HERITAGE SERIES TRUST
SUPPLEMENT DATED MAY 18, 1999 TO THE PROSPECTUS DATED JANUARY 4, 1999
VALUE EQUITY FUND
At their May 14, 1999 special meeting, the shareholders of the Value
Equity Fund approved the appointment of Osprey Partners Investment Management,
LLC to serve as an additional subadviser to Heritage Series Trust - Value Equity
Fund. Osprey will commence management of all of the Fund's assets on May 18,
1999. As a result, the following paragraph replaces the section titled "Who is
the Portfolio Manager" on page 18 of the Prospectus:
WHO IS THE PORTFOLIO MANAGER. Russell S. Tompkins, a
Managing Partner and the Chief Operating Officer at Osprey
Partners Investment Management, LLC, and Jerome D. Fischer, a
Managing Partner and the Head of Equity Research at Osprey, share
responsibility for the day-to-day management of the fund's
investment portfolio.
In addition, the second paragraph in the section titled "Subadvisers" on
page 20 of the Prospectus is modified as follows:
o Eagle Asset Management, Inc. serves as the subadviser to the
Aggressive Growth Fund, the Capital Appreciation Trust, the Growth
Equity Fund, the Income-Growth Trust, the Mid Cap Growth Fund, the
Small Cap Stock Fund and the Value Equity Fund. However, Heritage
Asset Management, Inc., the Funds' manager, currently has not
allocated any of the assets of the Capital Appreciation Trust or the
Value Equity Fund to Eagle.
Also, the following information is included after the fourth paragraph in
the section title "Subadvisers" on page 20 of the Prospectus:
Osprey Partners Investment Management, LLC ("Osprey"), Shrewsbury
Executive Center II, 1040 Broad Street, Shrewsbury, New Jersey 07702, was
approved by the shareholders to serve as an additional subadviser to the
Value Equity Fund. Heritage has allocated all of the Fund's assets to
Osprey. As of February 26, 1999, Osprey had approximately $2 billion of
assets under its discretionary management.
Osprey manages the Value Equity Fund using a value-oriented
investment style. Osprey uses an investment strategy focusing on:
o bottom-up, in-depth research centering on company fundamentals
o selecting undervalued stocks with low price/earnings ratios, high
dividend yields, low debt to total capital ratios, significant
operating cash flow and excellent prospects for growth
o identifying financially strong, well-managed companies with market
leading domestic and global products.
Osprey anticipates including the stocks of approximately 30 to 50
issuers in the Value Equity Fund's portfolio. Under normal conditions,
each of these companies will have a market capitalization of at least $1
billion at the time of purchase.
On page 21, the following information replaces the existing paragraph
under "Value Equity Fund":
o VALUE EQUITY FUND - Russell S. Tompkins and Jerome D. Fischer have
shared responsibility for the day-to-day management since May 18,
1999. Mr. Tompkins has been a Managing Partner and Chief Operating
Officer at Osprey since September 1998. At the time of his departure
from Fox Asset Management, Inc. ("Fox"), Mr. Tompkins was a
Managing Director, Director of Compliance and Senior Portfolio
Manager from January 1988 to September 1998. Mr. Fischer has been a
Managing Partner and Head of Equity Research at Osprey since
September 1998. At the time of his departure from Fox, Mr. Fischer
served as a Principal, Director of Large Cap Equity Research and
Senior Portfolio Manager. He was employed at Fox from July 1992
to September 1998.
