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Heritage News and Bulletins

The unusually turbulent state of credit markets may have you wondering what’s in your money market fund. — March 2008

Heritage Cash Trust investment policies place a high priority on safety and liquidity.
At Heritage, we adhere to a philosophy that money-market funds should be conservatively managed and the returns should be competitive with similar high-quality, conservatively managed funds. The Heritage Cash Trust – Money Market and Heritage Cash Trust – Municipal Money Market Funds are traditional money market funds that invest in high-quality, short-term securities. The Funds are highly diversified, with no more than 5 percent of assets in a single issuer, with the exception of government-sponsored issues.

Standard & Poor’s has rated the Heritage Money Market Funds AAAm, their highest rating for a money market mutual fund, because of the overall high credit quality of their holdings. When rating a money market fund, Standard & Poor's assesses the safety of principal. The rating is based on Standard & Poor's analysis of the fund’s credit quality and market price exposure, as well as management's investment practices and internal controls. The AAAm rating signifies excellent safety of invested principal and a superior capacity to maintain a $1.00 per share net asset value. To ensure that the fund maintains the high credit quality and weighted average maturity standards for AAAm funds, Standard & Poor's will monitor the fund weekly.

At Heritage, we think it is important for investors to keep in mind that achieving higher returns generally entails higher risk, plain and simple. The investment policies established for the Heritage Cash Trust Money Market Funds reflect our belief that there is no level of additional return that warrants taking on risks over and above that of a conservatively managed fund.

Click for more information about the Funds’ portfolios
Heritage Cash Trust – Money Market Fund
Heritage Cash Trust – Municipal Money Market Fund

Investments in the money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.

The information provided above should not be construed as a recommendation to buy, sell or hold any particular security. The data is shown for informational purposes only.

New Heritage Funds prospectuses effective March 1, 2008 — March 2008

New prospectuses are available for all share classes of the Heritage equity funds.

Class A and C shares
Class I shares
Class R-3 and R-5 shares

Please note: the Heritage High Yield Bond Fund now has a separate prospectus.

A new Statement of Additional Information (SAI), effective March 1, 2008, is available here.

Click to order prospectuses online or contact us at 800.421.4184, Ext. 73523.

Click to view prospectuses and SAI.

Heritage Mid Cap Stock Fund — February 2008

For the sixth year in a row, Barron’s named portfolio manager Todd McCallister to its list of Top 100 Managers for his work on Heritage Mid Cap Stock Fund, an accomplishment shared by only eight other portfolio managers for this time period. View Barron’s list.

Todd McCallister, CFA, of Eagle Asset Management, has managed the fund since it began operations 10 years ago. Stacey Serafini Thomas, CFA, has been portfolio co-manager since 2006 and assistant manager from 2000 to 2005. Eagle Asset Management is the fund’s subadviser and an affiliate of Heritage Asset Management, the investment adviser.

Click for more information about Todd McCallister and Heritage Mid Cap Stock Fund.

To determine the 2007 Barron’s/Value Line annual rankings, Value Line screened 5,447 equity funds and first eliminated funds with more than two lead managers and managers with less than three years’ tenure, then sector funds, and those with less than $200 million in assets. The remaining 928 managers were then scored based on how much risk-adjusted value he or she added relative to other managers in the same Value Line investment objective. “The New Masters,” appeared in the Aug. 13, 2007, edition of Barron’s.

Heritage Cash Trust doesn’t hold troublesome SIVs, SIV-lites — November 2007

Once again, money-market funds are making headlines in the financial news. It seems that stories appear almost daily noting that management companies have been required to support their money-market funds with either direct cash investments, credit support or buyouts of holdings that have been downgraded or experienced significant price erosion.

Most of the news centers on holdings of structured-investment vehicles (SIVs) or so-called SIV-lites. These are forms of asset-backed financing similar to asset-backed commercial paper. We won’t go into the details of SIV and SIV-lite structures but we want to be very clear that the Heritage Cash Trust – Money Market Fund does not invest in any of these vehicles; consequently, we do not bear the same risks as those funds currently in the news.

The Heritage Cash Trust – Money Market Fund selects investments from an approved list of securities determined and reviewed periodically by The Heritage Cash Trust Credit Committee. The approved list contains only “top top tier” and “top tier” short-term investments. The approved list, and thus the Fund, does not include securities backed by sub-prime mortgages; collateralized debt obligations (CDOs); collateralized loan obligations (CLOs); asset-backed commercial paper (ABCP); extendable commercial paper; medium-term notes; liquidity notes; SIVs; or SIV-lites.

We continue to adhere to our philosophy that money-market funds should be conservatively managed and the return competitive with similar high-quality, conservatively managed funds. We believe there is no level of return that warrants taking on risks over and above that of a conservatively managed fund.

During these turbulent times in the money and credit markets, we cannot emphasize strongly enough that Heritage Cash Trust – Money Market Fund does not utilize “bells or whistles” to enhance yield.

H. Peter Wallace CFA
Donald H. Glassman CFA
Heritage Cash Trust Portfolio Co-managers
November 14, 2007

Investments in the money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.

The information provided above should not be construed as a recommendation to buy, sell or hold any particular security. The data is shown for informational purposes only.