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: 811-09561
Century Capital Management Trust
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
c/o Century Capital Management, LLC
100 Federal Street, Boston, Massachusetts 02110
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(Address of principal executive offices) (Zip code)
Steven Alfano
Century Capital Management, LLC
100 Federal Street, Boston, Massachusetts 02110
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 482-3060
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Date of fiscal year end: October 31
-----------------
Date of reporting period: April 30, 2005
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ITEM 1. Report to Shareholders.
[LOGO] CENTURY FUNDS
Seventy-Seven
Years of
Investing
1928 - 2005
Century Shares Trust
Century Small Cap Select Fund
Semi-Annual Report
April 30, 2005
[Graphic]
PEOPLE AND IDEAS THAT WORK TM
CENTURY FUNDS
AVERAGE ANNUAL TOTAL RETURNS AS OF APRIL 30, 2005
OVERALL 1YEAR 3YEARS 5YEARS 10 YEARS
------- ----- ------ ------ --------
CENTURY SHARES TRUST 3.03% 4.15% 10.23% 12.53%
Morningstar Overall Rating ***** **** ***** *****
For the period ended 04/30/05, Century Shares Trust was rated against 1198,
899, and 317 Large Blend funds for the 3-, 5- and 10-year periods,
respectively.
- ------------------------------------------------------------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND OVERALL 1YEAR 3YEARS 5YEARS SINCE INCEPTION
------- ----- ------ ------ ---------------
Investor Shares (02/24/00) 8.82% 14.36% 18.71% 20.02%
Institutional Shares (12/09/99) 9.18% 14.86% 19.05% 19.95%
Morningstar Overall Rating ***** ***** *****
The Overall Morningstar Rating for a fund is derived from a weighted
average of the performance figure associated with its 3, 5 and 10-year (if
applicable) Morningstar Rating metrics. For the period ended 04/30/05,
Century Small Cap Select was rated against 555 and 402 Small Cap Growth
funds for the 3 and 5-year periods, respectively.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NO GUARANTEE OF
FUTURE RESULTS. Current performance may be lower or higher than the performance
data quoted. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost.
For the most recent month end performance, please call 1-800-321-1928 or visit
the Funds' website at www.centuryfunds.com. Shares held less than 180 days may
be subject to a 1.0% redemption fee.
Returns include the reinvestment of dividends and capital gains. Performance for
Century Small Cap Select Fund would have been lower during relevant periods if
certain fees had not been waived or expenses reimbursed. Performance information
for the Funds does not reflect the deduction of taxes that shareholders would
pay on Fund distributions or the redemption of Fund shares.
CONCENTRATION, OR FOCUS, AS THE CASE MAY BE, IN THE FINANCIAL SERVICES AND
HEALTH CARE FIELDS WILL SUBJECT THE FUNDS TO THE RISKS ASSOCIATED WITH THOSE
FIELDS (E.G., GOVERNMENT REGULATION, INTEREST RATES, CLAIMS ACTIVITY, AND
EXPOSURE TO NATURAL AND MAN-MADE DISASTERS) AND MAY RESULT IN GREATER
FLUCTUATION IN SHARE VALUE THAN IS EXPERIENCED IN LESS CONCENTRATED OR FOCUSED
PORTFOLIOS. IN ADDITION, THE CENTURY SMALL CAP SELECT FUND INVESTS IN SMALLER
COMPANIES WHICH POSE GREATER RISKS THAN THOSE ASSOCIATED WITH LARGER, MORE
ESTABLISHED COMPANIES.
For the period ended 04/30/05, both Century Small Cap Select Fund and Century
Shares Trust's Overall Morningstar Rating was five stars. For each fund with at
least a three-year history, Morningstar calculates a Morningstar Rating based on
a Morningstar Risk-Adjusted Return measure that accounts for variation in a
fund's monthly performance (including the effects of sales charges, loads, and
redemption fees), placing more emphasis on downward variations and rewarding
consistent performance. The top 10% of funds in each category receive 5 stars,
the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5%
receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted
as a fraction of one fund within this scale and rated separately, which may
cause slight variations in the distribution percentages.) The Overall
Morningstar Rating for a fund is derived from a weighted-average of the
performance figures associated with its three-, five- and ten-year Morningstar
Rating metrics. The Century Small Cap Select Fund was rated against 555 and 402
U.S.-domiciled small cap growth funds over the last three and five years
respectively. With respect to these small cap growth funds, the Century Small
Cap Select Fund (both share classes) received a Morningstar Rating of five stars
for the three-year and five-year periods. Century Shares Trust was rated against
1198, 899, and 317 U.S. - domiciled large blend funds over the last 3-, 5- and
10-years, respectively. With respect to these large blend funds, Century Shares
Trust received a Morningstar rating of 5 stars for the 3 and 5 year periods, and
four stars for the 10 year period. C 2005 Morningstar, Inc. All Rights Reserved.
The information contained herein: (1) is proprietary to Morningstar; (2) may not
be copied or distributed; and (3) is not warranted to be accurate, complete or
timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information.Past performance is
no guarantee of future results.
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors unless
preceded or accompanied by the funds' prospectus. Before investing, you should
carefully consider the Century Funds' investment objectives, risks, fees and
expenses. This and other information is in the prospectus, a copy of which may
be obtained by calling 1-800-321-1928 or visiting the Funds' website. Please
read the prospectus carefully before you invest.
The views in this report were those of Century Funds' Chief Investment Officer
and Director of Research as of April 30, 2005 and may not reflect their views on
the date this report is first published or anytime thereafter. These views are
intended to assist shareholders of the Funds in understanding their investments
and do not constitute investment advice. There is no assurance that the Funds
will continue to invest in the securities mentioned. Foreside Fund Services,
LLC, Distributor.
DEAR FELLOW SHAREHOLDERS:
Our funds performed well during the first six months of this fiscal year.
Century Shares Trust was up 3.87% versus the 3.28% return for the S&P 500
Index during the same period. Century Small Cap Select Fund was up 5.63%
(Institutional shares) and 5.50% (Investor shares) versus the -0.15%
decline for the Russell 2000 Index during the six-month period ending April
30, 2005. We are pleased to report that both funds received five star
overall ratings from Morningstar and that the expense ratios for both funds
declined slightly from a year ago.
We observe that small cap stocks have outperformed large caps by a
significant amount over the last several years. At this point, we
anticipate small cap performance to be more in line with large cap stocks.
We still are excited by the potential for mid-teens earnings growth for
smaller companies, but we are increasingly confident that large caps
earnings growth expectations are rising toward mid-teens levels.
This report reviews the current market outlook and each fund's performance,
followed by a snapshot of several health care investments. Health care
holdings produced a significant percentage of each fund's positive
performance during the period.
THE ECONOMIC CYCLE ENTERS ADULTHOOD
It has been an eventful six months since the November presidential
election. Equity markets rallied very strongly through year-end, only to
give back much of their gains over the next four months on mounting
concerns about inflation, energy prices and the economic recovery. Despite
these concerns, many businesses are growing earnings at above average
rates, while corporate balance sheets and profit margins are stronger than
they have been in a decade. We anticipate these positive underlying trends
to continue, at a more moderate pace. U.S. Gross Domestic Product (GDP) has
now grown for 14 consecutive quarters. The 2005 U.S. economy is forecast to
continue delivering positive growth, but at a slower pace than the 6% to 7%
nominal growth rates experienced during the past 1 1 1/42 years. First
quarter S&P 500 earnings per share grew above 13%, and expectations are
rising for the remainder of the year. However, these favorable currents are
partially offset by concerns about the prospect of rising interest rates,
inflation and energy prices.
MARKET OUTLOOK
Looking forward, we remain optimistic about the strength of this recovery
as the business cycle enters a mature phase. The outlook for 2005 corporate
earnings points to continued profit growth above 15%, which is
significantly above average long-term earnings growth. Consumer spending
and confidence remain high: Most employment data now point to continuing
job growth, while unemployment stands at a low 5.1% rate.
Investors face some economic crosswinds. The Federal Reserve has increased
interest rates 8 times in the last year and rising gasoline prices have
eaten into discretionary spending. There is increased scrutiny of the real
estate asset bubble in many coastal residential markets. Globally, rapid
growth in Asia is offsetting weakness in Europe where voters in France and
Denmark recently rejected the European constitution.
International investors continue to be attracted to U.S. debt, which has
kept long term interest rates near their forty-year lows of 4% yields for
10-year U.S. Treasuries, despite the recent rise in short term rates by 200
basis points (2%) to 3%. This development has been a pleasant surprise for
most investors and borrowers. Equity investors also continue to benefit
from the recent income tax cut, making stock gains and dividends more
attractive to shareholders.
In summary, the economy appears to be in a period of stable-to-moderate
expansion, where 1) business and consumer profitability remains very high, 2)
corporate earnings growth is moderating but remains above average, and 3) equity
valuations seem reasonable at 17 times 2005 earnings estimates with long term
interest rates at these low levels.
CENTURY FUNDS
1
CENTURY SHARES TRUST
PERFORMANCE
The Trust reported a 3.87% return for the six months through April 30th. These
results compare favorably with a 3.28% return for the S&P 500 Index. As we said
earlier, health care companies accounted for much of our absolute and relative
outperformance, while two commercial property-casualty insurers were a drag on
performance as a result of regulatory investigations that focused on disclosure
and conflicts. Over the last year, we were fortunate to add to our health care
holdings, while financial services stocks were trimmed from 54% to 47% of the
portfolio.
[BAR CHART]
Performance Comparison 4/30/05
Century Shares Trust
1 Year 3.03%
3 Years 4.15%
5 Years 10.23%
10 Years 12.53%
S&P 500 Index
1 Year 6.34%
3 Years 4.24%
5 Years -2.94%
10 Years 10.26%
Past performance is no guarantee of future results. For performance related
disclosure and additional information, please refer to the inside front cover.
The S&P 500(R) Index is a well known gauge of how large capitalization U.S.
equities are doing. On the other hand, its results are not adjusted for the
costs to manage and trade a portfolio of securities, so they are not directly
comparable to an actual investor's results, and it is not available for
investment.
During the past six months, the Trust's best performers were United Health Group
(health benefits), Caremark (drug benefits management) and Anthem & Wellpoint
(health benefit companies which merged in late November). We go into greater
detail on the favorable trends at these companies later in the report. Other
notable contributors included Allstate, Chubb, Johnson & Johnson and United
Technologies.
[BAR CHART]
Fund Holdings 4/30/05
Financial Services 47.1%
Health Care 23.5%
Consumer Discretionary 10.0%
Technology 7.7%
Other 6.0%
Cash 5.7%
The Trust's underperformers include AIG (multi-line insurer), MBIA (financial
guaranty insurer), Wal-Mart (discount retailer) and Microsoft (software). Recent
investigations have impacted AIG and MBIA. We believe that both companies are a
formidable presence within the financial services industry. Our analysis
indicates that both AIG and MBIA have valuable franchises with sustainable
advantages that should eventually lead to higher valuations after the findings
of the investigation are revealed. However, we realize it may take some time
before we have complete clarity on the situation. Wal-Mart was impacted by
rising gasoline prices and slower organic growth, while Microsoft is
transitioning to several new product launches over the next two years.
Our health care companies have performed very well, while our consumer and
technology holdings benefited from continued economic growth. The
Property-Casualty insurers' operating fundamentals appear to be at a cyclical
peak, with combined ratios (loss plus operating expense ratios) at their lowest
levels in 20 years. As a result, 2005 earnings growth is likely to exceed 30%
for the third consecutive year. We note that while these results are
extraordinary, they represent the earnings leverage we seek in our portfolio
holdings.
CENTURY FUNDS
2
CENTURY SMALL CAP SELECT FUND
PERFORMANCE
For the Fund's 6-month performance through April 30, 2005, the Institutional
shares and the Investor shares returns were up 5.63% and 5.50% respectively,
versus -0.15% decline for the Russell 2000 Index.
[BAR CHART]
Performance Comparison 4/30/05
CSCS Institutional Shares
1 Year 9.18%
3 Years 14.86%
5 Years 19.05%
Since Inception 19.95%
Russell 2000 Index
1 Year 4.71%
3 Years 5.62%
5 Years 4.08%
Since Inception 5.52%
Institutional shares since inception 12/9/99
Past performance is no guarantee of future results. For performance related
disclosure and additional information, please refer to the inside front cover.
The Russell 2000(R) Index is widely regarded in the industry as the premier
measure of small cap stocks. On the other hand, its results are not adjusted for
the costs to manage and trade a portfolio of securities, so that they are not
directly comparable to an actual investors' results. The index is not available
for investment.
The largest contributors to fund performance over the last six months included
Providence Services (social services administration), Magnum Hunter (natural
gas), Gildan Activewear (casual apparel), American Healthways (disease
management) and Jones Lang LaSalle (real estate services). The Fund's
underperformers include Open Solutions (software), Plantronics (telecom
headsets), Encore Capital (receivable collections) and Tuesday Morning (closeout
retailer).
STICKING TO OUR KNITTING
I recently looked back at some of our early shareholder reports for some
inspiration and reflection, as well as to see if we had been consistent in our
message to you. At the time of our first semi-annual report in April 2000, I
mentioned a couple observations of our investment philosophy:
1) "The Fund focuses on smaller companies with higher earnings quality and
visibility than some of the widely known `momentum' stocks that have
captivated investors recently," and
2) "our fundamental `due diligence' research and industry knowledge are
well-suited to uncovering valuation inefficiencies among
smaller-capitalization companies."
In general, I believe we have adhered to these principles and will continue to
apply them as we look for innovative leaders with sustainable competitive
advantages.
[Bar Chart]
Fund Holdings 4/30/05
Consumer Discretionary 23.1%
Financial Services 18.8%
Health Care 18.7%
Technology 14.0%
Cash 11.9%
Other 7.4%
Producer Durables 3.3%
Other Energy 2.8%
Since the Small Cap fund was launched in December 1999, the fund's assets have
grown considerably and now exceed $600 million at the time of this letter. We
would like to thank all of you who have entrusted your hard-earned assets to us
over the last several years. Due to our growing size, we have recommended
closing this Fund to most new investors in the near future. Please read the
supplement to the prospectus for details about the closing. Both Kevin and I
feel strongly that the trust placed in us by you and the Fund's Trustees is best
served at an asset level where we can still find high-quality growth companies
that meet my profitability criteria and Kevin's valuation hurdle.
CENTURY FUNDS
3
A CENTURY SNAPSHOT:
INVESTING IN HEALTH CARE
Over the past six months, the Healthcare sector has been one of the better
performing sectors. Both Century Shares Trust (CST) and Century Small Cap Select
(CSCS) funds benefited from exposure to health care stocks. Across the health
care industry, several macro themes have driven individual stock performance.
The themes include the expansion of Medicare coverage, cost containment
initiatives and improving the quality of care.
(Graphic Omitted)
The Managed Care Organizations (MCOs) owned in Century Shares Trust include
Wellpoint and United Health Group. Both firms are well-positioned to grow
Medicare enrollment over the coming years and benefit from wider profit margins
as claims costs moderate. The deceleration in costs is driven first by reduced
drug spending (as generic drugs' share of total US prescriptions has risen to
54%) and, second, by low hospital admissions. In addition, information systems
have improved efficiency by monitoring the quality and cost of treating
patients.
Caremark, a pharmaceutical benefits manager, is another holding in
Century Shares Trust that benefited from the above health care trends. First,
its volume of business should expand as Medicare initiates a prescription drug
plan starting in 2006. Second, its margins should increase due to the migration
toward more profitable generic pharmaceuticals.
In the Century Small Cap Select fund, American Healthways, a disease management
firm, is at the forefront of controlling costs and improving quality. It
operates call centers staffed by nurses, who interact with patients suffering
from chronic conditions and their doctors. Serving major clients like Cigna and
several major Blue Cross organizations, its efforts led to a reduction in health
care costs and improved clinical outcomes. Success has attracted the attention
of Medicare administrators who selected American Healthways to manage two pilot
projects focused on controlling costs in Medicare recipients.
Another small-cap holding, Providence Services, benefited from its proven
ability to lower costs and improve clinical outcomes. The firm provides
counseling and case management, mostly to young people and their families.
The trend toward privatization of social services has worked in their favor.
Providence Services conducts counseling in clients' homes or community-based
settings (versus institutional settings). This approach leads to better clinical
outcomes and reduced spending for its government sponsors.
We look forward to updating you on new developments over the coming months.
Thank you for your continued support, and please contact us anytime via phone
(1-800-321-1928) or our website (www.centuryfunds.com) with any questions or
comments. We would also welcome any feedback on our updated website or other
improvements you would like to see from Century Funds.
Respectfully submitted,
/s/ Alexander L. Thorndike
Alexander L. Thorndike
Chairman and Chief Investment Officer
/s/ Kevin W. Callahan
Kevin W. Callahan
Director of Research
June 7, 2005
CENTURY FUNDS
4
SHAREHOLDER EXPENSE EXAMPLE
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs
including redemption fees, and (2) ongoing costs, including management fees,
distribution and service fees (in the case of Investor Shares of Century Small
Cap Select Fund) and other Fund expenses. This Example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare those costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (November 1, 2004 to April 30, 2005).
Actual Expenses
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000.00 (for example, an $8,600
account value divided by $1,000.00=8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period. An annual
maintenance fee of $10.00 that is charged once a year may apply for certain IRA
accounts. This fee is not included in the table below. If it was, the estimate
of expenses you paid during the period would be higher, and your ending account
value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs such as redemption
fees. Therefore, the second line of the table is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your
costs would have been higher.
Century Shares Trust Expenses Paid
During Period*
Beginning Ending Six Months
Account Value Account Value Ending
November 1, 2004 April 30, 2005 April 30, 2005
Based on Actual Fund Return $1,000.00 $1,038.70 $5.81
Based on Hypothetical 5% Yearly Return
before expenses $1,000.00 $1,019.07 $5.76
* These calculations are based on expenses incurred in the most recent fiscal
half-year. Century Shares Trust's annualized expense ratio is 1.15%. The dollar
amounts shown as "Expenses Paid" are equal to the annualized expense ratio
multiplied by the average account value over the period, multiplied by the
number of days in the most recent fiscal half-year, then divided by 365.
CENTURY FUNDS
5
Century Small Cap Expenses Paid
Select Fund During Period*
Beginning Ending Six Months
Account Value Account Value Ending
November 1, 2004 April 30, 2005 April 30, 2005
Based on Actual Fund Return
Institutional Shares $1,000.00 $1,056.30 $5.76
Investor Shares $1,000.00 $1,055.00 $7.13
Based on Hypothetical 5% Yearly Return
before expenses
Institutional Shares $1,000.00 $1,019.17 $5.66
Investor Shares $1,000.00 $1,017.84 $7.00
* These calculations are based on expenses incurred in the most recent fiscal
half-year. The Fund's annualized expense ratios are 1.13% for Institutional
Shares and 1.40% for Investor Shares. The dollar amounts shown as "Expenses
Paid" are equal to the annualized expense ratio multiplied by the average
account value over the period, multiplied by the number of days in the most
recent fiscal half-year, then divided by 365.
CENTURY FUNDS
6
CENTURY SHARES TRUST APRIL 30, 2005 - (UNAUDITED)
COMMON STOCK - 94.3%
SHARES VALUE
- -------- ----------
CONSUMER DISCRETIONARY - 10.0%
110,320 CDW Corp. $ 6,033,401
136,690 Family Dollar Stores, Inc. 3,687,896
45,320 Home Depot, Inc. 1,602,969
233,715 Staples, Inc. 4,456,945
154,660 Tiffany & Co. 4,662,999
113,820 TJX Companies, Inc. 2,578,023
167,530 Wal-Mart Stores, Inc. 7,897,364
----------
30,919,597
----------
CONSUMER STAPLES - 1.3%
67,930 Sysco Corp. 2,350,378
40,270 Walgreen Co. 1,734,026
---------
4,084,404
---------
FINANCIAL SERVICES - 47.1%
236,800 AFLAC, Inc. 9,625,920
181,394 Allstate Corp. 10,187,087
234,016 American International Gr., Inc. 11,899,714
115,000 Aon Corp. 2,397,750
165 Berkshire Hathaway, Inc. CL A * 13,917,750
190,000 The Chubb Corp. 15,538,200
191,258 Cincinnati Financial Corp. 7,696,202
129,430 Gallagher (Arthur J.) & Co. 3,603,331
260,000 J.P. Morgan Chase & Co. 9,227,400
223,750 MBIA, Inc. 11,720,025
8,000 Ohio Casualty Corp. * 187,600
109,000 The Progressive Corp. 9,948,430
290,000 Protective Life Corp. 11,089,600
265,100 RenaissanceRe Holdings Ltd. 11,868,527
71,500 SAFECO Corp. 3,765,905
218,300 Torchmark Corp. 11,663,769
87,666 Waddell & Reed Fin'l, Inc. CL A 1,526,265
-----------
145,863,475
-----------
HEALTH CARE - 23.5%
117,120 Abbott Laboratories 5,757,619
10,000 Barr Pharmaceuticals, Inc. * 518,600
58,920 Beckman Coulter, Inc. 3,930,553
78,350 Biomet, Inc. 3,031,361
184,770 Caremark Rx, Inc. * 7,400,039
227,830 Health Management Associates, Inc. 5,634,236
189,560 Henry Schein, Inc. * 7,110,396
84,100 Johnson & Johnson, Inc. 5,771,783
53,610 Millipore Corp. * 2,585,074
354,930 Pfizer, Inc. 9,643,448
141,680 UnitedHealth Group, Inc. 13,390,177
63,720 Wellpoint, Inc. * 8,140,230
-----------
72,913,516
-----------
SHARES/FACE AMOUNT VALUE
- ---------------------- ----------
PRODUCER DURABLES - 4.7%
209,550 Pall Corp. $ 5,622,226
87,930 United Technologies Corp. 8,944,240
-----------
14,566,466
-----------
TECHNOLOGY - 7.7%
206,008 Check Point Software Tech. Ltd. * 4,315,867
87,100 Cisco Systems, Inc. * 1,505,088
124,290 Citrix Systems, Inc. * 2,796,525
380,540 Microsoft Corp. 9,627,662
220,580 Texas Instruments, Inc. 5,505,677
----------
23,750,819
----------
TOTAL INVESTMENT IN COMMON STOCKS - 94.3%
(Identified cost, $136,260,596) 292,098,277
-----------
CASH EQUIVALENTS - 5.8%
FACE AMOUNT
- --------------
$17,936,000 State Street Bank and Trust
Eurodollar Time Deposit, at cost
approximating value, maturity
05/02/05 17,936,000
----------
TOTAL INVESTMENTS - 100.1%
(Identified cost, $154,196,596) 310,034,277
-----------
OTHER ASSETS AND LIABILITIES - (0.1%)
Other Assets 207,216
Liabilities (467,274)
---------
(260,058)
---------
NET ASSETS - 100% $309,774,219
============
* Non-income producing security
See notes to financial statements.
CENTURY FUNDS
7
CENTURY SMALL CAP SELECT FUND APRIL 30, 2005 - (UNAUDITED)
COMMON STOCK - 88.1%
SHARES VALUE
- -------- ----------
CONSUMER DISCRETIONARY - 23.1%
313,785 America's Car-Mart, Inc. * $ 6,633,415
321,000 Arbinet-thexchange, Inc. * 6,198,510
219,420 Beacon Roofing Supply, Inc. * 4,871,124
515,350 Casual Male Retail Group, Inc. * 3,406,463
282,330 Digital Theater Systems, Inc. * 4,771,377
435,380 Fred's, Inc. 6,286,887
302,050 Goody's Family Clothing, Inc. 2,491,912
227,700 Greenfield Online, Inc. * 4,103,154
86,050 Guitar Center, Inc. * 4,246,568
377,800 Harris Interactive, Inc. * 1,571,648
150,150 Jarden Corp. * 6,707,200
76,291 Lifeline Systems, Inc. * 2,601,523
381,690 Princeton Review, Inc. * 2,114,563
473,300 Providence Service Corp. * 12,111,747
148,520 Ritchie Bros. Auctioneers, Inc. 5,051,165
304,390 Ruby Tuesday, Inc. 6,848,775
137,840 Schawk, Inc. 2,901,532
411,750 Scientific Games Corp. * 8,840,273
268,070 Tractor Supply Co. * 10,781,775
358,868 Tuesday Morning Corp. * 9,423,874
158,954 USANA Health Sciences, Inc. * 6,569,569
-----------
118,533,054
-----------
CONSUMER STAPLES - 1.2%
112,900 American Italian Pasta Co. 2,671,214
97,770 Church & Dwight Co., Inc. 3,521,675
---------
6,192,889
---------
FINANCIAL SERVICES - 18.8%
425,600 Advent Software, Inc. * 7,592,704
371,250 American Equity Invt. Life Hld. Co. 4,432,725
97,180 Bancorp Rhode Island, Inc. 3,532,493
410,581 Blackbaud, Inc. 5,358,082
175,400 Bristol West Holdings, Inc. 2,645,032
259,680 Capital Trust, Inc. 8,746,022
216,850 Collegiate Funding Services, Inc. * 3,359,006
175,300 Community Bancorp * 4,210,706
465,522 Encore Capital Group, Inc. * 7,285,419
175,710 First Community Bancorp, Inc. 7,265,608
475,790 First Niagara Financial Group, Inc. 5,966,407
46,450 Infinity Property and Casualty Corp. 1,507,303
91,030 Jones Lang LaSalle, Inc. * 3,413,625
519,434 Marlin Business Services Corp. * 10,227,655
386,540 Platinum Underwriters Holding, Ltd. 11,441,584
118,650 PXRE Group Ltd. 2,798,954
128,680 Redwood Trust, Inc. 6,449,442
----------
96,232,767
----------
SHARES VALUE
- -------- ---------
HEALTH CARE - 18.7%
443,160 Able Laboratories, Inc. * $ 10,564,934
259,840 American Healthways, Inc. * 9,705,024
388,650 Andrx Corp. * 7,738,021
223,430 Apria Healthcare Group, Inc. * 6,725,243
121,550 ICON plc * 4,039,787
567,280 Merit Medical Systems, Inc. * 7,176,092
153,490 Millipore Corp. * 7,401,288
46,550 Molina Healthcare, Inc. * 2,036,563
740,473 Perrigo Co. 13,565,465
147,020 Shamir Optical Industry Ltd. * 2,422,890
224,170 Stericycle, Inc. * 10,910,354
63,250 Sunrise Senior Living, Inc. * 3,240,930
238,970 United Surgical Partners Int'l, Inc. *10,574,423
----------
96,101,014
----------
MATERIALS & PROCESSING - 1.7%
31,675 Rogers Corp. * 1,094,055
450,580 RPM International, Inc. 7,772,505
---------
8,866,560
---------
OTHER - 4.5%
197,000 iShares Trust Russell 2000 Gr. Index 11,583,600
100,400 iShares Trust Russell 2000 Index Fund 11,570,096
----------
23,153,696
----------
OTHER ENERGY - 2.8%
263,350 Foundation Coal Holdings, Inc. 6,149,223
164,750 Houston Exploration Co. * 8,392,365
----------
14,541,588
----------
PRODUCER DURABLES - 3.3%
603,400 Orbital Sciences Corp. * 5,623,688
302,650 Plantronics, Inc. 9,530,449
51,398 Varian Semiconductor Equip. Assoc. * 1,916,631
----------
17,070,768
----------
See notes to financial statements.
CENTURY FUNDS
8
CENTURY SMALL CAP SELECT FUND (CONT.) APRIL 30, 2005 - (UNAUDITED)
SHARES/FACE AMOUNTS VALUE
- ----------------------- ---------
TECHNOLOGY - 14.0%
281,570 Benchmark Electronics, Inc. * $ 7,613,653
281,069 Diodes, Inc. * 8,232,511
231,884 FLIR Systems, Inc. * 6,168,114
533,017 Ixia * 8,533,602
215,450 J2 Global Communications, Inc. * 7,695,874
234,400 Jupitermedia Corp. * 2,979,224
90,692 Kintera, Inc. * 405,393
154,550 NetGear, Inc. * 2,492,891
204,550 Ninetowns Digital World Trade Hldgs * 1,759,539
484,790 Online Resources Corp. * 4,217,673
461,830 Open Solutions, Inc. * 8,636,221
151,650 ScanSource, Inc. * 7,013,813
346,948 Ultimate Software Group, Inc. * 5,377,694
55,450 VeriFone Holdings, Inc. * 596,088
----------
71,722,290
----------
TOTAL INVESTMENT IN COMMON STOCKS - 88.1%
(Identified cost, $444,961,569) 452,414,626
-----------
CASH EQUIVALENTS - 16.3%
FACE AMOUNT
- -----------
$83,597,000 State Street Bank and Trust
Eurodollar Time Deposit, at
cost approximating value,
maturity 05/02/05 83,597,000
----------
TOTAL INVESTMENTS - 104.4%
(Identified cost, $528,558,569) 536,011,626
-----------
CASH AND RECEIVABLES
LESS LIABILITIES - (4.4)%
Other Assets 6,800,897
Liabilities (29,198,609)
------------
(22,397,712)
------------
NET ASSETS - 100% $513,613,914
============
* Non-income producing security
See notes to financial statements.
CENTURY FUNDS
9
STATEMENTS OF ASSETS AND LIABILITIES - APRIL 30, 2005 - (UNAUDITED)
Century Shares Century Small Cap
Trust Select Fund
------------ ------------
ASSETS:
Investments, at value (Note 1A) (Identified cost of,
$154,196,596 and $528,558,569, respectively)................................. $ 310,034,277 $ 536,011,626
Cash ........................................................................... 173 624
Dividends and interest receivable .............................................. 186,924 10,450
Receivable for investments sold ................................................ -- 1,318,840
Receivable for Trust/Fund shares sold .......................................... 20,119 5,470,983
------------ ------------
Total Assets ................................................................ 310,241,493 542,812,523
------------ ------------
LIABILITIES:
Payable to Affiliates:
Management fee (Note 4) ..................................................... 212,251 377,618
Administration fee (Note 5) ................................................. 38,148 --
Distribution fees (Note 7) .................................................. -- 53,172
Accrued expenses and other liabilities ......................................... 128,842 29,915
Payable for investments purchased .............................................. -- 28,493,569
Payable for Trust/Fund shares repurchased ...................................... 88,033 244,335
------------ ------------
Total Liabilities ........................................................... 467,274 29,198,609
------------ ------------
NET ASSETS ..................................................................... $ 309,774,219 $ 513,613,914
============ ============
At April 30, 2005, net assets consisted of:
Capital paid-in ................................................................ $ 129,416,922 $ 479,196,187
Accumulated distributions in excess of net investment income ................... (247,377) --
Accumulated undistributed net realized gains on investments .................... 24,766,993 26,964,670
Unrealized appreciation in value of investments ................................ 155,837,681 7,453,057
------------ ------------
Net assets applicable to outstanding capital stock ............................. $ 309,774,219 $ 513,613,914
============ ============
Net Assets consist of:
Investor Shares ............................................................. $ 246,329,030
Institutional Shares ........................................................ $ 267,284,884
Shares Outstanding consist of (Note 2):
Century Shares Trust ........................................................ 9,340,264
Investor Shares ............................................................. 10,753,009
Institutional Shares ........................................................ 11,546,777
NET ASSET VALUE PER SHARE
(Represents both the offering and redemption price*)
Century Shares Trust ........................................................ $ 33.17
Investor Shares ............................................................. $ 22.91
Institutional Shares ........................................................ $ 23.15
* Shares held less than 180 days are subject to a 1% redemption fee.
See notes to financial statements.
CENTURY FUNDS
10
STATEMENTS OF OPERATIONS - SIX MONTHS ENDED APRIL 30, 2005 - (UNAUDITED)
Century Shares Century Small Cap
Trust Select Fund
------------- ----------------
INVESTMENT INCOME/(LOSS):
Dividends (net of withholding tax of $0 and $7,585, respectively) ........... $ 3,039,094 $ 1,053,952
Interest .................................................................... 123,650 533,013
------------ ------------
Total income .............................................................. 3,162,744 1,586,965
EXPENSES:
Investment adviser fee (Note 4) ............................................. 1,305,914 1,818,005
Non-interested trustees' remuneration ....................................... 39,820 36,200
Transfer agent .............................................................. 90,545 --
Institutional Class ....................................................... -- 15,660
Investor Class ............................................................ -- 110,390
Custodian ................................................................... 41,735 82,300
Administration (Note 5) ..................................................... 244,859 77,698
Insurance ................................................................... 14,593 11,226
Professional fees ........................................................... 43,575 37,270
Registration ................................................................ 13,575 32,200
Printing and other .......................................................... 72,200 29,179
Distribution fee (Note 7) ................................................... -- 155,416
------------ ------------
Total expenses ............................................................ 1,866,816 2,405,544
------------ ------------
Net investment income/(loss) ............................................ 1,295,928 (818,579)
------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from investment transactions .............................. 24,360,980 29,849,536
(Decrease) in unrealized appreciation on investments ........................ (10,791,726) (15,003,439)
------------ ------------
Net realized and unrealized gain on investments ........................... 13,569,254 14,846,097
------------ ------------
Net increase in net assets resulting from operations ........................... $ 14,865,182 $ 14,027,518
============ ============
See notes to financial statements.
CENTURY FUNDS
11
STATEMENTS OF CHANGES IN NET ASSETS
Century Small Cap
Century Shares Trust Select Fund
Six Months Six Months
INCREASE (DECREASE) Ended Ended
IN NET ASSETS: April 30, 2005 Year Ended April 30, 2005 Year Ended
(unaudited) October 31, 2004 (unaudited) October 31, 2004
------------ -------------- ------------ --------------
Operations:
Net investment income/(loss) $ 1,295,928 $ 260,433 $ (818,579) $ (1,167,269)
Net realized gain on investment 24,360,980 36,864,445 29,849,536 6,580,251
transactions
Change in net unrealized appreciation (10,791,726) (5,934,258) (15,003,439) 8,897,460
------------ ------------ ------------ ------------
Net increase in net assets resulting
from operations 14,865,182 31,190,620 14,027,518 14,310,442
Distributions to shareholders from:
Net Investment Income
Century Shares Trust (2,102,108) (3,399,416)
Century Small Cap Select Fund
Institutional Shares -- (2,292,188)
Investor Shares -- (4,127,025)
Realized gain from investment
transactions
Century Shares Trust (35,121,376) (27,153,654)
Century Small Cap Select Fund
Institutional Shares (3,513,749) (463,307)
Investor Shares (3,922,249) (861,677)
Trust/Fund share transactions-- net (30,265,232) 19,063,442 216,366,490 161,980,295
Redemption fees 6,078 12,155 29,588 184,676
------------ ------------ ------------ ------------
Total (decrease)/increase (52,617,456) 19,713,147 222,987,598 168,731,216
NET ASSETS:
At beginning of period 362,391,675 342,678,528 290,626,316 121,895,100
------------ ------------ ------------ ------------
At end of period $ 309,774,219 $ 362,391,675 $ 513,613,914 $ 290,626,316
============ ============ ============ ============
Distributions in excess of net investment
income at end of period $ 247,377 $ 247,377
============ ============
See notes to financial statements.
CENTURY FUNDS
12
FINANCIAL HIGHLIGHTS
SIX MONTHS
ENDED YEAR PERIOD
APRIL 30, ENDED ENDED YEAR ENDED
CENTURY SHARES TRUST 2005 OCTOBER 31, OCTOBER 31, DECEMBER 31,
(UNAUDITED) 2004 2003 2002 (a) 2001 2000
--------- ------- ------- ------- ------- -------
Net Asset Value, beginning of period $35.62 $35.66 $33.95 $38.12 $42.97 $34.32
------- ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income (b) 0.13 0.03 0.07 0.08 0.17 0.39
Net realized and unrealized gain on investments 1.27 3.02 5.03 (4.20) (1.26) 12.39
------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations 1.40 3.05 5.10 (4.12) (1.09) 12.78
------- ------- ------- ------- ------- -------
Less distributions from:
Net investment income (0.22) (0.34) (0.10) (0.05) (0.17) (0.38)
In excess of net investment income -- -- -- -- -- --
Net realized gain on investment transactions (3.63) (2.75) (3.29) -- (3.60) (3.75)
------- ------- ------- ------- ------- -------
Total distributions (3.85) (3.09) (3.39) (0.05) (3.77) (4.13)
------- ------- ------- ------- ------- -------
Redemption fees --+ --+ --+ --+ 0.01 --
------- ------- ------- ------- ------- -------
Net Asset Value, end of period $33.17 $35.62 $35.66 $33.95 $38.12 $42.97
======= ======= ======= ======= ======= =======
Total Return 3.87%** 9.06% 16.99% -10.82%** -2.52% 37.44%
Ratios and supplemental data
Net assets, end of period (000 omitted) $309,774 $362,392 $342,679 $291,311 $345,849 $417,598
Ratio of expenses to average net assets 1.15%* 1.15% 1.17% 1.19%* 1.05% 0.83%
Ratio of net investment income to average
net assets 0.80%* 0.07% 0.21% 0.26%* 0.41% 1.05%
Portfolio Turnover Rate 6% 43% 37% 22% 17% 17%
(a) For the period from January 1, 2002 to October 31, 2002. Effective September
5, 2002, Century Shares Trust changed its fiscal year end from December 31
to October 31.
(b) Calculated based on average shares outstanding during the period.
+ Amount represents less than $0.01 per share.
* Annualized
** Not annualized
See notes to financial statements.
CENTURY FUNDS
13
FINANCIAL HIGHLIGHTS
SIX MONTHS
ENDED
CENTURY SMALL CAP APRIL 30, 2005 YEAR ENDED OCTOBER 31,
SELECT FUND - INSTITUTIONAL SHARES (UNAUDITED) 2004 2003 2002 2001 2000(a)
--------- ------- ------- ------- ------- -------
Net Asset Value, beginning of period $22.46 $21.53 $15.42 $14.68 $14.57 $10.00
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income (loss) (b) (0.03) (0.08) (0.09) (0.10) -- 0.04
Net realized and unrealized gain on investments 1.28 2.14 6.64 0.93 0.52(c) 4.53
------- ------- ------- ------- ------- -------
Total income from investment operations 1.25 2.06 6.55 0.83 0.52 4.57
------- ------- ------- ------- ------- -------
Less distributions from:
Net investment income -- (0.94) (0.11) -- (0.02) --
Net realized gain on investment transactions (0.56) (0.19) (0.35) (0.13) (0.41) --
------- ------- ------- ------- ------- -------
Total distributions (0.56) (1.13) (0.46) (0.13) (0.43) --
------- ------- ------- ------- ------- -------
Redemption fees -- + -- + 0.02 0.04 0.02 --
------- ------- ------- ------- ------- -------
Net Asset Value, end of period $23.15 $22.46 $21.53 $15.42 $14.68 $14.57
======= ======= ======= ======= ======= =======
Total Return 5.63%** 9.83% 43.76% 5.87% 3.63% 45.70%**
Ratios and supplemental data
Net assets, end of period (000 omitted) $267,285 $140,208 $42,936 $12,938 $6,093 $2,253
Ratio of expenses to average net assets 1.13%* 1.13% 1.26% 1.45% 1.45% 1.45%*
Ratio of expenses to average net assets without
giving effect to voluntary expense agreement 1.13%* 1.13% 1.40% 1.87% 4.04% 11.58%*
Ratio of net investment income to average
net assets -0.30%* -0.36% -0.50% -0.70% -0.02% 0.38%*
Portfolio Turnover Rate 47% 103% 88% 123% 48% 24%
(a) From the commencement date of investment operations, December 9, 1999 to
October 31, 2000.
(b) Calculated based on average shares outstanding during the
period.
(c) The per share amount is not in accord with the net realized and
unrealized gain/loss for the period because of the timing of sales of Fund
shares and the amount of per share realized and unrealized gains and losses
at such time.
+ Amount represents less than $0.01 per share.
* Annualized
** Not annualized
See notes to financial statements.
CENTURY FUNDS
14
FINANCIAL HIGHLIGHTS
SIX MONTHS
ENDED
CENTURY SMALL CAP APRIL 30, 2005 YEAR ENDED OCTOBER 31,
SELECT FUND - INVESTOR SHARES (UNAUDITED) 2004 2003 2002 2001 2000(a)
--------- ------- ------- ------- ------- -------
Net Asset Value, beginning of period $22.26 $21.39 $15.35 $14.60 $14.26 $10.00
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment loss (b) (0.06) (0.15) (0.15) (0.18) (0.03) (0.01)
Net realized and unrealized gain on investments 1.27 2.12 6.60 0.94 0.53(c) 4.27
------- ------- ------- ------- ------- -------
Total income from investment operations 1.21 1.97 6.45 0.76 0.50 4.26
------- ------- ------- ------- ------- -------
Less distributions from:
Net investment income -- (0.91) (0.07) -- -- --
Net realized gain on investment transactions (0.56) (0.19) (0.35) (0.03) (0.19) --
------- ------- ------- ------- ------- -------
Total distributions (0.56) (1.10) (0.42) (0.03) (0.19) --
------- ------- ------- ------- ------- -------
Redemption fees --+ --+ 0.01 0.02 0.03 --
------- ------- ------- ------- ------- -------
Net Asset Value, end of period $22.91 $22.26 $21.39 $15.35 $14.60 $14.26
======= ======= ======= ======= ======= =======
Total Return 5.50%** 9.45% 43.12% 5.34% 3.68% 42.60%**
Ratios and supplemental data
Net assets, end of period (000 omitted) $246,329 $150,418 $78,959 $10,119 $9,302 $690
Ratio of expenses to average net assets 1.40%* 1.50% 1.61% 1.80% 1.80% 1.80%*
Ratio of expenses to average net assets without
giving effect to voluntary expense agreement 1.40%* 1.50% 1.76% 2.53% 4.38% 14.73%*
Ratio of net investment income to average
net assets -0.56%* -0.69% -0.86% -1.05% -0.48% -0.14%*
Portfolio Turnover Rate 47% 103% 88% 123% 48% 24%
(a) From the commencement date of investment operations, February 24, 2000 to
October 31, 2000.
(b) Calculated based on average shares outstanding during the
period.
(c) The per share amount is not in accord with the net realized and
unrealized gain/loss for the period because of the timing of sales of Fund
shares and the amount of per share realized and unrealized gains and losses
at such time.
+ Amount represents less than $0.01 per share.
* Annualized
** Not annualized
See notes to financial statements.
CENTURY FUNDS
15
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES -- Century Capital Management Trust (the
"Master Trust") is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. Century Shares Trust (the
"Trust") and Century Small Cap Select Fund (the "Fund" and together with the
Trust, the "Funds") are diversified series of the Master Trust. The following is
a summary of significant accounting policies consistently followed by both the
Trust and the Fund in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
A. Investment Security Valuations -- Securities listed on national securities
exchanges are valued at closing prices. Unlisted securities or listed securities
for which closing prices are not available generally are valued at the latest
bid prices. Short-term obligations, maturing in 60 days or less, are valued at
amortized cost, which approximates value.
B. Equalization -- The Master Trust follows the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
repurchases of Master Trust shares equivalent, on a per share basis, to the
amount of undistributed net investment income on the date of the transaction, is
credited or charged to undistributed net investment income. As a result,
undistributed net investment income per share is unaffected by sales or
repurchases of Trust shares.
C. Other -- Investment security transactions are accounted for on the date the
securities are purchased or sold. Gain or loss on sales is determined on the
basis of identified cost. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Shares issuable to shareholders electing to
receive income dividends and capital gain distributions in shares are recorded
on the ex-dividend date.
D. Use of Estimates -- The preparation of these financial statements in
accordance with accounting principles generally accepted in the United States of
America incorporates estimates made by management in determining the reported
amounts of assets, liabilities, revenues and expenses of the Trust and Fund.
Actual results could differ from those estimates.
E. Risks and Uncertainty -- Concentration in the financial services field will
subject the Fund to the risks associated with that field (e.g., government
regulation, interest rates, claims activity, and exposure to natural and
man-made disasters) and may result in greater fluctuation in share value than is
experienced in less concentrated portfolios. A focus in this field will subject
the Trust to similar risks. In addition, the Century Small Cap Select Fund
invests in smaller companies which pose greater risks than those associated with
larger, more established companies.
F. Multiple Classes of Shares -- The Fund offers multiple classes of shares,
which differ in their respective distribution and transfer agent fees. Transfer
agent fees for each Fund class are based on a per shareholder account charge.
All shareholders bear the common expenses of the Fund based upon daily net
assets of each class, without distinction between share classes.
G. Redemption Fees -- In general, shares of the Trust and Fund may be redeemed
at net asset value. However, upon the redemption of shares held less than 180
days, a fee of 1% of the current net asset value of the shares may be assessed
and retained by the Funds for the benefit of their respective remaining
shareholders. The redemption fee is accounted for as an addition to
paid-in-capital.
H. Income Tax Information and Distributions to Shareholders -- Each year the
fund intends to qualify as a regulated investment company by distributing all of
its taxable income and realized gains under Subchapter M of the Internal Revenue
Code. As a result, no provision for income taxes is required in the accompanying
financial statements. Foreign taxes are provided for based on each fund's
understanding of the tax rules and rates that exist in the foreign markets in
which it invests. Income dividends and capital gain distributions are declared
separately for each class. Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with income
tax regulations, which may differ from generally accepted accounting principles.
CENTURY FUNDS
16
Capital accounts within the financial statements are adjusted for permanent and
temporary book and tax differences. These adjustments have no impact on net
assets or the results of operations. Temporary differences will reverse in a
subsequent period. These differences are primarily due to equalization,
partnership income, net operating losses and losses deferred due to wash sales
and excise tax regulations.
The federal tax cost as of period end were as follows:
For the Trust
- -------------
UNREALIZED APPRECIATION......................................................... $160,609,171
UNREALIZED DEPRECIATION......................................................... 4,771,490
------------
NET UNREALIZED APPRECIATION (DEPRECIATION)...................................... 155,837,681
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME.................... (247,377)
ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS ON INVESTMENTS..................... 24,766,993
COST FOR FEDERAL INCOME TAX PURPOSES............................................ $154,196,596
For the Fund
- ------------
UNREALIZED APPRECIATION......................................................... $ 30,477,359
UNREALIZED DEPRECIATION......................................................... 23,024,302
------------
NET UNREALIZED APPRECIATION (DEPRECIATION)...................................... 7,453,057
ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS ON INVESTMENTS..................... 26,964,670
COST FOR FEDERAL INCOME TAX PURPOSES............................................ $528,558,569
(2) TRANSACTIONS IN SHARES
A. TRUST SHARES-- The number of authorized shares is unlimited. Transactions in Trust shares were as follows:
Six Months Ended Year Ended
April 30, 2005 October 31, 2004
Shares Amount Shares Amount
---------- ----------- ---------- -----------
Sold................................................................ 238,700 $ 8,130,320 1,204,333 $ 43,119,845
Issued to shareholders in reinvestment of
distributions from:
Net investment income............................................ 45,410 1,559,850 75,256 2,566,092
Realized gain on investment transactions......................... 849,730 28,465,946 657,481 22,130,823
---------- ----------- ---------- -----------
1,133,840 38,156,116 1,937,070 67,816,760
Repurchased......................................................... (1,967,556) (68,421,348) (1,372,661) (48,753,319)
---------- ----------- ---------- -----------
Net (decrease)/increase............................................. (833,716) $(30,265,232) 564,409 $ 19,063,441
========== =========== ========== ===========
CENTURY FUNDS
17
B. FUND SHARES - The number of authorized shares is unlimited. Shares of the Fund are currently divided into
Investor shares and Institutional shares. Transactions in Fund shares were as follows:
Six Months Ended April 30, 2005
Institutional Shares Investor Shares
Shares Amount Shares Amount
---------- ----------- ---------- -----------
Sold................................................................ 6,310,327 $ 147,359,001 4,992,634 $115,599,823
Issued to shareholders in reinvestment of
distributions from:
Net investment income -- -- -- --
Realized gain on investment transactions......................... 148,747 3,354,253 148,925 3,326,988
---------- ----------- ---------- -----------
6,459,074 150,713,254 5,141,559 118,926,811
Repurchased......................................................... (1,154,898) (26,837,526) (1,145,550) (26,436,049)
---------- ----------- ---------- -----------
Net increase........................................................ 5,304,176 $ 123,875,728 3,996,009 $ 92,490,762
========== =========== ========== ===========
Year Ended October 31, 2004
Institutional Shares Investor Shares
Shares Amount Shares Amount
---------- ----------- ---------- -----------
Sold................................................................ 5,191,629$ 113,979,347 5,625,370 $123,936,410
Issued to shareholders in reinvestment of
distributions from:
Net investment income............................................ 96,665 2,066,697 174,258 3,702,975
Realized gain on investment transactions......................... 20,693 442,409 36,415 773,818
---------- ----------- ---------- -----------
5,308,987 116,488,453 5,836,043 128,413,203
Repurchased......................................................... (1,060,514 (23,004,896) (2,771,158) (59,916,466)
---------- ----------- ---------- -----------
Net increase........................................................ 4,248,473 $ 93,483,557 3,064,88 $ 68,496,737
========== ========== ========== ===========
CENTURY FUNDS
18
(3) INVESTMENT SECURITY TRANSACTIONS
FOR THE TRUST, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated $18,095,928 and
$85,503,180, respectively, during the period ended April 30, 2005.
FOR THE FUND, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated $338,143,628
and $166,529,708, respectively, during the period ended April 30, 2005.
(4) INVESTMENT ADVISER FEE
FOR THE TRUST, the investment adviser fee is earned by Century Capital
Management, LLC ("CCM"), as compensation for providing investment advisory,
management and administrative services to the Trust. CCM receives a monthly fee
equal on an annualized basis to 0.8% of the first $500 million and 0.7% of the
amounts exceeding $500 million of the Trust's net asset value. For the period
ended April 30, 2005, the fee amounted to $1,305,914. Officers and Trustees of
the Master Trust who are employed by CCM receive remuneration for their services
out of such investment adviser fee.
The Trust has guaranteed retirement benefits to be paid to two former Trustees.
Under the terms of the Trust's Investment Advisory and Management Agreement with
CCM, CCM has assumed the obligation to make all such payments on behalf of the
Trust during the term of the agreement. The amount of potential future payments
owed by the Trust cannot be estimated with certainty due to the variability of
amounts used to determine the payment and therefore are not reflected in the
Trust's financial statements. Retirement benefits are payable over various
periods.
FOR THE FUND, the investment adviser fee is earned by CCM as compensation for
providing investment advisory, management and administrative services to the
Fund. CCM receives a monthly fee equal on an annualized basis to 0.95% of the
Fund's net asset value. For the period ended April 30, 2005, the fee amounted to
$1,818,005. Officers and Trustees of the Master Trust who are employed by CCM
receive remuneration for their services out of such investment adviser fee.
(5) ADMINISTRATION FEES -- The Trust has an Administration Agreement with CCM.
Under the agreement CCM shall provide or procure, at its expense, non-investment
advisory services to the Trust. CCM will receive a monthly fee equal on an
annualized basis to 0.15% of the Trust's net asset value. The fee was $244,859
for the period ended April 30, 2005. Per the Investment Advisory and Management
Services Agreement between CSCS and CCM, the Fund will reimburse CCM for
expenses associated with having the adviser's personnel perform shareholder
service functions and certain financial, accounting, administrative and clerical
services. During the period ended April 30, 2005 CCM was reimbursed $77,698.
(6) ADVISER REIMBURSEMENT -- CCM has voluntarily waived a portion of its
management fee for both classes of the Fund and reimbursed certain other
expenses to the extent necessary so that net fund annual operating expenses
(exclusive of brokerage commissions, taxes, interest and litigation,
indemnification and other extraordinary expenses) will not exceed certain
expense limitations through at least February 28, 2006. The expense limitations
for the Investor and Institutional Shares are 1.80% and 1.45%, respectively.
During the period ended April 30, 2005, CCM did not make a voluntary
reimbursement.
(7) DISTRIBUTION AND SERVICE PLAN -- The Fund has adopted a distribution and
service plan for the Investor Shares under Rule 12b-1 of the 1940 Act.
Distribution plans permit a fund to pay for all or a portion of the costs
incurred in connection with the distribution and/or servicing of shares. The
Investor Shares currently pay a distribution and service fee up to 0.25% of the
average daily net assets of the class. During the period ended April 30, 2005,
$155,416 was paid under the distribution and service plan. The plan may be
terminated at any time by the vote of a majority of the independent Trustees or
by the vote of the holders of a majority of the outstanding shares of the
Investor Shares.
(8) SUBSEQUENT EVENTS -- On March 29, 2005 the Trustees of Century Capital
Management Trust approved the closing of Century Small Cap Select Fund to most
new investors as of the close of business on July 18, 2005. Existing
shareholders and others who meet certain eligibility requirements will be
permitted to make additional investments in any account in which they hold
shares of the Fund as of the Closing Date.
Also, on June 16, 2005, the Trustees of Century Capital Management Trust
approved a vote to divide Century Shares Trust into two classes effective on or
about July 18, 2005. Shares of the Trust that are authorized, issued and
outstanding as of the effective date shall be designated as Institutional Shares
and the new class of shares shall be designated as Investor Shares. The Trust
has adopted a distribution and service plan for the Investor Shares under Rule
12b-1 of the 1940 Act. Under this plan the Investor Share class is permitted to
pay a distribution and service fee up to 0.25% of the average daily net assets
of the class.
CENTURY FUNDS
19
The Funds' Statement of Additional Information ("SAI") includes additional
information about the Trustees. The SAI is available, without charge, upon
request. If you would like to request a copy of the SAI, you may do so by
calling the following toll-free number: 1-800-321-1928.
Quarterly Portfolio Schedule and Proxy Voting Policies and Procedures. The Funds
file their complete schedule of portfolio holdings with the Securities and
Exchange Commission (the "SEC") for the first and third quarters of each fiscal
year on Form N-Q. A description of the policies and procedures that each Fund
uses to determine how to vote proxies relating to portfolio securities and each
Fund's proxy voting record for the 12-month period ended June 30 is available,
without charge, upon request, by calling 1-800-321-1928. The Funds' Form N-Q, a
description of the Funds' proxy voting policies and procedures and proxy voting
record are available on the SEC's website at http://www.sec.gov. These materials
may also be reviewed and copied at the SEC's Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room may
be obtained by calling 1-800-SEC-0330.
TRUSTEES AND OFFICERS
Alexander L. Thorndike, Chairman and Chief Investment Officer
Davis R. Fulkerson, Trustee
Ernest E. Monrad, Trustee
Jerry S. Rosenbloom, Trustee
John E. Beard, Trustee
Jerrold Mitchell, Trustee
Michael J. Poulos, Trustee
David D. Tripple, Trustee
Steven Alfano, Secretary and Chief Compliance Officer
INVESTMENT ADVISOR
Century Capital Management, LLC
100 Federal Street
Boston, Massachusetts 02110
SHAREHOLDER HOTLINE
800-303-1928
www.centuryfunds.com
CENTURY FUNDS
20
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CENTURY FUNDS
21
[logo] CENTURY FUNDS
100 Federal Street Boston, Massachusetts 02110
GROWTH INVESTORS IN VALUE INDUSTRIES
CCMT SAR 85 APR 2005
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6. Schedule of Investments.
Schedule of Investments is included as part of the report to shareholders
filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchases.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
No changes.
Item 11. Controls and Procedures.
(a) The registrant's principal executive officer and principal
financial officer, after evaluating the effectiveness of the registrant's
"disclosure controls and procedures" (as defined in the Investment Company Act
of 1940 Rule 30-a-2(c) under the Act (17 CFR 270.30a-2(c))) as of a date (the
"Evaluation Date") within 90 days of the filing date of this report, have
concluded that, as of the Evaluation Date, the registrant's disclosure controls
and procedures were adequately designed to ensure that the information required
to be disclosed by the registrant in this Form N-CSR is recorded, processed,
summarized and reported within the time periods specified in the Commission's
rules and forms.
Items 12. Exhibits.
(a) Not applicable.
(b) Attached hereto. Exhibit 99.CERT A separate certification for each
principal executive officer and principal financial officer of the registrant
as required by Rule 30a-2 of the Investment Company Act of 1940.
Exhibit 99.906CERT Certifications pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
SIGNATURES
Pursuant to the requirement 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.
Century Capital Management Trust
By: /s/ Alexander L. Thorndike
--------------------------------
Alexander L. Thorndike, Chairman
Date: July 5, 2005
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.
By: /s/ Alexander L. Thorndike
--------------------------------
Alexander L. Thorndike, Chairman (Principal Executive Officer)
Date: July 5, 2005
By: /s/ Steven Alfano
--------------------------------
Steven Alfano, Secretary (Principal Financial Officer)
Date: July 5, 2005