UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file Number: | 811-4337 |
HERITAGE CASH TRUST
(Exact name of Registrant as Specified in Charter) |
880 Carillon Parkway St. Petersburg, FL | 33716 | |
(Address of Principal Executive Offices) | (Zip Code) |
STEPHEN G. HILL, PRESIDENT
880 Carillon Parkway
St. Petersburg, FL 33716
(Name and Address of Agent for Service) |
Copy to:
FRANCINE J. ROSENBERGER, ESQ.
K&L Gates, LLP
1601 K Street, NW
Washington, D.C. 20006
Registrant’s telephone number, including area code: (727) 567-8143
Date of fiscal year end: August 31
Date of reporting period: February 28, 2009
Item 1. Reports to Shareholders
EAGLE FAMILY OF FUNDS
Money Market Fund
Semiannual Report
For the six-month period ended February 28, 2009 (unaudited)
Effective May 1, 2009 the fund’s name will change to Eagle Money Market Fund
President’s Letter
Dear Fellow Shareholders:
I am pleased to present the semiannual report of the Heritage Cash Trust—Money Market Fund (the “Fund”) for the six-month period ended February 28, 2009. During this reporting period, the Federal Reserve’s Federal Open Market Committee cut the federal funds target rate from 2% to a range of 0% to 0.25%. The federal funds target rate is the rate member banks charge each other for overnight loans.
As a result, the Fund’s yields also have fallen. At the end of the period, the Fund’s seven-day current yield was 0.05%, which was down from 1.60% at the end of the previous fiscal year. In January, the Fund’s investment adviser, Eagle Asset Management, Inc. (“Eagle”), agreed to voluntarily waive fees and/or reimburse expenses in order for the Fund to maintain a positive yield. Additional information regarding this action is contained in the Fund’s prospectus, which is available on our website, eagleasset.com. The performance data quoted represents past performance, which does not guarantee future results. Current performance may be higher of lower than the data quoted. To obtain the Fund’s current yield, please visit our website at eagleasset.com.
We continue to adhere to a philosophy that money market mutual funds should be conservatively managed with the foremost goal of maintaining a stable net asset value (“NAV”) of $1.00 per share. Because we realize that reaching for higher returns requires adding risk, the Fund did not own asset-backed commercial paper, collateralized debt obligations, collateralized loan obligations, structured investment vehicles or securities backed by sub-prime mortgages. However, please keep in mind that all holdings are subject to a certain degree of risk.
As of February 28, 2009, approximately 26% of the Fund’s net assets were invested in short-term obligations issued by U.S. Government Sponsored Entities(a) including Fannie Mae, Freddie Mac, Federal Farm Credit Bank and Federal Home Loan Bank. Approximately 10% of the Fund’s net assets were invested in U.S. Treasury Bills and approximately 52% of the Fund’s net assets were invested in commercial paper rated A-1+, the highest short-term rating classification by Standard and Poor’s Rating Services (“S&P”), while approximately 12% of net assets were invested in short-term obligations rated A-1, the next highest rating category. This, along with other factors, satisfies the standards necessary to retain the Fund’s AAAm(b) rating from S&P. Ratings are subject to change and do not remove market risk from your investment.
As you know, we are in the midst of one of the worst financial crises on record. We are now 16 months into the current recession, which is longer than the average recession. As long as the economy stays weak, we can expect the low-interest
(a) U.S. Government Sponsored Enterprises are agencies and instrumentalities of the U.S. Government. The investments vary in the level of support that they receive from the U.S. Government; some instruments may be supported by the full faith and credit guaranty of the U.S. Government, while others are supported only by the credit of the issuing agency or instrumentality. (b) Standard & Poor’s, a widely recognized independent authority on credit quality, rates certain money market funds based on weekly analysis. When rating a money market fund, Standard & Poor’s assesses the safety of principal. According to Standard & Poor’s, a fund rated AAAm (“m” denotes money market fund) offers excellent safety features and has superior capacity to maintain principal value and limit exposure to loss. In evaluating safety, Standard & Poor’s focuses on credit quality, liquidity and management of the Fund.
rate environment to continue. In addition, the U.S. Treasury (“Treasury”) and Federal Reserve have taken extraordinary measures to address the disruptions in the financial markets. Several lending and funding facilities have been introduced to improve liquidity and calm the markets, including the first ever guarantee program for money market fund investors.
The Fund continues to participate in the Treasury’s temporary Money Market Guarantee Program (“Program”), in which the Treasury guarantees that investors will receive $1.00 for each Fund share held as of September 19, 2008 if the Fund’s NAV falls below $0.995 (“Guarantee Event”) and if such Guarantee Event is not cured. The Program only applies to shareholders of record as of September 19, 2008 and any increase in the number of shares held in an account after that date are not guaranteed. If the number of shares held in an account fluctuates over the period, shareholders will be covered up to the lesser of the shares held on September 19, 2008 or the date of the Guarantee Event. If a shareholder covered by the Program closes his or her account and then subsequently opens a new account in the Fund, that new account would not be covered by the Program. The Program is currently scheduled to be in effect until September 18, 2009. While we continue to maintain high credit standards, the Fund’s Board of Trustees elected to participate in the Program, determining that participation is in the best interests of the Fund’s shareholders. For additional information regarding the Program, refer to Note 7 to the financial statements in this report or visit the Treasury’s website at ustreas.gov.
As the industry continues to attempt to ensure the orderly functioning of the markets, attention also has turned to the lessons learned from the crisis. Leaders from industry, government and academia have identified various reforms that could be applied to money markets going forward. Potential reforms range from strengthening the existing regulations and credit requirements of money market funds to changing their organizational and capital structure. While this debate will unfold over the next several months, the Investment Company Institute, the mutual fund industry’s trade association, has identified a series of recommendations that money market funds can voluntarily adopt to improve their liquidity, credit quality and disclosure to shareholders. As these best practices evolve, we will evaluate their applicability to the Fund.
As I reported in my last letter, we have now completed an internal reorganization effective November 1, 2008, in which Eagle became the Fund’s investment adviser. As a result, the Fund will change its name to the Eagle Money Market Fund, effective May 1, 2009. While our name will have changed, our commitment to your financial well-being will not. We are grateful for your continued support and confidence in the Eagle Family of Funds.
Sincerely,
Stephen G. Hill
President
April 9, 2009
1 |
Statement of Net Assets
MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Commercial paper and short-term notes 65.1% (a) | Principal (in thousands) | Value | ||||
Domestic 44.9% | ||||||
Banks 8.3% | ||||||
Bank of America Corporation, 0.32%, 04/09/09, TLGP | $60,000 | $59,979,200 | ||||
Bank of America Corporation, 0.36%, 04/21/09, TLGP | 40,000 | 39,979,600 | ||||
Bank of America Corporation, 0.38%, 04/24/09, TLGP | 30,000 | 29,982,900 | ||||
J.P. Morgan Chase & Company, Inc., 0.20%, 03/10/09 (b) | 40,000 | 39,998,000 | ||||
J.P. Morgan Chase & Company, Inc., 0.35%, 03/10/09 | 70,000 | 69,993,875 | ||||
J.P. Morgan Chase & Company, Inc., 0.40%, 03/10/09 | 30,000 | 29,997,000 | ||||
State Street Corporation, 0.45%, 03/04/09 | 30,000 | 29,998,875 | ||||
State Street Corporation, 0.43%, 03/06/09 | 35,000 | 34,997,910 | ||||
State Street Corporation, 0.41%, 03/12/09 | 27,000 | 26,996,618 | ||||
State Street Corporation, 0.27%, 04/03/09, TLGP | 25,000 | 24,993,813 | ||||
Beverages 3.0% | ||||||
The Coca-Cola Company, 0.20%, 03/02/09 (b) | 35,000 | 34,999,806 | ||||
The Coca-Cola Company, 0.20%, 03/03/09 (b) | 26,000 | 25,999,711 | ||||
The Coca-Cola Company, 0.13%, 03/04/09 (b) | 25,000 | 24,999,740 | ||||
The Coca-Cola Company, 0.16%, 03/04/09 (b) | 14,000 | 13,999,813 | ||||
The Coca-Cola Company, 0.35%, 04/14/09 (b) | 35,000 | 34,985,368 | ||||
Cosmetics/Personal care 5.1% | ||||||
Colgate-Palmolive Company, 0.22%, 03/09/09 (b) | 12,000 | 11,999,413 | ||||
Colgate-Palmolive Company, 0.20%, 03/27/09 (b) | 16,000 | 15,997,689 | ||||
Kimberly-Clark Worldwide, 0.27%, 03/03/09 (b) | 33,300 | 33,299,501 | ||||
Procter & Gamble International Funding, 0.22%, 03/10/09 (b) | 17,000 | 16,999,065 | ||||
Procter & Gamble International Funding, 0.25%, 03/10/09 (b) | 25,000 | 24,998,438 | ||||
Procter & Gamble International Funding, 0.25%, 03/11/09 (b) | 35,000 | 34,997,569 | ||||
Procter & Gamble International Funding, 0.26%, 03/12/09 (b) | 16,926 | 16,924,655 | ||||
Procter & Gamble International Funding, 0.30%, 03/20/09 (b) | 25,000 | 24,996,042 | ||||
Procter & Gamble International Funding, 0.38%, 04/17/09 (b) | 15,000 | 14,992,558 | ||||
The Procter & Gamble Company, 0.20%, 03/05/09 (b) | 25,000 | 24,999,444 | ||||
The Procter & Gamble Company, 0.20%, 03/06/09 (b) | 20,000 | 19,999,444 | ||||
Diversified manufacturer 2.5% | ||||||
General Electric Capital Corporation, 0.22%, 03/23/09, TLGP | 34,000 | 33,995,429 | ||||
General Electric Capital Corporation, 0.35%, 04/06/09, TLGP | 50,000 | 49,982,500 | ||||
General Electric Capital Corporation, 0.40%, 04/27/09, TLGP | 30,000 | 29,981,000 | ||||
Electrical components & equipment 0.5% | ||||||
Emerson Electric Company, 0.27%, 03/19/09 (b) | 24,000 | 23,996,760 | ||||
Healthcare products 4.3% | ||||||
Johnson & Johnson, 0.10%, 03/02/09 (b) | 40,000 | 39,999,889 | ||||
Johnson & Johnson, 0.10%, 03/04/09 (b) | 30,000 | 29,999,750 | ||||
Johnson & Johnson, 0.12%, 03/13/09 (b) | 20,000 | 19,999,200 | ||||
Johnson & Johnson, 0.27%, 04/13/09 (b) | 50,000 | 49,983,875 | ||||
Johnson & Johnson, 0.29%, 04/20/09 (b) | 34,185 | 34,171,231 | ||||
Johnson & Johnson, 0.22%, 04/21/09 (b) | 25,000 | 24,992,208 | ||||
Oil & gas 5.1% | ||||||
Chevron Funding Corporation, 0.27%, 03/09/09 | 30,000 | 29,998,200 | ||||
Chevron Funding Corporation, 0.40%, 03/17/09 | 20,000 | 19,996,444 | ||||
Chevron Funding Corporation, 0.37%, 03/18/09 | 50,000 | 49,991,264 | ||||
Chevron Funding Corporation, 0.38%, 03/27/09 | 100,000 | 99,972,556 | ||||
Shell International Finance BV, 0.25%, 03/20/09 (b) | 40,000 | 39,994,722 | ||||
Pharmaceuticals 12.1% | ||||||
Abbott Laboratories, 0.10%, 03/03/09 (b) | 25,000 | 24,999,861 | ||||
Abbott Laboratories, 0.25%, 03/03/09 (b) | 20,000 | 19,999,722 | ||||
Abbott Laboratories, 0.14%, 03/10/09 (b) | 35,000 | 34,998,775 | ||||
Abbott Laboratories, 0.28%, 04/07/09 (b) | 50,000 | 49,985,611 | ||||
Eli Lilly & Company, 0.22%, 03/05/09 (b) | 20,000 | 19,999,511 | ||||
Eli Lilly & Company, 0.20%, 03/09/09 (b) | 50,000 | 49,997,778 |
Commercial paper and short-term notes 65.1% (a) | Principal (in thousands) | Value | ||||
Eli Lilly & Company, 0.21%, 03/17/09 (b) | $40,000 | $39,996,267 | ||||
Eli Lilly & Company, 0.20%, 03/19/09 (b) | 40,000 | 39,996,000 | ||||
Merck & Company, Inc., 0.15%, 03/03/09 | 66,700 | 66,699,444 | ||||
Merck & Company, Inc., 0.13%, 03/04/09 | 20,000 | 19,999,783 | ||||
Merck & Company, Inc., 0.15%, 03/04/09 | 15,000 | 14,999,813 | ||||
Merck & Company, Inc., 0.20%, 03/16/09 | 17,000 | 16,998,583 | ||||
Merck & Company, Inc., 0.20%, 03/17/09 | 25,000 | 24,997,778 | ||||
Merck & Company, Inc., 0.25%, 03/18/09 | 11,600 | 11,598,631 | ||||
Merck & Company, Inc., 0.25%, 03/24/09 | 10,000 | 9,998,403 | ||||
Merck & Company, Inc., 0.35%, 04/06/09 | 34,700 | 34,687,855 | ||||
Pfizer Investment Capital Ltd., 0.20%, 03/11/09 (b) | 22,000 | 21,998,778 | ||||
Pfizer Investment Capital Ltd., 0.22%, 03/25/09 (b) | 20,000 | 19,997,311 | ||||
Pfizer Investment Capital Ltd., 0.22%, 04/14/09 (b) | 40,000 | 39,989,733 | ||||
Transportation 4.0% | ||||||
United Parcel Service, 0.14%, 03/02/09 (b) | 25,000 | 24,999,903 | ||||
United Parcel Service, 0.15%, 03/02/09 (b) | 19,000 | 18,999,921 | ||||
United Parcel Service, 0.22%, 03/05/09 (b) | 30,000 | 29,999,267 | ||||
United Parcel Service, 0.26%, 04/01/09 (b) | 80,000 | 79,982,089 | ||||
United Parcel Service, 0.24%, 04/02/09 (b) | 30,000 | 29,993,600 | ||||
Total domestic commercial paper and short-term notes (cost $2,085,075,492) | 2,085,075,492 | |||||
Foreign 20.2% (c) | ||||||
Banks 10.0% | ||||||
KFW International Finance, 0.23%, 03/04/09 (b) | 35,000 | 34,999,329 | ||||
KFW International Finance, 0.31%, 03/05/09 (b) | 27,000 | 26,999,070 | ||||
KFW International Finance, 0.32%, 03/11/09 (b) | 40,000 | 39,996,444 | ||||
KFW International Finance, 0.32%, 03/20/09 (b) | 25,000 | 24,995,778 | ||||
KFW International Finance, 0.32%, 03/24/09 (b) | 73,000 | 72,985,076 | ||||
Rabobank USA Financial Corporation, 0.24%, 03/02/09 | 50,000 | 49,999,667 | ||||
Rabobank USA Financial Corporation, 0.30%, 03/02/09 | 36,000 | 35,999,700 | ||||
Rabobank USA Financial Corporation, 0.25%, 03/13/09 | 28,000 | 27,997,667 | ||||
Societe Generale North America, 0.37%, 03/03/09 | 30,000 | 29,999,383 | ||||
Societe Generale North America, 0.67%, 03/06/09 | 41,000 | 40,996,185 | ||||
Societe Generale North America, 0.43%, 03/11/09 | 39,000 | 38,995,342 | ||||
Societe Generale North America, 0.40%, 03/16/09 | 10,000 | 9,998,333 | ||||
Societe Generale North America, 0.40%, 03/26/09 | 30,000 | 29,991,667 | ||||
Financial services 5.9% | ||||||
Siemens Capital Corporation, 0.28%, 03/05/09 (b) | 40,000 | 39,998,756 | ||||
Siemens Capital Corporation, 0.28%, 03/09/09 (b) | 45,000 | 44,997,200 | ||||
Siemens Capital Corporation, 0.33%, 03/13/09 (b) | 15,000 | 14,998,350 | ||||
Toyota Motor Credit Corporation, 0.30%, 03/09/09 | 50,000 | 49,996,667 | ||||
Toyota Motor Credit Corporation, 0.50%, 03/12/09 | 45,000 | 44,993,125 | ||||
Toyota Motor Credit Corporation, 0.35%, 03/13/09 | 25,000 | 24,997,083 | ||||
Toyota Motor Credit Corporation, 0.90%, 03/13/09 | 50,000 | 49,985,000 | ||||
Food 3.1% | ||||||
Nestle Capital Corporation, 0.22%, 03/02/09 (b) | 50,000 | 49,999,694 | ||||
Nestle Capital Corporation, 0.23%, 03/04/09 (b) | 30,000 | 29,999,425 | ||||
Nestle Capital Corporation, 0.16%, 03/16/09 (b) | 25,000 | 24,998,333 | ||||
Nestle Capital Corporation, 0.17%, 03/16/09 (b) | 20,000 | 19,998,583 | ||||
Nestle Capital Corporation, 0.20%, 03/30/09 (b) | 20,000 | 19,996,778 | ||||
Pharmaceuticals 1.2% | ||||||
Novartis Finance Corporation, 0.21%, 03/06/09 (b) | 30,000 | 29,999,125 | ||||
Novartis Finance Corporation, 0.25%, 03/09/09 (b) | 30,000 | 29,998,333 | ||||
Total foreign commercial paper and short-term notes (cost $938,910,093) | 938,910,093 | |||||
Total commercial paper and short-term notes (cost $3,023,985,585) | 3,023,985,585 |
2 | The accompanying notes are an integral part of the financial statements. |
Statement of Net Assets
MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
U.S. Government-sponsored enterprise obligations 25.8% (a) | Principal (in thousands) | Value | ||||
Federal Farm Credit Banks, 0.20%, 03/17/09 | $30,000 | $29,997,333 | ||||
Federal Farm Credit Banks, 0.20%, 03/24/09 | 20,000 | 19,997,444 | ||||
Federal Farm Credit Banks, 0.30%, 04/15/09 | 25,000 | 24,990,625 | ||||
Federal Farm Credit Banks, 0.24%, 04/16/09 | 25,000 | 24,992,333 | ||||
Federal Farm Credit Banks, 0.24%, 04/17/09 | 25,000 | 24,992,167 | ||||
Federal Home Loan Bank, 0.15%, 03/11/09 | 30,000 | 29,998,750 | ||||
Federal Home Loan Bank, 0.32%, 04/06/09 | 40,000 | 39,987,200 | ||||
Fannie Mae, 0.23%, 03/03/09 | 30,000 | 29,999,617 | ||||
Fannie Mae, 0.24%, 03/10/09 | 17,700 | 17,698,938 | ||||
Fannie Mae, 0.24%, 03/12/09 | 17,335 | 17,333,708 | ||||
Fannie Mae, 0.26%, 03/16/09 | 27,464 | 27,461,025 | ||||
Fannie Mae, 0.25%, 03/25/09 | 36,000 | 35,994,000 | ||||
Fannie Mae, 0.28%, 03/25/09 | 14,000 | 13,997,387 | ||||
Fannie Mae, 1.40%, 04/01/09 | 35,000 | 34,957,806 | ||||
Fannie Mae, 0.29%, 04/02/09 | 50,000 | 49,987,111 | ||||
Fannie Mae, 0.33%, 04/03/09 | 40,000 | 39,987,900 | ||||
Fannie Mae, 1.17%, 05/11/09 | 15,000 | 14,965,388 | ||||
Fannie Mae, 1.20%, 05/11/09 | 40,000 | 39,905,333 | ||||
Fannie Mae, 1.10%, 05/27/09 | 18,000 | 17,952,150 | ||||
Fannie Mae, 1.20%, 05/27/09 | 19,682 | 19,624,922 | ||||
Fannie Mae, 0.30%, 06/10/09 | 40,000 | 39,966,333 | ||||
Fannie Mae, 0.36%, 06/22/09 | 40,000 | 39,954,800 | ||||
Freddie Mac, 1.04%, 03/02/09 | 20,309 | 20,308,413 | ||||
Freddie Mac, 1.10%, 03/02/09 | 40,000 | 39,998,778 | ||||
Freddie Mac, 0.21%, 03/05/09 | 13,769 | 13,768,679 | ||||
Freddie Mac, 1.40%, 03/06/09 | 40,000 | 39,992,222 | ||||
Freddie Mac, 0.14%, 03/16/09 | 20,000 | 19,998,833 | ||||
Freddie Mac, 1.21%, 03/16/09 | 41,318 | 41,297,169 | ||||
Freddie Mac, 0.30%, 03/18/09 | 40,000 | 39,994,333 | ||||
Freddie Mac, 0.25%, 03/23/09 | 40,000 | 39,993,889 | ||||
Freddie Mac, 1.30%, 04/02/09 | 30,000 | 29,965,333 | ||||
Freddie Mac, 0.30%, 04/23/09 | 20,000 | 19,991,167 | ||||
Freddie Mac, 1.10%, 05/06/09 | 21,000 | 20,957,650 | ||||
Freddie Mac, 1.11%, 05/11/09 | 36,200 | 36,120,752 | ||||
Freddie Mac, 1.16%, 05/12/09 | 30,000 | 29,930,400 | ||||
Freddie Mac, 1.30%, 05/26/09 | 40,000 | 39,875,778 | ||||
Freddie Mac Note, 2.17%, 11/12/09 | 50,000 | 50,000,000 | ||||
Freddie Mac Note, 2.20%, 11/20/09 | 25,000 | 25,000,000 | ||||
Freddie Mac Note, 2.10%, 11/25/09 | 25,000 | 25,000,000 | ||||
Freddie Mac Note, 1.25%, 03/09/10 | 30,000 | 30,000,000 | ||||
Total U.S. Government-sponsored enterprise obligations (cost $1,196,935,666) | 1,196,935,666 | |||||
U.S. Treasuries 10.0% (a) | ||||||
United States Treasury Bill, 0.24%, 03/12/09 | 50,000 | 49,996,333 | ||||
United States Treasury Bill, 0.26%, 03/12/09 | 30,000 | 29,997,663 | ||||
United States Treasury Bill, 0.23%, 03/19/09 | 100,000 | 99,988,500 | ||||
United States Treasury Bill, 0.24%, 03/19/09 | 44,000 | 43,994,720 | ||||
United States Treasury Bill, 0.22%, 03/26/09 | 60,000 | 59,990,833 | ||||
United States Treasury Bill, 0.25%, 03/26/09 | 50,000 | 49,991,493 | ||||
United States Treasury Bill, 0.26%, 03/26/09 | 50,000 | 49,990,972 | ||||
United States Treasury Bill, 0.21%, 04/09/09 | 40,000 | 39,990,900 | ||||
United States Treasury Bill, 0.23%, 04/09/09 | 40,000 | 39,990,032 | ||||
Total U.S. Treasuries (cost $463,931,446) | 463,931,446 | |||||
Total investment portfolio excluding repurchase agreements (cost $4,684,852,697) | 4,684,852,697 |
Repurchase agreements 1.1% (a) | Value | ||||||
Repurchase agreement with Deutsche Bank Securities, Inc., dated February 27, 2009 @ 0.21% to be repurchased at $46,000,805 on March 2, 2009, collateralized by $46,977,000 United States Treasury Bills, due July 23, 2009, (market value $46,911,271 including interest) (cost $46,000,000) | $46,000,000 | ||||||
Repurchase agreement with Fixed Income Clearing Corporation, dated February 27, 2009 @ 0.14% to be repurchased at $3,101,036 on March 2, 2009, collateralized by $2,960,000 United States Treasury Notes, 3.75% due November 15, 2018, (market value $3,174,577 including interest) (cost $3,101,000) | 3,101,000 | ||||||
Total investment portfolio (cost $4,733,953,697) (d), 102.0% (a) | 4,733,953,697 | ||||||
Other assets and liabilities net, (2.0%) (a) | (90,699,342 | ) | |||||
Net assets (consisting of paid-in capital net of accumulated net realized loss of $34,869), 100.0% | $4,643,254,355 | ||||||
(a) Percentages indicated are based on net assets. (b) Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration only to dealers in that program or other “accredited investors.” At February 28, 2009, the aggregate value of these securities was $1,729,218,292 or 37.2% of the net assets of the fund. (c) U.S. dollar denominated. (d) The aggregate identified cost for federal income tax purposes is the same. | |||||||
TLGP — Issued under the Temporary Liquidity Guarantee Program. Under this program, the Federal Deposit Insurance Corporation (“FDIC”) guarantees, with the full faith and credit of the U.S. government, the payment of principal and interest. The expiration of the FDIC’s guarantee is the earlier of the maturity date of the debt or June 30, 2012. | |||||||
Class A shares | |||||||
Net asset value, offering and redemption price per share, ($4,635,468,146 divided by 4,635,503,030 shares outstanding) | $1.00 | ||||||
Class C shares | |||||||
Net asset value, offering and redemption price per share, ($7,786,209 divided by 7,786,194 shares outstanding) | $1.00 |
Maturity Schedule | ||
UNAUDITED I 02.28.2009 | ||
Days to maturity (1) | Percent of net assets | |
1-7 days | 24.1% | |
8-14 days | 20.3% | |
15-30 days | 26.5% | |
31-60 days | 21.9% | |
61-90 days | 4.7% | |
91-397 days | 4.5% | |
(1) The number of days to maturity of each holding is determined in accordance with the provisions of Rule 2a-7 under the Investment Company Act of 1940. |
The accompanying notes are an integral part of the financial statements. | 3 |
Financial Statements
MONEY MARKET FUND |
Statement of Operations | 9/1/08 to (unaudited) | ||
Investment income | |||
Interest | $32,070,880 | ||
Expenses | |||
Investment advisory fee | 9,168,843 | ||
Distribution fee (Class A) | 3,289,922 | ||
Distribution fee (Class C) | 5,697 | ||
Shareholder servicing fees | 2,237,551 | ||
U.S. Treasury Guarantee Program fees | 788,121 | ||
Custodian fee | 121,452 | ||
State qualification expenses | 77,037 | ||
Reports to shareholders | 55,679 | ||
Fund accounting fee | 46,535 | ||
Professional fees | 44,481 | ||
Trustees and officers compensation | 20,932 | ||
Other | 51,515 | ||
Total expenses before adjustments | 15,907,765 | ||
Fees waived | (1,759,124 | ) | |
Expense offsets | (6,373 | ) | |
Total expenses after adjustments | 14,142,268 | ||
Net investment income from operations | 17,928,612 | ||
Net realized gain (loss) on investments | (32,185 | ) | |
Net increase in net assets resulting from operations | $17,896,427 |
Statements of Changes in Net Assets | 9/1/08 to (unaudited) | 9/1/07 to 8/31/08 | ||||
Net assets, beginning of period | $4,334,574,144 | $4,347,897,449 | ||||
Increase (decrease) in net assets from operations | ||||||
Net investment income | 17,928,612 | 123,288,819 | ||||
Net realized gain (loss) on investments | (32,185 | ) | 3,149 | |||
Net increase in net assets resulting from operations | 17,896,427 | 123,291,968 | ||||
Distributions to shareholders from net investment income ($0.004 and $0.028 per share) | (17,928,612 | ) | (123,288,819 | ) | ||
Capital share transactions | 308,712,396 | (13,326,454 | ) | |||
Increase (decrease) in net assets | 308,680,211 | (13,323,305 | ) | |||
Net assets, end of period | $4,643,254,355 | $4,334,574,144 |
Financial Highlights
The following table includes selected data for a class A and C share outstanding throughout each period and other performance information derived from the financial statements.
Class A and C shares | ||||||||||||||||||
9/1/08 to (unaudited) | For the fiscal years ended August 31 | |||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
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) | 0.004 | 0.028 | 0.046 | 0.038 | 0.018 | 0.004 | ||||||||||||
Less distributions | ||||||||||||||||||
Dividends from net investment income (a) | (0.004 | ) | (0.028 | ) | (0.046 | ) | (0.038 | ) | (0.018 | ) | (0.004 | ) | ||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||
Total return (%) | 0.42 | (b) | 2.82 | 4.71 | 3.90 | 1.84 | 0.42 | |||||||||||
Ratios to average daily net assets (%) | ||||||||||||||||||
With expenses waived/recovered | 0.64 | (c) | 0.69 | 0.71 | 0.72 | 0.71 | 0.70 | |||||||||||
Without expenses waived/recovered | 0.72 | (c) | 0.69 | 0.71 | 0.72 | 0.71 | 0.70 | |||||||||||
Net income | ||||||||||||||||||
Class A shares | 0.82 | (c) | 2.77 | 4.61 | 3.84 | 1.82 | 0.42 | |||||||||||
Class C shares | 0.78 | (c) | 2.63 | 4.61 | 3.87 | 1.76 | 0.42 | |||||||||||
Net assets, end of period ($ millions) | ||||||||||||||||||
Class A shares | 4,635 | 4,330 | 4,344 | 5,069 | 4,960 | 5,103 | ||||||||||||
Class C shares | 8 | 5 | 4 | 3 | 2 | 4 |
(a) May include net realized gains and losses that are less than $.001 per share. (b) Not annualized. (c) Annualized.
4 | The accompanying notes are an integral part of the financial statements. |
Notes to Financial Statements
MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
NOTE 1 I Organization and investment objective 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 Money Market Fund (the “Fund”) and the Municipal Money Market Fund. The Fund seeks to achieve maximum current income consistent with stability of principal.
From September 1, 2008 to October 31, 2008, Heritage Asset Management, Inc. (“Heritage”) served as the investment adviser, administrator, shareholder servicing agent and fund accountant for the Fund. As part of a corporate reorganization (the “Reorganization”), on November 1, 2008, Heritage transferred its advisory and administrative service agreement with the Fund to its affiliate, Eagle Asset Management, Inc. (“Eagle”). Collectively, Heritage and Eagle are referred to as the “Manager.” As part of the Reorganization, the name of the Trust and Fund will change on May 1, 2009 to reflect Eagle as the new adviser and administrator.
In addition, effective November 1, 2008, Heritage changed its name to Eagle Fund Services, Inc. (“EFS”) and remains the Fund’s shareholder servicing agent and fund accountant. Eagle and EFS are wholly owned subsidiaries of Raymond James Financial, Inc. (“RJF”).
The Eagle Family of Funds consists of the Trust in addition to other investment companies advised by the Manager: Eagle Capital Appreciation Fund, Eagle Growth & Income Fund, Eagle Series Trust and Heritage Income Trust. Members of the Boards of Trustees (the “Board”) for the Trust may serve as Trustees for one or more of the Eagle Family of Funds.
Class offerings The Fund currently offers Class A and Class C shares to the public. No class of shares is subject to front end sales charges, but when redeemed, may be subject to a contingent deferred sales charge (“CDSC”) if the shares were acquired through an exchange within the Eagle Family of Funds.
NOTE 2 I Significant accounting policies
Use of estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates and those differences could be material.
Valuation of securities The amortized cost method of security valuation is used by the Fund (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 as of the time of purchase and thereafter accreting/amortizing any purchase discount/premium at a constant rate until maturity. Amortized cost approximates market value.
The Fund adopted the Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, effective September 1, 2008. FAS 157 establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosure about fair value measurements that are relevant to a mutual fund’s value. The Manager has concluded that the adoption of FAS 157 has not had a material impact on the Fund’s financial statements.
Various inputs are used in determining the value of the Fund’s investments. FAS 157 establishes a three level hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three levels are defined below:
Level 1— | Valuations based on quoted prices for identical securities in active markets, |
Level 2— | Valuations based on inputs other than quoted prices that are observable, either directly or indirectly, including inputs in markets that are not considered active and |
Level 3— | Valuations based on inputs that are unobservable and significant to the fair value measurement. |
The following is a summary of the inputs used to value the Fund’s investments as of February 28, 2009.
Investments in securities | ||
Level 1 - Quoted prices | $— | |
Level 2 - Other significant observable inputs | 4,733,953,697 | |
Level 3 - Significant unobservable inputs | — | |
Total investment portfolio | $4,733,953,697 |
Repurchase agreements The Fund enters into repurchase agreements whereby the Fund, through its custodian or another qualified custodian, receives delivery of the underlying securities, the market value of which at the time of purchase is required to be in an amount of at least 100% of the resale price. Repurchase agreements involve the risk that the seller will fail to repurchase the security, as agreed. In that case, the Fund will bear the risk of market value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
5 |
Notes to Financial Statements
MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Revenue recognition Investment security transactions are accounted for on a trade date basis. Interest income is recorded on an accrual basis.
Expenses The Fund is charged for those expenses that are directly attributable to it, while other expenses are allocated proportionately among the Eagle Family of Funds based upon methods approved by the Board. Expenses that are directly attributable to a specific class of shares, such as distribution fees, are charged directly to that class. Other expenses of the Fund are allocated to each class of shares based upon their relative percentage of net assets. The Fund has entered into an arrangement with the custodian whereby the Fund receives credits on uninvested cash balances which are used to offset a portion of the Fund’s expenses. These custodian credits are shown as “Expense offsets” in the Statement of Operations.
Class allocations Each class of shares has equal rights as to earnings and assets. Income, expenses (other than expenses attributable to a specific class), and realized and/or unrealized gains or losses on investments are allocated to each class of shares based on its relative percentage of net assets.
Distribution of income and gains Distributions of 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 investments for both financial and federal income tax reporting purposes.
Distributions All dividends paid by the Fund from net investment income are deemed to be ordinary income for federal income tax purposes. Dividends paid by the Fund to shareholders from net investment income were as follows:
Fiscal period | Class A | Class C | ||
9/1/08 to 2/28/09 | $17,899,088 | $29,524 | ||
9/1/07 to 8/31/08 | 123,180,542 | 108,277 |
Other In the normal course of business the Fund enters into contracts that contain a variety of representations and warranties, which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the risk of loss to the Fund is expected to be remote.
NOTE 3 I Capital share transactions At February 28, 2009, there were an unlimited number of shares of beneficial interest of no par value authorized. Capital share transactions in the Fund
during the six-month period ended February 28, 2009, at a net asset value of $1.00 per share, were as follows:
Shares and dollars | Class A | Class C | ||||
Sold | 8,793,511,824 | 7,018,814 | ||||
Reinvestment of distributions | 18,188,410 | 26,875 | ||||
Redeemed | (8,505,730,428 | ) | (4,303,099 | ) | ||
Net increase (decrease) | 305,969,806 | 2,742,590 |
Capital share transactions in the Fund during the fiscal year ended August 31, 2008, at a net asset value of $1.00 per share, were as follows:
Shares and dollars | Class A | Class C | ||||
Sold | 12,276,684,321 | 6,089,448 | ||||
Reinvestment of distributions | 122,276,944 | 99,905 | ||||
Redeemed | (12,413,453,243 | ) | (5,023,829 | ) | ||
Net increase (decrease) | (14,491,978 | ) | 1,165,524 |
NOTE 4 I Investment advisory fees and other transactions with affiliates The Fund agreed to pay to the Manager an investment advisory and administrative fee equal to an annualized rate based on a percentage of the Fund’s average daily net assets, which is computed daily based on the schedule below and payable monthly. The amount payable to the Manager as of February 28, 2009, was $238,038.
Fund’s average daily net assets | Investment advisory fee rate | |
First $500 million | 0.500% | |
$500 million to $1 billion | 0.475% | |
$1 billion to $1.5 billion | 0.450% | |
$1.5 billion to $2 billion | 0.425% | |
$2 billion to $2.5 billion | 0.400% | |
$2.5 billion to $5 billion | 0.375% | |
$5 billion to $7.5 billion | 0.360% | |
$7.5 billion to $10 billion | 0.350% | |
Greater than $10 billion | 0.340% |
Expense limitation Pursuant to a Prospectus Supplement filed on January 29, 2009, Eagle voluntarily agreed to cap its investment advisory fee and/or reimburse certain expenses of the Fund to the extent that its annual operating expenses exceed 0.74% of the Fund’s average daily net assets. These expense limitations exclude interest, taxes, brokerage commissions, costs relating to investment in other investment companies, dividends, extraordinary expenses and includes offset expense arrangements with the Fund’s custodian.
6 |
Notes to Financial Statements
MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
In addition, Eagle has voluntarily agreed to cap its investment advisory fee and/or reimburse certain expenses of the Fund to the extent that it becomes necessary in order to maintain a positive yield. There is no guarantee that the Fund will be able to maintain a positive yield. Any reimbursement of Fund expenses or reduction in Eagle’s investment advisory fees under these voluntary undertakings is subject to reimbursement by the Fund within the following three fiscal years and any additional periods, if overall expenses fall below these percentage limitations. During the six-month period ended February 28, 2009, the Manager waived $1,759,124 in investment advisory fees, no expenses were reimbursed and no fees were recovered.
Distribution fees Eagle Fund Distributors, Inc. (“EFD” or “Distributor”) serves as the Fund’s distributor. Prior to November 1, 2008, EFD was known as Heritage Fund Distributors, Inc. EFD is an affiliate of RJF. Pursuant to a plan adopted in accordance with Rule 12b-1 under the Investment Company Act of 1940, as amended, the Fund is authorized to pay the Distributor a fee of 0.15% of the average daily net assets for each class of shares. Such fee is accrued daily and payable monthly. The amount payable by the Fund to the Distributor as of February 28, 2009, was $534,541.
Sales charges The Distributor has advised the Fund that it generated $5,854 in CDSCs for Class C shares during the six-month period ended February 28, 2009. The Distributor paid commissions to salespersons from these fees and incurred other distribution costs.
Fund accounting fees EFS is the fund accountant for the Fund. For providing fund accounting services, EFS receives payment from the Fund at a fixed base fee, a multiple class fee, plus any out-of-pocket expenses. The amount payable by the Fund to EFS as of February 28, 2009, was $7,830.
Shareholder servicing fees EFS is the shareholder servicing agent for the Fund. For providing shareholder services, EFS receives payment from the Fund at a fixed fee per shareholder account plus any out-of-pocket expenses. The amount payable by the Fund to EFS as of February 28, 2009, was $388,314.
Trustees and officers compensation Each Trustee of the Eagle Family of Funds who is not an employee of the Manager receives an annual retainer along with meeting fees for those Eagle Family of Funds’ regular or special meetings attended in person and 25% of such fees are received for telephonic meetings. All reasonable out-of-pocket expenses are also
reimbursed. Except when directly attributable to a fund, Trustees’ fees and expenses are allocated on a pro rata basis among each portfolio in the Eagle Family of Funds. The pro rata allocation is for each Fund for which the Trustee is elected to serve. Certain Officers of the Eagle Family of Funds may also be Officers and/or Directors of Eagle. Such Officers receive no compensation from the Eagle Family of Funds except for the Eagle Family of Funds’ Chief Compliance Officer. A portion of the Chief Compliance Officer’s total compensation is paid equally by each portfolio in the Eagle Family of Funds. As of February 28, 2009, the amount of Trustees and Officers compensation payable by the Fund was $8,308.
NOTE 5 I 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 taxable income to its shareholders. Accordingly, no provision has been made for federal income and excise taxes.
The timing and character of certain income and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) from investment transactions for a reporting period may differ from distributions during such period. These book/tax differences may be temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in capital or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Results of operations and net assets are not affected by these reclassifications. For the fiscal year ended August 31, 2008, there were no reclassifications arising from permanent tax differences. As of August 31, 2008, the Fund had net tax basis capital loss carryforwards of $2,683 that may be applied to any net taxable gain until their expiration date of 2012. Capital loss carryforwards of $491 were utilized in the fiscal year ended August 31, 2008. All dividends paid by the Fund from net investment income are deemed to be ordinary income for federal income tax purposes.
NOTE 6 I New accounting pronouncements In March 2008, FASB issued its new Standard No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced
7 |
Notes to Financial Statements
MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
disclosures to enable investors to better understand their effects on an entity’s financial position, financial performance, and cash flows. FAS 161 is effective for financial statements issued for the fiscal years beginning after November 15, 2008. The Manager is evaluating the application of FAS 161 to the Fund, and is not in a position at this time to estimate the significance of its impact on the Fund’s financial statements.
NOTE 7 I U.S. Treasury Guarantee Program The Board has elected to extend the Fund’s participation in the U.S. Treasury Temporary Guarantee Program (the “Program”) for money market funds through September 18, 2009 (“Second Extension Period”). Under the Program, the Treasury will guarantee to investors in participating money market funds that they will receive payments with a total value of $1.00 for each money market fund share held as of the close of business on September 19, 2008 if the fund’s net asset value (“NAV”) per share falls below $0.995 (“Guarantee Event”) as described herein. Recovery under the Program is subject to certain conditions and limitations, including those discussed herein.
The Fund paid a fee of 0.010% of its net assets as of September 19, 2008 to participate in the Program through the initial term ended December 18, 2008 and 0.015% of the net assets to participate in an extension period ended April 30, 2009.
In order to participate in the Program through the Second Extension Period, the Fund must pay an amount equal to 0.015% of its net assets as of September 19, 2008. The Fund is responsible for payment of fees required to participate in the Program and will not be subject to any expense limitation or reimbursement agreement.
The Program provides coverage to shareholders of the Fund for amounts that they held in the Fund as of the close of business on September 19, 2008. Any increase in the number of shares of the Fund held in the account after the close of business on September 19, 2008 will not be guaranteed. Any purchase of shares of the Fund for a new account after the close of business on September 19, 2008 will not be guaranteed. If the number of shares held in the account fluctuates over the period, shareholders will be covered up to the lesser of the shares held on September 19, 2008 or the date of the Guarantee Event. If a shareholder covered by the Program closes his or her account and then subsequently opens a new account in the Fund, that new account would not be covered by the Program.
In order to recover under the Program, a Guarantee Event must occur during the term of the Program. The Treasury does not have the authority to extend the Program beyond the Second Extension Period.
Recovery under the Program requires a participating fund to liquidate if there is a Guarantee Event and such Guarantee Event is not cured. For shares covered by the guarantee, any difference between the amount received by a shareholder (in cash or through in-kind distributions) in connection with the liquidation and $1.00 per share will be covered under the Program.
Guarantee payments under the Program will not exceed the amount available within the Treasury’s Exchange Stabilization Fund (“ESF”) on the date of payment. Currently, ESF assets are approximately $50 billion.
8 |
Understanding Your Ongoing Costs
MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchases or CDSCs and (2) ongoing costs, including investment advisory fees; distribution (12b-1) fees; and other fund expenses. The following sections are intended to help you understand your ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect one-time transaction expenses, such as sales charges. Therefore, if these transactional costs were included, your costs would have been higher. For more information, see the Fund’s prospectus or contact your financial advisor.
Actual expenses The following table shows the actual expenses you would have paid on a $1,000 investment in the Heritage Cash Trust—Money Market Fund on September 1, 2008, and held through February 28, 2009. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns after ongoing expenses. This table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the line under the heading entitled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Actual | Beginning September 1, | Ending February 28, | Expenses paid during period (a) | |||
Class A | $1,000.00 | $1,004.16 | $3.20 | |||
Class C | $1,000.00 | $1,004.16 | $3.20 |
Hypothetical example for comparison purposes All mutual funds now follow guidelines to assist shareholders in comparing expenses between different funds. Per these guidelines, the following table shows your Fund’s expenses based on a $1,000 investment and assuming for the period a hypothetical 5% annualized rate of return before ongoing expenses, which is not the Fund’s actual return. Please note that you should not use this information to estimate your actual ending account balance and expenses paid during the period. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the Fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison.
Hypothetical (5% return before expenses) | Beginning September 1, | Ending February 28, | Expenses paid during period (a) | |||
Class A | $1,000.00 | $1,021.60 | $3.23 | |||
Class C | $1,000.00 | $1,021.60 | $3.23 |
(a) Expenses are calculated using the Fund’s annualized expense ratio of 0.64% for Class A and Class C shares, multiplied by the average account value for the period, then multiplying the result by the actual number of days in the period (181), and then dividing that result by the actual number of days in the fiscal year (365).
9 |
eagleasset.com
727.567.8143 I 800.421.4184
Eagle Fund Distributors, Inc.
Member FINRA
Not FDIC Insured ¨ May Lose Value ¨ No Bank Guarantee
An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Contact Eagle at 800.421.4184 or your financial advisor for a prospectus, which contains this and other important information about the Funds. Read the prospectus carefully before you invest or send money.
This report is for the information of shareholders of Heritage Cash Trust. If you wish to review additional information on the portfolio holdings of a fund, a complete schedule has been filed with the Securities and Exchange Commission (“Commission”) for the first and third quarters of each fund’s fiscal year end on Form N-Q. These filings are available on the Commission’s website at www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330. A description of each fund’s proxy voting policies, procedures and information regarding how each fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2008, is available without charge, upon request, by calling the Eagle Family of Funds, toll-free at the number above, by accessing our website at eagleasset.com or by accessing the Commission’s website at www.sec.gov.
Would you like to receive future mailings via e-mail? If so, please let us know. Visit eagleasset.com to enroll.
02/09 | Printed on recycled paper |
EAGLE FAMILY OF FUNDS
Municipal Money Market Fund
Semiannual Report
For the six-month period ended February 28, 2009 (unaudited)
Effective May 1, 2009,
the fund’s name will change to:
Eagle Municipal Money Market Fund
President’s Letter
Dear Fellow Shareholders:
I am pleased to present the semiannual report for the Heritage Cash Trust—Municipal Money Market Fund (the “Fund”) for the six-month period ended February 28, 2009. During the period, the Federal Reserve’s Federal Open Market Committee to cut the federal funds target rate from 2% to a target range of 0% to 0.25%. The federal funds target rate is the rate member banks charge each other for overnight loans. This has contributed to short-term tax-exempt rates declining from 1.60% to 0.55%.
As a result, the Fund’s yields also have fallen. At the end of the period, the Fund’s seven-day current yield was 0.05%, which was down from 1.11% at the end of the previous fiscal year. In January, the Fund’s investment adviser, Eagle Asset Management, Inc. (“Eagle”), agreed to voluntarily waive fees and/or reimburse expenses in order for the Fund to maintain a positive yield. Additional information regarding this action is contained in the Fund’s prospectus, which is available on our website, eagleasset.com. The performance data quoted represents past performance, which does not guarantee future results. Current performance may be higher of lower than the data quoted. To obtain the Fund’s current yield, please visit our website at eagleasset.com.
Market volatility was the theme of the reporting period. In September, short-term tax-exempt rates briefly spiked to 8% due to outflows from money market funds. By October and November, significant investor flows back into municipal money market funds and uncertainty surrounding financial institutions created a scarcity of high-quality tax-exempt short-term bonds driving rates lower. This resulted in the Fund investing a small portion of the portfolio in U.S. Treasury Bills last fall. Market conditions have served to widen the difference between higher quality notes and those considered to have more uncertainty. We continue to favor diversifying the Fund’s holdings among liquid, top-tier securities, with the foremost goal of maintaining a stable net asset value (“NAV”) of $1.00 per share.
As of February 28, 2009, the Fund’s investment portfolio was comprised of approximately 80% in variable rate demand notes, redeemable within 7 days, which provided the Fund with ample liquidity. The commercial paper and fixed-rate note holdings modestly increased the duration of the portfolio and thereby provided a reduction in reinvestment risk. The entire portfolio is invested in highly rated tier-one securities. The high quality investments satisfied the requirements set forth by Standard and Poor’s Rating Services to maintain the Fund’s AAAm(a) rating. Ratings are subject to change and do not remove market risk from your investment.
As you know, we are in the midst of one of the worst financial crises on record. We are now 16 months into the current recession, which is longer than the average recession. As long as the economy stays weak, we can expect the low-interest rate environment to continue. In addition, the U.S. Treasury (“Treasury”) and Federal Reserve have taken extraordinary measures to address the disruptions in the financial markets.
(a) Standard & Poor’s, a widely recognized independent authority on credit quality, rates certain money market funds based on weekly analysis. When rating a money market fund, Standard & Poor’s assesses the safety of principal. According to Standard & Poor’s, a fund rated AAAm (“m” denotes a money market fund) offers excellent safety features and has superior capacity to maintain principal value and limit exposure to loss. In evaluating safety, Standard & Poor’s focuses on credit quality, liquidity and management of the Fund.
Several lending and funding facilities have been introduced to improve liquidity and calm the markets, including the first ever guarantee program for money market fund investors. These programs have generally calmed investors as the industry as a whole has seen asset levels stabilize or grow in spite of the low-interest rate environment.
The Fund continues to participate in the Treasury’s temporary Money Market Guarantee Program (“Program”), in which the Treasury guarantees that investors will receive $1.00 for each Fund share held as of September 19, 2008, if the Fund’s NAV falls below $0.995 (“Guarantee Event”) and if such Guarantee Event is not cured. The Program only applies to shareholders of record as of September 19, 2008, and any increase in the number of shares held in an account after that date are not guaranteed. If the number of shares held in an account fluctuates over the period, shareholders will be covered up to the lesser of the shares held on September 19, 2008 or the date of the Guarantee Event. If a shareholder covered by the Program closes his or her account and then subsequently opens a new account in the Fund, that new account would not be covered by the Program. The Program is currently scheduled to be in effect until September 18, 2009. While we continue to maintain high credit standards, the Fund’s Board of Trustees elected to participate in the Program, determining that participation is in the best interests of the Fund’s shareholders. For additional information regarding the Program, refer to Note 7 to the financial statements in this report or visit the Treasury’s website at ustreas.gov.
As the industry continues to attempt to ensure the orderly functioning of the markets, attention also has turned to the lessons learned from the crisis. Leaders from industry, government and academia have identified various reforms that could be applied to money markets going forward. Potential reforms range from strengthening the existing regulations and credit requirements of money market funds to changing their organizational and capital structure. While this debate will unfold over the next several months, the Investment Company Institute, the industry’s trade association, has identified a series of recommendations that money market funds can voluntarily adopt to improve their liquidity, credit quality and disclosure to shareholders. As these best practices evolve, we will evaluate their applicability to the Fund.
As I reported in my last letter, we have now completed an internal reorganization effective November 1, 2008, in which Eagle became the Fund’s investment adviser. As a result, the Fund will change its name to the Eagle Municipal Money Market Fund, effective May 1, 2009. While our name will have changed, our commitment to your financial well-being will not. We are grateful for your continued support and confidence in the Eagle Family of Funds.
Sincerely,
Stephen G. Hill
President
April 9, 2009
1 |
Statement of Net Assets
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Alabama 0.1% | ||||||
Infirmary Health System Special Care Facilities Financing Authority, 0.62%, Hospital Revenue Bond, Series 06A, 03/04/09, LOC: Bank of Nova Scotia (c) | $1,500 | $1,500,000 | ||||
Alaska 3.5% | ||||||
Valdez, 0.45%, IDRB, BP Amoco Inc. Project, Series 03B, 03/02/09 (c) | 27,050 | 27,050,000 | ||||
Valdez, 0.35%, IDRB, Exxon Project, Series 93C, 03/02/09 (c) | 4,600 | 4,600,000 | ||||
Valdez, 0.45%, IDRB, BP Amoco Inc. Project, Series 03C, 03/02/09 (c) | 34,100 | 34,100,000 | ||||
Arizona 0.9% | ||||||
Arizona Health Facilities Authority, 0.50%, Hospital Revenue Bond, Banner Health Project, Series C, 03/04/09, LOC: Scotia Bank (c) | 6,870 | 6,870,000 | ||||
Scottsdale Industrial Development Authority, 0.63%, EFRB, Notre Dame Prep School Project, Series 01A, 03/05/09, LOC: Bank One, N.A. (c) | 4,542 | 4,542,000 | ||||
Yavapai County Industrial Development Authority, 0.58%, Hospital Revenue Bond, Northern Arizona Healthcare Project, Series B, 03/05/09, LOC: Banco Bilbao Vizcaya (c) | 2,200 | 2,200,000 | ||||
Yavapai County Industrial Development Authority, 0.60%, Hospital Revenue Bond, Yavapai Regional Medical Center Project, Series A, 03/05/09, LOC: UBS AG (c) | 3,800 | 3,800,000 | ||||
California 1.4% | ||||||
Abag Finance Authority for Nonprofit Corporations, 0.55%, Marin Country Day School Project, 03/05/09, LOC: U.S. Bank, N.A. (c) | 1,115 | 1,115,000 | ||||
California Statewide Communities Development Authority, 0.34%, IDRB, Los Angeles County Museum of Art Project, Series A, 03/04/09, LOC: Wells Fargo Bank, N.A. (c) | 20,000 | 20,000,000 | ||||
California Statewide Communities Development Authority, 0.39%, MFHRB, Foxwood Apartments Project, Series J, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | 2,875 | 2,875,000 | ||||
San Diego County, 0.40%, San Diego Foundation Project, Series 06, 03/05/09, LOC: U.S. Bank, N.A. (c) | 1,370 | 1,370,000 | ||||
Colorado 4.9% | ||||||
Aurora, 0.45%, Hospital Revenue Bond, The Children's Hospital Project, Series C, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | 5,190 | 5,190,000 | ||||
Broomfield Urban Renewal Authority, 0.60%, IDRB, Series 05, 03/05/09, LOC: BNP Paribas (c) | 4,100 | 4,100,000 | ||||
Colorado Educational & Cultural Facilities Authority, 0.65%, EFRB, National Jewish Federation Project, Series B-2, 03/02/09, LOC: TD Bank, N.A. (c) | 10,300 | 10,300,000 | ||||
Colorado Educational & Cultural Facilities Authority, 0.65%, EFRB, National Jewish Federation Project, Series B-3, 03/02/09, LOC: TD Bank, N.A. (c) | 8,880 | 8,880,000 | ||||
Colorado Educational & Cultural Facilities Authority, 0.65%, EFRB, National Jewish Federation Project, Series B-4, 03/02/09, LOC: TD Bank, N.A. (c) | 10,000 | 10,000,000 | ||||
Colorado Educational & Cultural Facilities Authority, 0.65%, EFRB, National Jewish Federation Project, Series C-1, 03/02/09, LOC: U.S. Bank, N.A. (c) | 4,165 | 4,165,000 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Colorado Educational & Cultural Facilities Authority, 0.65%, EFRB, National Jewish Federation Project, Series D-1, 03/02/09, LOC: J.P. Morgan Chase Bank (c) | $3,600 | $3,600,000 | ||||
Colorado Educational & Cultural Facilities Authority, 0.65%, EFRB, National Jewish Federation Project, Series D-2, 03/02/09, LOC: J.P. Morgan Chase Bank (c) | 5,500 | 5,500,000 | ||||
Colorado Educational & Cultural Facilities Authority, 0.65%, EFRB, National Jewish Federation Project, Series F-1, 03/02/09, LOC: Northern Trust Co. (c) | 10,070 | 10,070,000 | ||||
Colorado Educational & Cultural Facilities Authority, 0.65%, EFRB, National Jewish Federation Project, Series 07C-5, 03/02/09, LOC: U.S. Bank, N.A. (c) | 2,400 | 2,400,000 | ||||
Colorado Educational & Cultural Facilities Authority, 0.57%, Higher Education Bond, Northwest University Project, 03/05/09, LOC: Bank of America, N.A. (c) | 4,900 | 4,900,000 | ||||
Colorado Health Facilities Authority, 0.57%, Hospital Revenue Bond, Adventist Health System Project, Series 04B, 03/05/09, LOC: SunTrust Bank (c) | 2,700 | 2,700,000 | ||||
Colorado Health Facilities Authority, 0.70%, Hospital Revenue Bond, Exempla Inc. Project, Series 02B, 03/05/09, LOC: U.S. Bank, N.A. (c) | 2,235 | 2,235,000 | ||||
Colorado Health Facilities Authority, 0.58%, Hospital Revenue Bond, National Jewish Medical & Research Center Project, 03/05/09, LOC: J.P. Morgan Chase Bank (c) | 10,300 | 10,300,000 | ||||
Denver Urban Renewal Authority, 0.60%, IDRB, Stapleton Project, Series A-1, 03/05/09, LOC: U.S. Bank, N.A. (c) | 4,000 | 4,000,000 | ||||
Denver Urban Renewal Authority, 0.60%, IDRB, Stapleton Project, Series 08A-2, 03/05/09, LOC: U.S. Bank, N.A. (c) | 5,000 | 5,000,000 | ||||
Traer Creek Metropolitan District, 0.80%, Eagle County Project, Series 02, 03/04/09, LOC: BNP Paribas (c) | 2,300 | 2,300,000 | ||||
Connecticut 0.3% | ||||||
Connecticut Health & Educational Facility Authority, 0.35%, Higher Education Bond, Yale University Project, Series 01V-1, 03/02/09 (c) | 3,600 | 3,600,000 | ||||
Connecticut Health & Educational Facility Authority, 0.35%, Higher Education Bond, Yale University Project, Series 01V-2, 03/02/09 (c) | 2,600 | 2,600,000 | ||||
Delaware 0.6% | ||||||
Delaware Economic Development Authority, 0.57%, EFRB, Independence School Inc. Project, Series 03, 03/05/09, LOC: Citizens Bank (c) | 8,250 | 8,250,000 | ||||
Delaware River & Bay Authority, 0.42%, Transportation Revenue Bond, 03/04/09, LOC: TD Bank, N.A. (c) | 3,800 | 3,800,000 | ||||
District of Columbia 1.1% | ||||||
District of Columbia, 0.65%, AARP Foundation Project, Series 04, 03/05/09, LOC: Bank of America, N.A. (c) | 1,100 | 1,100,000 | ||||
District of Columbia, 0.68%, The Washington Center for Internships Project, 03/05/09, LOC: Branch Banking & Trust (c) | 3,100 | 3,100,000 | ||||
District of Columbia, 0.55%, Washington Drama Society Project, Series 08, 03/05/09, LOC: J.P. Morgan Chase Bank (c) | 15,000 | 15,000,000 |
The accompanying notes are an integral part of the financial statements. | 2 |
Statement of Net Assets
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Florida 5.3% | ||||||
Florida Board of Education, 5.00%, Series 06C, 06/01/09 | $2,750 | $2,770,567 | ||||
Florida Higher Educational Facilities Financial Authority, 0.62%, Higher Education Bond, Flagler College Project, Series 05, 03/04/09, LOC: SunTrust Bank (c) | 6,040 | 6,040,000 | ||||
Highlands County Health Facilities Authority, 0.73%, Hospital Revenue Bond, Adventist Health System Project, Series 03A, 03/05/09, LOC: SunTrust Bank (c) | 8,800 | 8,800,000 | ||||
JEA District Energy Systems, 0.63%, Series 04A, 03/05/09, LOC: State Street Bank & Trust Co. (c) | 16,430 | 16,430,000 | ||||
Leesburg, 0.57%, Hospital Revenue Bond, The Villages Regional Hospital Project, Series B, 03/05/09, LOC: Scotia Bank (c) | 6,000 | 6,000,000 | ||||
Marion County Industrial Development Authority, 0.61%, IDRB, Hospice of Marion County Project, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 8,440 | 8,440,000 | ||||
Orange County Industrial Development Authority, 0.67%, IDRB, Catholic Diocese Project, 03/04/09, LOC: SunTrust Bank (c) | 8,000 | 8,000,000 | ||||
Palm Beach County, 0.65%, EFRB, St. Andrew's School Project, 03/05/09, LOC: Bank of America, N.A. (c) | 4,500 | 4,500,000 | ||||
Palm Beach County, 0.71%, Henry Morrison Flagler Project, Series 03, 03/05/09, LOC: Northern Trust Co. (c) | 5,875 | 5,875,000 | ||||
Palm Beach County, 0.67%, Jewish Community Campus Project, Series 97, 03/04/09, LOC: Northern Trust Co. (c) | 4,000 | 4,000,000 | ||||
Palm Beach County, 0.67%, Norton Gallery Inc. Project, 03/04/09, LOC: Bank of America, N.A. (c) | 3,075 | 3,075,000 | ||||
Palm Beach County, 0.67%, Norton Gallery Inc. Project, 03/04/09, LOC: Northern Trust Co. (c) | 3,385 | 3,385,000 | ||||
Palm Beach County, 0.58%, Raymond F. Kravis Center Project, 03/05/09, LOC: Northern Trust Co. (c) | 3,500 | 3,500,000 | ||||
Pinellas County Educational Facilities Authority, 1.00%, EFRB, Canterbury School of Florida Project, Series 04, 03/04/09, LOC: SunTrust Bank (c) | 1,675 | 1,675,000 | ||||
Pinellas County Industrial Development Authority, 0.67%, IDRB, Family Resources Inc. Project, Series 03, 03/04/09, LOC: SunTrust Bank (c) | 2,000 | 2,000,000 | ||||
Sarasota County, 0.68%, IDRB, Sarasota Military Academy Project, Series 08, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 2,945 | 2,945,000 | ||||
Tampa, 0.62%, EFRB, Academy of the Holy Names Project, Series 01, 03/04/09, LOC: SunTrust Bank (c) | 1,380 | 1,380,000 | ||||
Tampa, 0.62%, Tampa Preparatory School Inc. Project, Series 00, 03/04/09, LOC: SunTrust Bank (c) | 2,900 | 2,900,000 | ||||
Temple Terrace, 0.62%, Lifepath Hospice Project, Series 03, 03/04/09, LOC: SunTrust Bank (c) | 2,735 | 2,735,000 | ||||
Washington County, 0.82%, Sales Tax Revenue Bonds, Series 03A, 03/05/09, LOC: SunTrust Bank (c) | 5,900 | 5,900,000 | ||||
Georgia 3.5% | ||||||
Bibb County Development Authority, 0.87%, IDRB, Mount de Sales Academy Project, Series 00, 03/04/09, LOC: SunTrust Bank (c) | 2,600 | 2,600,000 | ||||
Cobb County Hospital Authority, 0.82%, Hospital Revenue Bond, Equipment Pool Project, Series 06, 03/05/09, LOC: SunTrust Bank (c) | 1,000 | 1,000,000 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Coweta County Residential Care for the Elderly Authority, 0.62%, Hospital Revenue Bond, Wesley Woods of Newnan-Peachtree Inc. Project, Series 05, 03/04/09, LOC: Branch Banking & Trust (c) | $3,540 | $3,540,000 | ||||
Fulton County Development Authority, 0.62%, EFRB, Galloway Schools Inc. Project, Series 02, 03/04/09, LOC: SunTrust Bank (c) | 3,100 | 3,100,000 | ||||
Fulton County Residential Care for the Elderly Authority, 0.62%, Hospital Revenue Bond, First Mortgage Lenbrook Project, Series C, 03/04/09, LOC: Bank of Scotland (c) | 18,550 | 18,550,000 | ||||
Georgia, GO, 6.75%, Series 94E, 12/01/09 | 5,000 | 5,214,234 | ||||
Georgia, GO, 7.10%, Series 95D, 09/01/09 | 7,900 | 8,139,174 | ||||
Gwinnett County Hospital Authority, 0.57%, Hospital Revenue Bond, Gwinnett Hospital System Project, Series 08A, 03/04/09, LOC: SunTrust Bank (c) | 6,940 | 6,940,000 | ||||
Metropolitan Atlanta Rapid Transit Authority, 0.65%, Transportation Revenue Bond, Series 00B, 03/04/09, LOC: Westdeutsche Landesbank and Bayerische Landesbank (c) | 13,000 | 13,000,000 | ||||
Richmond County Development Authority, 0.52%, IDRB, MCG Health Inc. Project, Series 08A, 03/04/09, LOC: UBS AG (c) | 3,000 | 3,000,000 | ||||
Idaho 0.3% | ||||||
Idaho Housing & Finance Association, 0.57%, The College of Idaho Project, Series 08, 03/05/09, LOC: U.S. Bank, N.A. (c) | 5,000 | 5,000,000 | ||||
Illinois 8.3% | ||||||
Chicago Water Revenue, 0.50%, Series 04-3, 03/05/09, LOC: State Street Bank & Trust Co. (c) | 3,225 | 3,225,000 | ||||
Chicago Wastewater, 0.65%, Series C-3, 03/02/09, LOC: Northern Trust Co. (c) | 4,500 | 4,500,000 | ||||
Chicago O'Hare International Airport, 0.40%, Subordinate Lien Revenue Bonds, Series B, 03/04/09, LOC: Societe Generale (c) | 18,100 | 18,100,000 | ||||
Hoffman Estates, 0.71%, Hoffman Estate Economic Development Project, Series 05, 03/05/09, LOC: Northern Trust Co. (c) | 6,800 | 6,800,000 | ||||
Illinois Educational Facilities Authority, 0.63%, Higher Education Bond, Elmhurst College Project, Series 03, 03/04/09, LOC: Bank One, N.A. (c) | 1,600 | 1,600,000 | ||||
Illinois Educational Facilities Authority, 0.65%, Higher Education Bond, Saint Xavier University Project, Series A, 03/05/09, LOC: LaSalle Bank, N.A. (c) | 5,350 | 5,350,000 | ||||
Illinois Finance Authority, 0.30%, Chicago Symphony Orchestra Project, Series 08, 03/05/09, LOC: Citizens Bank (c) | 11,015 | 11,015,000 | ||||
Illinois Finance Authority, 0.55%, EFRB, Francis W. Parker School Project, Series 99, 03/04/09, LOC: Harris Trust and Savings Bank and Northern Trust Co. (c) | 4,850 | 4,850,000 | ||||
Illinois Finance Authority, 0.71%, EFRB, Lake Forest Country Day School Project, Series 05, 03/04/09, LOC: Northern Trust Co. (c) | 3,000 | 3,000,000 | ||||
Illinois Finance Authority, 0.55%, Elmhurst Memorial Healthcare Project, Series 08C, 03/04/09, LOC: Citizens Bank (c) | 16,000 | 16,000,000 | ||||
Illinois Finance Authority, 0.55%, Elmhurst Memorial Healthcare Project, Series 08D, 03/04/09, LOC: Northern Trust Co. (c) | 4,000 | 4,000,000 | ||||
Illinois Finance Authority, 0.30%, IDRB, Chicago Symphony Orchestra Project, Series 94, 03/04/09, LOC: Northern Trust Co. (c) | 18,700 | 18,700,000 | ||||
Illinois Finance Authority, 0.48%, IDRB, Chicago Symphony Orchestra Project, Series 99, 03/04/09, LOC: Bank One, N.A. (c) | 5,600 | 5,600,000 | ||||
Illinois Finance Authority, 0.71%, IDRB, North Shore Country Day School Project, Series 03, 03/04/09, LOC: Northern Trust Co. (c) | 7,200 | 7,200,000 |
3 | The accompanying notes are an integral part of the financial statements. |
Statement of Net Assets
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Illinois (cont’d) | ||||||
Illinois Finance Authority, 0.63%, IDRB, Window to the World Communications Inc. Project, Series 00, 03/04/09, LOC: Citizens Bank (c) | $1,000 | $1,000,000 | ||||
Illinois Finance Authority, 0.35%, Illinois Wesleyan University Project, 03/05/09, LOC: Northern Trust Co. (c) | 5,050 | 5,050,000 | ||||
Illinois Finance Authority, 0.71%, Joan W. and Irving B. Harris Theater for Music and Dance Project, Series 05, 03/04/09, LOC: Bank of America, N.A. (c) | 2,000 | 2,000,000 | ||||
Illinois Finance Authority, 0.45%, Northwest Community Hospital Project, Series C, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | 5,900 | 5,900,000 | ||||
Illinois Finance Authority, 0.35%, Rush University Medical Center Project, Series A, 03/05/09, LOC: Northern Trust Co. (c) | 3,600 | 3,600,000 | ||||
Illinois Finance Authority, 0.60%, Southern Illinois Healthcare Project, 03/04/09, LOC: Bank of Nova Scotia (c) | 4,580 | 4,580,000 | ||||
Illinois Finance Authority, 0.65%, Uniform Law Foundation Project, Series 07, 03/05/09, LOC: LaSalle Bank, N.A. (c) | 2,740 | 2,740,000 | ||||
Illinois Finance Authority, 0.60%, University of Chicago Medical Center Project, Series B-1, 03/02/09, LOC: Bank of Montreal (c) | 3,000 | 3,000,000 | ||||
Lisle, 0.65%, MFHRB, Four Lakes Phase V Project, Series 96, 03/04/09, LOC: LaSalle Bank, N.A. (c) | 12,500 | 12,500,000 | ||||
University of Illinois, 0.63%, Higher Education Bond, UIC South Campus Project, 03/04/09, LOC: J.P. Morgan Chase Bank (c) | 4,245 | 4,245,000 | ||||
Indiana 3.5% | ||||||
Indiana Development Finance Authority, 0.63%, Eiteljorg Museum Project, Series 04, 03/04/09, LOC: Bank One, N.A. (c) | 2,000 | 2,000,000 | ||||
Indiana Educational Facilities Authority, 0.65%, EFRB, St. Joseph's College Project, Series 04, 03/05/09, LOC: Citizens Bank (c) | 15,955 | 15,955,000 | ||||
Indiana Educational Facilities Authority, 0.65%, EFRB, Wesleyan University Project, Series 98A, 03/04/09, LOC: Bank One, N.A. (c) | 4,640 | 4,640,000 | ||||
Indiana Educational Facilities Authority, 0.60%, Higher Education Bond, Earlham College Project, Series 04E, 03/05/09, LOC: U.S. Bank, N.A. (c) | 4,600 | 4,600,000 | ||||
Indiana Educational Facilities Authority, 0.60%, Higher Education Bond, Hanover College Project, Series B, 03/05/09, LOC: Bank One, N.A. (c) | 3,200 | 3,200,000 | ||||
Indiana Finance Authority, 0.54%, Hospital Revenue Bond, Sisters of St. Francis Health Services, Inc. Project, Series I, 03/04/09, LOC: Wells Fargo Bank, N.A. (c) | 3,600 | 3,600,000 | ||||
Indiana Finance Authority, 0.40%, Hospital Revenue Bond, Sisters of St. Francis Health Services, Inc. Project, Series J, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | 3,500 | 3,500,000 | ||||
Indiana Health & Educational Facilities Financing Authority, 0.65%, Hospital Revenue Bond, Clarian Health Partners Project, Series C, 03/04/09, LOC: Branch Banking & Trust (c) | 6,275 | 6,275,000 | ||||
Indiana Health Facility Financing Authority, 0.65%, Hospital Revenue Bond, Community Hospitals Project, Series B, 03/05/09, LOC: Bank of America, N.A. (c) | 10,510 | 10,510,000 | ||||
Marion, 0.65%, IDRB, Wesleyan University Project, Series 06, 03/05/09, LOC: Bank of America, N.A. (c) | 14,000 | 14,000,000 | ||||
Iowa 0.4% | ||||||
Wapello County, 0.68%, Ottumwa Regional Health Center Project, Series 04, 03/05/09, LOC: J.P. Morgan Chase Bank (c) | 7,650 | 7,650,000 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Kansas 0.6% | ||||||
Kansas Development Finance Authority, 0.70%, Hospital Revenue Bond, Adventist Health System Project, Series C, 03/05/09, LOC: SunTrust Bank (c) | $5,595 | $5,595,000 | ||||
Olathe, 0.65%, Hospital Revenue Bond, Cedar Lake Village Inc. Project, Series 04, 03/05/09, LOC: Bank of America, N.A. (c) | 4,840 | 4,840,000 | ||||
Kentucky 0.8% | ||||||
Middletown, 0.63%, EFRB, Christian Academy of Louisville Project, Series 04, 03/05/09, LOC: J.P. Morgan Chase Bank (c) | 9,890 | 9,890,000 | ||||
Shelby County, 0.60%, Series A, 03/02/09, LOC: U.S. Bank, N.A. (c) | 5,805 | 5,805,000 | ||||
Louisiana 3.3% | ||||||
Louisiana, GO, 0.55%, Series 08A, 03/04/09, LOC: BNP Paribas (c) | 12,000 | 12,000,000 | ||||
Louisiana Offshore Terminal Authority, 0.63%, Transportation Revenue Bond, Deep Water Port Refunding Loop LLC Project, Series 03B, 03/04/09, LOC: Bank One, N.A. (c) | 20,600 | 20,600,000 | ||||
Louisiana Public Facilities Authority, 0.55%, CHRISTUS Health Project, Series D-1, 03/04/09, LOC: Bank of Nova Scotia (c) | 6,500 | 6,500,000 | ||||
South Louisiana Port Commission, 0.75%, Transportation Revenue Bond, Occidental Petroleum Corporation Project, Series 91, 03/04/09, LOC: Bayerische Landesbank (c) | 25,000 | 25,000,000 | ||||
Maine 0.3% | ||||||
Maine Finance Authority, 0.72%, IDRB, Jackson Laboratory Project, Series 02, 03/05/09, LOC: Bank of America, N.A. (c) | 5,240 | 5,240,000 | ||||
Maryland 3.3% | ||||||
Chestertown, 0.65%, IDRB, Washington College Project, Series 08A, 03/05/09, LOC: Citizens Bank (c) | 3,500 | 3,500,000 | ||||
Maryland Economic Development Corporation, 0.65%, IDRB, Maryland Soccer Project, Series 00, 03/05/09, LOC: Bank of America, N.A. (c) | 4,530 | 4,530,000 | ||||
Maryland, GO, 5.00%, Series 06A, 03/01/09 | 4,900 | 4,900,000 | ||||
Maryland, GO, 5.50%, Series B, 07/15/09 | 16,490 | 16,763,053 | ||||
Maryland Health & Higher Educational Facilities Authority, 0.53%, Higher Education Bond, University of Maryland Medical System Project, Series A, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 6,000 | 6,000,000 | ||||
Maryland Health & Higher Educational Facilities Authority, 0.62%, Hospital Revenue Bond, French International School Project, Series 04, 03/04/09, LOC: SunTrust Bank (c) | 4,995 | 4,995,000 | ||||
Maryland Health & Higher Educational Facilities Authority, 0.25%, Hospital Revenue Bond, Johns Hopkins University Project, Series 08B, 03/04/09 (c) | 7,500 | 7,500,000 | ||||
Montgomery County, 0.65%, IDRB, Georgetown Preparatory School Project, Series 05, 03/05/09, LOC: Bank of America, N.A. (c) | 9,210 | 9,210,000 | ||||
Montgomery County, 0.65%, IDRB, Institute for Genomic Research Project, 03/05/09, LOC: Bank of America, N.A. (c) | 4,545 | 4,545,000 | ||||
Massachusetts 2.9% | ||||||
Boston, GO, 4.50%, Series A, 03/01/09 | 5,585 | 5,585,000 | ||||
Massachusetts Development Finance Agency, 0.60%, IDRB, Boston Children’s Museum Project, Series 06, 03/04/09, LOC: Citizens Bank (c) | 2,170 | 2,170,000 | ||||
Massachusetts, GO, 0.47%, Central Artery Project, Series 00A, 03/02/09, BPA: Landesbank Baden Wurttenburg (c) | 2,300 | 2,300,000 |
The accompanying notes are an integral part of the financial statements. | 4 |
Statement of Net Assets
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Massachusetts (cont’d) | ||||||
Massachusetts, GO, 3.00%, Series A, 03/05/09 | $2,240 | $2,240,543 | ||||
Massachusetts Health & Educational Facilities Authority, 0.30%, Higher Education Bond, Harvard University Project, Series R, 03/02/09 (c) | 15,420 | 15,420,000 | ||||
Massachusetts Health & Educational Facilities Authority, 0.30%, Higher Education Bond, Harvard University Project, Series 00Y, 03/05/09 (c) | 25,000 | 25,000,000 | ||||
Massachusetts Health & Educational Facilities Authority, 0.35%, Higher Education Bond, Wellesley College Project, Series G, 03/02/09 (c) | 3,185 | 3,185,000 | ||||
Michigan 1.0% | ||||||
Kent Hospital Finance Authority, 0.65%, Hospital Revenue Bond, Spectrum Health Systems Project, Series C, 03/04/09, LOC: Bank of New York (c) | 7,200 | 7,200,000 | ||||
Michigan Higher Education Facilities Authority, 0.65%, Higher Education Bond, Albion College Project, Series 06, 03/05/09, LOC: J.P. Morgan Chase Bank (c) | 10,200 | 10,200,000 | ||||
Michigan Hospital Finance Authority, 0.57%, Hospital Revenue Bond, Henry Ford Health System Project, Series 07, 03/04/09, LOC: J.P. Morgan Chase Bank (c) | 1,490 | 1,490,000 | ||||
Minnesota 1.1% | ||||||
Minneapolis, 0.57%, Hospital Revenue Bond, Fairview Health Services Project, Series D, 03/04/09, LOC: Wells Fargo Bank, N.A. (c) | 2,300 | 2,300,000 | ||||
Minneapolis, 0.37%, Hospital Revenue Bond, Fairview Health Services Project, Series E, 03/04/09, LOC: Wells Fargo Bank, N.A. (c) | 7,000 | 7,000,000 | ||||
Minneapolis & St. Paul Housing & Redevelopment Authority, 0.30%, Hospital Revenue Bond, Allina Health System Project, Series C-1, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | 5,000 | 5,000,000 | ||||
Minnesota, GO, 5.00%, 11/01/09 | 5,000 | 5,134,750 | ||||
Mississippi 1.0% | ||||||
Jackson County, 0.55%, IDRB, Chevron USA Inc. Project, Series 93, 03/02/09 (c) | 2,295 | 2,295,000 | ||||
Mississippi Business Finance Commission, 0.55%, IDRB, Chevron USA Inc. Project, Series 07A, 03/02/09 (c) | 2,800 | 2,800,000 | ||||
Mississippi Business Finance Commission, 0.57%, IDRB, Chevron USA Inc. Project, Series D, 03/02/09 (c) | 500 | 500,000 | ||||
Mississippi Business Finance Corporation, 0.58%, IDRB, D’Iberville Promenade Shopping Center Project, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 5,000 | 5,000,000 | ||||
Mississippi Business Finance Commission, 0.62%, IDRB, Petal Gas Storage LLC Project, Series 07, 03/04/09, LOC: SunTrust Bank (c) | 10,000 | 10,000,000 | ||||
Missouri 1.4% | ||||||
Bi-State Development Agency Missouri—Illinois Metropolitan District, 0.65%, IDRB, Metrolink Project, Series A, 03/04/09, LOC: J.P. Morgan Chase Bank (c) | 2,500 | 2,500,000 | ||||
Independence Industrial Development Authority, 0.65%, IDRB, Groves and Graceland Project, Series 97A, 03/05/09, LOC: Bank of America, N.A. (c) | 1,110 | 1,110,000 | ||||
Missouri Health & Educational Facilities Authority, 0.50%, Hospital Revenue Bond, Deaconess Long Term Care Project, Series A, 03/05/09, LOC: Bank One, N.A. (c) | 5,680 | 5,680,000 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Missouri Health & Educational Facilities Authority, 0.65%, Hospital Revenue Bond, Truman Medical Center Inc. Project, Series 05, 03/05/09, LOC: Bank of America, N.A. (c) | $1,200 | $1,200,000 | ||||
Missouri Highways & Transit Commission, 0.58%, Transportation Revenue Bond, Series 05B-1, 03/04/09, LOC: State Street Bank & Trust Co. (c) | 3,775 | 3,775,000 | ||||
St. Joseph Industrial Development Authority, 0.54%, Hospital Revenue Bond, Heartland Regional Medical Center Project, Series A, 03/05/09, LOC: U.S. Bank, N.A. (c) | 6,000 | 6,000,000 | ||||
Nevada 2.1% | ||||||
Las Vegas, GO, 0.42%, Series C, 03/02/09, LOC: Lloyds TSB Bank (c) | 24,850 | 24,850,000 | ||||
New Hampshire 0.3% | ||||||
New Hampshire Health & Education Facilities Authority, 0.82%, Hospital Revenue Bond, Easter Seals Project, Series 04H-A, 03/05/09, LOC: Citizens Bank (c) | 4,985 | 4,985,000 | ||||
New Jersey 1.5% | ||||||
New Jersey, 3.00%, Tax & Revenue Anticipation Notes, Series A, 06/25/09 | 20,000 | 20,078,549 | ||||
New Jersey Economic Development Authority, 0.50%, Hospital Revenue Bond, Cooper Health System Project, Series A, 03/05/09, LOC: TD Bank, N.A. (c) | 6,400 | 6,400,000 | ||||
New Jersey Turnpike Authority, 0.40%, Transportation Revenue Bond, Series D, 03/05/09, LOC: Bank of Nova Scotia (c) | 1,300 | 1,300,000 | ||||
New Mexico 1.4% | ||||||
Farmington, 0.60%, Hospital Revenue Bond, San Juan Regional Medical Center Project, Series 04B, 03/05/09, LOC: Bank of Nova Scotia (c) | 9,500 | 9,500,000 | ||||
New Mexico Finance Authority, 0.53%, Subordinate Lien Revenue Bonds, Series B-1, 03/05/09, LOC: State Street Bank & Trust Co. (c) | 16,435 | 16,435,000 | ||||
New York 5.1% | ||||||
Bethlehem Industrial Development Agency, 0.58%, IDRB, American Housing Foundation Inc. Project, Series A, 03/05/09, LOC: Citizens Bank (c) | 3,850 | 3,850,000 | ||||
Long Island Power Authority, 0.57%, Subordinate Lien Revenue Bonds, Series 02-2A, 03/04/09, LOC: Westdeutsche Landesbank (c) | 18,650 | 18,650,000 | ||||
New York City Housing Development Corporation, 0.43%, MFHRB, Beekman Tower Project, Series 08A, 03/04/09, LOC: Royal Bank of Scotland (c) | 8,700 | 8,700,000 | ||||
New York City Housing Development Corporation, 0.50%, MFHRB, Marseilles Apartments Project, Series A, 03/04/09, LOC: Citibank, N.A. (c) | 100 | 100,000 | ||||
New York City Industrial Development Agency, 0.60%, IDRB, FC Hanson Office Associates Project, 03/05/09, LOC: ING Bank NV (c) | 7,800 | 7,800,000 | ||||
New York City Transitional Finance Authority, 0.55%, Recovery Bonds, Series 03 1-D, 03/02/09, BPA: Landesbank Hessen-Thueringen (c) | 4,800 | 4,800,000 | ||||
New York City Transitional Finance Authority, 0.40%, Series C, 03/02/09, BPA: Bayerische Landesbank (c) | 9,200 | 9,200,000 | ||||
New York City Trust for Cultural Resources, 0.35%, Lincoln Center for the Performing Arts, Inc. Project, Series B-1, 03/04/09, LOC: U.S. Bank, N.A. (c) | 3,750 | 3,750,000 |
5 | The accompanying notes are an integral part of the financial statements. |
Statement of Net Assets
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
New York (cont’d) | ||||||
New York Dormitory Authority, 0.48%, Higher Education Bond, City University of New York Project, Series D, 03/05/09, LOC: TD Bank, N.A. (c) | $6,500 | $6,500,000 | ||||
New York Dormitory Authority, 0.60%, Higher Education Bond, Court Facilities Lease Project, Series B, 03/04/09, LOC: Bayerische Landesbank (c) | 3,700 | 3,700,000 | ||||
New York Dormitory Authority, 0.35%, Higher Education Bond, New York Public Library Project, Series A, 03/04/09, LOC: TD Bank, N.A. (c) | 7,610 | 7,610,000 | ||||
New York Housing Development Corporation, 0.60%, MFHRB, The Crest Project, Series A, 03/04/09, LOC: Landesbank Hessen-Thueringen (c) | 1,200 | 1,200,000 | ||||
Triborough Bridge & Tunnel Authority, 0.58%, Transportation Revenue Bond, Series 05B-4, 03/05/09, BPA: Landesbank Baden Wurttenburg (c) | 11,455 | 11,455,000 | ||||
TSASC Inc., 6.38%, Series 1, 07/15/09 (c) | 7,405 | 7,627,209 | ||||
North Carolina 3.7% | ||||||
Mecklenburg County, GO, 5.00%, Series 04C, 03/01/09 | 5,850 | 5,850,000 | ||||
North Carolina Capital Facilities Finance Agency, 0.65%, EFRB, Greensboro Day School Project, 03/05/09, LOC: Bank of America, N.A. (c) | 3,295 | 3,295,000 | ||||
North Carolina Capital Facilities Finance Agency, 0.65%, Higher Education Bond, Elon University Project, Series 01C, 03/04/09, LOC: Bank of America, N.A. (c) | 5,700 | 5,700,000 | ||||
North Carolina Capital Facilities Finance Agency, 0.65%, Higher Education Bond, Pfeiffer University Project, Series 06, 03/05/09, LOC: Bank of America, N.A. (c) | 9,820 | 9,820,000 | ||||
North Carolina Educational Facilities Finance Agency, 0.65%, EFRB, Queens College Project, Series 99A, 03/05/09, LOC: Bank of America, N.A. (c) | 1,100 | 1,100,000 | ||||
North Carolina Educational Facilities Finance Agency, 0.61%, EFRB, Ravenscroft School Inc. Project, Series 00, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 6,400 | 6,400,000 | ||||
North Carolina, GO, 0.38%, Public Improvement Project, Series 02E, 03/04/09, BPA: Landesbank Hessen-Thueringen (c) | 3,100 | 3,100,000 | ||||
North Carolina Medical Care Commission, 0.55%, Hospital Revenue Bond, Iredell Memorial Hospital Project, Series 07, 03/02/09, LOC: Bank of America, N.A. (c) | 4,945 | 4,945,000 | ||||
North Carolina Medical Care Commission, 0.55%, Hospital Revenue Bond, University Health Systems of Eastern Carolina Project, Series B-1, 03/04/09, LOC: Branch Banking & Trust (c) | 2,800 | 2,800,000 | ||||
North Carolina Medical Care Commission, 0.64%, Hospital Revenue Bond, University Health Systems of Eastern Carolina Project, Series B-2, 03/04/09, LOC: Branch Banking & Trust (c) | 5,200 | 5,200,000 | ||||
North Carolina Medical Care Commission, 0.58%, Hospital Revenue Bond, Wake Forest University Project, Series B, 03/05/09, LOC: Branch Banking & Trust (c) | 15,300 | 15,300,000 | ||||
North Carolina Ports Authority, 0.68%, Transportation Revenue Bond, 03/05/09, LOC: Branch Banking & Trust (c) | 5,000 | 5,000,000 | ||||
Ohio 1.9% | ||||||
Cleveland, 0.60%, Airport Facilities Revenue Bond, Series 08D, 03/05/09, LOC: U.S. Bank, N.A. (c) | 3,850 | 3,850,000 | ||||
Cleveland, 0.55%, Series R, 03/05/09, LOC: BNP Paribas (c) | 3,000 | 3,000,000 | ||||
Columbus, 0.43%, Series 08B, 03/05/09 (c) | 6,530 | 6,530,000 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Franklin County, 0.53%, Hospital Revenue Bond, Grant Medical Center Project, Series A, 03/05/09, LOC: U.S. Bank, N.A. (c) | $2,205 | $2,205,000 | ||||
Hamilton County, 0.60%, Hospital Revenue Bond, Elizabeth Gamble Deaconess Home Project, Series B, 03/05/09, LOC: J.P. Morgan Chase Bank (c) | 10,892 | 10,892,000 | ||||
Ohio, 0.35%, Higher Education Bond, Xavier University Project, Series A, 03/05/09, LOC: U.S. Bank, N.A. (c) | 1,600 | 1,600,000 | ||||
Ohio Building Authority, 3.00%, Juvenille Corrections Project, Series A, 10/01/09 | 6,385 | 6,464,381 | ||||
Salem, 0.58%, Hospital Revenue Bond, Salem Community Hospital Project, Series 05, 03/05/09, LOC: J.P. Morgan Chase Bank (c) | 2,365 | 2,365,000 | ||||
Oklahoma 0.3% | ||||||
University Hospitals Trust, 0.65%, Hospital Revenue Bond, Series A, 03/04/09, LOC: Bank of America, N.A. (c) | 5,000 | 5,000,000 | ||||
Oregon 1.3% | ||||||
Clackamas County Hospital Facility Authority, 0.55%, Hospital Revenue Bond, Legacy Health System Project, Series C, 03/04/09, LOC: U.S. Bank, N.A. (c) | 4,700 | 4,700,000 | ||||
Multnomah County Hospital Facilities Authority, 0.70%, Hospital Revenue Bond, Mirabella South Waterfront Project, Series A, 03/02/09, LOC: Bank of Scotland (c) | 2,950 | 2,950,000 | ||||
Oregon Facilities Authority, 0.42%, PeaceHealth Project, Series 08B, 03/05/09, LOC: U.S. Bank, N.A. (c) | 3,650 | 3,650,000 | ||||
Oregon Facilities Authority, 0.43%, PeaceHealth Project, Series 08C, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | 5,000 | 5,000,000 | ||||
Oregon Facilities Authority, 0.42%, PeaceHealth Project, Series 08D, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | 4,400 | 4,400,000 | ||||
Oregon Health Housing Educational & Cultural Facilities Authority, 0.42%, Sacred Heart Medical Center Project, Series 98A, 03/05/09, LOC: U.S. Bank, N.A. (c) | 4,000 | 4,000,000 | ||||
Pennsylvania 3.9% | ||||||
Delaware County Industrial Development Authority, 0.71%, IDRB, Academy of Notre Dame Project, Series 07, 03/05/09, LOC: Citizens Bank (c) | 4,330 | 4,330,000 | ||||
Lower Merion School District, 0.55%, Series 09B, 03/05/09, LOC: U.S. Bank, N.A. (c) | 2,600 | 2,600,000 | ||||
Moon Industrial Development Authority, 0.67%, Providence Point Project, Series 07, 03/05/09, LOC: Bank of Scotland (c) | 41,780 | 41,780,000 | ||||
Philadelphia Authority for Industrial Development, 0.58%, IDRB, Girard Estate Project, Series 02, 03/05/09, LOC: J.P. Morgan Chase Bank (c) | 11,200 | 11,200,000 | ||||
Philadelphia Authority for Industrial Development, 0.61%, IDRB, Pennsylvania Academy of the Fine Arts Project, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 8,000 | 8,000,000 | ||||
Philadelphia Authority for Industrial Development, 0.61%, IDRB, Philadelphia Museum of Art Project, Series 08, 03/04/09, LOC: Citizens Bank (c) | 8,000 | 8,000,000 | ||||
Rhode Island 3.9% | ||||||
Narragansett Bay Commission, 0.50%, Pollution Control Revenue Bond, Series 08A, 03/05/09, LOC: Citizens Bank (c) | 9,790 | 9,790,000 | ||||
Rhode Island, 0.65%, IDRB, YMCA of Pawtucket Project, 03/05/09, LOC: Citizens Bank (c) | 3,765 | 3,765,000 |
The accompanying notes are an integral part of the financial statements. | 6 |
Statement of Net Assets
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Rhode Island (cont’d) | ||||||
Rhode Island Health & Educational Building Corporation, 0.65%, Child & Family Services of Newport Project, Series 06, 03/04/09, LOC: Citizens Bank (c) | $10,000 | $10,000,000 | ||||
Rhode Island Health & Educational Building Corporation, 0.65%, EFRB, Catholic School Project, Series 05A, 03/04/09, LOC: Citizens Bank (c) | 7,995 | 7,995,000 | ||||
Rhode Island Health & Educational Building Corporation, 0.65%, EFRB, Catholic School Project, Series 06A, 03/04/09, LOC: Citizens Bank (c) | 16,590 | 16,590,000 | ||||
Rhode Island Health & Educational Building Corporation, 0.65%, EFRB, Highlander Charter School Project, Series 07, 03/04/09, LOC: Citizens Bank (c) | 5,150 | 5,150,000 | ||||
Rhode Island Health & Educational Building Corporation, 0.65%, EFRB, LaSalle Academy Project, Series 03, 03/04/09, LOC: Citizens Bank (c) | 3,950 | 3,950,000 | ||||
Rhode Island Health & Educational Building Corporation, 0.65%, EFRB, Paul Cuffee School Project, Series 02, 03/04/09, LOC: Citizens Bank (c) | 2,590 | 2,590,000 | ||||
Rhode Island Health & Educational Building Corporation, 0.77%, Hospital Revenue Bond, Meeting Street Center Project, Series 06, 03/04/09, LOC: Citizens Bank (c) | 10,640 | 10,640,000 | ||||
Rhode Island Health & Educational Building Corporation, 0.65%, Hospital Revenue Bond, Thundermist Health Center Project, Series 04, 03/04/09, LOC: Bank of America, N.A. (c) | 3,155 | 3,155,000 | ||||
South Carolina 0.5% | ||||||
South Carolina Educational Facilities Authority, 0.68%, Higher Education Bond, Coker College Project, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 7,310 | 7,310,000 | ||||
South Carolina Jobs, Economic Development Authority, 0.65%, IDRB, Community YMCA Rock Hill Project, Series 04, 03/05/09, LOC: Bank of America, N.A. (c) | 1,440 | 1,440,000 | ||||
Tennessee 2.9% | ||||||
Blount County Public Building Authority, 0.68%, Series E5-B, 03/05/09, LOC: Branch Banking & Trust (c) | 31,400 | 31,400,000 | ||||
Chattanooga Health Educational & Housing Facility Board, 0.65%, Higher Education Bond, Southern Adventist University Project, Series 03, 03/05/09, LOC: Bank of America, N.A. (c) | 1,115 | 1,115,000 | ||||
Clarksville Public Building Authority, 0.62%, City of Murfreesboro Project, Series 08, 03/05/09, LOC: SunTrust Bank (c) | 5,320 | 5,320,000 | ||||
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, 0.62%, EFRB, Ensworth School Project, Series 02, 03/04/09, LOC: SunTrust Bank (c) | 6,045 | 6,045,000 | ||||
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, 0.72%, Higher Education Bond, Belmont University Project, Series 02A, 03/04/09, LOC: SunTrust Bank (c) | 1,915 | 1,915,000 | ||||
Metropolitan Government Nashville & Davidson County Industrial Development Board, 0.62%, EFRB, Father Ryan High School Project, Series 02, 03/04/09, LOC: SunTrust Bank (c) | 2,760 | 2,760,000 | ||||
Metropolitan Government Nashville & Davidson County Industrial Development Board, 0.62%, IDRB, Lipscomb University Project, Series 06, 03/04/09, LOC: SunTrust Bank (c) | 2,000 | 2,000,000 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Williamson County Industrial Development Board, 0.62%, IDRB, Brentwood Academy Project, Series 05, 03/04/09, LOC: SunTrust Bank (c) | $4,425 | $4,425,000 | ||||
Texas 2.7% | ||||||
Capital Area Cultural Education Facilities Finance Corporation, 0.68%, EFRB, Summit Christian Academy Project, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 5,000 | 5,000,000 | ||||
Houston Higher Education Finance Corporation, 0.40%, Higher Education Bond, Rice University Project, Series A, 03/02/09 (c) | 10,500 | 10,500,000 | ||||
Splendora Higher Education Facilities Corporation, 0.65%, Higher Education Bond, Fellowship Christian Project, Series 01, 03/05/09, LOC: Bank of America, N.A. (c) | 1,010 | 1,010,000 | ||||
Texas, GO, 3.00%, Tax & Revenue Anticipation Notes, 08/28/09 | 25,400 | 25,650,135 | ||||
University of Texas, 0.38%, Higher Education Bond, Series A, 03/05/09 (c) | 6,000 | 6,000,000 | ||||
University of Texas, 0.40%, Higher Education Bond, Series B, 03/05/09 (c) | 1,965 | 1,965,000 | ||||
Vermont 0.1% | ||||||
Vermont Educational & Health Buildings Financing Agency, 0.60%, EFRB, Brattleboro Memorial Hospital Project, Series A, 03/02/09, LOC: TD Bank, N.A. (c) | 1,800 | 1,800,000 | ||||
Virginia 2.4% | ||||||
Albermarle County Economic Development Authority, 0.65%, Hospital Revenue Bond, Martha Jefferson Hospital Project, Series B, 03/05/09, LOC: Branch Banking & Trust (c) | 6,000 | 6,000,000 | ||||
Alexandria Industrial Development Authority, 0.67%, IDRB, National Society of Engineers Project, Series 05, 03/05/09, LOC: Bank of America, N.A. (c) | 2,725 | 2,725,000 | ||||
Harrisonburg Industrial Development Authority, 0.60%, IDRB, Rockingham Memorial Hospital Project, Series 05, 03/04/09, LOC: SunTrust Bank (c) | 1,945 | 1,945,000 | ||||
Henrico County Economic Development Authority, 0.68%, Hospital Revenue Bond, Westminster Canterbury Project, Series B, 03/05/09, LOC: Branch Banking & Trust (c) | 2,725 | 2,725,000 | ||||
James City County Economic Development Authority, 0.65%, IDRB, United Methodist Homes, Series 07C, 03/05/09, LOC: LaSalle Bank, N.A. (c) | 4,800 | 4,800,000 | ||||
Newport News Industrial Development Authority, 0.61%, Higher Education Bond, Christopher Newport University Project, 03/05/09, LOC: Wachovia Bank, N.A. (c) | 8,000 | 8,000,000 | ||||
Norfolk Redevelopment & Housing Authority, 0.65%, IDRB, E2F Student Housing I, LLC Project, 03/05/09, LOC: Bank of America, N.A. (c) | 2,485 | 2,485,000 | ||||
Prince William County, 0.60%, Series B, 03/04/09, LOC: Wachovia Bank, N.A. (c) | 3,575 | 3,575,000 | ||||
Virginia College Building Authority, 0.80%, Higher Education Bond, University of Richmond Project, Series A, 03/01/10 (c) | 3,085 | 3,085,000 | ||||
Virginia Public School Authority, 4.00%, Series 08, 04/15/09 | 10,935 | 10,962,454 | ||||
Washington 2.2% | ||||||
King County, 0.45%, Series 01A, 03/04/09, LOC: Landesbank Hessen-Thueringen (c) | 2,100 | 2,100,000 | ||||
Washington Economic Development Finance Authority, 0.59%, IDRB, Seadrunar Project, Series 00E, 03/05/09, LOC: U.S. Bank, N.A. (c) | 1,915 | 1,915,000 |
7 | The accompanying notes are an integral part of the financial statements. |
Statement of Net Assets
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
Washington (cont’d) | ||||||
Washington Health Care Facilities Authority, 0.42%, Hospital Revenue Bond, PeaceHealth Project, Series 08B, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | $7,000 | $7,000,000 | ||||
Washington Higher Education Facilities Authority, 0.65%, Higher Education Bond, Bastyr University Project, Series 05, 03/05/09, LOC: Bank of America, N.A. (c) | 7,210 | 7,210,000 | ||||
Washington Housing Finance Commission, 0.65%, Hearthstone Project, 03/05/09, LOC: Bank of America, N.A. (c) | 3,080 | 3,080,000 | ||||
Washington Housing Finance Commission, 0.90%, Rockwood Retirement Community Project, Series 02, 03/02/09, LOC: Wells Fargo Bank, N.A. (c) | 7,000 | 7,000,000 | ||||
Washington Housing Finance Commission, 0.59%, Villa Academy Project, Series 07, 03/05/09, LOC: U.S. Bank, N.A. (c) | 7,070 | 7,070,000 | ||||
Washington Housing Finance Commission, 0.59%, YMCA of Greater Seattle Project, Series 07, 03/05/09, LOC: Bank of America, N.A. (c) | 3,000 | 3,000,000 | ||||
West Virginia 0.8% | ||||||
West Virginia Hospital Finance Authority, 0.65%, Hospital Revenue Bond, Cabell Huntington Hospital Project, Series B, 03/05/09, LOC: Branch Banking & Trust (c) | 8,475 | 8,475,000 | ||||
West Virginia Hospital Finance Authority, 0.60%, Hospital Revenue Bond, Charleston Area Medical Center Project, Series 08A, 03/04/09, LOC: Branch Banking & Trust (c) | 8,500 | 8,500,000 | ||||
Wisconsin 1.1% | ||||||
Wisconsin Center District, 0.63%, Series 01A, 03/04/09, LOC: U.S. Bank N.A. (c) | 10,100 | 10,100,000 | ||||
Wisconsin, GO, 4.00%, Series 08A, 05/01/09 | 5,795 | 5,816,499 | ||||
Wisconsin Health & Educational Facilities Authority, 0.53%, Hospital Revenue Bond, Gundersen Lutheran Medical Center Project, Series 08B, 03/05/09, LOC: Wells Fargo Bank, N.A. (c) | 5,000 | 5,000,000 | ||||
Total notes, bonds & variable rate demand notes (cost $1,643,520,548) | 1,643,520,548 | |||||
Tax exempt commercial paper 5.8% (a) | ||||||
Colorado 0.5% | ||||||
Transportation Regulations, 1.95%, 03/12/09, LOC: Westdeutsche Landesbank | 10,400 | 10,400,000 | ||||
Kentucky 1.1% | ||||||
Pendleton County, GO, 0.95%, 03/11/09, LOC: J.P. Morgan Chase Bank | 20,000 | 20,000,000 | ||||
Massachusetts 0.7% | ||||||
Massachusetts Development Finance Agency, 0.60%, Harvard University Project, Series E, 06/26/09 | 12,627 | 12,627,000 | ||||
Michigan 1.1% | ||||||
Michigan Building Authority, 0.75%, 04/02/09, LOC: Bank of New York and State Street Bank & Trust Co. | 21,400 | 21,400,000 | ||||
Nevada 0.8% | ||||||
Clark County, 0.35%, 05/14/09, LOC: BNP Paribas | 10,000 | 10,000,000 | ||||
Clark County, 0.70%, Series 08A, 03/05/09, LOC: BNP Paribas | 5,000 | 5,000,000 |
Notes, bonds & variable rate demand notes 87.9% (a) (b) | Principal amount (in thousands) | Value | ||||
North Carolina 0.8% | ||||||
North Carolina Capital Facilities Finance Agency, 0.60%, Duke University Project, 03/17/09 | $9,423 | $9,423,000 | ||||
North Carolina Capital Facilities Finance Agency, 0.55%, Duke University Project, 03/26/09 | 6,100 | 6,100,000 | ||||
Texas 0.5% | ||||||
Texas Public Finance Authority, 0.35%, 04/07/09 | 9,000 | 9,000,000 | ||||
Washington 0.3% | ||||||
Port of Tacoma, 0.85%, Subordinate Lien Revenue Notes, 03/06/09, LOC: Bank of America, N.A. | 5,385 | 5,385,000 | ||||
Total tax exempt commercial paper (cost $109,335,000) | 109,335,000 | |||||
Total investment portfolio (cost $1,752,855,548) (d), 93.7% (a) | 1,752,855,548 | |||||
Other assets and liabilities net, 6.3% (a) | 118,642,945 | |||||
Net assets | ||||||
(net asset value, offering and redemption price of $1.00 per share; 1,871,555,961 shares outstanding), consisting of paid-in capital net of accumulated net realized loss of $3,262, 100.0% | $1,871,498,493 | |||||
(a) Percentages indicated are based on net assets. (b) Earlier of the maturity date or the put date. (c) Floating 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. | ||||||
BPA—Bond Purchase Agreement. EFRB—Educational Facilities Revenue Bond. GO—General Obligation. IDRB—Industrial Development Revenue Bond. LOC—Credit enhancement provided by letter of credit issued by noted institution. MFHRB—Multi-Family Housing Revenue Bond. |
Investment Portfolio Composition | ||
UNAUDITED I 2.28.2009 | ||
Type of investment | Percent of net assets | |
7-day variable rate demand notes | 68.1% | |
1-day variable rate demand notes | 12.4% | |
Fixed rate notes | 6.7% | |
Tax exempt commercial paper | 5.9% | |
Put bonds | 0.6% |
The accompanying notes are an integral part of the financial statements. | 8 |
Financial Statements
MUNICIPAL MONEY MARKET FUND |
Statement of Operations | 9/1/08 to 2/28/09 (unaudited) | ||
Investment income | |||
Interest | $14,850,198 | ||
Expenses | |||
Investment advisory fee | 4,179,636 | ||
Distribution fees | 1,451,139 | ||
U.S. Treasury Guarantee Program fees | 332,747 | ||
Shareholder servicing fees | 210,668 | ||
State qualification expenses | 62,931 | ||
Fund accounting fee | 53,268 | ||
Custodian fee | 52,060 | ||
Professional fees | 45,847 | ||
Trustees and officers compensation | 20,714 | ||
Reports to shareholders | 16,269 | ||
Other | 22,152 | ||
Total expenses before adjustments | 6,447,431 | ||
Fees waived | (439,102 | ) | |
Expense offsets | (49,477 | ) | |
Total expenses after adjustments | 5,958,852 | ||
Net investment income from operations | $8,891,346 |
Statements of Changes in Net Assets | 9/1/08 to 2/28/09 (unaudited) | 9/1/07 to 8/31/08 | ||||
Net assets, beginning of period | $1,866,561,078 | $1,281,060,319 | ||||
Increase (decrease) in net assets from operations | ||||||
Net investment income from operations | 8,891,346 | 29,537,645 | ||||
Net realized gain (loss) on investments | — | (3,262 | ) | |||
Net increase in net assets resulting from operations | 8,891,346 | 29,534,383 | ||||
Distributions to shareholders from net investment income ($0.005 and $0.019 per share) | (8,891,346 | ) | (29,537,645 | ) | ||
Capital share transactions | 4,937,415 | 585,504,021 | ||||
Increase (decrease) in net assets | 4,937,415 | 585,500,759 | ||||
Net assets, end of period | $1,871,498,493 | $1,866,561,078 |
Financial Highlights
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements.
9/1/08 to 2/28/09 (unaudited) | For the fiscal years ended August 31 | |||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
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) | 0.005 | 0.019 | 0.030 | 0.026 | 0.014 | 0.004 | ||||||||||||
Less distributions | ||||||||||||||||||
Dividends from net investment income (a) | (0.005 | ) | (0.019 | ) | (0.030 | ) | (0.026 | ) | (0.014 | ) | (0.004 | ) | ||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||
Total return (%) | 0.47 | (b) | 1.95 | 3.05 | 2.58 | 1.40 | 0.39 | |||||||||||
Ratios to average daily net assets (%) | ||||||||||||||||||
With expenses waived/recovered | 0.62 | (c) | 0.64 | 0.66 | 0.68 | 0.69 | 0.68 | |||||||||||
Without expenses waived/recovered | 0.67 | (c) | 0.64 | 0.66 | 0.68 | 0.69 | 0.68 | |||||||||||
Net income | 0.92 | (c) | 1.84 | 3.01 | 2.57 | 1.40 | �� | 0.40 | ||||||||||
Net assets, end of period ($ millions) | 1,871 | 1,867 | 1,281 | 1,207 | 1,054 | 1,008 |
(a) May include net realized gains and losses that are less than $.001 per share. (b) Not annualized. (c) Annualized.
9 | The accompanying notes are an integral part of the financial statements. |
Notes to Financial Statements
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
NOTE 1 I Organization and investment objective 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 seeks to achieve maximum current income exempt from federal income tax consistent with stability of principal.
From September 1, 2008 to October 31, 2008, Heritage Asset Management, Inc. (“Heritage”) served as the investment adviser, administrator, shareholder servicing agent and fund accountant for the Fund. As part of a corporate reorganization (the “Reorganization”), on November 1, 2008, Heritage transferred its advisory and administrative service agreement with the Fund to its affiliate, Eagle Asset Management, Inc. (“Eagle”). Collectively, Heritage and Eagle are referred to as the “Manager.” As part of the Reorganization, the name of the Trust and Fund will change on May 1, 2009 to reflect Eagle as the new adviser and administrator.
In addition, effective November 1, 2008, Heritage changed its name to Eagle Fund Services, Inc. (“EFS”) and remains the Fund’s shareholder servicing agent and fund accountant. Eagle and EFS are wholly owned subsidiaries of Raymond James Financial, Inc. (“RJF”).
The Eagle Family of Funds consists of the Trust in addition to other investment companies advised by the Manager: Eagle Capital Appreciation Fund, Eagle Growth & Income Fund, Eagle Series Trust and Heritage Income Trust. Members of the Boards of Trustees (the “Board”) for the Trust may serve as Trustees for one or more of the Eagle Family of Funds.
NOTE 2 I Significant accounting policies
Use of estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates and those differences could be material.
Valuation of securities The amortized cost method of security valuation is used by the Fund (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 as of the time of purchase and thereafter accreting/amortizing any purchase discount/premium at a constant rate until maturity. Amortized cost approximates market value.
The Fund adopted the Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, effective September 1, 2008. FAS 157 establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosure about fair value measurements that are relevant to a mutual fund’s value. The Manager has concluded that the adoption of FAS 157 has not had a material impact on the Fund’s financial statements.
Various inputs are used in determining the value of the Fund’s investments. FAS 157 establishes a three level hierarchy of inputs to establish a classification of fair value measurements for disclosure purposes. The three levels are defined below:
Level 1— | Valuations based on quoted prices for identical securities in active markets, |
Level 2—Valuations | based on inputs other than quoted prices that are observable, either directly or indirectly, including inputs in markets that are not considered active and |
Level 3—Valuations | based on inputs that are unobservable and significant to the fair value measurement. |
The following is a summary of the inputs used to value the Fund’s investments as of February 28, 2009.
Investments in securities | ||
Level 1 - Quoted prices | $ — | |
Level 2 - Other significant observable inputs | 1,752,855,548 | |
Level 3 - Significant unobservable inputs | — | |
Total investment portfolio | $1,752,855,548 |
Revenue recognition Investment security transactions are accounted for on a trade date basis. Interest income is recorded on an accrual basis.
Expenses The Fund is charged for those expenses which are directly attributable to it, while other expenses are allocated proportionately among the Eagle Family of Funds based upon methods approved by the Board. The Fund has entered into an arrangement with the custodian whereby the Fund receives credits on uninvested cash balances which are used to offset a portion of the Fund’s expenses. These custodian credits are shown as “Expense offsets” in the Statement of Operations.
Distribution of income and gains Distributions of net investment income and net realized gains available for distribution are
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Notes to Financial Statements
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
declared daily and paid monthly. The Fund uses the identified cost method for determining realized gain or loss on investments for both financial and federal income tax reporting purposes.
Other In the normal course of business the Fund enters into contracts that contain a variety of representations and warranties, which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the risk of loss to the Fund is expected to be remote.
NOTE 3 I Capital share transactions At February 28, 2009, there were an unlimited number of shares of beneficial interest of no par value authorized. Capital share transactions in the Fund during the six-month period ended February 28, 2009 and the fiscal year ended August 31, 2008, at a net asset value of $1.00 per share, were as follows:
Shares and dollars | 9/1/08 to 2/28/09 | 9/1/07 to 8/31/08 | ||||
Sold | 5,082,156,178 | 6,988,005,346 | ||||
Reinvestment of distributions | 8,972,665 | 29,236,959 | ||||
Redeemed | (5,086,191,428 | ) | (6,431,738,284 | ) | ||
Net increase | 4,937,415 | 585,504,021 |
NOTE 4 I Investment advisory fees and other transactions with affiliates The Fund agreed to pay the Manager an investment advisory and administrative fee equal to an annualized rate based on a percentage of the Fund’s average daily net assets, which is computed daily based on the schedule below and payable monthly. The amount payable to the Manager as of February 28, 2009, was $413,050.
Fund’s average daily net assets | Investment advisory fee rate | |
First $250 million | 0.500% | |
$250 million to $500 million | 0.475% | |
$500 million to $750 million | 0.450% | |
$750 million to $1 billion | 0.425% | |
Greater than $1 billion | 0.400% | |
Effective 11/1/08 | ||
$1 billion to $2.5 billion | 0.400% | |
$2.5 billion to $5 billion | 0.375% | |
$5 billion to $7.5 billion | 0.360% | |
$7.5 billion to $10 billion | 0.350% | |
Greater than $10 billion | 0.340% |
Expense limitation The Manager has contractually agreed, for the fiscal year ending August 31, 2009, to waive its fees and/or reimburse expenses to the extent that the annual operating expense rate exceed 0.74% of its average daily net assets. This expense limitation excludes interest, taxes, brokerage commissions, extraordinary expenses and includes offset expense arrangements with the Fund’s custodian. The agreement allows the Manager the right to recover, from the Fund, any fees waived and/or reimbursed if the total annual operating expenses are less than the expense limitation then in effect. The fees can be recovered within the two fiscal years following the year for which the fees were waived and/or reimbursed.
Pursuant to a Prospectus Supplement filed on January 29, 2009, Eagle voluntarily agreed to cap its investment advisory fee and/or reimburse certain expenses of the Fund to the extent that it becomes necessary in order to maintain a positive yield. There is no guarantee that the Fund will be able to maintain a positive yield. Any reimbursement of Fund expenses or reduction in Eagle’s investment advisory fees under this voluntary undertaking is subject to reimbursement by the Fund within the following three fiscal years and any additional periods, if overall expenses fall below the Fund’s stated limitations. During the six-month period ended February 28, 2009, the Manager waived $439,102 in investment advisory fees, no expenses were reimbursed and no fees were recovered.
Subadvisory fees The Manager entered into a subadvisory agreement with an unaffiliated party to provide investment advice, portfolio management services (including placement of brokerage orders) and certain compliance and other services.
Distribution fees Eagle Fund Distributors, Inc. (“EFD” or “Distributor”) serves as the Fund’s distributor. Prior to November 1, 2008, EFD was known as Heritage Fund Distributors, Inc. EFD is an affiliate of RJF. Pursuant to a plan adopted in accordance with Rule 12b-1 under the Investment Company Act of 1940, as amended, the Fund is authorized to pay the Distributor a fee of 0.15% of the average daily net assets. Such fee is accrued daily and payable monthly. The amount payable by the Fund to the Distributor as of February 28, 2009, was $218,763.
Fund accounting fees EFS is the fund accountant for the Fund. For providing fund accounting services, EFS receives payment from the Fund at a fixed base fee plus any out-of-pocket expenses. The amount payable by the Fund to EFS as of February 28, 2009, was $8,426.
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Notes to Financial Statements
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
Shareholder servicing fees EFS is the shareholder servicing agent for the Fund. For providing shareholder services, EFS receives payment from the Fund at a fixed fee per shareholder account plus any out-of-pocket expenses. The amount payable by the Fund to EFS as of February 28, 2009, was $34,803.
Trustees and officers compensation Each Trustee of the Eagle Family of Funds who is not an employee of the Manager receives an annual retainer along with meeting fees for those Eagle Family of Funds’ regular or special meetings attended in person and 25% of such fees are received for telephonic meetings. All reasonable out-of-pocket expenses are also reimbursed. Except when directly attributable to a fund, Trustees’ fees and expenses are allocated on a pro rata basis among each portfolio in the Eagle Family of Funds. The pro rata allocation is for each Fund for which the Trustee is elected to serve. Certain Officers of the Eagle Family of Funds may also be Officers and/or Directors of Eagle. Such Officers receive no compensation from the Eagle Family of Funds except for the Eagle Family of Funds’ Chief Compliance Officer. A portion of the Chief Compliance Officer’s total compensation is paid equally by each portfolio in the Eagle Family of Funds. As of February 28, 2009, the amount of Trustees and Officers compensation payable by the Fund was $8,364.
NOTE 5 I 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.
The timing and character of certain income and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) from investment transactions for a reporting period may differ from distributions during such period. These book/tax differences may be temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in capital or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Results of operations and net assets are not affected by these reclassifications. From November 1, 2007 to August 31, 2008, the Fund incurred $3,262 of net realized capital losses (post October losses) which will be deferred and treated as arising on
September 1, 2008 in accordance with regulations under the Internal Revenue Code. All dividends paid by the Fund from net investment income are exempt from federal income tax; however, a portion of the dividends paid may be subject to the alternative minimum tax.
NOTE 6 I New accounting pronouncements In March 2008, FASB issued its new Standard No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“FAS 161”). FAS 161 is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position, financial performance, and cash flows. FAS 161 is effective for financial statements issued for the fiscal years beginning after November 15, 2008. The Manager is evaluating the application of FAS 161 to the Fund, and is not in a position at this time to estimate the significance of its impact on the Fund’s financial statements.
NOTE 7 I U.S. Treasury Guarantee Program The Board has elected to extend the Fund’s participation in the U.S. Treasury Temporary Guarantee Program (the “Program”) for money market funds through September 18, 2009 (“Second Extension Period”). Under the Program, the Treasury will guarantee to investors in participating money market funds that they will receive payments with a total value of $1.00 for each money market fund share held as of the close of business on September 19, 2008 if the fund’s net asset value (“NAV”) per share falls below $0.995 (“Guarantee Event”) as described herein. Recovery under the Program is subject to certain conditions and limitations, including those discussed herein.
The Fund paid a fee of 0.010% of its net assets as of September 19, 2008 to participate in the Program through the initial term ended December 18, 2008 and 0.015% of the net assets to participate in an extension period ended April 30, 2009.
In order to participate in the Program through the Second Extension Period, the Fund must pay an amount equal to 0.015% of its net assets as of September 19, 2008. The Fund is responsible for payment of fees required to participate in the Program and will not be subject to any expense limitation or reimbursement agreement.
The Program provides coverage to shareholders of the Fund for amounts that they held in the Fund as of the close of business on September 19, 2008. Any increase in the number of shares of the Fund held in the account after the close of business on September 19, 2008 will not be guaranteed. Any purchase of
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Notes to Financial Statements
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
shares of the Fund for a new account after the close of business on September 19, 2008 will not be guaranteed. If the number of shares held in the account fluctuates over the period, shareholders will be covered up to the lesser of the shares held on September 19, 2008 or the date of the Guarantee Event. If a shareholder covered by the Program closes his or her account and then subsequently opens a new account in the Fund, that new account would not be covered by the Program.
In order to recover under the Program, a Guarantee Event must occur during the term of the Program. The Treasury does not have the authority to extend the Program beyond the Second Extension Period.
Recovery under the Program requires a participating fund to liquidate if there is a Guarantee Event and such Guarantee Event is not cured. For shares covered by the guarantee, any difference between the amount received by a shareholder (in cash or through in-kind distributions) in connection with the liquidation and $1.00 per share will be covered under the Program.
Guarantee payments under the Program will not exceed the amount available within the Treasury’s Exchange Stabilization Fund (“ESF”) on the date of payment. Currently, ESF assets are approximately $50 billion.
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Understanding Your Ongoing Costs
MUNICIPAL MONEY MARKET FUND | UNAUDITED | 02.28.2009 |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges on purchases or contingent deferred sales charges and (2) ongoing costs, including investment advisory fees; distribution (12b-1) fees; and other fund expenses. The following sections are intended to help you understand your ongoing cost (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect one-time transaction expenses, such as sales charges. Therefore, if these transactional costs were included, your costs would have been higher. For more information, see the Fund’s prospectus or contact your financial advisor.
Actual expenses The following table shows the actual expenses you would have paid on a $1,000 investment in the Heritage Cash Trust—Municipal Money Market Fund on September 1, 2008, and held through February 28, 2009. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns after ongoing expenses. This table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the line under the heading entitled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Actual | Beginning September 1, 2008 | Ending February 28, 2009 | Expenses paid during period (a) | |||||
Municipal Money Market Fund $1,000.00 | $1,004.69 | $3.09 |
Hypothetical example for comparison purposes All mutual funds now follow guidelines to assist shareholders in comparing expenses between different funds. Per these guidelines, the following table shows your Fund’s expenses based on a $1,000 investment and assuming for the period a hypothetical 5% annualized rate of return before ongoing expenses, which is not the Fund’s actual return. Please note that you should not use this information to estimate your actual ending account balance and expenses paid during the period. You can use this information to compare the ongoing expenses (but not transaction expenses or total costs) of investing in the Fund with those of other funds. All mutual fund shareholder reports will provide this information to help you make this comparison.
Hypothetical (5% return before expenses) | Beginning September 1, 2008 | Ending February 28, 2009 | Expenses paid during period (a) | |||||
Municipal Money Market Fund $1,000.00 | $1,021.71 | $3.11 |
(a) Expenses are calculated using the Fund’s annualized expense ratio of 0.62% multiplied by the average account value for the period, then multiplying the result by the actual number of days in the period (181), and then dividing that result by the actual number of days in the fiscal year (365).
Tax Information
UNAUDITED
Of the dividends paid from net investment income for the fiscal year ended August 31, 2008, 100% were exempt interest dividends that are tax exempt for federal income tax purposes, and a portion were exempt interest dividends that may be subject to the federal alternative minimum tax. For the six-month period ended February 28, 2009, the Fund invested in securities that earned taxable income which was distributed to shareholders in calendar 2008. These distributions were reported to shareholders on their 2008 1099-DIV. Please consult a tax adviser if you have questions about federal or state income tax laws, or on how to prepare your tax return.
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eagleasset.com
727.567.8143 I 800.421.4184
Eagle Fund Distributors, Inc.
Member FINRA
Not FDIC Insured ¨ May Lose Value ¨ No Bank Guarantee
An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of our investment at $1.00 per share, it is possible to lose money by investing in the Fund. Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Contact Eagle at 800.421.4184 or your financial advisor for a prospectus, which contains this and other important information about the Funds. Read the prospectus carefully before you invest or send money.
This report is for the information of shareholders of Heritage Cash Trust. If you wish to review additional information on the portfolio holdings of a fund, a complete schedule has been filed with the Securities and Exchange Commission (“Commission”) for the first and third quarters of each fund’s fiscal year end on Form N-Q. These filings are available on the Commission’s website at www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operations of the Public Reference Room may be obtained by calling 800.SEC.0330. A description of each fund’s proxy voting policies, procedures and information regarding how each fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2008, is available without charge, upon request, by calling the Eagle Family of Funds, toll-free at the number above, by accessing our website at eagleasset.com or by accessing the Commission’s website at www.sec.gov.
Would you like to receive future mailings via e-mail? If so, please let us know. Visit eagleasset.com to enroll.
02/09 | Printed on recycled paper |
Item 2. Code of Ethics
Not applicable to semi-annual reports.
Item 3. Audit Committee Financial Expert
Not applicable to semi-annual reports.
Item 4. Principal Accountant Fees and Services
Not applicable to semi-annual reports.
Item 5. Audit Committee of Listed Registrants
Not applicable to the registrant.
Item 6. Schedule of Investments
Included as part of report to shareholders under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-end Management Investment Companies
Not applicable to the registrant.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable to the registrant.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to the registrant.
Item 10. Submission of Matters to a Vote of Security Holders
There have been no material changes to the Nominating Committee Charter, which sets forth procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees, since the Trust last provided disclosure in response to this item.
Item 11. Controls and Procedures
(a) | Based on an evaluation of the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 as amended (the “Act”)), the Principal Executive Officer and Principal Financial Officer of Heritage Cash Trust have concluded that such disclosure controls and procedures are effective as of April 22, 2009. |
(b) | There was no change in the internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) of Heritage Cash Trust that occurred during the second fiscal quarter of the period covered by this report that has materially affected or is reasonably likely to materially affect, its internal control over financial reporting. |
Item 12. Exhibits
(a)(1) | Not applicable to semi-annual reports. |
(a)(2) | The certifications required by Rule 30a-2(a) under the Act and Section 302 of the Sarbanes-Oxley Act of 2002 are filed and attached hereto as Exhibit 99.CERT. |
(a)(3) | Not applicable to the registrant. |
(b) | The certifications required by Rule 30a-2(b) under the Act and Section 906 of the Sarbanes-Oxley Act of 2002 are filed and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
HERITAGE CASH TRUST | ||||||||
Date: April 22, 2009 | ||||||||
/s/ Mathew J. Calabro | ||||||||
Mathew J. Calabro Principal Executive Officer |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
HERITAGE CASH TRUST | ||||||||
Date: April 22, 2009 | ||||||||
/s/ Mathew J. Calabro | ||||||||
Mathew J. Calabro Principal Executive Officer |
Date: April 22, 2009 | ||||||||
/s/ Andrea N. Mullins | ||||||||
Andrea N. Mullins Principal Financial Officer |