........................ 6,500,000
500,000 Illinois Educational Facilities
Authority, 3.80%(c)
Lake Forest Open Lands,
03/07/00
LOC: Northern Trust Company.... 500,000
2,250,000 Illinois Sports Facilities
Authority, 4.00%
Sports Facilities Revenue Bond
Series 99A, MBIA, AMT,
06/15/00....................... 2,254,127
4,800,000 Illinois Student Assistance
Commission, 3.95%(c)
Student Loan Revenue Bond
Series 97A, AMT, 03/07/00
LOC: First National Bank of
Chicago........................ 4,800,000
</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
FEBRUARY 29, 2000
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 4,320,000 Lake County, 4.05%(c)
Pollution Control Revenue Bond
Countryside Landfill Project,
Series 96B, AMT, 03/07/00
LOC: Morgan Guaranty Trust
Company........................ $ 4,320,000
1,900,000 Madison County, 3.70%(c)
Environmental Improvement
Revenue Bond
Series 98A, AMT, 03/01/00...... 1,900,000
1,300,000 Naperville, 3.85%(c)
Heritage YMCA Group, Inc.,
Series 99, 03/07/00
LOC: Harris Trust.............. 1,300,000
4,000,000 Springfield, 4.00%(c)
Community Improvement Revenue
Bond
Oak Terrace Joint Venture
Project, Series 99, 03/07/00
LOC: Credit Suisse First
Boston......................... 4,000,000
------------
66,889,127
------------
INDIANA--4.3%
2,140,000 Crawfordsville, 4.00%(c)
Economic Development Revenue
Bond
Precision Plastics of Indiana,
Series 92, 03/07/00
LOC: Northern Trust Company.... 2,140,000
1,000,000 Elkhart County, 4.00%(c)
Multi Family Housing Revenue
Bond
Crossroads Apartments Project,
Series 98A, AMT, 03/07/00
LOC: Federal Home Loan Bank.... 1,000,000
2,950,000 Elkhart County, 4.00%(c)
Multi Family Housing Revenue
Bond
Johnson St. Apartment Project,
Series 98A, AMT, 03/07/00
LOC: Federal Home Loan Bank.... 2,950,000
2,050,000 Elkhart County, 4.00%(c)
Multi Family Housing Revenue
Bond
West Plains Apartments Project,
Series 98A, AMT, 03/07/00
LOC: Federal Home Loan Bank.... 2,050,000
2,450,000 Fort Wayne Hospital Authority,
3.95%(c)
Hospital Revenue Bond
Parkview Memorial Project,
Series 85, 03/07/00
LOC: Bank of America........... 2,450,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
5,200,000 Indiana Health Facility
Financing Authority, 3.90%(c)
Hospital Revenue Bond
Deaconess Hospital Inc., Series
92, 03/07/00
LOC: First National Bank of
Chicago........................ 5,200,000
7,846,000 Indiana Housing Finance
Authority, 3.95%(c)
Multi Family Housing Revenue
Bond
Pedcor Investments,
Series 97M-A, AMT, 03/07/00
LOC: Federal Home Loan Bank.... 7,846,000
4,665,000 North Vernon, 3.90%(c)
Multi Family Housing Revenue
Bond
Oak Meadows Apartments Project,
Series 95, AMT, 03/07/00
LOC: Federal Home Loan Bank.... 4,665,000
5,200,000 Westfield, 4.00%(c)
Industrial Development Revenue
Bond
PL Porter Project, Series 89,
AMT, 03/07/00
LOC: Bank of America........... 5,200,000
------------
33,501,000
------------
KANSAS--0.5%
3,600,000 Shawnee Industrial Revenue
Authority, 3.95%(c)
Industrial Development Revenue
Bond
Thrall Enterprises, Series 94,
AMT, 03/07/00
LOC: LaSalle National Trust,
N.A............................ 3,600,000
------------
KENTUCKY--0.5%
4,000,000 Fulton, 3.95%(c)
Health Facility Revenue Bond
United Healthcare, Series 85,
03/07/00
LOC: First Union National
Bank........................... 4,000,000
------------
LOUISIANA--3.1%
5,100,000 Calcasieu Parish Industrial
Development Board, 4.00%(c)
Industrial Development Revenue
Bond
Hydroserve Westlake Project,
Series 99, AMT, 03/07/00
LOC: Bank One Chicago N.A...... 5,100,000
</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 29, 2000
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 2,000,000 Lincoln Parish, 3.95%(c)
Industrial Development Revenue
Bond
Willamette Industries Project,
Series 95, AMT, 03/07/00
LOC: Deutsche Bank............. $ 2,000,000
10,200,000 Lincoln Parish, 3.95%(c)
Pollution Control Revenue Bond
Willamette Industries Project,
Series 96, AMT, 03/07/00
LOC: Deutsche Bank............. 10,200,000
6,990,000 Louisiana Housing Finance
Agency, 3.35%
Single Family Mortgage Revenue
Bond
Series 99C, AMT, 06/01/00
GIC: Trinity Funding........... 6,987,522
------------
24,287,522
------------
MARYLAND--2.4%
14,020,000 Frederick County, 3.90%(c)
Health Facility Revenue Bond
Buckinghams Choice, Series 97E,
03/07/00
LOC: LaSalle National Trust,
N.A............................ 14,020,000
5,000,000 Maryland Community Development
Authority, 4.05%
Single Family Mortgage Revenue
Bond
Series 99I, AMT, 12/14/00...... 5,000,000
------------
19,020,000
------------
MICHIGAN--2.0%
3,840,000 Michigan Housing Development
Authority, 3.20%
Single Family Mortgage Revenue
Bond
Series 99A, AMT, 06/01/00
GIC: National Westminster
PLC............................ 3,840,000
3,700,000 Michigan Strategic Fund,
3.35%(c)
Industrial Development Revenue
Bond
Pelzer Automotive Systems,
Series 97, AMT, 03/07/00
LOC: NBD Corporation........... 3,700,000
7,800,000 Michigan Strategic Fund,
3.95%(c)
Industrial Development Revenue
Bond
Grayling General Project,
Series 90, AMT, 03/07/00
LOC: Barclays Bank, PLC........ 7,800,000
------------
15,340,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
MINNESOTA--0.7%
4,700,000 Bloomington Housing Finance
Authority, 3.35%(c)
Multi Family Housing Revenue
Bond
Crow/Bloomington Apartments,
Series 93, 03/07/00
LOC: Credit Suisse First
Boston......................... 4,700,000
500,000 St. Paul, 4.10%(c)
Multi Family Housing Revenue
Bond
Kendrick Apartments, Series 97,
AMT, 03/07/00
LOC: First Bank Systems........ 500,000
------------
5,200,000
------------
MISSOURI--0.6%
5,100,000 Missouri Higher Education,
4.00%(c)
Student Loan Revenue Bond
Series 90A, AMT, 03/07/00
LOC: Bank of America........... 5,100,000
------------
NEBRASKA--1.7%
13,500,000 Nebhelp Inc., 3.95%(c)
Student Loan Program Bond
Series 86C, AMT, 03/07/00
LOC: Student Loan Marketing
Association.................... 13,500,000
------------
NEVADA--0.6%
4,350,000 Nevada Housing Division,
3.95%(c)
Hospital Revenue Bond
Oakmont Project, Series 96,
AMT, 03/07/00
LOC: U.S. Bank N.A............. 4,350,000
------------
NEW HAMPSHIRE--0.6%
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
1,980,000 New Hampshire Housing Finance
Authority, 4.00%(c)
Multi Family Housing Revenue
Bond
Countryside Project, Series 94,
AMT, 03/07/00
LOC: General Electric Credit
Corporation.................... 1,980,000
------------
4,480,000
------------
</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
FEBRUARY 29, 2000
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
NEW MEXICO--1.5%
$ 4,800,000 Farmington, 3.95%(c)
Pollution Control Revenue Bond
El Paso Electric, Series 94A,
03/07/00
LOC: Barclays Bank, PLC........ $ 4,800,000
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
3,000,000 New Mexico Mortgage Finance
Authority, 4.05%
Single Family Mortgage Revenue
Bond
Series 99-5, AMT, 06/15/00
GIC: Bayerische Landesbank..... 3,000,000
------------
11,800,000
------------
NORTH CAROLINA--1.4%
2,700,000 Cleveland County, 4.05%(c)
Curtiss-Wright Flight Systems
Project, AMT, 03/07/00
LOC: Bank of Nova Scotia....... 2,700,000
8,360,000 North Carolina Educational
Facilities Finance Agency,
3.95%(c)
Brevard College Corporation,
Series 97, 03/07/00
LOC: Wachovia Bank and Trust... 8,360,000
------------
11,060,000
------------
NORTH DAKOTA--1.1%
9,000,000 North Dakota Housing Finance
Authority, 3.80%
Single Family Mortgage Revenue
Bond
Series 99E, AMT, 09/29/00
GIC: Bayerische Landesbank..... 8,999,896
------------
OHIO--5.6%
7,350,000 Cleveland, 3.95%(c)
Airport Revenue Bond
Series 97D, AMT, 03/07/00
LOC: Toronto Dominion Bank..... 7,350,000
3,900,000 Ohio Air Quality Development
Authority, 3.50%(c)
Pollution Control Revenue Bond
Cincinnati Gas and Electric
Project, Series 95, 03/01/00
LOC: Canadian Imperial Bank of
Commerce....................... 3,900,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
33,000,000 Ohio Housing Finance
Authority, 4.25%
Single Family Mortgage Revenue
Bond
Series 00A-3, AMT, 03/01/01
GIC: Hypo Veriens Bank......... 33,000,000
------------
44,250,000
------------
OKLAHOMA--1.2%
2,000,000 Oklahoma Development Finance
Authority, 4.05%(c)
Industrial Development Revenue
Bond
Shawnee Funding Project, Series
96, AMT, 03/07/00
LOC: Bank of Nova Scotia....... 2,000,000
7,500,000 Optima Municipal Authority,
4.05%(c)
Industrial Development Revenue
Bond
Seaboard Project, Series 94,
AMT, 03/07/00
LOC: SunTrust Bank............. 7,500,000
------------
9,500,000
------------
OREGON--1.3%
9,900,000 Port of Portland, 3.95%(c)
Industrial Development Revenue
Bond
Portland Bulk Terminal, Series
96, AMT, 03/07/00
LOC: Canadian Imperial Bank of
Commerce....................... 9,900,000
------------
PENNSYLVANIA--9.2%
13,000,000 Elk County, 3.95%(c)
Industrial Development Revenue
Bond
Willamette Industries Project,
Series 92, AMT, 03/07/00
LOC: Deutsche Bank............. 13,000,000
5,000,000 Emmaus, GO, 4.00%(c)
Series 89G-12, 03/07/00
LOC: Bayerische Landesbank..... 5,000,000
5,300,000 Gettysburg Industrial
Development Authority, 3.85%(c)
Health Facility Revenue Bond
Brethren Home Project, Series
99A, 03/07/00
LOC: First Union National
Bank........................... 5,300,000
5,000,000 Luzerne, 3.85%(c)
Convention Center Revenue Bond
Series 98A, 03/07/00
LOC: First Union National
Bank........................... 5,000,000
</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 29, 2000
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 16,370,000 Montgomery County Higher
Education, 3.95%(c)
Student Loan Revenue Bond
Series 96A, 03/07/00
LOC: Dauphin Deposit Bank...... $ 16,370,000
10,000,000 Pennsylvania Higher Education,
4.00%(c)
Student Loan Revenue Bond
Series 94A, AMT, 03/07/00
LOC: Student Loan Marketing
Association.................... 10,000,000
14,250,000 Pennsylvania, GO, 5.00%
Series 99, MBIA, 06/01/00...... 14,298,732
3,060,000 York County General Authority,
3.90%(c)
Pooled Finance Revenue Bond
Series 96, 03/10/00
LOC: First Union National
Bank........................... 3,060,000
------------
72,028,732
------------
RHODE ISLAND--1.5%
4,400,000 Rhode Island Higher Education,
4.00%(c)
Student Loan Revenue Bond
Series 95-1, AMT, 03/07/00
LOC: State Street Bank......... 4,400,000
5,000,000 Rhode Island Higher Education,
4.00%(c)
Student Loan Revenue Bond
Series 96J-2, AMT, 03/07/00
LOC: State Street Bank......... 5,000,000
2,600,000 Rhode Island Higher Education,
4.00%(c)
Student Loan Program Bond
Series 96-3, AMT, 03/07/00
LOC: State Street Bank......... 2,600,000
------------
12,000,000
------------
SOUTH CAROLINA--0.8%
2,095,000 South Carolina Economic
Development Authority, 3.95%(c)
Industrial Development Revenue
Bond
Bennettsville Print Project,
Series 95, AMT, 03/07/00
LOC: First Union National
Bank........................... 2,095,000
4,200,000 South Carolina Economic
Development Authority, 4.05%(c)
Industrial Development Revenue
Bond
King Company Project, Series
99, AMT, 03/07/00
LOC: Wachovia Bank and Trust... 4,200,000
------------
6,295,000
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
SOUTH DAKOTA--2.5%
1,595,000 South Dakota Housing Development
Authority, 4.10%(c)
Single Family Mortgage Revenue
Bond
Series 97E, 03/07/00
GIC: Westdeutsche Landesbank... 1,595,000
7,000,000 South Dakota Housing Development
Authority, 3.20%
Single Family Mortgage Revenue
Bond
Series 99C, 04/07/00........... 7,000,000
9,685,000 South Dakota Housing Development
Authority, 3.45%
Single Family Mortgage Revenue
Bond
Series 99F, AMT, 07/07/00...... 9,685,000
1,000,000 Yankton, 3.90%(c)
Industrial Development Revenue
Bond
Kolberg-Pioneer Project, Series
98, AMT, 03/07/00
LOC: First National Bank of
Chicago........................ 1,000,000
------------
19,280,000
------------
TENNESSEE--5.5%
13,300,000 Education Funding of the South,
4.00%(c)
Student Funding Corporation
Bond
Series 87A-3, AMT, 03/07/00
LOC: Bank of America........... 13,300,000
6,000,000 Oak Ridge Economic Development,
3.85%(c)
Industrial Development Revenue
Bond
Manufacturing Science Inc.,
Series 89, AMT, 03/07/00
LOC: ABN-AMRO.................. 6,000,000
6,135,000 Shelby County Housing Facilities
Board, 3.91%(c)
Multi Family Housing Revenue
Bond
Wyndridge Project, 03/07/00
LOC: Credit Suisse First
Boston......................... 6,135,000
5,000,000 Stewart County, 3.50%(c)
Industrial Development Revenue
Bond
Standard Gypsum Project, Series
99B, AMT, 03/07/00
LOC: Toronto-Dominion Bank..... 5,000,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
7
<PAGE> 9
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 29, 2000
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 4,925,000 Tennessee, GO, 5.00%
Series 96B, 05/01/00........... $ 4,939,434
9,000,000 Volunteer Student Funding,
4.00%(c)
Student Loan Revenue Bond
Series 87A-1, AMT, 03/07/00
LOC: Bank of America........... 9,000,000
------------
44,374,434
------------
TEXAS--8.2%
2,200,000 Austin, 3.95%(c)
Airport System Revenue Notes
Series 95A, AMT, 03/07/00
LOC: Morgan Guaranty Trust
Company........................ 2,200,000
8,400,000 Brazos Higher Education,
3.95%(c)
Student Loan Revenue Bond
Series B1, AMT, 03/07/00
LOC: Student Loan Marketing
Association.................... 8,400,000
10,200,000 Brazos River, 3.95%(c)
Pollution Control Revenue Bond
Texas Utility Electric Project,
Series 99B, AMT, 03/07/00
LOC: Morgan Guaranty Trust
Company........................ 10,200,000
7,600,000 Calhoun County, 4.00%(c)
Port Facility Formosa Plastics,
Series 94, AMT, 03/07/00
LOC: Bank of America........... 7,600,000
4,600,000 Galveston, 4.05%(c)
Industrial Development Revenue
Bond
Mitchell Project, Series 93A,
AMT, 03/07/00
LOC: Bank One Corporation...... 4,600,000
1,900,000 Gulf Coast Waste Disposal
Authority, 3.70%(c)
Pollution Control Revenue Bond
Amoco Oil Company Project,
Series 95, AMT, 03/01/00....... 1,900,000
11,780,000 Houston, 7.00%
Water & Sewer Revenue Bond
Series 90, MBIA, 12/01/00...... 12,228,066
5,310,000 Lubbock Housing Finance
Corporation, 3.20%
Single Family Mortgage Revenue
Bond
Series 99A, AMT, 05/05/00
GIC: Bayerische Landesbank..... 5,310,000
5,000,000 Midlothian, 3.95%(c)
Pollution Control Revenue Bond
Holnam Texas, Series 99, AMT,
03/07/00
LOC: Bank One Corporation...... 5,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
2,200,000 Mineral Wells, 3.90%(c)
Industrial Development Revenue
Bond
Ameron International
Corporation, Series 96, AMT,
03/07/00
LOC: First National Bank of
Chicago........................ 2,200,000
4,500,000 North Texas Higher Education
Authority, 4.00%(c)
Student Loan Revenue Bond
Series 93A, AMT, 03/07/00
LOC: Student Loan Marketing
Association.................... 4,500,000
------------
64,138,066
------------
UTAH--2.6%
10,400,000 Salt Lake County, 4.00%(c)
Pollution Control Revenue Bond
Kennecott Copper Corporation,
Series 95A, AMT, 03/07/00...... 10,400,000
9,900,000 State of Utah, GO, 3.80%(c)
Series 99, 03/07/00
BPA: Toronto Dominion Bank..... 9,900,000
------------
20,300,000
------------
VERMONT--0.5%
4,250,000 Vermont Housing Finance
Authority, 3.15%
Single Family Mortgage Revenue
Bond
Series 99-10C, AMT, 04/28/00
GIC: National Westminster
PLC............................ 4,250,000
------------
VIRGINIA--6.4%
4,050,000 Amelia County, 3.95%(c)
Pollution Control Revenue Bond
Chambers Waste Systems, Inc.,
AMT, 03/07/00
LOC: Morgan Guaranty Trust
Company........................ 4,050,000
4,250,000 Fairfax County Economic
Development Authority, 4.00%(c)
Industrial Development Revenue
Bond
Sandy Rock Project, Series 99,
AMT, 03/07/00
LOC: Wachovia Bank and Trust... 4,250,000
7,835,000 Fairfax County Economic
Development Authority, 3.95%(c)
Industrial Development Revenue
Bond
Fair Lakes D&K, LLP, Series 96,
AMT, 03/07/00
LOC: First Union Bank of North
Carolina....................... 7,835,000
</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
FEBRUARY 29, 2000
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
$ 10,700,000 Loudoun County Industrial
Development Authority, 3.90%(c)
Residential Care Facility
Revenue Bond
Falcons Landing Project, Series
98, 03/07/00
LOC: Bank of Scotland.......... $ 10,700,000
10,660,000 Richmond Redevelopment and
Housing Authority, 4.10%(c)
Multi Family Housing Revenue
Bond
Tobacco Row, Series 89B-7, AMT,
03/07/00
GIC: Bayerische Landesbank..... 10,660,000
7,500,000 Richmond Redevelopment and
Housing Authority, 4.10%(c)
Multi Family Housing Revenue
Bond
Tobacco Row, Series 89B-5, AMT,
03/07/00
GIC: Bayerische Landesbank..... 7,500,000
2,000,000 Richmond Redevelopment and
Housing Authority, 4.10%(c)
Multi Family Housing Revenue
Bond
Tobacco Row, Series 89B-3, AMT,
03/07/00
GIC: Bayerische Landesbank..... 2,000,000
4,000,000 Spotsylvania County, 3.95%(c)
Industrial Development Revenue
Bond
Anthony Kane Project, Series
99, AMT, 03/07/00
LOC: Wachovia Bank and Trust... 4,000,000
------------
50,995,000
------------
WASHINGTON--4.4%
6,800,000 Port of Port Angeles, 4.00%(c)
Industrial Development Revenue
Bond
Daishowa America Project,
Series 91, AMT, 03/07/00
LOC: Bank of Nova Scotia....... 6,800,000
5,000,000 Port of Port Angeles, 4.00%(c)
Industrial Development Revenue
Bond
Daishowa America Project,
Series 92, AMT, 03/07/00
LOC: Bank of Nova Scotia....... 5,000,000
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
9,500,000 Port of Vancouver, 4.00%(c)
Industrial Development Revenue
Bond
United Grain Corporation,
Series 92, AMT, 03/07/00
LOC: Bank of America........... 9,500,000
8,750,000 Washington Housing Finance
Commission, 3.15%
Single Family Mortgage Revenue
Bond
Series 99-2A-S, AMT, 05/01/00
GIC: Trinity Funding........... 8,750,000
3,600,000 Washington Public Power Supply
System, 3.90%(c)
Electric Revenue Bond
Project No. 1, Series 93-IA2,
03/07/00
LOC: Bank of America........... 3,600,000
1,300,000 Washington Public Power Supply
System, 3.85%(c)
Series 93A-3, 03/07/00
LOC: Morgan Guaranty Trust
Company........................ 1,300,000
------------
34,950,000
------------
WEST VIRGINIA--0.2%
1,500,000 Marion County, 4.00%(c)
Grant Town Cogen, Series 90,
AMT, 03/07/00
LOC: National Westminster
PLC............................ 1,500,000
------------
WISCONSIN--1.0%
3,000,000 Ashland, 3.92%(c)
Industrial Development Revenue
Bond
ABC Rail Products Corporation,
Series 98, AMT, 03/07/00
LOC: LaSalle National Trust,
N.A............................ 3,000,000
2,000,000 Janesville, 3.95%(c)
Industrial Development Revenue
Bond
Freedom Plastics Inc. Project,
Series 95, AMT, 03/07/00
LOC: LaSalle National Trust,
N.A............................ 2,000,000
2,600,000 Wisconsin Health & Education
Facilities Authority, 3.88%(c)
Health Facility Revenue Bond
Wheaton Franciscan Services,
Series 97, AMT, 03/07/00
LOC: Toronto Dominion Bank..... 2,600,000
------------
7,600,000
------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
9
<PAGE> 11
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF NET ASSETS
FEBRUARY 29, 2000
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT -----
<C> <S> <C>
NOTES, BONDS & VARIABLE RATE NOTES (CONTINUED)
TOTAL INVESTMENTS
(cost $793,141,527)(d), 100.8%(a)............ $793,141,527
OTHER ASSETS AND LIABILITIES, net,
(0.8%)(a).................................... (6,493,740)
------------
NET ASSETS, (net asset value, offering and
redemption price of $1.00 per share;
786,693,278 shares outstanding), consisting of
paid-in-capital net of accumulated net
realized loss of $45,491, 100%................ $786,647,787
============
</TABLE>
<TABLE>
<S> <C>
- -----------------------------------------------------------
(a) Percentages are based on net assets.
(b) Earlier of the maturity date or the put date.
(c) Variable rate notes are securities that generally are
payable on demand within seven calendar days. Put
bonds are securities that can be put back to the
issuer or remarketer either at the option of the
holder, at a specified date, or within a specified
time period known at the time of purchase. For these
securities, the demand period and the remaining period
to put date, respectively, are used when calculating
the weighted average maturity of the portfolio.
(d) The aggregate identified cost for federal income tax
purposes is the same.
</TABLE>
<TABLE>
<S> <C> <C>
AMT -- Securities subject to Alternative Minimum Tax
BPA -- Bond Purchase Agreement
GIC -- Credit enhancement provided by guaranteed
investment contract with noted institution
GNMA -- Government National Mortgage Association
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.
10
<PAGE> 12
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
STATEMENT OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED FEBRUARY 29, 2000
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest.................................................... $ 13,482,802
Expenses (Notes 1 and 4):
Management fee............................................ $ 1,759,028
Distribution fee.......................................... 555,824
State qualification expenses.............................. 120,698
Shareholder servicing fees................................ 95,194
Custodian/Fund accounting fees............................ 59,237
Federal registration fees................................. 41,715
Professional fees......................................... 19,908
Reports to shareholders................................... 11,306
Insurance................................................. 4,570
Trustees' fees and expenses............................... 4,237
Other..................................................... 3,249
------------
Total expenses...................................... 2,674,966
------------
Net investment income from operations....................... 10,807,836
------------
Realized Gain on Investment
Net realized gain from investment transactions.............. 20,885
------------
Net increase in net assets resulting from operations........ $ 10,828,721
============
</TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX-MONTH
PERIOD ENDED FOR THE
FEBRUARY 29, 2000 YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
----------------- ---------------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income..................................... $ 10,807,836 $ 15,188,007
Net realized gain from investment transactions............ 20,885 --
------------ ------------
Net increase in net assets resulting from operations...... 10,828,721 15,188,007
Distributions to shareholders from net investment income
($0.014 and $0.026 per share, respectively)............... (10,807,836) (15,188,007)
Increase in net assets from Fund share transactions (Note
2)........................................................ 161,238,689 60,840,805
------------ ------------
Increase in net assets.................................... 161,259,574 60,840,805
Net assets, beginning of period........................... 625,388,213 564,547,408
------------ ------------
Net assets, end of period................................. $786,647,787 $625,388,213
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
11
<PAGE> 13
- --------------------------------------------------------------------------------
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
FEBRUARY 29, FOR THE YEARS ENDED AUGUST 31
2000 ---------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(a)......................... 0.014 0.026 0.030 0.030 0.030 0.030
LESS DISTRIBUTIONS:
Dividends from net investment income............. (0.014) (0.026) (0.030) (0.030) (0.030) (0.030)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL RETURN(%).................................... 1.45(c) 2.62 3.02 3.00 2.98 3.04
RATIOS TO AVERAGE DAILY NET ASSETS(%)/SUPPLEMENTAL
DATA
Operating expenses, net(a)....................... 0.72(b) 0.73 0.74 0.75 0.77 0.77
Net investment income............................ 2.92(b) 2.58 2.98 2.96 2.94 3.05
Net assets, end of period ($ millions)........... 787 625 565 419 326 283
</TABLE>
- ---------------
(a) Excludes management fees waived by the Manager in the amount of less than
$.001 per share for the year ended August 31, 1995. The operating expense
ratio including such items would have been .79%. 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%.
(b) Annualized.
(c) Not annualized.
The accompanying notes are an integral part of the financial statements.
12
<PAGE> 14
- --------------------------------------------------------------------------------
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 accounting principles generally accepted
in the United States requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies:
Security Valuation: The Fund uses the amortized cost method of security
valuation (as set forth in Rule 2a-7 under the Investment Company Act of
1940, as amended). The amortized cost of an instrument is determined by
valuing it at cost at the time of purchase and thereafter
accreting/amortizing any purchase discount/premium at a constant rate
until maturity, regardless of the effect of fluctuating interest rates on
the market value of the instrument.
Federal Income Taxes: The Fund is treated as a single corporate taxpayer
as provided for in the Tax Reform Act of 1986, as amended. The Fund's
policy is to comply with the requirements of the Internal Revenue Code of
1986, as amended, which are applicable to regulated investment companies
and to distribute substantially all of its income to its shareholders.
Accordingly, no provision has been made for federal income and excise
taxes.
Distribution of Income and Gains: Distributions from net investment income
and net realized gains available for distribution are declared daily and
paid monthly. The Fund uses the identified cost method for determining
realized gain or loss on investment transactions for both financial and
federal income tax reporting purposes.
Expenses: The Fund is charged for those expenses which are directly
attributable to it, such as management fee, custodian fees, distribution
fee, 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 February 29, 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 six-month period ended
February 29, 2000 and for the year ended August 31, 1999 at a constant
net asset value of $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE SIX-MONTH
PERIOD ENDED FOR THE
FEBRUARY 29, 2000 YEAR ENDED
(UNAUDITED) AUGUST 31, 1999
----------------- ---------------
<S> <C> <C>
Shares sold................................................ 1,786,668,694 2,745,386,684
Shares issued on reinvestment of distributions............. 10,583,924 14,881,842
Shares redeemed............................................ (1,636,013,929) (2,699,427,721)
-------------- --------------
Net increase............................................. 161,238,689 60,840,805
Shares outstanding:
Beginning of period...................................... 625,454,589 564,613,784
-------------- --------------
End of period............................................ 786,693,278 625,454,589
============== ==============
</TABLE>
13
<PAGE> 15
- --------------------------------------------------------------------------------
HERITAGE CASH TRUST -- MUNICIPAL MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
- --------------------------------------------------------------------------------
Note 3: PURCHASES, SALES AND MATURITIES OF SECURITIES. For the six-month period
ended February 29, 2000, purchases, sales and maturities of short-term
investment securities aggregated $880,757,738, $689,723,000 and
$23,665,000, respectively.
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 February 29, 2000 was $323,777.
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 six-month
period ended February 29, 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
six-month period ended February 29, 2000, the subadviser earned $260,092
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 $95,194 for Dividend
Paying and Shareholder Servicing and $28,292 for Fund Accounting
services of which $32,000 and $10,000 was payable as of February 29,
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 February
29, 2000 was $92,873. 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, 1999, the Fund has net tax basis
capital loss carryforwards of $66,376, in the aggregate. Capital loss
carryforwards in the amount of $17,824, $2,029 and $46,523 may be
applied to any net taxable gains until their expiration dates in 2001,
2003, and 2004, respectively.
14
<PAGE> 16
[HERITAGE LOGO]
Heritage Cash Trust - Municipal Money Market Fund
P.O. Box 33022
St. Petersburg, FL 33733
Address Service Requested
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From Our Family to Yours:
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HERITAGE MONEY MARKET FUNDS
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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.
19M 2/00 [recycled logo] Printed on recycled paper AR53715MU
