Heritage Asset Management | Frequently Asked Questions

Frequently-Asked-Questions

Q. How can I make regular investments into my Heritage Account?
A. Heritage offers a variety of Dollar Cost Averaging programs for you:

Direct Deposit - You may instruct your employer to direct all or part of your paycheck to your Heritage account. You also may direct to your account other types of payments you receive such as from an insurance company or another mutual fund family. Contact your financial advisor or Heritage for the direct deposit enrollment form. Please note the routing instructions are different than the Federal Reserve wire instructions discussed below.
Government Direct Deposit - Beginning in 1999, any newly established investment programs by employees of the Federal government must be paid through direct deposit. You can have your social Security, military pension, paycheck or other Federal government payment sent to your Heritage account. Your completed Government Direct Deposit form requires Heritage's review and approval for processing. Contact your financial advisor or Heritage for an enrollment form.
Automatic Investing - You may instruct us to transfer funds from a specific bank checking or savings account to your Heritage account. This transfer will be effected either by electronic transfer or paper draft. Complete the appropriate sections of the account application or the Heritage Bank Draft Investing form to activate this service.
Automatic Exchange - You may make automatic regular exchanges between two or more Heritage mutual funds. These exchanges are subject to the exchange requirements discussed in the prospectus.
When participating in a Dollar Cost Averaging plan, the minimum fund investment is waived as long as you make an investment of at least $50 per month. Availability of these plans may be limited by your financial advisor.

Dollar-cost averaging does not assure a profit and does not protect against loss in declining markets. Since dollar-cost averaging involves continuous investment in securities regardless of fluctuating price levels of such securities, investors should consider their financial ability to continue purchases through periods of low price levels.

Q. How are dividends earned and paid in the Heritage Cash Trust Funds?
A. You begin earning dividends on your Heritage Cash Trust investment on the business day after your purchase is processed and earn through the day you redeem your shares. Dividends are accrued daily and posted to your account monthly (generally on the last Friday of each month). Because dividends are posted on the last Friday of each month, in some months you will be credited for more days than in others.

Q. What is the difference between Average & Effective Yield in the Money Market Funds?
A. The effective yield takes into account daily compounding while the average yield does not.

Q. What is SEC Yield?
A. The SEC yield formula is a complex formula that takes into account the last 30 days income, expenses and shares outstanding and the current price per share including a sales load. This formula was adopted by the Securities and Exchange Commission to promote uniformly calculated yields in advertisements and sales literature.

Q. Explain the payment options for dividends and capital gains.
A. The payment options for dividends and captial gains are as follows:

Reinvested in Fund Shares - additional shares are purchased in your account for the amount of the dividend. There is no sales charge associated with this transaction.
Directed to another Heritage account. You can direct payment of your dividend to purchase shares in another Heritage Fund or account. There is no sales charge associated with this transaction.
Paid in cash - you can have your dividends paid to you by check or to your bank account via electronic transfer.
Paid to your brokerage account - If you hold your Heritage account as part of a brokerage account, you may be able to have your dividends paid directly to your brokerage account. Consult your financial advisor regarding the availability of this feature.