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
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
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
--------------
Date of fiscal year end: October 31
-----------------
Date of reporting period: April 30, 2008
-----------------
ITEM 1. Report to Shareholders.CENTURY FUNDS
Eighty
Years of
Investing
1928 - 2008
Logo:
CENTURY
CAPITAL
Century Shares
Trust
Century Small Cap
Select Fund
Semi-Annual Report
April 30, 2008
PEOPLE and IDEAS that WORK (TM)
PERFORMANCE OF A $10,000 INVESTMENT
CENTURY SMALL CAP SELECT FUND-INVESTOR SHARES
Line Chart:
Russell 2000
CSCSF Investor Growth Russell 2000
Feb-00 10000 10000 10000
10010 10472 10428
10940 9372 9740
Apr-00 10920 8425 9154
11180 7688 8621
11380 8681 9372
Jul-00 12130 7937 9070
13000 8772 9763
13710 8336 9476
Oct-00 14260 7659 9053
14000 6269 8123
15170 6652 8821
Jan-01 14978 7191 9280
14633 6205 8671
13843 5641 8247
Apr-01 14593 6331 8892
15150 6478 9111
15798 6655 9426
Jul-01 15727 6087 8915
15443 5707 8627
15059 4786 7466
Oct-01 14785 5246 7903
15383 5684 8515
16061 6038 9040
Jan-02 15990 5823 8946
16244 5447 8701
17055 5920 9400
Apr-02 17208 5792 9486
17177 5453 9065
16366 4991 8615
Jul-02 15412 4224 7314
15665 4222 7296
14854 3917 6772
Oct-02 15574 4115 6989
16518 4523 7612
16090 4211 7189
Jan-03 15871 4097 6990
15714 3987 6778
15996 4048 6866
Apr-03 16902 4431 7517
18174 4930 8323
18872 5025 8474
Jul-03 19883 5405 9004
20414 5695 9417
20727 5551 9243
Oct-03 22290 6031 10019
23488 6227 10375
23608 6255 10585
Jan-04 24792 6584 11045
24660 6574 11144
24518 6604 11248
Apr-04 23652 6273 10675
23707 6397 10845
24562 6610 11301
Jul-04 23246 6017 10540
22841 5887 10486
24036 6213 10978
Oct-04 24397 6364 11195
25469 6902 12166
26424 7150 12526
Jan-05 25649 6828 12003
26503 6922 12206
26469 6662 11857
Apr-05 25739 6238 11178
26267 6678 11909
26930 6894 12369
Jul-05 28211 7376 13152
27604 7272 12909
27537 7329 12949
Oct-05 26806 7058 12547
27643 7458 13156
27416 7447 13096
Jan-06 29089 8165 14270
28929 8122 14231
29715 8516 14922
Apr-06 29703 8492 14919
28520 7894 14081
28178 7899 14172
Jul-06 27438 7489 13711
27882 7708 14117
28360 7760 14234
Oct-06 28907 8263 15054
29881 8461 15450
29956 8441 15501
Jan-07 30406 8598 15761
30131 8571 15636
30769 8650 15803
Apr-07 31357 8876 16087
32746 9282 16747
32421 9228 16501
Jul-07 30381 8749 15372
30982 8969 15721
31508 9230 15991
Oct-07 32183 9645 16449
30181 8979 15268
30698 9036 15259
Jan-08 28027 8207 14218
27256 7923 13691
27408 7876 13748
Apr-08 28468 8281 14324
This chart compares the performance of a hypothetical investment of $10,000 in
Century Small Cap Select Fund's Investor Shares (including reinvested dividends
and distributions) and the Russell 2000 Growth Index and Russell 2000 Index from
the inception of the class on 2/24/00 to 4/30/08. The Russell 2000 Index
measures the performance of the 2,000 smallest companies in the Russell 3000
Index. The Russell 2000 Growth Index includes those companies in the Russell
2000 Index that have higher price-to-value ratios and higher forecasted growth
values. Indexes are not managed and do not incur fees or expenses. It is not
possible to invest directly in an index. Performance of other share classes may
vary.
PERFORMANCE OF A $250,000 INVESTMENT
CENTURY SHARES TRUST-INSTITUTIONAL SHARES
CST Institutional S&P 500
Apr-98 250000 250000
246392 245703
253314 255683
240148 252961
202743 216388
209224 230250
228105 248980
238720 264069
242855 279287
226868 290965
231218 281922
237906 293202
Apr-99 248075 304556
250305 297364
247209 313867
237486 304067
219243 302563
198215 294268
222739 312890
211378 319250
212782 338053
193004 321068
168204 314991
213960 345806
Apr-00 207016 335402
228592 328520
209219 336619
232909 331357
249741 351939
265576 333359
279041 331949
272059 305779
292445 307275
272912 318177
271619 289165
270122 270846
Apr-01 273933 291894
288361 293850
291832 286698
283777 283875
275585 266104
274834 244616
269646 249280
284187 268402
285074 270753
280064 266802
287692 261657
294572 271497
Apr-02 298236 255037
295693 253158
283952 235123
261413 216797
259990 218220
241120 194504
254224 211623
259166 224079
249250 210915
244670 205390
236342 202308
243254 204273
Apr-03 263740 221099
276482 232748
275897 235717
284070 239873
286989 244551
284487 241954
297415 255641
303003 257890
311636 271415
322184 276397
333733 280239
331369 276011
Apr-04 327004 271678
329004 275406
333188 280762
321168 271469
321259 272567
325083 275519
324355 279729
337600 291047
350631 300951
342302 293615
343825 299794
339458 294485
Apr-05 336918 288900
349513 298093
353471 298516
357750 309617
352860 306792
357240 309277
360602 304121
374277 315624
372863 315734
373306 324093
375630 324973
378065 329018
Apr-06 381496 333436
370871 323839
371353 324278
373802 326278
383932 334042
391724 342650
397290 353815
402069 360544
410233 365601
413076 371131
406642 363871
408737 367941
Apr-07 423100 384239
437313 397647
431020 391041
418675 378917
427558 384597
440354 398980
444419 405327
437645 388382
437588 385687
409636 362553
398263 350775
387853 349261
Apr-08 406552 366271
This chart compares the performance of a hypothetical investment of $250,000 in
Century Shares Trust's Institutional Shares (including reinvested dividends and
distributions) and the S&P 500 Index from 4/30/98 to 4/30/08. The S&P 500 Index
tracks the performance of 500 widely held, large capitalization U.S. stocks.
Indexes are not managed and do not incur fees or expenses. It is not possible to
invest directly in an index. Performance of other share classes may vary.
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Please refer to page 9
for additional performance information and related disclosure. 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.
CENTURY FUNDS
DEAR FELLOW SHAREHOLDERS:
The Century Shares Trust mutual fund celebrated the 80th Anniversary of its
founding on March 1, 2008. This is a significant milestone for the country's
fourth oldest mutual fund. In 1928, stock investing was limited to only the
wealthiest Americans, since many stock prices traded above $1,000 per share, and
brokerage commissions were much higher than they are today. Mutual funds opened
the way for average Americans to participate in the long term growth of
innovative companies and own a piece of some great business franchises of the
last century.
1928 was the peak of the "go-go" 1920s. Calvin Coolidge was president,
Penicillin was discovered to have antibacterial properties, Walt Disney's
Steamboat Willie was the first film to include a soundtrack, RCA broadcast the
first regularly scheduled television program, A.P. Giannini bought the Bank of
America, and life & fire insurance policies were increasingly sold to homeowners
door-to-door. The Dow Jones Industrial Average closed at 300, and Century Shares
Trust began investing in companies with strong fundamentals that were capable of
being around for a century. We are proud of our legacy of independence.
As the timeline on page 8 shows, the Trust's growth has witnessed many
significant historical events over the past 80 years, including the Great
Depression, World War II, ten recessions and the longest period of economic
expansion in United States' history (1991 to 2001).
The equity markets, as illustrated by this timeline, have historically moved in
a positive direction, but they also suffered through some periods of turmoil and
losses. The market has demonstrated again and again that market movements are
significant and unpredictable in the short run. Often, these movements are not
based on company fundamentals or the underlying conditions of the economy.
At Century, we strive to understand a company's earnings potential within the
context of underlying economic trends. Our long term orientation is a natural
outcome of our investment research process, which emphasizes in-depth research
on each prospective company, its competitors and the industry in which it
competes. We believe that focusing on preserving capital is as important as
capital appreciation in delivering favorable risk-adjusted returns over time.
Our process often leads to counter-consensus thinking that requires patience and
persistence to bear fruit.
PERFORMANCE
Both Century Shares Trust and Century Small Cap Select Fund were well positioned
heading into the recent downturn, outperforming their respective benchmarks over
the six month period ended April 30, 2008. In the 2007 Annual Report, we
suggested that 2008 earnings growth and visibility would decline as a result of
a slowing economy. Based on these expectations, we believed investors would
realign portfolios toward higher quality, more predictable growth franchises.
Over the past 6 months, these difficult times became a reality as the S&P 500
and the Russell 2000 Growth indices declined 10.6% and 14.4%, respectively.
CENTURY FUNDS 1
WHAT'S NEW AT CENTURY?
We continue to reinvest in the Century team and added two new professionals to
our team. Beth Lehman, a former Securities and Exchange Commission lawyer,
joined us as Chief Compliance Officer. Julie Smith, a former Controller at Third
Avenue Management LLC, joined us as Director of Finance. We look forward to
their many contributions.
We welcome any candidates with relevant expertise, experience, curiosity,
humility and a sense of humor.
THE ROAD AHEAD
U.S. economic growth continues to slow on the heels of the subprime mortgage
turmoil, spreading to the broader credit and housing markets. The U.S. consumer
appears tired after several years of driving above-average economic growth. We
are concerned that debt leverage, rising inflation and energy prices will
continue to stress Americans' balance sheets and spending outlook, despite the
Federal Reserve's easing of interest rates over the last year.
We believe Wall Street's 2008 earnings expectations will have to be adjusted
downward, and accordingly, we are positioning our portfolios with franchises
capable of weathering a turbulent market and gaining market share in the early
stages of a potential over the next year.
As you read through the performance review of your funds and our market outlook,
I hope you understand how we are investing your hard-earned assets on your
behalf. We thank you for your continued support.
Sincerely,
/s/ Alexander L. Thorndike
Alexander L. Thorndike
Chairman of the Century Funds
2 CENTURY FUNDS
MARKET REVIEW
A combination of economic challenges weighed heavily on U.S. equity markets
during the past six months. The ongoing credit crisis deepened and broadened to
other sectors. Consumers tightened their belts as the persistent rise in food
and energy costs (accounting for about 25% of Consumer Price Index (CPI)
spending) continues to further restrain buying power.
As illustrated below, the price of food purchased for home consumption by
American consumers has increased dramatically in the past three years, putting
significant pressure on consumers' discretionary spending.
Bar Chart:
FOOD INFLATION
(AS MEASURED BY CPI-FOOD INDEX)
ANNUALIZED
AVG. INFLATION/YEAR
1982-2006 2.90%
1997-2006 2.30%
2007 4.90%
Forecast 2008-2012 7.50%
Source: Department of Agriculture (02/22/2008)
At the same time, Americans are being squeezed by record high fuel prices. As
the chart nearby indicates, the national average price for a gallon of regular
unleaded gasoline has risen dramatically over the past five years. As of May 12,
2008, the national average price stood at roughly $3.72 a gallon, up 20% from a
year ago with no expectations of any near term relief. Furthermore, the chart
also illustrates the extent to which spending on gas and energy grows as a
portion of total consumer expenditures approaching the levels of the late
1970's.
Line/Bar Chart:
SIGNIFICANCE OF GAS PRICES
TO CONSUMERS SPENDING
GAS AND ENERGY AS A PERCENT OF CONSUMER SPENDING**
Gas and Energy as a Percent of Consumer Spending
'76 4.6
'77 4.6
'78 4.44
'79 4.53
'80 5.96
'81 6
'82 5.56
'83 4.7
'84 4.46
'85 4.1
'86 3.77
'87 3.05
'88 3.03
'89 2.95
'90 3.09
'91 3.18
'92 2.89
'93 2.93
'94 2.74
'95 2.75
'96 2.7
'97 2.79
'98 2.41
'99 2.14
'00 2.76
'01 2.84
'02 2.2
'03 2.89
'04 2.85
'05 3.13
'06 3.52
'07 3.36
'08 4.17
NAT'L AVERAGE PRICE FOR GASOLINE*
Avg. National Priceof Regular Unleaded Gasoline
'76 1.528
'77 1.534
'78 1.464
'79 1.822
'80 2.304
'81 2.331
'82 2.066
'83 1.903
'84 1.791
'85 1.724
'86 1.301
'87 1.295
'88 1.25
'89 1.3
'90 1.427
'91 1.35
'92 1.305
'93 1.254
'94 1.232
'95 1.245
'96 1.312
'97 1.293
'98 1.098
'99 1.19
'00 1.51
'01 1.427
'02 1.303
'03 1.495
'04 1.718
'05 2.036
'06 2.231
'07 2.8
'08 3.25
Source: Department of Energy, Bureau of Economic Analysis (05/2008)
* Regular unleaded gasoline
** As measured by Personal Consumption Expenditure (PCE)
It is easy to become discouraged as these pressures create a difficult
environment for investing. However, we firmly believe there are investment
opportunities created from today's challenging conditions that will appreciate
in an eventual market upturn.
It remains to be seen when exactly this upturn will arrive. While the U.S. gross
domestic product grew by a paltry 0.6% in the first quarter of 2008, there are
some indicators suggesting that the markets may be nearing an inflection point.
The Chicago Board Options Exchange (CBOE) Volatility Index, a measure of
investors' future expectations for market volatility, declined recently after
reaching five-year highs. The value of the dollar has rallied modestly against
the euro and yen, while payroll numbers, though still negative, have been
improving.
CENTURY FUNDS 3
We continue to invest in companies that we believe have defensible franchises, a
competitive advantage and the financial strength to continually reinvest in
their businesses. At the same time, however, we are diligently researching
companies that we think have the potential to outperform the broader market on
the other side of this economic slowdown. We recently observed a dra matic
correction in many highly valued companies. As valuations have returned to more
normal levels, we repurchased some growth franchises at more attractive prices.
Growth investors typically focus on a company's income statement to estimate
future prospects, but we scrutinize the whole business model, balance sheet and
the statement of cash flows to verify the company's overall financial health. It
is our belief that companies with strong business models and historically solid
financials can extend their lead over competitors in challenging environments
and position themselves for greater market share gains in an eventual recovery.
As we move forward, we will continue to stand by our long-held investment
disciplines.
CENTURY SMALL CAP
SELECT FUND REVIEW:
PERFORMANCE
For the six months ended April 30, 2008, the Century Small Cap Select Fund
(CSCS) Institutional and Investor Shares returned -11.40% and -11.54%,
respectively, outperforming the Russell 2000 Growth Index's return of -14.14%.
Bar Chart:
PERFORMANCE COMPARISON 4/30/2008
CSCS INSTITUTIONAL SHARES RUSSELL 2000 GROWTH INDEX RUSSELL 2000 INDEX
1 Year -8.92 -6.71 -10.96
3 Years 11.63 9.9 8.62
5 Years 11.36 13.32 13.76
Since Incept.(12/9/99) 13.88 0.88 6.62
4 CENTURY FUNDS
Bar Chart:
CSCSF HOLDINGS BY SECTOR 4/30/2008
Health Care 22.24
Consumer Discretionary 19.47
Technology 18.78
Financial Services 16.39
Other Energy 5.73
Producer Durables 5.68
Materials & Process 5.33
Cash 5.19
Autos & Transportation 1.2
WHAT CONTRIBUTED TO PERFORMANCE
The Fund performed relatively well during the challenging six month period
ending April 30, 2008. Relative to the Russell 2000 Growth (R2000G) Index, stock
selection was the primary reason for the outperformance. The Fund's Health Care
and Technology sectors were the largest contributors, despite the R2000G
Technology sector being the worst performing sector (-24.4%).
In terms of individual companies, Perrigo Company (the largest manufacturer of
generic over-the-counter pharmaceutical products) was the largest contributor to
performance, benefitting from new product launches and improving profitability.
Bruker BioSciences Corp. (a developer of life science tools) and Foundation Coal
Holdings Inc. (a coal producer) were also significant contributors. Bruker
benefitted from favorable earnings results and the highly accretive acquisition
of Bruker Biospin, while Foundation Coal was helped by rising coal prices.
WHAT DETRACTED FROM PERFORMANCE
Generally, investments in the Energy, Producer Durables and Financial Services
sectors were a drag on performance. In terms of Energy and Producer Durables,
the weak performance is attributable to both stock selection and underweighting
these sectors. In terms of individual companies, World Fuel Services Corp.
(distributor of marine & aviation fuel) was the biggest detractor due to
volatile pricing and operational issues. Alon USA Energy (an oil refiner) hurt
results due to shrinking oil refining margins. MTS Systems (a supplier of
testing systems) was negatively impacted by cost overruns on some projects. In
addition, stock selection in the Financial Services sector detracted from
performance, and Primus Guaranty, Ltd. (an asset manager of default risk) was
negatively impacted by the credit crisis.
CENTURY FUNDS 5
CENTURY SHARES TRUST REVIEW:
PERFORMANCE
For the six months ended April 30, 2008, the Century Shares Trust (CST)
Institutional and Investor Shares returned -8.52% and -8.58%, respectively,
outperforming the S&P 500 Index, which returned -9.64%.
Bar Chart:
PERFORMANCE COMPARISON 4/30/2008
CENTURY SHARES TRUST
(INSTITUTIONAL SHARES) S&P 500 INDEX RUSSELL 1000 GROWTH
1 Year -3.91 -4.68 -0.24
3 Years 6.46 8.23 8.86
5 Years 9.04 10.62 9.52
10 Years 4.98 3.89 1.68
Bar Chart:
CST HOLDINGS BY SECTOR 4/30/2008
Financial Services 23.33
Health Care 19.2
Producer Durables 14.36
Technology 13.35
Consumer Discretionary 9.38
Consumer Staples 6.97
Cash 4.86
Other Energy 3.14
Other 2.61
Materials and Processing 1.4
Intergrated Oils 1.3
WHAT CONTRIBUTED TO PERFORMANCE
Century Shares Trust also performed well relative to the benchmark due to stock
selection during the six month period ending April 30, 2008. Relative
outperformance in the Financial Services sector, followed by the Technology and
Health Care sectors, were the primary contributors. Our investments within these
sectors, in the aggregate, were down less than the benchmark's corresponding
sectors. From a company perspective, the strongest individual contributors were
Range Resources Corp. (oil and gas developer), Peabody Energy Corp. (worldwide
coal producer), and Cognos, Inc. (business intelligence software firm). Range
Resources and Peabody Coal both benefitted from the rise in energy prices, while
Cognos' stock rose significantly upon the announced sale of the firm to IBM.
6 CENTURY FUNDS
WHAT DETRACTED FROM PERFORMANCE
The positive results described above were partially offset by weakness in the
Energy, Auto & Transportation and Materials & Processing sectors. The weakness
resulted from underweighting sectors that outperformed the benchmark and stock
selection. In terms of individual stocks, UnitedHealth Group, Inc. (provider of
health benefits) was the biggest detractor, hurt by rising medical costs.
American International Group's (worldwide multi-line insurer) results suffered
from the credit crisis, which negatively impacted its capital markets business.
Finally, both Microsoft Corp. (software manu facturer) and Cisco Systems, Inc.
(provider of network communication products) suffered as a result of the slowing
economy and a decline in technology spending by financial services customers.
CENTURY POSITIONING AND OUTLOOK
Century's outlook today is a mixture of caution and excitement. We are cautious
because expected earnings growth for 2008 is likely too high, but we are excited
by the recent market pull-back, which will enable us to re-visit companies that
we may have regarded as too expensive six months ago.
In our opinion, 2008 earnings growth expectations remain unrealistically high
given the current eco nomic backdrop. The one year earnings per share (EPS)
forecasted growth rate for the R2000G (as published by the Institutional
Brokers' Estimate System (IBES)) declined from 21.9% in October 2007 to 18.3% in
April 2008. The same IBES forecast for the S&P 500 declined from 12.4% in
October 2007 to 10.4% in April 2008. Although these EPS forecasts have declined
by roughly 16% in each case over the past six months, we believe more downward
adjustments in earnings forecasts may occur, reflecting the U.S economic
slowdown.
Despite the economic slowdown and weak stock market, we are working diligently
to identify companies that we believe the stock market has unfairly punished and
that we believe are trading at attractive valuations. At Century, we emphasize
researching individual companies, rather than determining the movement of macro
economic factors, such as the strength of the dollar.
We also remain underweight in later cycle sectors such as Materials &
Processing, Industrials, and Energy, where we see downside risks tied to the
economic slowdown. Our exposure to these areas includes niche opportunities such
as infrastructure investments. One company (General Cable Corp.) is involved in
upgrading the electric utility grid across the United States, while others
(Chart Industries, Foundation Coal and Grey Wolf) are involved in the
energy/power generation business. Within Financial Services, valuations are
starting to look compelling, but we believe that near-term growth prospects for
traditional banks are limited. We are more focused on "non-financial"
financials, such as software and processing companies, which we believe have
more attractive growth opportunities with mitigated balance sheet risk.
The current environment has created dislocations in the market. We rely heavily
on our analysts' research intensity to act swiftly and wisely when we identify
investment opportunities. We remain especially focused on targeting companies
that we think have a competitive advantage and the balance sheet and cash flow
strength to reinvest in their business through the economic slowdown.
CENTURY FUNDS 7
Finally, we should end by reinforcing the important role that management plays
in our decision making process. We seek out management teams that have visionary
leaders, are good stewards of capital and are dedicated to a long-term strategy.
Our experience indicates that these people attract and retain great talent and
are the most adept in positioning the firm for future growth, despite the
challenging environments they face.
CENTURY SHARES TRUST
GROWTH OF A $10,000 INVESTMENT SINCE
INCEPTION, 3/15/28, THROUGH 4/30/08
Data is historical. Past performance is not a guarantee of future results. More
recent returns may be less or more than those shown. Investment return and
principal value may fluctuate, and you may have a loss or gain when you sell
your shares.
Returns shown include the reinvestment of dividend and capital gain
distributions, but have not been adjusted for taxes payable by shareholders on
such distributions. Returns do not reflect a sales charge. If a sales charge had
been reflected, returns would have been lower. Returns for other share classes
may vary. The period illustrated is longer than the investment horizon of many
investors.
As always, we appreciate your decision to make Century part of your investment
strategy. We value the trust that you place in us and look forward to serving
your investment needs for many years to come.
Respectfully Submitted
/s/ A.L. Thorndike
A.L. Thorndike
/s/ Kevin W. Callahan
Kevin W. Callahan
The views expressed in this report reflect those of the portfolio managers as of
the end of the period covered by this report. These views are subject to change
at any time based on market and other conditions and should not be construed as
a recommendation with respect to any security.
Timeline Chart:
1928-2008
Date Value
1928 $10,000
1928 $12,075
1929 $11,404
1930 $8,055
1931 $4,472
1932 $4,295
1933 $4,451
1934 $6,213
1935 $8,664
1936 $8,554
1937 $6,485
1938 $7,882
1939 $8,927
1940 $9,141
1941 $8,968
1942 $9,636
1943 $11,276
1944 $12,663
1945 $15,055
1946 $13,626
1947 $13,063
1948 $14,821
1949 $18,079
1950 $19,969
1951 $21,659
1952 $27,578
1953 $29,595
1954 $45,204
1955 $49,755
1956 $44,172
1957 $43,947
1958 $62,939
1959 $66,196
1960 $72,162
1961 $113,664
1962 $105,979
1963 $126,929
1964 $128,005
1965 $124,467
1966 $101,643
1967 $92,092
1968 $130,788
1969 $118,057
1970 $126,741
1971 $165,605
1972 $199,431
1973 $173,017
1974 $117,788
1975 $134,614
1976 $184,046
1977 $175,623
1978 $193,030
1979 $234,867
1980 $249,895
1981 $300,320
1982 $333,343
1983 $403,329
1984 $465,782
1985 $667,950
1986 $732,135
1987 $674,556
1988 $780,403
1989 $1,105,883
1990 $1,019,156
1991 $1,340,270
1992 $1,701,966
1993 $1,695,874
1994 $1,629,760
1995 $2,203,912
1996 $2,582,208
1997 $3,876,755
1998 $4,147,948
1999 $3,636,896
2000 $5,000,275
2001 $4,874,690
2002 $4,262,814
2003 $5,333,216
2004 $6,000,559
2005 $6,381,037
2006 $7,020,571
2007 $7,531,309
Jan-2008 $7,050,058
Feb-2008 $6,854,067
Mar-2008 $6,675,176
Apr-2008 $6,996,919
$10,000
October 1929 - Stock Market Crash
September 1939 - World War II started
Historical Information has been adjusted for the following:
10% Stock Dividend 8/1/29
3 for 1 Stock Split 5/6/52
3 for 1 Stock Split 3/9/59
October 1973 - Arab Oil Embargo
December 1980 - Prime Rate Hits 21%
September 2001 - "9/11"
$6,996,919
8 CENTURY FUNDS
CENTURY FUNDS
AVERAGE ANNUAL TOTAL RETURNS AS OF APRIL 30, 2008
SINCE INCEPTION/
CENTURY SHARES TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------------------------------------------------------
Investor Shares (7/18/05) -4.12% N/A N/A 4.25%
Institutional Shares -3.91% 6.46% 9.04% 4.98%
CENTURY SMALL CAP SELECT FUND 1 YEAR 3 YEARS 5 YEARS SINCE INCEPTION
-------------------------------------------------------
Investor Shares (2/24/00) -9.22% 3.42% 10.98% 13.64%
Institutional Shares (12/09/99) -8.92% 3.73% 11.36% 13.88%
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. As stated in the prospectus dated
February 28, 2008, the total annual fund operating expenses, gross of any fee
waivers or expense reimbursements, for Century Small Cap Select Fund are 1.36%
for the Investor Shares and 1.08% for the Institutional Shares. The total annual
fund operating expenses, gross of any fee waivers or expense reimbursements, for
Century Shares Trust are 1.95% for the Investor Shares and 1.10% for the
Institutional Shares. The Adviser has agreed contractually to waive a portion of
its fees and/or reimburse operating expenses for the Investor Shares of Century
Shares Trust to maintain total operating expenses at 1.45% through February 28,
2009. Please see the Financial Highlights and Notes to the Financial Statements
sections of this report for gross and net expense related disclosure for the
period ended April 30, 2008. Shares held less than 90 days for both Funds may be
subject to a 1.00% redemption fee.
Returns include the reinvestment of dividends and capital gains. Performance for
Century Small Cap Select Fund and the Investor Shares of Century Shares Trust
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.
CENTURY SMALL CAP SELECT FUND CONCENTRATES ITS INVESTMENTS IN THE FINANCIAL
SERVICES AND HEALTH CARE GROUP OF INDUSTRIES. CONCENTRATION IN A PARTICULAR
INDUSTRY SUBJECTS THE FUND TO THE RISKS ASSOCIATED WITH THAT INDUSTRY AND, AS A
RESULT, MAY BE SUBJECT TO GREATER PRICE VOLATILITY THAN FUNDS WITH LESS
CONCENTRATED PORTFOLIOS. IN ADDITION, THE FUND INVESTS IN SMALLER COMPANIES
WHICH POSE GREATER RISKS THAN THOSE ASSOCIATED WITH LARGER, MORE ESTABLISHED
COMPANIES.
CENTURY SHARES TRUST MAY INVEST A SIGNIFICANT PORTION OF ASSETS IN SECURITIES OF
COMPANIES WITHIN THE SAME MARKET SECTOR. IF THE FUND'S PORTFOLIO IS OVER
WEIGHTED IN A SECTOR, ANY NEGATIVE DEVELOPMENT AFFECTING THAT SECTOR WILL HAVE A
GREATER IMPACT ON THE FUND THAN A FUND THAT IS NOT OVER WEIGHTED IN THAT SECTOR.
Price/Earnings ratio is the value of a company's stock price relative to company
earnings. Price/Book ratio is the ratio of a stock's latest closing price
divided by its book value per share. Book value is the total assets of a company
minus total liabilities. Foreside Fund Services, LLC, Distributor.
CENTURY FUNDS 9
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 both Funds) 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, 2007 to April 30, 2008).
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
BEGINNING ENDING DURING PERIOD*
ACCOUNT VALUE ACCOUNT VALUE SIX MONTHS ENDING
NOVEMBER 1, 2007 APRIL 30, 2008 APRIL 30, 2008
------------------------------------------------------------------
Based on Actual Fund Return
Institutional Shares $1,000.00 $914.80 $ 5.57
Investor Shares $1,000.00 $914.20 $ 6.47
Based on Hypothetical 5% Yearly Return before expenses
Institutional Shares $1,000.00 $1,019.05 $ 5.87
Investor Shares $1,000.00 $1,018.10 $ 6.82
* The Fund's annual expense ratios are 1.17% for Institutional Shares and
1.36% for Investor Shares. The dollar amounts shown as "Expenses Paid" are
equal to the annual 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 366.
CENTURY SMALL CAP SELECT FUND EXPENSES PAID
BEGINNING ENDING DURING PERIOD*
ACCOUNT VALUE ACCOUNT VALUE SIX MONTHS ENDING
NOVEMBER 1, 2007 APRIL 30, 2008 APRIL 30, 2008
------------------------------------------------------------------
Based on Actual Fund Return
Institutional Shares $1,000.00 $886.00 $ 5.25
Investor Shares $1,000.00 $884.60 $ 7.22
Based on Hypothetical 5% Yearly Return before expenses
Institutional Shares $1,000.00 $1,019.29 $ 5.62
Investor Shares $1,000.00 $1,017.21 $ 7.72
* The Fund's annual expense ratios are 1.12% for Institutional Shares and
1.54% for Investor Shares. The dollar amounts shown as "Expenses Paid" are
equal to the annual 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 366.
10 CENTURY FUNDS
CENTURY SHARES TRUST APRIL 30, 2008 - (UNAUDITED)
PORTFOLIO OF INVESTMENTS
COMMON STOCK - 95.1%
SHARES VALUE
- -------- -----------
AEROSPACE AND DEFENSE - 2.8%
93,610 United Technologies Corp. $ 6,783,917
-----------
BEVERAGES - 2.6%
92,050 PepsiCo, Inc. 6,308,186
-----------
CAPITAL MARKETS - 1.2%
87,666 Waddell & Reed Fin'l, Inc. CL A 2,968,371
-----------
COMMUNICATIONS EQUIPMENT - 3.7%
344,600 Cisco Systems, Inc. * 8,835,544
-----------
COMPUTERS AND PERIPHERALS - 1.9%
26,650 Apple, Inc. * 4,635,767
-----------
CONSTRUCTION AND ENGINEERING - 1.4%
127,300 Quanta Services, Inc. * 3,378,542
-----------
DIVERSIFIED FINANCIAL SERVICES - 2.5%
123,000 J.P. Morgan Chase & Co. 5,860,950
-----------
ELECTRICAL EQUIPMENT - 2.4%
84,700 General Cable Corp. * 5,674,900
-----------
FOOD AND STAPLES RETAILING - 3.0%
38,750 Costco Wholesale Corp. 2,760,937
128,720 Walgreen Co. 4,485,892
-----------
7,246,829
-----------
HEALTH CARE EQUIPMENT AND SUPPLIES - 4.6%
15,000 Alcon, Inc. 2,370,000
45,400 C.R. Bard, Inc. 4,275,318
70,500 Smith & Nephew PLC ADR 4,563,465
-----------
11,208,783
-----------
HEALTH CARE PROVIDERS AND SERVICES - 5.4%
56,600 Express Scripts, Inc. * 3,963,132
23,850 Laboratory Corp. of
America Holdings * 1,803,537
67,350 McKesson Corp. 3,510,282
114,881 UnitedHealth Group, Inc. 3,748,567
-----------
13,025,518
-----------
HOTELS, RESTAURANTS & LEISURE - 1.4%
118,400 Scientific Games Corp. * 3,334,144
-----------
SHARES VALUE
- -------- -----------
HOUSEHOLD PRODUCTS - 2.5%
89,550 Procter & Gamble Co. $ 6,004,328
-----------
INDUSTRIAL CONGLOMERATES - 2.6%
81,650 3M Co. 6,278,885
-----------
INSURANCE - 18.8%
65,350 AFLAC, Inc. 4,356,884
147,866 American International Gr., Inc. 6,831,409
88,350 Aon Corp. 4,010,207
57 Berkshire Hathaway, Inc. CL A * 7,629,450
84,400 Protective Life Corp. 3,597,128
151,600 The Chubb Corp. 8,030,252
310,750 The Progressive Corp. 5,652,542
80,000 Torchmark Corp. 5,179,200
-----------
45,287,072
-----------
INTERNET SOFTWARE AND SERVICES - 0.7%
2,850 Google, Inc. CL A * 1,636,727
-----------
IT SERVICES - 0.9%
25,000 Visa, Inc. CL A * 2,086,250
-----------
LIFE SCIENCES TOOLS AND SERVICES - 6.9%
74,250 Covance, Inc. * 6,221,407
89,400 TECHNE Corp. * 6,483,288
62,550 Waters Corp. * 3,844,323
-----------
16,549,018
-----------
MACHINERY - 7.6%
94,050 Danaher Corp. 7,337,781
183,500 Donaldson Co., Inc. 7,989,590
80,750 IDEX Corp. 2,962,717
-----------
18,290,088
-----------
MEDIA - 1.7%
100,300 The McGraw-Hill Companies, Inc. 4,111,297
-----------
OIL, GAS AND CONSUMABLE FUELS - 4.5%
34,950 Exxon Mobil Corp. 3,252,797
60,700 Peabody Energy Corp. 3,710,591
78,750 Valero Energy Corp. 3,846,937
-----------
10,810,325
-----------
See notes to financial statements.
CENTURY FUNDS 11
CENTURY SHARES TRUST (CONT.) APRIL 30, 2008 - (UNAUDITED)
PORTFOLIO OF INVESTMENTS
SHARES VALUE
- -------- -----------
PHARMACEUTICALS - 3.9%
73,450 Johnson & Johnson, Inc. $ 4,927,761
36,900 Roche Holdings Ltd. ADR 3,057,165
78,900 Schering Plough Corp. 1,452,549
-----------
9,437,475
-----------
SEMICONDUCTORS AND SEMICONDUCTOR
EQUIPMENT - 1.0%
87,500 Texas Instruments, Inc. 2,551,500
-----------
SOFTWARE - 6.7%
39,150 Amdocs Ltd. * 1,228,527
287,740 Microsoft Corp. 8,206,345
321,500 Oracle Corp. * 6,703,275
-----------
16,138,147
-----------
SPECIALTY RETAIL - 2.2%
244,415 Staples, Inc. 5,303,805
-----------
TEXTILES, APPAREL AND LUXURY GOODS - 0.3%
34,650 Gildan Activewear, Inc. * 891,545
-----------
TRADING COMPANIES AND DISTRIBUTORS - 1.9%
93,450 Fastenal Co. 4,561,295
-----------
TOTAL INVESTMENT IN COMMON STOCKS - 95.1%
(Identified cost, $160,743,327) 229,199,208
-----------
FACE AMOUNT VALUE
- -------------- -----------
SHORT-TERM INVESTMENTS - 4.6%
10,964,000 State Street Bank and Trust
Eurodollar Time Deposit, at
cost approximating value,
maturity 05/01/08, 1.50% $ 10,964,000
------------
TOTAL INVESTMENTS - 99.7%
(Identified cost, $171,707,327) 240,163,208
------------
CASH AND RECEIVABLES
LESS LIABILITIES - 0.3%
Other Assets in Excess of Liabilities 718,360
------------
NET ASSETS - 100% $240,881,568
============
*Non-income producing security
ABBREVIATIONS:
ADR -- American Depository Receipt
See notes to financial statements.
12 CENTURY FUNDS
CENTURY SMALL CAP SELECT FUND APRIL 30, 2008 - (UNAUDITED)
PORTFOLIO OF INVESTMENTS
COMMON STOCK - 94.8%
SHARES VALUE
- -------- ----------
AEROSPACE AND DEFENSE - 2.4%
211,850 DRS Technologies, Inc. $ 13,227,914
272,500 Taser International, Inc. * 2,032,850
------------
15,260,764
------------
CAPITAL MARKETS - 2.0%
65,200 Investment Technology Group, Inc. * 3,146,552
437,000 optionsXpress Holdings, Inc. 9,382,390
------------
12,528,942
------------
CHEMICALS - 1.6%
457,430 RPM International, Inc. 10,200,689
------------
COMMERCIAL SERVICES AND SUPPLIES - 4.5%
142,900 Advisory Board Co. * 6,661,998
90,700 Clean Harbors, Inc. * 5,983,479
397,200 Cornell Companies, Inc. * 9,024,384
156,700 Corporate Executive Board Co. 6,827,419
------------
28,497,280
------------
COMMUNICATIONS EQUIPMENT - 2.0%
868,200 Acme Packet, Inc. * 7,944,030
216,450 Polycom, Inc. * 4,848,480
------------
12,792,510
------------
CONSUMER FINANCE - 0.8%
591,450 Cardtronics, Inc. * 4,903,120
------------
DIVERSIFIED CONSUMER SERVICES - 2.9%
336,350 Bright Horizons Family
Solutions, Inc. * 15,946,353
47,150 Capella Education Co. * 3,040,704
------------
18,987,057
------------
DIVERSIFIED FINANCIAL SERVICES - 1.2%
1,777,510 Primus Guaranty, Ltd. * 7,927,695
------------
ELECTRICAL EQUIPMENT - 3.4%
150,250 General Cable Corp. * 10,066,750
320,950 II-VI, Inc. * 11,920,083
------------
21,986,833
------------
ELECTRONIC EQUIPMENT AND INSTRUMENTS - 1.8%
289,550 DTS, Inc. * 8,541,725
70,450 Rofin-Sinar Technologies, Inc. * 2,682,736
------------
11,224,461
------------
SHARES VALUE
- -------- ------------
ENERGY EQUIPMENT AND SERVICES - 2.5%
145,150 Bristow Group, Inc. * $ 7,656,663
1,327,600 Grey Wolf Inc * 8,324,052
------------
15,980,715
------------
FOOD AND STAPLES RETAILING - 2.0%
138,209 The Andersons, Inc. 6,281,599
329,800 United Natural Foods, Inc. * 6,530,040
------------
12,811,639
------------
FOOD PRODUCTS - 1.2%
340,250 Texas Roadhouse, Inc. * 4,014,950
158,200 The Cheesecake Factory, Inc. * 3,580,066
------------
7,595,016
------------
HEALTH CARE EQUIPMENT AND SUPPLIES - 5.3%
371,900 IRIS International Inc. * 5,072,716
136,551 SurModics, Inc. * 6,072,423
295,250 West Pharmaceutical Services, Inc. 13,850,177
316,100 Wright Medical Group, Inc. * 8,825,512
------------
33,820,828
------------
HEALTH CARE PROVIDERS AND SERVICES - 8.1%
142,980 Air Methods Corp. * 5,733,498
888,350 BioScrip, Inc. * 4,885,925
87,200 Emeritus Corp. * 2,149,480
451,300 HealthExtras, Inc. * 12,735,686
223,419 Healthways, Inc. * 8,161,496
455,400 Psychiatric Solutions, Inc. * 15,806,934
187,200 Virtual Radiologic Corp. * 2,615,184
------------
52,088,203
------------
HOTELS, RESTAURANTS & LEISURE - 1.9%
426,550 Scientific Games Corp. * 12,011,648
------------
HOUSEHOLD DURABLES - 1.0%
304,725 Jarden Corp. * 6,496,737
------------
INSURANCE - 2.8%
283,750 National Financial Partners Corp. 7,638,550
284,390 Platinum Underwriters
Holdings, Ltd. 10,201,069
------------
17,839,619
------------
See notes to financial statements.
CENTURY FUNDS 13
CENTURY SMALL CAP SELECT FUND (CONT.) APRIL 30, 2008 - (UNAUDITED)
PORTFOLIO OF INVESTMENTS
Shares Value
- -------- ------------
INTERNET AND CATALOG RETAIL - 0.4%
55,150 Blue Nile, Inc. * $ 2,739,301
------------
INTERNET SOFTWARE AND SERVICES - 6.4%
540,355 CMGI, Inc. * 7,473,110
587,800 j2 Global Communications, Inc. * 12,578,920
500,200 Online Resources Corp. * 5,057,022
148,750 ValueClick, Inc, * 2,967,563
675,650 Websense, Inc. * 13,141,392
------------
41,218,007
------------
IT SERVICES - 6.4%
295,850 Euronet Worldwide, Inc. * 5,230,628
261,400 Forrester Research, Inc. * 7,538,776
269,900 Global Payments Inc. 11,945,774
290,100 RightNow Technologies, Inc. * 3,472,497
378,150 Wright Express Corp. * 12,478,950
------------
40,666,625
------------
LIFE SCIENCES TOOLS AND SERVICES - 6.3%
1,051,200 Bruker BioSciences Corp. * 12,740,544
253,550 Kendle International, Inc. * 10,824,050
235,650 TECHNE Corp. * 17,089,338
------------
40,653,932
------------
MACHINERY - 4.4%
92,000 Chart Industries, Inc. * 3,738,880
205,300 Donaldson Co., Inc. 8,938,762
69,550 Nordson Corp. 4,105,537
291,450 RBC Bearings Inc. * 11,649,256
------------
28,432,435
------------
MEDIA - 1.1%
148,400 John Wiley & Sons, Inc. 6,833,820
------------
OIL, GAS AND CONSUMABLE FUELS - 5.4%
180,900 Berry Petroleum Co. 8,958,168
200,950 Foundation Coal Holdings, Inc. 12,052,981
177,250 Holly Corp. 7,352,330
263,850 World Fuel Services Corp. 6,480,156
------------
34,843,635
------------
PHARMACEUTICALS - 2.5%
387,750 Perrigo Co. 15,893,873
------------
SHARES/FACE AMOUNT VALUE
- ---------------------- ------------
SEMICONDUCTORS AND SEMICONDUCTOR
EQUIPMENT - 0.9%
163,950 Varian Semiconductor Equipment
Associates, Inc. * $ 6,005,488
------------
SOFTWARE - 11.0%
1,003,853 Blackbaud, Inc. 23,580,507
126,250 Commvault Systems, Inc. * 1,552,875
530,460 Epicor Software Corp. * 4,243,680
199,450 EPIQ Systems, Inc. * 3,079,508
232,500 FactSet Research Systems Inc. 13,956,975
1,658,500 Lawson Software, Inc. * 13,251,415
176,600 MICROS Systems, Inc. * 6,295,790
206,850 THQ Inc. * 4,401,768
------------
70,362,518
------------
TRADING COMPANIES AND DISTRIBUTORS - 2.0%
298,250 GATX Corp. 13,123,000
------------
TRANSPORTATION INFRASTRUCTURE - 0.6%
99,750 Aegean Marine Petroleum
Network Inc. 3,627,907
------------
TOTAL INVESTMENT IN COMMON STOCKS - 94.8%
(Identified cost, $604,929,653) 607,354,297
------------
SHORT-TERM INVESTMENTS - 5.3%
33,630,000 State Street Bank and Trust
Eurodollar Time Deposit, at
cost approximating value,
maturity 05/01/08, 1.50% 33,630,000
------------
TOTAL INVESTMENTS - 100.1%
(Identified cost, $638,559,653) 640,984,297
------------
CASH AND RECEIVABLES
LESS LIABILITIES - (0.1)%
Liabilities in Excess of Other Assets (431,586)
------------
NET ASSETS - 100% $640,552,711
============
* Non-income producing security
See notes to financial statements.
14 CENTURY FUNDS
STATEMENT OF ASSETS AND LIABILITIES - APRIL 30, 2008 - (UNAUDITED)
CENTURY SHARES CENTURY SMALL CAP
TRUST SELECT FUND
------------- -------------
ASSETS:
Investments, at value (Note 1A) (Identified cost of
$171,707,327 and $638,559,653, respectively) ........................... $ 240,163,208 $ 640,984,297
Cash ...................................................................... 123 228
Dividends and interest receivable ......................................... 147,161 42,736
Receivable for investments sold ........................................... 934,209 2,753,401
Receivable for Trust/Fund shares sold ..................................... 6,472 1,155,356
Prepaid expenses .......................................................... 9,278 9,105
------------- -------------
Total Assets ........................................................... 241,260,451 644,945,123
------------- -------------
LIABILITIES:
Payable to Affiliates:
Management fee (Note 4) ................................................ 157,486 494,926
Administration fee (Note 5) ............................................ 29,379 21,220
Distribution fees (Note 7) ............................................. 2,321 33,146
Accrued expenses and other liabilities .................................... 81,672 158,216
Payable for investments purchased ......................................... -- 2,547,900
Payable for Trust/Fund shares repurchased ................................. 108,025 1,137,004
------------- -------------
Total Liabilities ...................................................... 378,883 4,392,412
------------- -------------
NET ASSETS ................................................................ $ 240,881,568 $ 640,552,711
============= =============
At April 30, 2008, net assets consisted of:
Capital paid-in ........................................................... $ 170,933,616 $ 674,745,859
Accumulated distributions in excess of net investment income .............. (2,832,548) (10,168,380)
Accumulated undistributed net realized gains/(losses) on investments ...... 4,324,619 (26,449,412)
Unrealized appreciation in value of investments ........................... 68,455,881 2,424,644
------------- -------------
Net assets applicable to outstanding capital stock ........................ $ 240,881,568 $ 640,552,711
============= =============
Net Assets consist of:
Institutional Class .................................................... $ 240,042,776 $ 465,118,974
Investor Class ......................................................... $ 838,792 $ 175,433,737
Shares Outstanding consist of (Note 2):
Century Shares Trust
Institutional Class .................................................... 11,382,267 22,157,357
Investor Class ......................................................... 39,619 8,486,578
NET ASSET VALUE PER SHARE
(Represents both the offering and redemption price*)
Institutional Class .................................................... $ 21.09 $ 20.99
Investor Class ......................................................... $ 21.17 $ 20.67
* In general, shares of the Trust and Fund may be redeemed at net asset
value. However, upon the redemption of shares held less than 90 days, a
redemption fee of 1.00% of the current net asset value of the shares may be
assessed and retained by each for the benefit of their respective remaining
shareholders. The redemption fee is accounted for as an addition to
paid-in-capital.
See notes to financial statements.
CENTURY FUNDS 15
STATEMENT OF OPERATIONS - SIX MONTHS ENDED APRIL 30, 2008 - (UNAUDITED)
CENTURY SHARES CENTURY SMALL CAP
TRUST SELECT FUND
-------------- --------------
INVESTMENT INCOME/(LOSS):
Dividends (net of withholding tax of $25,449 and $0, respectively) ..... $ 1,360,395 $ 1,369,674
Interest ............................................................... 134,527 398,623
-------------- --------------
Total income ......................................................... 1,494,922 1,768,297
EXPENSES:
Investment adviser fee (Note 4) ........................................ 1,006,073 3,244,822
Non-interested trustees' remuneration .................................. 24,103 87,132
Transfer agent
Institutional Class .................................................. 79,360 39,898
Investor Class ....................................................... 10 204,836
Custodian .............................................................. 29,248 71,948
Administration (Note 5) ................................................ 188,639 21,220
Insurance .............................................................. 1,820 29,400
Professional fees ...................................................... 52,396 69,371
Registration ........................................................... 27,763 28,440
Printing and other ..................................................... 65,061 205,955
Distribution fee (Note 7) .............................................. 1,082 239,908
-------------- --------------
Total expenses ....................................................... 1,475,555 4,242,930
Net investment income/(loss) ........................................... 19,367 (2,474,633)
-------------- --------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from investment transactions .................. 641,946 (26,438,226)
Decrease in unrealized appreciation on investments ..................... (23,966,279) (63,903,753)
-------------- --------------
Net realized and unrealized gain on investments ...................... (23,324,333) (90,341,979)
-------------- --------------
Net decrease in net assets resulting from operations ...................... $ (23,304,966) $ (92,816,612)
============== ==============
See notes to financial statements.
16 CENTURY FUNDS
STATEMENT OF CHANGES IN NET ASSETS
CENTURY SHARES CENTURY SMALL CAP
TRUST SELECT FUND
------------ ------------
Six Months Six Months
INCREASE (DECREASE) Ended Ended
IN NET ASSETS: April 30, 2008 Year Ended April 30, 2008 Year Ended
(Unaudited) October 31, 2007 (Unaudited) October 31, 2007
----------- ---------------- ----------- ----------------
Operations:
Net investment income/(loss) $ 19,367 $ 1,635,090 $ (2,474,633) $ (632,683)
Net realized gain/(loss) on investment
transactions 641,946 62,813,977 (26,438,226) 68,702,337
Change in net unrealized appreciation (23,966,279) (31,685,500) (63,903,753) 27,688,064
------------- ------------- -------------- -------------
Net increase (decrease) in net assets
resulting from operations (23,304,966) 32,763,567 (92,816,612) 95,757,718
Distributions to shareholders from:
Net Investment Income
Institutional Class (2,847,889) (4,517,444) (5,899,699) (7,516,448)
Investor Class (4,026) (2,257) (1,794,048) (4,411,492)
Realized gain from investment transactions
Institutional Class (58,549,291) (75,570,929) (42,722,585) (42,614,264)
Investor Class (191,079) (459,673) (19,828,953) (27,610,318)
Trust/Fund share transactions - net 37,102,860 29,443,454 (29,240,135) (75,118,501)
Redemption fees 252 3,271 78,395 10,896
------------- ------------- -------------- -------------
Total (decrease)/increase (47,794,139) (18,340,011) (192,223,637) (61,502,409)
NET ASSETS:
At beginning of period 288,675,707 307,015,718 832,776,348 894,278,757
------------- ------------- -------------- -------------
At end of period $ 240,881,568 $ 288,675,707 $ 640,552,711 $ 832,776,348
============= ============= ============== =============
Distributions in excess of net investment
income at end of period $ (2,832,548) $ -- $ (10,168,380) $ --
============= ============= ============== =============
See notes to financial statements.
CENTURY FUNDS 17
FINANCIAL HIGHLIGHTS
PERIOD
ENDED
APRIL 30,
CENTURY SHARES TRUST 2008 YEAR ENDED OCTOBER 31,
INSTITUTIONAL SHARES (UNAUDITED) 2007 2006 2005 2004 2003
------ ------ ------ ------ ------ ------
Net Asset Value, beginning of period $29.52 $35.69 $35.40 $35.62 $35.66 $33.95
------ ------ ------ ------ ------ ------
Income/(loss) from Investment Operations:
Net investment income (a) --+ 0.16 0.10 0.19 0.03 0.07
Net realized and unrealized gain/(loss)
on investments (1.96) 2.95 3.31 3.54 3.02 5.03
------ ------ ------ ------ ------ ------
Total income/(loss) from investment operations (1.96) 3.11 3.41 3.73 3.05 5.10
------ ------ ------ ------ ------ ------
Less Distributions From:
Net investment income (0.30) (0.43) (0.77) (0.32) (0.34) (0.10)
Net realized gain on investment transactions (6.17) (8.85) (2.35) (3.63) (2.75) (3.29)
------ ------ ------ ------ ------ ------
Total distributions (6.47) (9.28) (3.12) (3.95) (3.09) (3.39)
------ ------ ------ ------ ------ ------
Redemption fees --+ --+ --+ --+ --+ --+
------ ------ ------ ------ ------ ------
Net Asset Value, end of period $21.09 $29.52 $35.69 $35.40 $35.62 $35.66
====== ====== ====== ====== ====== ======
Total Return (8.52)%** 11.86% 10.17% 11.18% 9.06% 16.99%
Ratios and supplemental data
Net assets, end of period (000 omitted) $240,043 $287,670 $305,172 $323,643 $362,392 $342,679
Ratio of expenses to average net assets 1.17%* 1.10% 1.11% 1.12% 1.15% 1.17%
Ratio of expenses to average net assets
without giving effect to voluntary
expense agreement 1.17%* 1.10% --% --% --% --%
Ratio of net investment income to
average net assets 0.02%* 0.56% 0.29% 0.55% 0.07% 0.21%
Portfolio Turnover Rate 23%** 38% 48% 19% 43% 37%
(a) 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.
18 CENTURY FUNDS
FINANCIAL HIGHLIGHTS
PERIOD
ENDED PERIOD
APRIL 30, ENDED
CENTURY SHARES TRUST 2008 YEAR ENDED OCTOBER 31, OCTOBER 31,
INVESTOR CLASS (UNAUDITED) 2007 2006 2005 (b)
------ ------ ------ ------
Net Asset Value, beginning of period $29.46 $35.41 $35.35 $35.00
------ ------ ------ ------
Income from Investment Operations:
Net investment income/(loss) (a) (0.02) 0.01 (0.19) (0.03)
Net realized and unrealized gain/(loss)
on investments (1.97) 2.96 3.27 0.29
------ ------ ------ ------
Total income/(loss) from investment operations (1.99) 2.97 3.08 0.26
------ ------ ------ ------
Less Distributions From:
Net investment income (0.13) (0.07) (0.68) --
Net realized gain on
investment transactions (6.17) (8.85) (2.35) --
------ ------ ------ ------
Total distributions (6.30) (8.92) (3.03) --
------ ------ ------ ------
Redemption fees --+ --+ 0.01 0.09
------ ------ ------ ------
Net Asset Value, end of period $21.17 $29.46 $35.41 $35.35
====== ====== ====== ======
Total Return (8.58)%** 11.38% 9.18% 1.00%**
Ratios and supplemental data
Net assets, end of period (000 omitted) $839 $1,006 $1,844 $1,139
Ratio of expenses to average net assets 1.36%* 1.56% 2.00% 1.20%*
Ratio of expenses to average net assets
without giving effect to voluntary
expense agreement 1.36%* 1.95% 2.15% 1.35%*
Ratio of net investment income/(loss)
to average net assets (0.16)%* 0.05% (0.58)% (0.36)%*
Portfolio turnover rate 23%** 38% 48% 19%
(a) Calculated based on average shares outstanding during the period.
(b) From the commencement date of investment operations, July 18, 2005 to
October 31, 2005.
+ Amount represents less than $0.01 per share.
* Annualized
** Not annualized
See notes to financial statements.
CENTURY FUNDS 19
FINANCIAL HIGHLIGHTS
PERIOD
ENDED
APRIL 30,
CENTURY SMALL CAP 2008 YEAR ENDED OCTOBER 31,
SELECT FUND - INSTITUTIONAL SHARES (UNAUDITED) 2007 2006 2005 2004 2003
------ ------ ------ ------ ------ ------
Net Asset Value, beginning of period $26.13 $25.74 $24.15 $22.46 $21.53 $15.42
------ ------ ------ ------ ------ ------
Income/(loss) from Investment Operations:
Net investment income (loss) (a) (0.06) -- 0.06 0.03 (0.08) (0.09)
Net realized and unrealized gain/(loss)
on investments (2.69) 2.75 1.90 2.22 2.14 6.64
------ ------ ------ ------ ------ ------
Total income/(loss) from investment operations (2.75) 2.75 1.96 2.25 2.06 6.55
------ ------ ------ ------ ------ ------
Less Distributions From:
Net investment income (0.29) (0.35) (0.09) -- (0.94) (0.11)
Net realized gain on investment transactions (2.10) (2.01) (0.28) (0.56) (0.19) (0.35)
------ ------ ------ ------ ------ ------
Total distributions (2.39) (2.36) (0.37) (0.56) (1.13) (0.46)
------ ------ ------ ------ ------ ------
Redemption fees --+ --+ --+ --+ --+ 0.02
------ ------ ------ ------ ------ ------
Net Asset Value, end of period $20.99 $26.13 $25.74 $24.15 $22.46 $21.53
====== ====== ====== ====== ====== ======
Total Return (11.40)%** 11.61% 8.21% 10.19% 9.83% 43.76%
Ratios and supplemental data
Net assets, end of period (000 omitted) $465,119 $575,027 $540,697 $585,723 $140,208 $42,936
Ratio of expenses to average net assets 1.12%* 1.08% 1.07% 1.06% 1.13% 1.26%
Ratio of expenses to average net assets
without giving effect to voluntary
expense agreement 1.12%* 1.08% 1.07% 1.06% 1.13% 1.40%
Ratio of net investment income to
average net assets (0.60)%* 0.02% 0.25% 0.13% (0.36)% (0.50)%
Portfolio Turnover Rate 45%** 100% 127% 96% 103% 88%
(a) 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.
20 CENTURY FUNDS
FINANCIAL HIGHLIGHTS
PERIOD
ENDED
APRIL 30,
CENTURY SMALL CAP 2008 YEAR ENDED OCTOBER 31,
SELECT FUND - INVESTOR SHARES (UNAUDITED) 2007 2006 2005 2004 2003
------ ------ ------ ------ ------ ------
Net Asset Value, beginning of period $25.72 $25.40 $23.86 $22.26 $21.39 $15.35
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment loss (a) (0.11) (0.06) (0.02) (0.04) (0.15) (0.15)
Net realized and unrealized gain/(loss)
on investments (2.65) 2.71 1.86 2.20 2.12 6.60
------ ------ ------ ------ ------ ------
Total income/(loss) from investment operations (2.76) 2.65 1.84 2.16 1.97 6.45
------ ------ ------ ------ ------ ------
Less Distributions From:
Net investment income (0.19) (0.32) (0.03) -- (0.91) (0.07)
Net realized gain on investment transactions (2.10) (2.01) (0.28) (0.56) (0.19) (0.35)
------ ------ ------ ------ ------ ------
Total distributions (2.29) (2.33) (0.31) (0.56) (1.10) (0.42)
------ ------ ------ ------ ------ ------
Redemption fees --+ --+ 0.01 --+ --+ 0.01
------ ------ ------ ------ ------ ------
Net Asset Value, end of period $20.67 $25.72 $25.40 $23.86 $22.26 $21.39
====== ====== ====== ====== ====== ======
Total Return (11.54)%** 11.34% 7.83% 9.87% 9.45% 43.12%
Ratios and supplemental data
Net assets, end of period (000 omitted) $175,434 $257,750 $353,581 $407,048 $150,418 $78,959
Ratio of expenses to average net assets 1.54%* 1.36% 1.45% 1.35% 1.50% 1.61%
Ratio of expenses to average net assets
without giving effect to voluntary
expense agreement 1.54%* 1.36% 1.45% 1.35% 1.50% 1.76%
Ratio of net investment loss to
average net assets (1.02)%* (0.24)% (0.09)% (0.17)% (0.69)% (0.86)%
Portfolio turnover rate 45%** 100% 127% 96% 103% 88%
(a) 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 21
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. In the absence of readily available
market quotes, the Funds' portfolio securities and other assets will be valued
at fair value, as determined in good faith by the Board of Trustees, its
Valuation Committee, or the Adviser or a Delegate pursuant to instructions from
the Board of Trustees or its Valuation Committee. When determining the price for
a fair value asset, the investment advisor shall seek to determine the price
that the funds might reasonably expect to receive from the current sale of that
asset in an arm's-length transaction. Fair value determinations shall be based
upon all available factors that the investment advisor deems relevant, including
but not limited to trading volumes, the value of other financial instruments,
changes in interest rates and government actions.
In September 2006, Statement of Financial Accounting Standards No. 157, Fair
Value Measurements (SFAS 157), was issued and is effective for fiscal years
beginning after November 15, 2007. SFAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. As of April 30, 2008 management does not believe the adoption of
FAS 157 will impact the amounts reported in the financial statements, however,
additional disclosures will be required about the inputs used to develop the
measurements of fair value and the effect of certain of the measurements.
B. Securities Transactions -- Investment security transactions are recorded on a
trade date basis. Gain or loss on sales is determined by the use of a specific
identification method, for both financial reporting and federal income tax
purposes. Dividend income and distributions to shareholders are recorded on the
ex-dividend date. The Funds may invest in equity securities issued or guaranteed
by companies organized and based in countries outside of the United States.
These securities may be traded on foreign securities exchanges or in foreign
over-the-counter markets. Foreign dividend income is recorded on ex-dividend
date or as soon as practical after the Fund or Trust determine the existence of
a dividend declaration after exercising reasonable due diligence. Foreign income
and capital gain on some foreign securities may be subject to foreign
withholding taxes, which are accrued as applicable. Interest income is recorded
daily on an accrual basis.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161,
Disclosures about Derivative Instruments and Hedging Activities ("FAS 161"), an
amendment of FASB Statement No. 133. FAS 161 requires enhanced disclosures about
(a) how and why an entity uses derivative instruments, (b) how derivative
instruments and hedging activities are accounted for, and (c) how derivative
instruments and related hedging activities affect a fund's financial position,
financial performance, and cash flows. The Funds do not currently use
derivatives and therefore management of the Funds does not believe the adoption
of FAS 161 will materially impact the financial statement amount. FAS 161 is
effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008.
C. 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.
D. Risks and Uncertainty -- The Fund concentrates its investments in the
financial services and health care group of industries, which will subject the
Fund to the risks associated with those industries and may result in greater
fluctuation in share value than is experienced in more diversified portfolios.
In addition, the Fund invests in smaller companies, which generally involves
greater risk than investing in larger, more established companies. Investments
in securities issued by non U.S. companies have certain risks not present in
domestic issuers. At any given time, a significant portion of the assets of the
Trust and/or the Fund may be invested in securities
22 CENTURY FUNDS
of companies within the same market sector of the economy. Companies within the
same sector often face similar issues and, consequently, may react similarly to
changes in market conditions. If the Trust or the Fund has a significant
weighting in one or more sectors, it may be subject to more risk and price
volatility than other funds.
E. Multiple Classes of Shares -- The Funds offer multiple classes of shares,
which differ in their respective distribution and transfer agent fees. Transfer
agent fees for each share class are based on a per shareholder account charge.
All shareholders bear the common expenses of the Funds based upon daily net
assets of each class, without distinction between share classes.
F. 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 90
days, a fee of 1% of the current net asset value of the shares may be assessed
and retained by each for the benefit of their respective remaining shareholders
of the Trust and Fund. The redemption fee is accounted for as an addition to
paid-in-capital.
G. Income Tax Information and Distributions to Shareholders -- Each year, each
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.
Capital accounts within the financial statements are adjusted for permanent book
and tax differences.
The presentation for the Fund has changed in the table shown below as a result
of a typographical error as of October 31, 2007. The amount included in
Accumulated Gain was originally reported as Paid-In Capital.
PAID-IN
CAPITAL UNII ACCUMULATED GAIN
- --------------------------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND $-- $12,560,623 $(12,560,623)
CENTURY FUNDS 23
In June 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 (FIN 48) "Accounting for Uncertainty in Income Taxes". FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken in the course of preparing the Trusts' tax
returns to determine whether the tax positions are "more-likely-than-not" of
being sustained by the applicable tax authority. Tax benefits of positions not
deemed to meet the more-likely-than-not threshold would be booked as a tax
expense in the current year and recognized as: a liability for unrecognized tax
benefits; a reduction of an income tax refund receivable; a reduction of
deferred tax asset; an increase in deferred tax liability; or a combination
thereof. Adoption of FIN 48 is required for fiscal years beginning after
December 15, 2006. As of April 30, 2008 the Funds have reviewed their tax
positions for each of the three open tax years as of October 31, 2007 and has
determined that no provisions for income tax is required in either of the Fund's
financial statements. The Funds' federal tax returns for the prior three fiscal
years remain subject to examination by the Internal Revenue Service.
Book-tax 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 of investments and unrealized appreciation (depreciation)
as of the period ended April 30, 2008 were as follows:
FOR THE TRUST
Unrealized appreciation ..................................... $ 74,998,848
Unrealized depreciation ..................................... (6,542,967)
-------------
Unrealized net appreciation ................................. $ 68,455,881
=============
Cost for federal income tax purposes ........................ $ 171,707,327
FOR THE FUND
Unrealized appreciation ..................................... $ 56,304,165
Unrealized depreciation ..................................... (53,879,521)
-------------
Unrealized net appreciation ................................. $ 2,424,644
=============
Cost for federal income tax purposes ........................ $ 638,559,653
(2) TRANSACTIONS IN SHARES
A. TRUST SHARES-- The number of authorized shares is unlimited, par value
$0.01. Transactions in Trust shares were as follows:
CENTURY SHARES TRUST
PERIOD ENDED APRIL 30, 2008
---------------------------
INSTITUTIONAL SHARES INVESTOR SHARES
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
Sold ............................................................. 89,966 $ 2,000,453 3,996 $ 87,706
Issued to shareholders in reinvestment of distributions from:
Net investment income ......................................... 101,392 2,343,715 174 4,026
Realized gain on investment transactions ...................... 2,224,013 51,337,595 8,276 191,079
---------- ------------ ---------- -----------
2,415,371 55,681,763 12,446 282,811
Repurchased ...................................................... (777,151) (18,687,629) (6,969) (174,085)
---------- ------------ ---------- -----------
Net increase (decrease) ....................................... 1,638,220 $ 36,994,134 5,477 $ 108,726
========== ============ ========== ===========
24 CENTURY FUNDS
YEAR ENDED OCTOBER 31, 2007
---------------------------
INSTITUTIONAL SHARES INVESTOR SHARES
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
Sold ............................................................. 207,400 $ 5,807,854 14,785 $ 415,043
Issued to shareholders in reinvestment of distributions from:
Net investment income ......................................... 133,255 3,725,818 79 2,257
Realized gain on investment transactions ...................... 2,436,217 65,004,501 17,333 457,249
---------- ------------ ---------- -----------
2,776,872 74,538,173 32,197 874,549
Repurchased ...................................................... (1,582,350) (44,567,517) (50,128) (1,401,751)
---------- ------------ ---------- -----------
Net increase (decrease) ....................................... 1,194,522 $ 29,970,656 (17,931) $ (527,202)
========== ============ ========== ===========
B. FUND SHARES - The number of authorized shares is unlimited.
Transactions in Fund shares were as follows:
CENTURY SMALL CAP SELECT FUND
PERIOD ENDED APRIL 30, 2008
---------------------------
INSTITUTIONAL SHARES INVESTOR SHARES
SHARES AMOUNT SHARES AMOUNT
---------- ------------- ---------- ------------
Sold ............................................................. 3,689,129 $ 78,080,296 503,412 $ 10,799,875
Issued to shareholders in reinvestment of distributions from:
Net investment income ......................................... 228,830 5,308,863 71,197 1,628,311
Realized gain on investment transactions ...................... 1,763,230 40,906,967 788,088 18,023,807
---------- ------------- ---------- ------------
................................................................. 5,681,189 124,296,126 1,362,697 30,451,993
Repurchased ...................................................... (5,527,133) (122,484,378) (2,898,181) (61,503,876)
---------- ------------- ---------- ------------
Net increase (decrease) ....................................... 154,056 $ 1,811,748 (1,535,484) $(31,051,883)
========== ============= ========== ============
YEAR ENDED OCTOBER 31, 2007
---------------------------
INSTITUTIONAL SHARES INVESTOR SHARES
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
Sold 6,049,719 $153,845,728 1,591,679 $39,241,334
Issued to shareholders in reinvestment of distributions from:
Net investment income 277,032 6,651,580 158,342 3,749,576
Realized gain on investment transactions 1,665,227 40,572,547 978,856 23,524,667
---------- ------------ ---------- -----------
7,991,978 201,069,855 2,728,877 66,515,577
Repurchased (6,996,336) (177,782,464) (6,625,509) (164,921,469)
---------- ------------ ---------- -----------
Net increase (decrease) 995,642 $ 23,287,391 (3,896,632) $(98,405,892)
========== ============ ========== ===========
(3) INVESTMENT SECURITY TRANSACTIONS
FOR THE TRUST, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated $56,332,110 and
$78,856,452, respectively, during the period ended April 30, 2008.
FOR THE FUND, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated $304,883,543
and $413,272,826, respectively, during the period ended April 30, 2008.
CENTURY FUNDS 25
(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
services to the Trust. CCM receives a monthly fee equal on an annualized basis
to 0.80% of the first $500 million and 0.70% of the amounts exceeding $500
million of the Trust's average daily net assets. For the period ended April 30,
2008, the fee amounted to $1,006,073. 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 one former Trustee. 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 average daily net assets. For the period ended April 30, 2008, the fee
amounted to $3,244,822. 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 average daily net assets. The fee was
$188,639 for the period ended April 30, 2008. Per the Investment Advisory and
Management Services Agreement between the Fund 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. CCM estimates the expense for Fiscal Year End October 31,
2008 on the Fund to be $28,761. During the period ended April 30, 2008 the Fund
has accrued to date $21,220, which is recorded on the Statement of Operations
under Administration.
(6) ADVISER REIMBURSEMENT -- CCM contractually agreed to reimburse the Trust for
distribution and service fees paid by the Trust's Investor Shares through
February 28, 2009. In addition, effective as of February 28, 2008, CCM has
contractually agreed to waive a portion of its management fee and reimburse or
pay operating expenses of the Trust's Investor Shares to the extent necessary to
maintain the total operating expenses of the Investor Shares at 1.45% through
February 28, 2009. During the period ended April 30, 2008, CCM made a
reimbursement of $0.
(7) DISTRIBUTION AND SERVICE PLAN -- The Trust and the Fund have 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 pays a distribution and service fee up to 0.25% of
the average daily net assets of the class. During the period ended April 30,
2008, $1,082 and $239,908 for the Trust and Fund, respectively, 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.
In addition, the Adviser may, out of its own resources and without additional
cost to the Funds or their shareholders, provide compensation to certain
financial intermediaries, such as broker-dealers and financial advisors, in
connection with the sale of shares of the Funds or the provision of services to
Funds shareholders. For example, such compensation may be paid to an
intermediary for providing access to a third party platform, such as a mutual
fund supermarket, or for providing services to shareholders who invest via such
a platform. This compensation is in addition to any distribution and service
fees paid by the Funds pursuant to a Rule 12b-1 Plan and in addition to
sub-transfer agency fees paid by the Funds.
26 CENTURY FUNDS
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
The Board of Trustees, including the independent Trustees, approved the
continuation of each Fund's investment management agreement with Century Capital
Management, LLC (CCM) at a meeting held on December 10, 2007.
In advance of the meeting, the Board, including all of the independent
Trustees, received, among other things: (i) a Lipper Inc. report comparing each
Fund's fees and expenses to those of a peer group and peer universe for that
Fund, each selected by Lipper; (ii) information regarding each Fund's total
returns for each of the last three calendar years and for the period from
January 1, 2007 to September 30, 2007, the average annual total returns for the
3, 5, 10 and 15 years ended October 31, 2007 (for CST) and for the 1, 3 and 5
years ended October 31, 2007 and since inception (for CSCS), and the five year
cumulative total returns for each Fund for the periods ended October 31, 2005,
2006 and 2007, as well as comparative total return information for various
securities indices, the applicable Lipper peer group and a CCM selected peer
group; (iii) reports from CCM that described (a) the services provided to each
Fund and information about the personnel providing those services, (b) the fees
paid under the advisory and administration agreements, (c) compliance and
oversight, (d) "fall-out" benefits to CCM, (e) brokerage and soft-dollar
arrangements, and (f) information about fees paid by and services provided to
comparable accounts; (iv) a profitability report prepared CCM and (v) CCM's Form
ADV. In addition, at each regularly scheduled Board meeting, the Trustees
receive and review, among other things, information concerning each Fund's
performance and the services provided to each Fund by CCM. The independent
Trustees also received a memorandum from their counsel outlining the legal
standards and certain other considerations relevant to the Trustees'
deliberations.
After receiving the requested information, the independent Trustees met in
executive session to consider the advisory and administrative arrangements. The
Trustees then unanimously determined to approve the continuance of the advisory
and administration agreements with respect to each Fund. This approval was based
on the following conclusions:
(i) that CCM has the capabilities, resources and personnel necessary to
provide the advisory and administrative services currently required
by each Fund; and
(ii) that the advisory and administrative fees paid by each Fund
represent reasonable compensation to CCM in light of the services
provided, the costs to CCM of providing those services, the fees
paid by similar funds, and such other matters as the Trustees
considered relevant in the exercise of their reasonable judgment.
In determining to approve the advisory and administration agreements, the
Trustees considered a number of factors as outlined below. The Trustees did not
identify any single factor as controlling. The Trustees evaluated all
information available to them on a Fund-by-Fund basis, and their determinations
were made separately in respect of each Fund. They also took into account the
common interests of both of the Funds in their review. Throughout their
deliberations, the independent Trustees were represented by counsel.
NATURE, QUALITY AND EXTENT OF SERVICES PROVIDED
In considering the nature, extent and quality of the services provided by
CCM under the advisory and administration agreements, the Board considered the
terms of those agreements and reviewed information provided by CCM relating to
its operations and personnel. The Trustees also considered their knowledge of
the nature and quality of the services provided by CCM to the Funds gained from
their experience as trustees of the Funds and noted the expectations of the
shareholders who had invested in the Funds. The Board considered that CCM was
responsible for the management and administration of each Fund's operations.
They also considered that CCM provides day-to day management of each Fund's
portfolio of investments, including making purchases and sales of portfolio
securities consistent with each Fund's investment objectives and policies.
The Board considered CCM's resources and personnel, focusing in particular
on investment and compliance resources and personnel. The Board reviewed each
portfolio manager's experience and qualifications, as well as CCM's investment
approach and research process. The Board also reviewed CCM's trading procedures
and brokerage practices, including information regarding soft dollar
arrangements.
CENTURY FUNDS 27
The Board also considered that, as administrator, CCM is responsible for
the administration of each Fund's business and other affairs. It was noted that
CCM supervises and monitors the performance of each Fund's service providers and
provides each Fund with personnel (including officers) as are necessary for the
Fund's operations. It was noted that CCM pays all of the compensation of Mr.
Thorndike and Mr. Fulkerson, the interested Trustees, and the Funds' officers.
The Board also noted that CCM assisted the Funds in meeting legal and regulatory
requirements and considered, among other things, CCM's compliance program. The
Board considered the fees paid to CCM for the provisions of such services.
Taking all of the foregoing into account, the Trustees concluded that they
were satisfied with the nature, extent and quality of services provided to the
Funds under the advisory and administration agreements.
COSTS OF SERVICES PROVIDED AND PROFITABILITY
The Trustees reviewed information concerning the costs of services
provided to the Funds by CCM, and the profitability to CCM of its advisory and
administrative relationship with Funds for the periods ended December 31, 2006
and December 31, 2007, along with a description of the methodology used by CCM
in preparing the profitability information. It was noted, among other things,
that profitability was shown on a Fund-by-Fund basis.
The Trustees recognized that CCM should be entitled to earn a reasonable
level of profit for the services provided to each Fund, and that it is difficult
to make comparisons of profitability from fund advisory and administration
contracts because comparative information is not generally available and is
affected by numerous factors, including the structure of the particular adviser,
the types of funds it manages, its business mix, numerous assumptions about
allocations and the adviser's capital structure and cost of capital. The
Trustees concluded that, taking all of the foregoing into account, they were
satisfied that CCM's level of profitability from its relationship with each Fund
was not excessive.
FALL-OUT BENEFITS
The Trustees considered the extent to which CCM benefited from soft dollar
arrangements whereby it receives brokerage and research services from brokers
that execute a Fund's purchases and sales of investment securities. It was noted
that CCM had represented that it fulfills its fiduciary obligation of seeking
best execution when engaging in portfolio transactions for the Funds. The
Trustees concluded that the direct and indirect benefits to CCM from its
relationship with the Funds were reasonable.
ECONOMIES OF SCALE
The Trustees considered the extent to which CCM may realize economies of
scale or other efficiencies in managing and supporting the Funds. It was noted
that as assets increase certain fixed costs may be spread across a larger asset
base, and it was noted that any economies of scale or other efficiencies might
be realized (if at all) across a variety of products and services, including the
Funds, and not only in respect of a single Fund. The Trustees noted that the
advisory fee schedule for CST included breakpoints that would allow the
shareholders of CST to share in the economies of scale experienced by CCM in
managing that Fund as assets under management increased. The Trustees noted that
the advisory fee schedule for CSCS did not include breakpoints that would reduce
the fee rate on assets above specified levels. The Board determined that the
current fee structure for CSCS was acceptable given the fee level, the fees
waived by CCM in prior years in respect of CSCS, and the fact that CSCS was
closed to most new investments and would not, therefore, experience a
significant growth in Fund assets.
INVESTMENT RESULTS
CST. The Trustees reviewed comparative information that showed that CST's
average annual total return for the Institutional class of shares for the 10
years ended October 31, 2007 was better than the average annual total return of
both the Standard & Poor's 500 Index and the Russell 1000 for the same period.
The Trustees also noted that the average annual return for 3 and 5 year periods
ended October 31, 2007 lagged the average annual total return of the Standard &
Poor's 500 Index and the Russell 1000 for the same period. The Trustees
considered CCM's explanation for CST's relative underperformance and the recent
changes to CST's investment strategies. The Trustees also considered the actions
taken and planned to be taken by CCM in an effort to improve CST's performance.
The Trustees agreed that they would continue to monitor the performance of the
CST especially closely.
28 CENTURY FUNDS
CSCS. The Trustees reviewed comparative information that showed that
CSCS's average annual total return for both the Institutional class of shares
and the Investor class of shares for the 1, 3 and 5 year periods ended October
31, 2007 lagged the average annual return of the Russell 2000 and the Russell
2000 Growth indices (except that 1 year average annual total return was better
than the total annual return for the Russell 2000 Index for the same period) and
CSCS's Lipper peer universe for the same periods, but that CSCS's average annual
total return (for both classes) was better than the average annual total return
of those indices and the peer universe for the period from December, 1999
through October 31, 2007. The Trustees considered CCM's explanation of CSCS's
relative underperformance and the actions taken and planned to be taken by CCM
in an effort to improve CSCS's performance. The Trustees agreed that they would
continue to monitor the performance of the CSCS especially closely.
FEES AND OTHER EXPENSES
The Trustees considered the advisory fees paid by each Fund to CCM. The
Trustees also considered the administrative fee rate paid by CST to CCM. The
Trustees considered (i) the level of each Fund's advisory fee versus its peer
group and peer universe as shown in the Lipper materials and (ii) each Fund's
total expense ratio as compared to its peer group and peer universe as shown in
the Lipper materials.
The Trustees also considered the fees that CCM charges other clients with
investment objectives similar to the Funds. The Trustees reviewed materials from
CCM describing the differences in services provided to these other clients,
which noted that typically more services were provided to the Funds than these
other clients and that, because of the constant issuance and redemption of Fund
shares, the Funds were more difficult to manage than institutional accounts. The
materials showed that the fee rates charged by CCM to other clients were
generally similar to (but not necessarily as low as, in all cases) the fees paid
by the Funds.
The information obtained from Lipper for the meeting compared the advisory
fee, transfer agency/custodian fees, distribution fees, other nonmanagement
expenses and total expenses for the Institutional class of shares of each Fund
and the CSCS Investor class of shares to those of a group of competitor funds of
roughly equivalent size, as well as a universe of competitor funds. The Trustees
did not independently verify any of the information provided by Lipper.
CST. The Trustees reviewed information that showed that CST's advisory fee
(which includes administration) was slightly higher than the Lipper peer group
and peer universe averages but that CST's total expense ratio was less than both
the Lipper peer universe average and the Lipper peer group average. The Trustees
considered that certain of the funds in the peer group had lower advisory fees
than CST as a result of fee waivers that could be terminated. The Trustees
concluded that the advisory fees and total expense ratios were acceptable in
light of the performance and the other factors considered.
CSCS. The Trustees reviewed information that showed that CSCS's advisory
fees were slightly lower than the Lipper peer universe average and slightly
higher than the Lipper peer group average. The Trustees also reviewed
information that showed that the total expense ratio for CSCS's Investor class
of shares was slightly higher than the average total expense ratio of the Lipper
peer group but slightly lower than the average total expense ratio of the Lipper
peer universe. The Trustees also considered information provided to them
regarding the costs to CCM of providing advisory services to CSCS, noting in
particular the competitive market for analysts and portfolio managers and that
the research needed to implement CSCS's investment strategy was relatively
costly. The Trustees concluded that the advisory fees, administrative fees and
total expense ratios of CSCS were acceptable in light of the performance of the
Fund and the other factors considered.
CENTURY FUNDS 29
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES. Each Fund files a complete
schedule of its portfolio holdings with the SEC for the first and third quarters
of the Fund's fiscal year on Form N-Q. The Forms N-Q are available on the SEC's
website at http://www.sec.gov, and they may be reviewed and copied at the SEC's
Public Reference Room in Washington, DC. Information on the operation of the
SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
AVAILABILITY OF PROXY VOTING POLICIES AND PROCEDURES AND PROXY VOTING RECORD. 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 are available, without charge, upon
request, by calling 1-800-321-1928. You may also obtain a copy of the Funds'
proxy voting policies and procedures and proxy voting record one the SEC's
website at http://www.sec.gov.
BOARD OF TRUSTEES
Alexander L. Thorndike, Chairman and Chief Investment Officer
Davis R. Fulkerson, Trustee
William Gray, Trustee
Laura A. Johnson, Trustee
Stephen W. Kidder, Trustee
Jerrold Mitchell, Trustee
Jerry S. Rosenbloom, Trustee
David D. Tripple, Trustee
Ellen M. Zane, Trustee
INVESTMENT ADVISOR
Century Capital Management, LLC
100 Federal Street
Boston, Massachusetts 02110
SHAREHOLDER INFORMATION
800-303-1928
www.centuryfunds.com
As of June 16, 2008 Atlantic Fund Services, LLC became the Transfer Agent for
the Century Funds. Please note below the new addresses for sending
correspondence.
REGULAR MAILING ADDRESS -
Century Funds
PO Box 588
Portland, ME 04112
OVERNIGHT MAILING ADDRESS -
Century Funds
c/o Atlantic Shareholder Services, LLC
3 Canal Plaza, Ground Floor
Portland, ME 04101
30 CENTURY FUNDS
CENTURY SHARES TRUST
80 YEARS
OF DEDICATED SERVICE
TRUSTEES YEARS OF SERVICE
- ----------------------------------------------------------
Charles P. Curtis, Jr. 1928-1959
Louis Curtis, Jr. 1928-1947
Charles D. Dickey 1928-1932
Robert H. Gardiner 1928-1944
Ellery S. James 1928-1932
Donald C. Watson 1928-1951
Prescott S. Bush 1932-1934
Charles F. Adams 1933-1943
Henry R. Guild 1943-1978
O. Kelley Anderson 1943-1988
William H. Davies 1951-1968
Vinton C. Johnson 1951-1989
Henry T. Vance 1952-1970
William H. Spaulding 1963-1971
Allan W. Fulkerson 1969-2004
Robert A. Hall 1971-1976
Ernest E. Monrad 1977-2005
William W. Dyer, Jr. 1977-2001
John E. Beard 1983-2007
Thomas B. Wheeler 1983-1987
William O. Bailey 1989-2001
Michael J. Poulos 1998-2006
Jerry S. Rosenbloom 1998
John R. Casey 1999-2000
Alexander L. Thorndike 1999
Davis R. Fulkerson 2000
Jerrold Mitchell 2004
David D. Tripple 2004
Stephen W. Kidder 2005
William Gray 2006
Laura A. Johnson 2007
Ellen M. Zane 2007
CENTURY FUNDS 31
CENTURY FUNDS PRIVACY POLICY
When you become a Century Funds shareholder, you entrust us with not only your
investments but your personal and financial data as well. Century has always
been committed to maintaining the confidentiality, security and integrity of
personal information entrusted to us. We hold ourselves to the highest standards
regarding our privacy practices, and we want you to know how we protect your
information and how we use it to service your account.
THIS MEANS, MOST IMPORTANTLY, THAT WE DO NOT SELL CLIENT INFORMATION--WHETHER IT
IS YOUR PERSONAL INFORMATION OR THE FACT THAT YOU ARE A CENTURY FUNDS
SHAREHOLDER--TO ANYONE.
Instead, we use your information primarily to complete transactions that you
request or we share your information within the Century Funds family in order to
help us make you better aware of other financial products and services that we
offer for your investing needs.
In servicing your account, we may also share your information with unaffiliated
third parties that perform administrative, marketing or research services for
us, or with whom we are developing or offering investment products. When we
enter into such a relationship, our contracts restrict these third parties from
sharing or using your information for any purpose other than those for which
they were hired.
THE INFORMATION WE COLLECT ABOUT YOU
You typically provide personal information when you complete a Century Funds
account application or when you request a transaction that involves one of the
Century Funds. This information may include your:
o Name and address.
o Social Security or taxpayer identification number.
o Account balance.
o Accounts at other institutions.
WE MAINTAIN PHYSICAL, ELECTRONIC, AND PROCEDURAL SAFEGUARDS TO PROTECT YOUR
PERSONAL INFORMATION.
o We do not disclose any nonpublic personal information about our
customers or former customers to unaffiliated third parties without
the customer's authorization, except as necessary to process a
transaction, service an account, respond to inquiries from
governmental agencies, or as otherwise permitted by law.
o We restrict access to your personal and account information to those
employees and service agents who need to know that information to
provide products and services to you.
WHAT YOU CAN DO
For your protection, we recommend that you do not provide your account
information to anyone. If you become aware of any suspicious activity relating
to your account, please contact us immediately at the number listed below.
UPDATING YOUR PERSONAL INFORMATION.
The accuracy of your personal information is important. If you need to correct
or update your personal or account information, please call us at 800-303-1928.
One of our customer service representatives will be happy to review, correct or
update your personal or account information.
- --------------------------------------------------------------------------------
This Privacy Policy applies to the following Century Funds: Century Shares Trust
and Century Small Cap Select Fund.
32 CENTURY FUNDS
Logo: CENTURY CAPITAL MANAGEMENT
MISSION STATEMENT
TO EXCEED THE EXPECTATIONS OF OUR CLIENTS,
WHO ENTRUST US WITH THEIR HARD-EARNED ASSETS
GOALS
> To deliver exceptional risk-adjusted returns over time
> To develop long-term and deeper relationships with our clients
> To do the right thing, even when no one is watching
> To attract, develop and retain the best people
VALUES
o DISCIPLINE
- We are passionate about our research intensity and adhering
to our investment process
o CONVICTION
- We challenge the consensus and act on our convictions
o EXCELLENCE
- We strive to be great at what we do, both individually
and collectively
o CURIOSITY
- Our goal is to learn every day
o THE 3 HS
o Humility: there is always room for improvement
o Humor: we have fun
o Hustle: we are tireless in our pursuit of success
CENTURY FUNDS 33
Logo: CENTURY FUNDS
100 Federal Street Boston, Massachusetts 02110
Quality Growth Investors
Logo: CENTURY
CCMT SAR 45 APR2008
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.
Item 12. Exhibits.
(a) (1) Not applicable.
(a) (2) Attached hereto.
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.
Century Capital Management Trust
By: /s/ Alexander L. Thorndike
--------------------------------
Alexander L. Thorndike, Chairman
Date: June 26, 2008
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, Principal Executive Officer
Date: June 26, 2008
By: /s/ Julie Smith
--------------------------------
Julie Smith, Principal Financial Officer
Date: June 26, 2008