<PAGE> 1
June 19, 1996
Dear Fellow Shareholders:
It is my pleasure to provide you with the initial semiannual report for the
Heritage Series Trust - Growth Equity Fund (the "Fund") for the period from
inception on November 16, 1995 to April 30, 1996. For this period, the "A"
shares and "C" shares of your Fund delivered total returns of +9.45% and +9.10%,
respectively.* For the same period, the Standard & Poor's 500 Composite Stock
Price Index gained 10.55%.
In the letter that follows, Ken Corba, the portfolio manager for your Fund,
discusses the investment strategies he has employed in managing your Fund's
portfolio. Ken joined Eagle Asset Management, Inc., your Fund's subadviser, as
Chief Investment Officer in April 1995. Before joining Eagle, he was director of
the Stein Roe & Farnham Capital Management Group where he supervised the
management of nearly $2 billion in assets for individual and institutional
investors, including the $350 million Stein Roe Stock Fund which Ken co-managed.
Ken's approach to equity investing focuses on companies with earnings growth
rates and returns on equity greater than those of the market in general. I hope
you find Ken's comments helpful in understanding how your Fund's investment
portfolio is managed.
Thank you for your investment in Heritage Series Trust - Growth Equity
Fund. We look forward to helping serve your investment needs for years to come.
Sincerely,
/s/ Stephen G. Hill
Stephen G. Hill
President
- ---------------
*Calculated without the imposition of front-end or contingent deferred sales
charges.
<PAGE> 2
June 19, 1996
Dear Fellow Shareholders:
The Heritage Series Trust - Growth Equity Fund has gotten off to a strong
start from its inception on November 17, 1995. Our investment performance for
the first full quarter through March 31, 1996 exceeded both the Standard &
Poor's 500 Composite Stock Price Index and the Barra Growth Index. After a
difficult April we have seen a very strong rebound in May and the first half of
June. Thus, the second quarter also appears to represent excellent absolute and
relative returns.
This Fund invests in a select portfolio of 30-40 companies that we consider
to be quality growth stocks. Each company is expected to grow its earnings at a
minimum of 12% per year for the next 3 years and maintain a 15% return on
equity. In addition, we have a strong bias toward consistent, predictable
earnings and businesses that have established and will maintain a competitive
advantage in their industry.
A predominant theme in the portfolio has been ownership of outstanding U.S.
multinational companies that derive significant revenues and earnings from
overseas sales. Examples are: Coca-Cola, Gillette, Procter & Gamble, Johnson &
Johnson and McDonald's.
Our technology exposure has remained in the 10-15% range with core
investments in Cisco Systems, Hewlett Packard, Reuters, Electronic Data Systems
and First Data. Other individual stocks that have added notably to our return
during 1996 have been Marriott, Home Depot and Thermo Electron.
The Fund has been fully invested year to date with our cash position
maintained at about .5%. Annual turnover is expected to be about 25-50%.
In order for the stock market to have excellent performance during the rest
of the year we will likely need some relief from the increase in interest rates
and some evidence that the economy is not heating up and creating inflationary
concerns. We think the perception of a re-accelerating economy is premature and
investors will prefer our stable predictable growth companies as a longer term
investment.
I look forward to again reporting to you in six months following the close
of the Fund's fiscal year.
Sincerely,
/s/ Kenneth W. Corba
Kenneth W. Corba
Chief Investment Officer
Eagle Asset Management, Inc.
2
<PAGE> 3
- --------------------------------------------------------------------------------
HERITAGE SERIES TRUST-GROWTH EQUITY FUND
INVESTMENT PORTFOLIO
APRIL 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------------ -----------
<C> <S> <C>
COMMON STOCKS--94.3%(A)
ADVERTISING/COMMUNICATIONS--3.2%
7,500 Omnicom Group, Inc. ............................................................... $ 325,312
-----------
BANKING--6.1%
4,000 BankAmerica Corporation............................................................ 303,000
4,000 NationsBank Corporation............................................................ 319,000
-----------
622,000
-----------
BEVERAGES--6.3%
4,000 The Coca-Cola Company.............................................................. 326,000
5,000 PepsiCo, Inc. ..................................................................... 317,500
-----------
643,500
-----------
BUILDING--3.3%
5,000 Illinois Tool Works, Inc. ......................................................... 336,250
-----------
COSMETICS/TOILETRIES--5.4%
6,000 Estee Lauder Companies, Class "A".................................................. 219,750
6,000 Gillette Company................................................................... 324,000
-----------
543,750
-----------
DATA PROCESSING--5.3%
5,000 Cisco Systems, Inc. ............................................................... 259,375
5,000 General Motors Corporation, Class "E"(c)........................................... 281,875
-----------
541,250
-----------
ELECTRONICS/ELECTRIC--3.8%
5,000 General Electric Company........................................................... 387,500
-----------
FINANCE--12.0%
6,500 American Express Company........................................................... 315,250
3,500 Federal Home Loan Mortgage Corporation............................................. 291,812
10,000 Federal National Mortgage Association.............................................. 306,250
4,000 First Data Corporation............................................................. 304,000
-----------
1,217,312
-----------
FOOD SERVING--2.4%
5,000 McDonald's Corporation............................................................. 239,375
-----------
HOTELS/MOTELS/INNS--5.1%
4,000 HFS, Inc. ......................................................................... 205,500
6,500 Marriott International, Inc. ...................................................... 316,875
-----------
522,375
-----------
HOUSEHOLD PRODUCTS--2.9%
3,500 Procter & Gamble Company........................................................... 295,750
-----------
INSURANCE--7.7%
6,000 Allstate Corporation............................................................... 233,250
3,000 American International Group, Inc. ................................................ 274,125
4,500 Travelers Group, Inc. ............................................................. 276,750
-----------
784,125
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 4
- --------------------------------------------------------------------------------
HERITAGE SERIES TRUST-GROWTH EQUITY FUND
INVESTMENT PORTFOLIO
APRIL 30, 1996
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
- ------------------ -----------
<C> <S> <C>
LEISURE/AMUSEMENT--1.8%
3,000 The Walt Disney Company............................................................ $ 186,000
-----------
MINING/DIVERSIFIED--2.3%
7,500 Barrick Gold Corporation........................................................... 229,687
-----------
OFFICE EQUIPMENT--2.6%
2,500 Hewlett-Packard Company............................................................ 264,688
-----------
PHARMACEUTICAL--8.2%
3,000 Johnson & Johnson.................................................................. 277,500
4,000 Merck & Company, Inc. ............................................................. 242,000
4,500 Pfizer, Inc. ...................................................................... 309,938
-----------
829,438
-----------
POLLUTION CONTROL--3.0%
5,000 Thermo Electron Corporation*....................................................... 308,125
-----------
PUBLISHING--2.3%
3,500 Reuters Holdings PLC, ADR.......................................................... 236,688
-----------
RETAIL STORES--4.7%
5,000 Home Depot, Inc. .................................................................. 236,875
7,500 Walgreen Company................................................................... 240,000
-----------
476,875
-----------
SERVICES--2.4%
7,500 CUC International, Inc.*........................................................... 246,563
-----------
TELECOMMUNICATIONS--3.5%
5,000 Lucent Technologies, Inc.*......................................................... 175,625
4,000 Telecom Argentina S.A., ADR........................................................ 181,000
-----------
356,625
-----------
Total common stocks (cost $8,854,628)............................................................... 9,593,188
-----------
REPURCHASE AGREEMENT--5.2%(A)
Repurchase Agreement with State Street Bank & Trust Company, dated April 30, 1996, @ 5.22%,
to be repurchased at $525,076 on May 1, 1996, collateralized by $529,172 United States
Treasury Notes, 5.625%, due June 30, 1997, (market value $539,164 including interest) (cost
$525,000)........................................................................................... $525,000
-----------
TOTAL INVESTMENT PORTFOLIO (cost $9,379,628)(b), 99.5%(a)........................................... 10,118,188
OTHER ASSETS AND LIABILITIES, net 0.5%(a)........................................................... 55,500
-----------
NET ASSETS, 100.0%.................................................................................. $10,173,688
==========
</TABLE>
- ------------------
* Not an income-producing security.
(a) Percentages indicated are based on net assets.
(b) The aggregate identified cost for federal income tax purposes is the same.
Market value includes net unrealized appreciation of $738,560, which
consists of aggregate gross unrealized appreciation for all securities in
which there is an excess of market value over tax cost of $819,046 and
aggregate gross unrealized depreciation for all securities in which there
is an excess of tax cost over market value of $80,486.
(c) On June 10, 1996, General Motors Corporation and Electronic Data Systems
(EDS) announced that a split-off of EDS from General Motors was completed.
Each share of General Motors Class E common stock was exchanged for one
share of EDS common stock.
ADR -- American Depository Receipt.
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 5
- --------------------------------------------------------------------------------
HERITAGE SERIES TRUST-GROWTH EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets
- -----
Investments, at market value (identified cost $9,379,628) (Note 1)....................... $10,118,188
Cash..................................................................................... 2,027
Receivables:
Fund shares sold....................................................................... 97,223
Dividends and interest................................................................. 8,077
Deferred organization expenses (Note 1).................................................. 20,174
Deferred state registration expenses (Note 1)............................................ 18,144
-----------
Total assets..................................................................... 10,263,833
Liabilities
- --------
Payables (Note 4):
Fund shares redeemed................................................................... $ 5,187
Due to Manager......................................................................... 24,819
Accrued distribution fee............................................................... 3,437
Other accrued expenses................................................................. 56,702
----------
Total liabilities................................................................ 90,145
-----------
Net assets, at market value.............................................................. $10,173,688
==========
Net Assets
- ---------
Net assets consist of:
Paid-in capital........................................................................ $ 9,489,912
Accumulated net investment loss (Note 1)............................................... (8,953)
Accumulated net realized loss (Note 1)................................................. (45,831)
Net unrealized appreciation on investments............................................. 738,560
-----------
Net assets, at market value.............................................................. $10,173,688
==========
Class A Shares
- -------------
Net asset value and redemption price per share ($7,636,855 divided by 488,239 shares of
beneficial interest outstanding, no par value) (Notes 1 and 2)......................... $15.64
=====
Maximum offering price per share (100/95.25 of $15.64)................................... $16.42
=====
Class C Shares
- ------------
Net asset value and offering price per share ($2,536,833 divided by 162,764 shares of
beneficial interest outstanding, no par value) (Notes 1 and 2)......................... $15.59
=====
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 6
- --------------------------------------------------------------------------------
HERITAGE SERIES TRUST-GROWTH EQUITY FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD NOVEMBER 16, 1995
(COMMENCEMENT OF OPERATIONS)
TO APRIL 30, 1996
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income
- ----------------
Income:
Dividends.................................................................................. $ 44,883
Interest................................................................................... 12,951
--------
Total income......................................................................... 57,834
Expenses (Notes 1 and 4):
Management fee............................................................................. $ 27,760
Custodian/Fund accounting fees............................................................. 24,921
Professional fees.......................................................................... 21,716
Amortization of state registration expenses................................................ 15,126
Distribution fee (Class A Shares).......................................................... 7,350
Distribution fee (Class C Shares).......................................................... 7,615
Reports to shareholders.................................................................... 6,500
Trustees' fees and expenses................................................................ 5,000
Shareholder servicing fee.................................................................. 3,394
Federal registration fee................................................................... 3,272
Amortization of organization expenses...................................................... 2,243
Insurance.................................................................................. 517
--------
Total expenses before waiver and reimbursement....................................... 125,414
Fees waived by the Manager (Note 4).................................................. (27,760)
Reimbursement from Manager (Note 4).................................................. (30,867) 66,787
-------- --------
Net investment loss.......................................................................... (8,953)
--------
Realized and Unrealized Gain (Loss) on Investments
- ---------------------------------------
Net realized loss from investment transactions............................................... (45,831)
Net increase in unrealized appreciation of investments during the period..................... 738,560
--------
Net gain on investments.............................................................. 692,729
--------
Net increase in net assets resulting from operations......................................... $683,776
========
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 16, 1995
(COMMENCEMENT OF OPERATIONS)
TO APRIL 30, 1996
(UNAUDITED)
-----------------------------
<S> <C>
Increase in net assets:
Operations:
Net investment loss..................................................................... $ (8,953)
Net realized loss from investment transactions.......................................... (45,831)
Net increase in unrealized appreciation of investments during the period................ 738,560
------------
Net increase in net assets resulting from operations.................................... 683,776
Increase in net assets from Fund share transactions (Note 2).............................. 9,487,912
------------
Increase in net assets.................................................................... 10,171,688
Net assets, beginning of period (original capital as of November 16, 1995)................ 2,000
------------
Net assets, end of period (including accumulated net investment loss of $8,953)........... $ 10,173,688
=============================
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 7
- --------------------------------------------------------------------------------
HERITAGE SERIES TRUST-GROWTH EQUITY FUND
FINANCIAL HIGHLIGHTS
(UNAUDITED)
- --------------------------------------------------------------------------------
The following table includes selected data for a share outstanding
throughout the period and other performance information derived from the
financial statements.
<TABLE>
<CAPTION>
CLASS A+ CLASS C+
---------- ----------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF THE PERIOD........................................... $14.29 $14.29
---------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment loss(a)........................................................... (.01) (.06)
Net realized and unrealized gain on investments.................................. 1.36 1.36
---------- ----------
Total from investment operations................................................... 1.35 1.30
---------- ----------
NET ASSET VALUE, END OF THE PERIOD................................................. $15.64 $15.59
=========== ===========
TOTAL RETURN (%)(C)(D)............................................................. 9.45 9.10
RATIOS (%)/AND SUPPLEMENTAL DATA:
Ratio of operating expenses, net to average daily net assets(a)(b)............... 1.65% 2.40%
Ratio of net investment income to average daily net assets(b).................... (.08)% (.87)%
Portfolio turnover rate(c)....................................................... 15% 15%
Average commission rate on portfolio transactions................................ $.0600 $.0600
Net assets, end of period ($ millions)........................................... 8 3
</TABLE>
- ---------------
+ For the period November 16, 1995 (commencement of operations) to April 30,
1996.
(a) Excludes management fees waived and expenses reimbursed by the Manager of
$.11 per share for Class A and Class C Shares, respectively. The operating
expense ratios including such items would be 3.23% and 3.98%, (annualized),
respectively.
(b) Annualized.
(c) Not annualized.
(d) Does not reflect the imposition of a sales charge.
7
<PAGE> 8
- --------------------------------------------------------------------------------
HERITAGE SERIES TRUST-GROWTH EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
- --------------------------------------------------------------------------------
Note 1: SIGNIFICANT ACCOUNTING POLICIES. Heritage Series 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 and presently offers shares in four
series, the Growth Equity Fund (the "Fund"), the Small Cap Stock Fund,
the Value Equity Fund and the Eagle International Equity Portfolio. The
Fund currently issues Class A and Class C Shares. Class A Shares are
sold subject to a maximum sales charge of 4.75% of the amount invested
payable at the time of purchase. Class C Shares are sold subject to a
contingent deferred sales charge of 1% of the lower of net asset value
or purchase price payable upon any redemptions within one year after
purchase. The financial statements for the Small Cap Fund, Value Equity
Fund and Eagle International Equity Portfolio are presented separately.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies.
Security Valuation: The Fund values investment securities at market
value based on the last quoted sales price as reported by the principal
securities exchange on which the security is traded. If no sale is
reported, the last bid price is used and in the absence of a market
quote, securities are valued using such methods as the Board of Trustees
believes would reflect fair market value. Short term investments having
a maturity of 60 days or less are valued at cost which, when combined
with accrued interest included in interest receivable or discount
earned, approximates market.
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 in an amount equal to at least 100% of the resale
price.
Federal Income Taxes: 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 Net Realized Gains. Net realized gains from investment
transactions during any particular year in excess of available capital
loss carryforwards, which, if not distributed, would be taxable to the
Fund, will be distributed to shareholders in the following fiscal year.
The Fund uses the identified cost method for determining realized gain
or loss on investments for both financial and federal income tax
reporting purposes.
State Registration Expenses: State registration fees are amortized based
either on the time period covered by the registration or as related
shares are sold, whichever is appropriate for each state.
Expenses: The Fund is charged for those expenses which are directly
attributable to it, such as management fee, custodian/fund accounting
fees, distribution fee, etc., while other expenses such as professional
fees, insurance expense, etc., are all allocated proportionately among
the Funds. Expenses of the Fund are allocated to each class of shares
based upon their relative percentage of current net assets. All expenses
that are directly attributable to a specific class of shares, such as
distribution fees, are allocated to that class.
Organization Expenses: Expenses incurred in connection with the
formation of the Fund were deferred and are being amortized on a
straight-line basis over 60 months from the date of commencement of
operations.
Capital Accounts: The Fund reports the undistributed net investment
income and accumulated net realized gain (loss) accounts on a basis
approximating amounts available for future tax distributions (or to
offset future taxable realized gains when a capital loss carryforward is
available). Accordingly, the Fund may periodically make
reclassifications among certain capital accounts without impacting the
net asset value of the Fund.
Other: Investment security transactions are accounted for on a trade
date plus one basis. Dividend income and distributions to shareholders
are recorded on the ex-dividend date. Interest income is recorded on the
accrual basis.
8
<PAGE> 9
- --------------------------------------------------------------------------------
HERITAGE SERIES TRUST-GROWTH EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
Note 2: FUND SHARES. At April 30, 1996, there was an unlimited number of shares
of beneficial interest of no par value authorized.
Transactions in Class A and Class C Shares of the Fund during the period
November 16, 1995 to April 30,1996 were as follows:
<TABLE>
<CAPTION>
CLASS A SHARES CLASS C SHARES
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 16, 1995 NOVEMBER 16, 1995
(COMMENCEMENT OF (COMMENCEMENT OF
OPERATIONS) TO OPERATIONS) TO
APRIL 30, 1996 APRIL 30, 1996
(UNAUDITED) (UNAUDITED)
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Shares sold............................................. 519,139 $7,567,698 183,497 $2,713,859
Shares redeemed......................................... (30,970) (472,325) (20,803) (321,320)
---------- ---------- --------- ----------
Net increase............................................ 488,169 $7,095,373 162,694 $2,392,539
========= =========
Shares outstanding:
Beginning of period................................... 70 70
---------- ---------
End of period......................................... 488,239 162,764
========= ========
</TABLE>
Note 3: PURCHASES AND SALES OF SECURITIES. For the period ended April 30, 1996,
purchases and sales of investment securities (excluding repurchase
agreements and short term obligations) aggregated $10,012,846 and
$1,112,387, respectively.
Note 4: MANAGEMENT, SUBADVISORY, DISTRIBUTION, SHAREHOLDER SERVICING AGENT 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 a fee equal to an annualized rate of
.75% of the Fund's average daily net assets, computed daily and payable
monthly. The agreement also provides for a reduction in such fees in any
year to the extent that operating expenses of the Fund exceed applicable
state expense limitations. Currently, the Manager has voluntarily agreed
to waive its fee and, if necessary reimburse the Fund to the extent that
Fund operating expenses exceed 1.65% for Class A Shares and 2.40% for
Class C Shares on an annual basis of the Fund's average daily net assets
attributable to each class of shares. This agreement is more restrictive
than any state expense limitation. Under the Agreement, management fees
waived and expenses reimbursed totaled $58,627 during the period ended
April 30, 1996. If total Fund expenses fall below the expense limitation
agreed to by the Manager before the end of the year ending October 31,
1998, the Fund may be required to pay the Manager a portion or all of
the waived management fee.
The Manager is also the Dividend Paying and Shareholder Servicing Agent
for the Portfolio. The amount payable to the Manager for such expenses
as of April 30, 1996 was $2,400. In addition, the Manager performs Fund
Accounting services and charged $17,736 during the current period of
which $15,512 was payable as of April 30, 1996.
The Manager has entered into an agreement with Eagle Asset Management,
Inc. (the "Subadviser") for the Subadviser to provide to the Fund
investment advice, portfolio management services including the placement
of brokerage orders, and certain compliance and other services for a fee
payable by the Manager equal to 50% of the fees payable by the Fund to
the Manager without regard to any reduction due to the imposition of
expense limitations.
9
<PAGE> 10
- --------------------------------------------------------------------------------
HERITAGE SERIES TRUST-GROWTH EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(CONTINUED)
- --------------------------------------------------------------------------------
Pursuant to a plan adopted in accordance with Rule 12b-1 of the
Investment Company Act of 1940, as amended, the Fund is authorized to
pay Raymond James & Associates, Inc. (the "Distributor") a fee pursuant
to the Class A Distribution Plan of up to 0.35% of average daily net
assets for the services it provides in connection with the promotion and
distribution of Fund shares. However, at the present time the Board of
Trustees has authorized payments of only .25% of average daily net
assets. Under the Class C Distribution Plan the Fund may pay the
Distributor a fee equal to 1.00% of the average daily net assets. The
Distributor may retain the first 12 months distribution fee for
reimbursement of amounts paid to the broker/dealer at the time of
purchase. Such fees are accrued daily and payable monthly. During the
period $7,350 and $7,615 were paid for distribution fees for Class A
Shares and Class C Shares, respectively. The Manager, the Subadviser and
the Distributor are all wholly-owned subsidiaries of Raymond James
Financial, Inc.
Trustees of the Trust also serve as Trustees for Heritage Cash Trust,
Heritage Capital Appreciation Trust, Heritage Income-Growth Trust,
Heritage Income Trust and Heritage U.S. Government Income Fund,
investment companies which are also advised by the Manager (collectively
referred to as the Heritage funds). Each Trustee of the Heritage mutual
funds that is not an interested person of the Manager receives an annual
fee of $8,000, an additional fee of $2,000 for each combined quarterly
meeting of the Heritage mutual funds attended and $1,000 for each
special Trustees meeting attended. Trustees' fees and expenses are paid
equally by each of the Heritage funds.
10
<PAGE> 11
HERITAGE SERIES TRUST-GROWTH EQUITY FUND is a member of the Heritage family of
mutual funds. Other investment alternatives available to you from Heritage
include:
- HERITAGE CASH TRUST
MONEY MARKET FUND
MUNICIPAL MONEY MARKET FUND
- HERITAGE CAPITAL APPRECIATION TRUST
- HERITAGE INCOME-GROWTH TRUST
- HERITAGE INCOME TRUST
HIGH YIELD BOND FUND
INTERMEDIATE GOVERNMENT FUND
- HERITAGE SERIES TRUST
EAGLE INTERNATIONAL EQUITY PORTFOLIO
SMALL CAP STOCK FUND
VALUE EQUITY FUND
- HERITAGE U.S. GOVERNMENT INCOME FUND
(A CLOSED-END FUND THAT TRADES ON THE
NEW YORK STOCK EXCHANGE)
We are pleased that many of you are also investors in these funds. For
information and a prospectus for any of these mutual funds, please contact your
account executive. Read the Prospectus carefully before you invest in any of the
funds.
<PAGE> 12
[HERITAGE LOGO]
GROWTH EQUITY FUND
- -----------------------------------------------------
A MUTUAL FUND
- -----------------------------------------------------
SEEKING LONG-TERM
- -----------------------------------------------------
CAPITAL APPRECIATION
- -----------------------------------------------------
- -----------------------------------------------------
- -----------------------------------------------------
- -----------------------------------------------------
SEMIANNUAL REPORT
(Unaudited) and Investment
Performance Review for the
Period From November 16, 1995
(Commencement of Operations) to
APRIL 30, 1996
A member of the
Heritage Family of Mutual Funds(])
Heritage Series Trust-Growth Equity Fund
P.O. Box 33022
St. Petersburg, FL 33733
- ------------------------------------------
Address Change Requested
Semiannual Report
INVESTMENT ADVISOR/
SHAREHOLDER SERVICING AGENT/
FUND ACCOUNTANT
Heritage Asset Management, Inc.
P.O. Box 33022
St. Petersburg, FL 33733
(800) 421-4184
DISTRIBUTOR
Raymond James & Associates, Inc.
P.O. Box 12749
St. Petersburg, FL 33733
(813) 573-3800
LEGAL COUNSEL
Kirkpatrick & Lockhart LLP
This report is for the information of shareholders of
Heritage Series Trust-Growth Equity Fund. It may also be used as sales
literature when preceded or accompanied by a prospectus.
4M 6/96
