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
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(Exact name of registrant as specified in charter)
c/o Century Capital Management, LLC
100 Federal Street, Boston, Massachusetts 02110
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(Address of principal executive offices) (Zip code)
Maureen Kane
Century Capital Management, LLC
100 Federal Street, Boston, Massachusetts 02110
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(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 482-3060
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Date of fiscal year end: October 31
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Date of reporting period: October 31, 2008
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[LOGO] CENTURY
FUNDS
Century Funds Annual Report
October 31, 2008
Century Shares Trust &
Century Small Cap Select Fund
[GRAPHIC]
TABLE OF CONTENTS
Page
Letter to Shareholders ........................................ 3
Annual Report:
Portfolio Summaries:
Century Shares Trust ....................................... 7
Century Small Cap Select Fund .............................. 10
Shareholder Expense Example ................................ 12
Financial Statements
Portfolios of Investments .................................. 13
Statements of Assets and Liabilities ....................... 17
Statements of Operations ................................... 18
Statements of Changes in Net Assets ........................ 19
Financial Highlights .......................................... 20
Notes to Financial Statements ................................. 22
Report of Independent Registered Public Accounting Firm ....... 27
Tax Information ............................................... 28
Trustees and Officers ......................................... 29
This report is submitted for the general information of the shareholders of
Century Shares Trust and Century Small Cap Select Fund (each a "Fund" and
collectively, the "Funds"). It is not authorized for distribution to prospective
investors unless it is preceded or accompanied by the Funds' current prospectus.
Before investing, you should consider carefully the Fund's investment
objective(s), risks, and charges and expenses. The Funds' prospectus contains
this and other important information about the Funds. Please read the prospectus
carefully before you invest.
Investments in mutual funds involve risks. 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, the Fund 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.
The Russell 2000 Growth Index measures the performance of the small-cap growth
segment of the U.S. equity universe. It includes those Russell 2000 companies
with higher price-to-value ratios and higher forecasted growth values. The
Russell 1000(R) Growth Index measures the performance of the large-cap growth
segment of the U.S. equity universe. It includes those Russell 1000 companies
with higher price-to-book ratios and higher forecasted growth values. The S&P
500 Index is a broad based unmanaged index representing the performance of 500
widely held common stocks. One cannot invest directly in an index.
The views in this report were those of the Century Funds' Chief Investment
Officer and Portfolio Managers as of October 31, 2008 and may not reflect their
views on the date that this report is first published or anytime thereafter.
These views are intended to assist shareholders in understanding their
investments and do not constitute investment advice. There is no assurance that
the Funds will continue to invest in the securities mentioned.
Foreside Fund Services, LLC, Distributor.
[CENTURY LOGO]
CENTURY FUNDS
DEAR FELLOW SHAREHOLDERS:
This is Century Shares Trust's 80th annual report to shareholders. Our firm's
heritage dates back to March 15, 1928 and the launch of Century Shares Trust,
now the fourth oldest mutual fund in the United States. The Century Small Cap
Select Fund is completing its ninth year and was recently reopened to new
investors for the first time since 2005. Both Funds seek to provide attractive
risk-adjusted returns with an eye toward preserving your capital. In 2008,
preserving capital was nearly impossible for any investor.
"A pessimist sees difficulty in every opportunity; an optimist sees
opportunity in every difficulty."
- Winston Churchill
The capital markets have suffered many crises and downturns over the past 80
years. In retrospect, innovative and strategic leaders have persevered every
time, creating unique opportunities to acquire great companies as panicked
investors throw them out. We believe we are at a similar junction in our economy
today. However, focused research is vital to assess the risks and competency of
management teams during these periods of duress. We believe that our heritage
allows us to weather stormy conditions and learn from the wisdom of perspective.
We hope this annual report provides you some perspective regarding the current
economic situation and your investment in the Century Funds.
WHAT HAPPENED TO THE ECONOMY THIS YEAR?
Too much excess and poor oversight is the short answer. The year 2008 marks the
confluence of several disturbing trends in the global economy, capped by too
much risk-taking in our banking system and weak leadership from industry and
government.
The concept of "risk" takes many forms, but heavy debt loads create a low margin
for error. Financial institutions grew complacent, believing economic growth
would continue unabated. In search of short-term profits, they proceeded to
borrow more money from one another and then lend it to people and institutions
with weak credit and inability to pay their debts. When these poor credits could
not repay their loans, a multi-car pile-up froze the financial highway of
commerce.
The second failure was weak controls and oversight by regulators, creditors,
investors, ratings agencies and accounting firms. Commercial and investment
banks were able to extend their profitable growth for a period longer than a
normal cycle would allow as a result of their increased leverage and
risk-taking. Thus, the bankers and their overseers were not prepared for the
volatile declines in real estate values, followed by similar declines in
derivatives and commodities.
The third failure relates to the interdependency of different capital markets,
as the credit meltdown affected all asset classes (fixed income, equities, money
market funds, international markets, commodities) in rapid succession. No one
understood the systemic risk our banking system was underwriting and the domino
effect that this cascading leverage failure would create for the global economy.
After the multi-car accident, we are able to see that many drivers were
recklessly speeding, while the roadside police were asleep.
CENTURY FUNDS
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3
LESSONS LEARNED
There were some early warning signs in the U.S. subprime mortgage market in late
2007. The resulting mortgage collapse was the spark that started the fire, but
it was the consumer that added fuel to the flame by spending more than he/she
earned over the last decade. Excessive spending, together with easy credit,
created the real estate bubble and extended the bull market longer than a
natural economic cycle typically would permit. Now, we are unwinding this
excessive leverage with several casualties along the roadside, including
venerable names like Bear Stearns, Lehman Brothers, AIG, Washington Mutual,
Wachovia, Fannie Mae, Freddie Mac and probably others to be named later.
Recessions are painful, but they are sometimes necessary to wring waste and
inefficiency out of our economic system.
Decade Crisis
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1930s: Great Depression & Prohibition ends
1940s: World War II
1950s: Korea and Cold War
1960s: Civil Rights and Vietnam
1970s: Energy Crisis and Inflation
1980s: Rust Belt Recession & S&L Crisis
1990s: Gulf War and Presidential Impeachment
2000s: 9/11 attacks and Iraq Invasion
Current: Mortgage Crisis and Financial Failures
In every decade of the modern era, the United States experiences a crisis of
confidence. Each time, the human spirit finds a way to restore confidence and
move forward. Earnings rebound over time, and the stock market eventually
recovers its lost ground.
The current credit crisis has spread worldwide, and global economic uncertainty
has shaken investor confidence. It will take time to assess the Federal
government's interventionist management of the recent TARP bailout plan, fiscal
stimulus packages, and interest rate cuts. We expect these actions will
eventually stabilize the capital markets and lubricate the wheels of a
sustainable recovery.
From a research perspective, patience and persistence are required during the
current downturn. We continue to believe that future corporate earnings
expectations remain too high, but we are encouraged that equity valuations
appear to be at thirty-year lows. We remain conservatively optimistic that
current market conditions may allow us to invest in tomorrow's leadership
franchises at today's laggard valuations.
THERE IS GOOD NEWS AND BAD NEWS
We will start with the bad news: we are in a steep recession, and many companies
seem unprepared. The good news is that earnings will eventually recover and
current valuations are at historically low levels. There are several investment
factors we would highlight for the road ahead.
1. Corporate Balance Sheet strength matters for the first time in
twenty years. Investors seem to have forgotten that indebted
companies are more vulnerable if their earnings wobble. Debt
leverage is a double-edged sword, enhancing growth in good times and
amplifying losses in a downturn. Many companies are not prepared for
a decline in revenues and earnings during a recession. The strongest
companies will be best-positioned to thrive in a recovery.
2. Earnings' expectations remain too high over the next year. Wall
Street's 2009 earnings' estimates for the S&P 500 Index (large cap
companies) and Russell 2000 Growth Index (small cap growth
companies) are projecting increases of 7% and 29%, respectively. We
view these estimates as unrealistic and need to adjust downward, as
earnings decline about 30% in an average recession. It is important
to be aware of when and how
CENTURY FUNDS
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4
these estimates are being adjusted by companies and industry. We are
currently emphasizing defensive and stable franchise companies with
more protected revenue streams.
3. Systemic change is coming. We believe that increased regulation and
oversight will redefine the relationship between commerce and
government. New tax policies and regulations are likely to affect
corporate margins and strategy. This populist shift has implications
for consumers and investors alike. As consumers retrench their
spending, thrift and frugality may replace excessive consumption.
4. Rising unemployment and negative consumer sentiment are major
headwinds to an economic recovery over the next year. The capital
markets seem to be assuming unemployment will keep rising above 8%
in 2009.
5. It will take time for the real estate and credit markets to restore
equilibrium and create the foundation for a sustainable recovery.
Low interest rates and the government's bailout stimulus initiatives
exceeding a trillion dollars are beginning to gain traction, but
consumer confidence is tenuous, at best.
6. Strong ethical leadership from corporate and government leaders will
restore investor confidence and trust, but this process will take
time.
7. Valuations are at cyclical lows. The S&P 500 Index is trading at
11.4x its trailing price/earnings ratio, which is the lowest level
since 1988. Only four times in the last hundred years have
valuations reached this nadir. This provides a solid foundation for
equities to grow over the next several years, and the expected
return over the next 5 to 10 years is much more attractive today
than it was just one year ago.
8. Long-term investment perspective is essential. The capital markets
remain volatile in the short-term, and timing your market entry and
exit is extremely difficult. We believe that patience and
persistence will be rewarded. We plan to stay the course and use
market fluctuations to upgrade the Funds' portfolios as valuations
and growth prospects fluctuate in these uncertain times.
In summary, we are concerned about the next several months, but we are very
optimistic regarding the long-term opportunities for equities over the next 3-5
years as earnings recover and valuation multiples expand toward their long-term
averages.
80 YEARS OF CENTURY SHARES TRUST
Eighty years is a noteworthy milestone, especially as we look back over the
periodic problems and sustainable progress our society has made since the
presidency of Calvin Coolidge. Our most important job is focusing on
safeguarding and enhancing your hard-earned assets, but our ultimate goal is to
deliver above-average long-term returns with below-average risk.
We are proud of Century Shares Trust's recent results, as well as the Fund's
long-term track record, which are discussed further in this report. Over the
last few years, we have sold many of our financial holdings, which has helped
the Fund's performance relative to its peers. Like all investors, from time to
time, we may sell a company too early or hold it too long, but we are proud of
the Fund's quiet but steady legacy.
CENTURY FUNDS
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5
Our investment research is oriented toward uncovering growth companies at
attractive valuations for our shareholders. In fact, Century Shares Trust's
prospectus dated July 30, 1934 highlighted this very point.
"The principal object of the Trust is to ... represent a properly balanced
investment in a diversified list of shares or securities... successful analysis
of these companies requires specialized knowledge ... Statistical information is
supplemented by personal investigation in estimating the character of
managements and the value of intangibles." Source: Prospectus dated July 30,
1934
Following on the traditions established back in the 1930s, we continue to invest
heavily in researching companies and industries. We believe that in-depth
original research on each company, its rivals and the industry in which it
competes will allow us to make better investment decisions. Our analytical
process includes both qualitative (i.e. visiting corporate and satellite
offices, interviewing contacts in the field) and quantitative (i.e. earnings
models, cash flow analysis and relative valuation comparisons) methodologies.
As we reflect on Century Shares Trust's long tenure, the United States has
persevered as the most dynamic and entrepreneurial nation in the world. A number
of inventions that occurred over the past 80 years enable all of us to enjoy
life to its fullest, such as the jet engine (1930), air conditioning (1932), the
Polaroid camera (1947), the IBM personal computer (1981) and the Apple iPod
(2001). Through the years, Century has remained true to its investment
philosophy of seeking to generate attractive risk-adjusted returns via a
diversified portfolio.
We are honored to be stewards of Century Shares Trust and Century Small Cap
Select Fund and take our responsibility very seriously. As we look to the
future, we share Winston Churchill's optimism that the next 80 years will
provide opportunity in every difficulty, but we have to know where to look.
As always, we appreciate your decision to make the Century Funds part of your
investment strategy. We value the trust you place in us and look forward to
serving your investment needs for many years to come.
Respectfully submitted,
/s/ Alexander L. Thorndike
Alexander L. Thorndike
Chairman of the Century Funds
CENTURY FUNDS
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6
CENTURY SHARES TRUST COMMENTARY
HOW DID THE PORTFOLIO PERFORM?
For the one-year period ended October 31, 2008, Century Shares Trust's
Institutional and Investor Shares outperformed the S&P 500 Index returning
- -32.31% and -32.45%, respectively, versus the return of the S&P 500 Index of
- -36.10% for the same period.
WHAT FACTORS INFLUENCED PERFORMANCE?
Due to increasing concerns regarding both the economy and the deteriorating
capital markets, the Portfolio was positioned more defensively than has been the
case in prior years. We maintained meaningful weights in the healthcare and
consumer staples sectors, while underweighting the more cyclical consumer
discretionary and energy sectors. We also significantly reduced the Portfolio's
exposure to the financial sector, as we have discussed in prior reports to you.
Stock selection, not sector allocation, was the primary driver of Portfolio
performance for the fiscal year. Stocks in the financial and industrial sectors
contributed the most to performance. Gains were greatest in the financial
sector, with positions in insurance and diversified financial services fueling
the results. In particular, property-casualty insurers Chubb Corporation
(+0.10%) and financial holding company Berkshire Hathaway (-12.84%) both
outperformed the S&P 500 Index (-36.10%) meaningfully during the 12-month period
ending October 31, 2008. Despite overall favorable results in the financial
sector, insurer American International Group was the largest detractor.
Strong performance in the industrial sector, which is typically a "late cycle"
segment, was driven by stocks in the commercial services and machinery groups.
Stericycle, which has established a strong market position within the medical
waste disposal business, was the top individual contributor during the period.
In addition, Donaldson, a manufacturer of industrial filtration systems, and
Fastenal, a distributor of fasteners and industrial supplies, both generated
strong relative performance.
Strong relative portfolio results were partially offset by weak performance in
the energy sector. Oil refiner Valero Energy and Chesapeake Energy, an oil & gas
exploration company, were the largest underperformers. Valero's results were
negatively impacted by contracting margins, whereas Chesapeake stock fell along
with the general decline in the price of crude oil.
DESCRIBE RECENT PORTFOLIO ACTIVITY.
The Portfolio's sector weights shifted as a result of market movements and
portfolio changes during the period. The most notable change to the Portfolio
was the decreased exposure to financial stocks. We eliminated some holdings such
as American International Group, Progressive and Protective Life from the
portfolio and reduced others. In addition, our bottom-up approach also led to an
increase in overall exposure to the consumer staples and information technology
sectors.
DESCRIBE PORTFOLIO POSITIONING AT PERIOD-END.
The Portfolio continues to emphasize potentially profitable, well-managed
companies with historically steady earnings growth and diversified operations.
As of October 31, 2008, the Portfolio's most meaningful overweights were in the
information technology and health-care sectors, whereas the most significant
underweights were in energy and financials sectors. Despite our near term
cautious outlook for the economy and the capital markets, we have not seen
valuations this low in over ten years. As a result, we are actively researching
stocks that we believe have the potential to perform well over time and benefit
from an economic upturn.
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TEN LARGEST HOLDINGS
ORACLE CORP. 4.16%
MICROSOFT CORP. 3.81%
CISCO SYSTEMS, INC. 3.63%
PROCTOR & GAMBLE CO. 3.42%
STERICYCLE, INC. 3.32%
DANAHER CORP. 3.30%
EXPRESS SCRIPTS, INC. 3.28%
J.P. MORGAN CHASE & CO. 3.01%
THE KROGER CO. 2.95%
PEPSICO, INC. 2.95%
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CENTURY SHARES TRUST
FUND COMPOSITION 10/31/08*
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* Based on the Fund's net assets at 10/31/08
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
INFORMATION TECHNOLOGY 25.5%
HEALTH CARE 18.5%
CONSUMER STAPLES 14.4%
INDUSTRIALS 13.1%
FINANCIALS 10.5%
ENERGY 7.3%
CONSUMER DISCRETIONARY 6.4%
CASH 4.3%
CENTURY FUNDS
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7
PERFORMANCE SUMMARY
CENTURY SHARES TRUST - INSTITUTIONAL SHARES AND INVESTOR SHARES
The performance information shown below is historical and does not guarantee
future results. Performance figures assume the reinvestment of dividends and
capital gains distributions. Investment return and principal value fluctuate
with changing market conditions so that, when redeemed, shares may be worth more
or less than their original cost. Current performance may be lower or higher
than the performance quoted. Please visit www.centuryfunds.com for the Fund's
most recent month-end performance.
As stated in the Fund's prospectus dated February 28, 2008, the total annual
fund operating expenses, gross of any fee waivers or expense reimbursements, 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 or reimburse
operating expenses for the Fund's Investor Shares to maintain net 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 information for the year ended October 31, 2008.
To discourage short-term trading, the Fund may impose a redemption fee of 1.00%
on shares held less than 90 days.
Returns would have been lower during relevant periods if certain fees had not
been waived or expenses reimbursed. Performance figures do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Returns may vary by share class.
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AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/08
1 Year 3 Years 5 Years 10 Years
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CST Institutional Shares -32.31 -5.86 0.23 2.81
S&P 500 -36.10 -5.21 0.26 0.40
Russell 1000 Growth -36.95 -5.90 -1.29 -2.10
Since
1 Year 3 Years Inception*
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CST Investor Shares -32.45 -6.34 -5.52
S&P 500 -36.10 -5.21 -4.96
Russell 1000 Growth -36.95 -5.90 -5.50
Sources: Century Capital Management, LLC, S&P and Russell.
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Growth of $250,000
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CENTURY SHARES TRUST
INSTITUTIONAL SHARES
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[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
CST S&P500
Oct-98 $ 250,000 $ 250,000
$ 261,633 $ 265,151
$ 266,165 $ 280,431
$ 248,643 $ 292,158
$ 253,411 $ 283,078
$ 260,742 $ 294,403
$ 271,887 $ 305,804
$ 274,330 $ 298,583
$ 270,937 $ 315,154
$ 260,281 $ 305,313
$ 240,287 $ 303,803
$ 217,240 $ 295,474
$ 244,118 $ 314,172
$ 231,667 $ 320,558
$ 233,206 $ 339,438
$ 211,529 $ 322,384
$ 184,349 $ 316,281
$ 234,497 $ 347,223
$ 226,886 $ 336,776
$ 250,533 $ 329,867
$ 229,301 $ 337,999
$ 255,264 $ 332,715
$ 273,712 $ 353,381
$ 291,067 $ 334,725
Oct-00 $ 305,825 $ 333,310
$ 298,173 $ 307,032
$ 320,515 $ 308,534
$ 299,108 $ 319,481
$ 297,690 $ 290,350
$ 296,050 $ 271,956
$ 300,227 $ 293,090
$ 316,040 $ 295,054
$ 319,844 $ 287,873
$ 311,015 $ 285,039
$ 302,037 $ 267,195
$ 301,214 $ 245,618
$ 295,528 $ 250,302
$ 311,464 $ 269,502
$ 312,437 $ 271,863
$ 306,946 $ 267,895
$ 315,306 $ 262,729
$ 322,846 $ 272,610
$ 326,862 $ 256,082
$ 324,075 $ 254,195
$ 311,208 $ 236,087
$ 286,505 $ 217,685
$ 284,945 $ 219,114
$ 264,264 $ 195,301
Oct-02 $ 278,626 $ 212,491
$ 284,043 $ 224,998
$ 273,174 $ 211,779
$ 268,154 $ 206,232
$ 259,027 $ 203,137
$ 266,603 $ 205,110
$ 289,055 $ 222,005
$ 303,020 $ 233,701
$ 302,379 $ 236,683
$ 311,337 $ 240,855
$ 314,536 $ 245,553
$ 311,794 $ 242,945
$ 325,962 $ 256,689
$ 332,087 $ 258,947
$ 341,548 $ 272,527
$ 353,109 $ 277,530
$ 365,766 $ 281,387
$ 363,175 $ 277,142
$ 358,391 $ 272,791
$ 360,584 $ 276,535
$ 365,168 $ 281,912
$ 351,995 $ 272,582
$ 352,095 $ 273,684
$ 356,286 $ 276,648
Oct-04 $ 355,488 $ 280,875
$ 370,005 $ 292,239
$ 384,286 $ 302,184
$ 375,157 $ 294,818
$ 376,827 $ 301,022
$ 372,040 $ 295,692
$ 369,257 $ 290,084
$ 383,061 $ 299,314
$ 387,399 $ 299,739
$ 392,088 $ 310,886
$ 386,730 $ 308,049
$ 391,530 $ 310,544
$ 395,214 $ 305,367
$ 410,203 $ 316,917
$ 408,652 $ 317,027
$ 409,138 $ 325,422
$ 411,685 $ 326,304
$ 414,353 $ 330,366
$ 418,114 $ 334,802
$ 406,469 $ 325,166
$ 406,998 $ 325,607
$ 409,682 $ 327,615
$ 420,784 $ 335,410
$ 429,324 $ 344,054
Oct-06 $ 435,424 $ 355,265
$ 440,662 $ 362,021
$ 449,609 $ 367,099
$ 452,725 $ 372,651
$ 445,674 $ 365,362
$ 447,969 $ 369,449
$ 463,711 $ 385,814
$ 479,288 $ 399,277
$ 472,392 $ 392,644
$ 458,862 $ 380,470
$ 468,597 $ 386,173
$ 482,622 $ 400,615
$ 487,077 $ 406,988
$ 479,652 $ 389,973
$ 479,590 $ 387,268
$ 448,955 $ 364,039
$ 436,490 $ 352,213
$ 425,081 $ 350,692
$ 445,575 $ 367,771
$ 456,138 $ 372,535
$ 425,389 $ 341,129
$ 422,207 $ 338,262
$ 424,965 $ 343,154
$ 390,170 $ 312,577
Oct-08 $ 329,703 $ 260,080
Growth of $10,000
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CENTURY SHARES TRUST
INVESTOR SHARES*
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[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
CST S&P500
7/18/2005 $ 10,000 $ 10,000
$ 10,011 $ 10,113
$ 9,871 $ 10,020
$ 9,997 $ 10,102
10/05 $ 10,100 $ 9,933
$ 10,484 $ 10,309
$ 10,435 $ 10,312
$ 10,432 $ 10,585
$ 10,488 $ 10,614
$ 10,543 $ 10,746
4/06 $ 10,630 $ 10,891
$ 10,323 $ 10,577
$ 10,330 $ 10,591
$ 10,389 $ 10,657
$ 10,666 $ 10,910
$ 10,878 $ 11,192
10/06 $ 11,027 $ 11,556
$ 11,154 $ 11,776
$ 11,375 $ 11,941
$ 11,445 $ 12,122
$ 11,262 $ 11,885
$ 11,316 $ 12,018
4/07 $ 11,712 $ 12,550
$ 12,098 $ 12,988
$ 11,924 $ 12,772
$ 11,578 $ 12,376
$ 11,819 $ 12,562
$ 12,174 $ 13,031
10/07 $ 12,282 $ 13,239
$ 12,094 $ 12,685
$ 12,099 $ 12,597
$ 11,324 $ 11,842
$ 11,006 $ 11,457
$ 10,714 $ 11,407
4/08 $ 11,229 $ 11,963
$ 11,499 $ 12,118
$ 10,722 $ 11,096
$ 10,642 $ 11,003
$ 10,706 $ 11,162
$ 9,821 $ 10,168
10/08 $ 8,297 $ 8,460
Index returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees or expenses. It is not possible to invest directly in an index.
Minimum initial investment for Institutional Shares is $250,000.
* Inception Date 7/18/05
CENTURY FUNDS
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8
CENTURY SHARES TRUST
GROWTH OF A $10,000 INVESTMENT SINCE
INCEPTION, 3/15/28, THROUGH 10/31/08
DATE VALUE
1928 $10,000
1928 $12,075
1929 $11,404 1929 - Stock Market Crash
1930 $8,055
1931 $4,472
1932 $4,295
1933 $4,451 1933 - Banks Closed, Prohibition Ends
1934 $6,213
1935 $8,664
1936 $8,554
1937 $6,485
1938 $7,882
1939 $8,927 1939 - World War II started
1940 $9,141
1941 $8,968 1941 - Pearl Harbor Attacked
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 1955 - First Polio Vaccine Developed
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 1969 - Astronauts land on the Moon
1970 $126,741
1971 $165,605
1972 $199,431
1973 $173,017 1973 - Arab Oil Embargo
1974 $117,788
1975 $134,614
1976 $184,046
1977 $175,623
1978 $193,030
1979 $234,867
1980 $249,895 1980 - Prime Rate Hits 21%
1981 $300,320
1982 $333,343 1982 - Unemployment Hits Postwar high
1983 $403,329
1984 $465,782
1985 $667,950
1986 $732,135
1987 $674,556 1987 - Black Monday - Market Drops 22%
1988 $780,403
1989 $1,105,883
1990 $1,019,156
1991 $1,340,270 1991 - Gulf War USSR-Splits
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 2001 - Terrorists Attack America
2002 $4,262,814
2003 $5,333,216
2004 $6,000,559
2005 $6,381,037 2005 - NASA Returns to Flight
2006 $7,020,571
2007 $7,531,309
2008 $5,175,264
2008 $7,050,058
Feb-2008 $6,854,067
Mar-2008 $6,675,176
Apr-2008 $6,996,919
May-2008 $7,159,884
Jun-2008 $6,677,223
Jul-2008 $6,627,268
Aug-2008 $6,670,562 2008 - Mortgage Crisis and Financial
Failures
Sep-2008 $6,124,395
Oct-2008 $5,175,264
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.
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
CENTURY FUNDS
------
9
CENTURY SMALL CAP SELECT FUND COMMENTARY
HOW DID THE PORTFOLIO PERFORM?
For the one-year period ended October 31, 2008, Century Small Cap Select Fund's
Institutional Shares and Investor Shares slightly underperformed the Russell
2000 Growth Index, returning -38.24% and -38.49%, respectively, versus the
return of the Russell 2000 Growth Index of -37.87% for the same period. This
performance was disappointing.
WHAT FACTORS INFLUENCED PERFORMANCE?
Due to concerns about deteriorating credit quality and weakened capital
structures, the Portfolio was positioned cautiously. We increased the exposure
to more predictable sectors and reduced exposure to more cyclical sectors. For
example, the Portfolio benefited from underweighting the consumer discretionary
sector and overweighting the consumer staples sector. Within the consumer
sector, the Portfolio performance benefited from childcare provider Bright
Horizon Family Solutions, which was acquired by a private equity firm, and book
publisher John Wiley & Sons.
The information technology and consumer staples sectors were the top
contributing sectors to performance. In information technology, software stocks
were the main drivers of performance. Internet software provider Websense
performed well as renewal rates continue to hold up better than expected.
Similarly, EPIQ Systems, a software provider to the legal profession, continues
to experience solid demand for its software applications and web-based
platforms. Ralcorp, a private label food producer, benefited from rising food
prices at retail and the tailwind from consumer trade down (with less money in
their pockets, consumers are trading down to private label or store brand).
Although the Portfolio's underweight allocation to the energy and financials
sectors enhanced performance relative to the benchmark, poor stock selection
detracted from returns. In the energy sector, World Fuel Services and Alon USA
Energy were the weakest performers, suffering from declining oil prices. In the
financials sector, Primus Guaranty was negatively impacted by the dislocation in
the credit markets, and Investment Technology Group was hampered by reduced
trading volumes.
DESCRIBE RECENT PORTFOLIO ACTIVITY.
The Portfolio's sector weights shifted as a result of market movements and
portfolio changes during the year. Most notably, we reduced our exposure to
information technology stocks from an overweight position to an equal weight, as
we sought firms with the more attractive software or service-oriented business
models.
In addition, our investment process led us to decrease the Portfolio's overall
exposure to the healthcare, financials and consumer staples sectors during the
period. With the selloff in the market, we added back to these sectors in
October due to attractive valuations. The Portfolio continues to emphasize
profitable growth companies in our investment universe that we believe have
historically solid balance sheets and healthy cash flow.
DESCRIBE PORTFOLIO POSITIONING AT PERIOD-END.
As of October 31, 2008, the Portfolio continues to be positioned cautiously with
meaningful sector weights in healthcare, consumer staples and information
technology and lower allocations in the consumer discretionary and energy
segments. As the current recession takes hold and earnings are reset, we remain
focused on upgrading many of our holdings, as we discussed in our letter at the
beginning of this report.
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
PERRIGO CO. 3.44%
JOHN WILEY & SONS, INC. 2.73%
WEBSENSE, INC. 2.59%
PSYCHIATRIC SOLUTIONS, INC. 2.51%
CORNELL COMPANIES, INC. 2.49%
TECHNE CORP. 2.49%
EPIQ SYSTEMS, INC. 2.44%
J2 GLOBAL COMMUNICATIONS, INC. 2.35%
GREY WOLF, INC. 2.33%
BLACKBAUD, INC. 2.24%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND
FUND COMPOSITION 10/31/08*
- --------------------------------------------------------------------------------
* Based on the Fund's net assets at 10/31/08
[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]
HEALTH CARE 24.8%
INFORMATION TECHNOLOGY 22.0%
INDUSTRIALS 14.4%
FINANCIALS 12.5%
CONSUMER DISCRETIONARY 8.0%
ENERGY 6.2%
CASH 5.4%
CONSUMER STAPLES 4.6%
MATERIALS 2.1%
CENTURY FUNDS
- ------
10
PERFORMANCE SUMMARY
CENTURY SMALL CAP SELECT FUND - INSTITUTIONAL SHARES AND INVESTOR SHARES
The performance information shown below is historical and does not guarantee
future results. Performance figures assume the reinvestment of dividends and
capital gains distributions. Investment return and principal value fluctuate
with changing market conditions so that, when redeemed, shares may be worth more
or less than their original cost. Current performance may be lower or higher
than the performance quoted. Please visit www.centuryfunds.com for the Fund's
most recent month-end performance.
As stated in the Fund's prospectus dated February 28, 2008, the total annual
fund operating expenses are 1.36% for the Investor Shares and 1.08% for the
Institutional Shares. Please see the Financial Highlights and Notes to the
Financial Statements sections of this report for expense related information for
the year ended October 31, 2008.
To discourage short-term trading, the Fund may impose a redemption fee of 1.00%
on shares held less than 90 days.
Returns would have been lower during relevant periods if certain fees had not
been waived or expenses reimbursed. Performance figures do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Returns may vary by share class.
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 10/31/08
1 Year 3 Years 5 Years Since Inception*
------ ------- ------- -----------------
Century Small Cap Select Institutional Shares -38.24 -9.31 -2.03 8.55
Russell 2000 Growth -37.87 -5.31 -0.13 -2.77
Russell 2000 -34.16 -4.79 1.57 2.94
1 Year 3 Years 5 Years Since Inception**
------ ------- ------- -----------------
Century Small Cap Select Investor Shares -38.49 -9.61 -2.35 8.18
Russell 2000 Growth -37.87 -5.31 -0.13 -5.73
Russell 2000 -34.16 -4.79 1.57 0.92
Sources: Century Capital Management, LLC and Russell.
- --------------------------------------------------------------------------------
Growth of $250,000
- --------------------------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND
INSTITUTIONAL SHARES*
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
CSCS Institutional Russell 2000 Growth
Dec-99 $250,000 $250,000
$250,250 $278,635
$252,500 $276,041
$254,000 $340,266
$279,000 $304,499
Apr-00 $278,750 $273,755
$285,250 $249,784
$290,250 $282,051
$309,750 $257,879
$332,000 $285,005
$350,250 $270,846
Oct-00 $364,250 $248,860
$358,000 $203,676
$387,750 $216,138
$382,607 $233,633
$372,837 $201,608
$352,523 $183,278
Apr-01 $371,551 $205,715
$385,950 $210,480
$402,149 $216,220
$400,606 $197,774
$393,664 $185,424
$383,893 $155,504
Oct-01 $377,722 $170,465
$392,893 $184,694
$410,249 $196,193
$408,435 $189,213
$414,914 $176,967
$435,906 $192,348
Apr-02 $439,793 $188,187
$439,275 $177,184
$418,801 $162,159
$394,181 $137,236
$400,919 $137,172
$380,964 $127,264
Oct-02 $399,623 $133,701
$423,984 $146,956
$413,321 $136,821
$407,718 $133,104
$403,715 $129,555
$410,920 $131,516
Apr-03 $434,401 $143,963
$467,755 $160,186
$485,899 $163,273
$512,049 $175,616
$525,924 $185,049
$534,196 $180,364
Oct-03 $574,487 $195,946
$605,706 $202,334
$608,784 $203,239
$639,686 $213,916
$636,315 $213,585
$632,944 $214,583
Apr-04 $610,469 $203,811
$612,155 $207,865
$634,349 $214,782
$600,636 $195,503
$590,523 $191,295
$621,426 $201,872
Oct-04 $630,977 $206,777
$658,739 $224,255
$683,787 $232,315
$663,921 $221,849
$686,091 $224,895
$685,227 $216,459
Apr-05 $666,513 $202,683
$680,332 $216,973
$697,607 $223,988
$731,005 $239,645
$715,170 $236,268
$713,730 $238,140
Oct-05 $695,304 $229,339
$717,034 $242,324
$711,442 $241,963
$754,993 $265,303
$750,901 $263,888
$771,654 $276,715
Apr-06 $771,654 $275,915
$740,963 $256,498
$732,487 $256,652
$713,488 $243,320
$725,179 $250,447
$737,748 $252,143
Oct-06 $752,363 $268,480
$777,677 $274,909
$779,595 $274,254
$791,806 $279,356
$784,737 $278,473
$801,447 $281,045
Apr-07 $816,872 $288,413
$853,505 $301,576
$845,150 $299,841
$792,128 $284,273
$808,195 $291,422
$822,013 $299,888
Oct-07 $839,687 $313,390
$787,950 $291,746
$801,776 $293,579
$731,949 $266,647
$712,099 $257,418
$716,353 $255,920
Apr-08 $744,000 $269,070
$773,065 $284,311
$725,214 $267,362
$715,289 $273,579
$740,810 $280,376
$663,184 $248,687
Oct-08 $518,567 $194,712
Growth of $10,000
- --------------------------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND
INVESTOR SHARES**
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
CSCS Investor Russell 2000 Growth
Feb-00 $ 10,000 $ 10,000
$ 10,010 $ 10,472
$ 10,940 $ 9,372
Apr-00 $ 10,920 $ 8,425
$ 11,180 $ 7,688
$ 11,380 $ 8,681
$ 12,130 $ 7,937
$ 13,000 $ 8,772
$ 13,710 $ 8,336
Oct-00 $ 14,260 $ 7,659
$ 14,000 $ 6,269
$ 15,170 $ 6,652
$ 14,978 $ 7,191
$ 14,633 $ 6,205
$ 13,843 $ 5,641
Apr-01 $ 14,593 $ 6,331
$ 15,150 $ 6,478
$ 15,798 $ 6,655
$ 15,727 $ 6,087
$ 15,443 $ 5,707
$ 15,059 $ 4,786
Oct-01 $ 14,785 $ 5,246
$ 15,383 $ 5,684
$ 16,061 $ 6,038
$ 15,990 $ 5,823
$ 16,244 $ 5,447
$ 17,055 $ 5,920
Apr-02 $ 17,208 $ 5,792
$ 17,177 $ 5,453
$ 16,366 $ 4,991
$ 15,412 $ 4,224
$ 15,665 $ 4,222
$ 14,854 $ 3,917
Oct-02 $ 15,574 $ 4,115
$ 16,518 $ 4,523
$ 16,090 $ 4,211
$ 15,871 $ 4,097
$ 15,714 $ 3,987
$ 15,996 $ 4,048
Apr-03 $ 16,902 $ 4,431
$ 18,174 $ 4,930
$ 18,872 $ 5,025
$ 19,883 $ 5,405
$ 20,414 $ 5,695
$ 20,727 $ 5,551
Oct-03 $ 22,290 $ 6,031
$ 23,488 $ 6,227
$ 23,608 $ 6,255
$ 24,792 $ 6,584
$ 24,660 $ 6,574
$ 24,518 $ 6,604
Apr-04 $ 23,652 $ 6,273
$ 23,707 $ 6,397
$ 24,562 $ 6,610
$ 23,246 $ 6,017
$ 22,841 $ 5,887
$ 24,036 $ 6,213
Oct-04 $ 24,397 $ 6,364
$ 25,469 $ 6,902
$ 26,424 $ 7,150
$ 25,649 $ 6,828
$ 26,503 $ 6,922
$ 26,469 $ 6,662
Apr-05 $ 25,739 $ 6,238
$ 26,267 $ 6,678
$ 26,930 $ 6,894
$ 28,211 $ 7,376
$ 27,604 $ 7,272
$ 27,537 $ 7,329
Oct-05 $ 26,806 $ 7,058
$ 27,643 $ 7,458
$ 27,416 $ 7,447
$ 29,089 $ 8,165
$ 28,929 $ 8,122
$ 29,715 $ 8,516
Apr-06 $ 29,703 $ 8,492
$ 28,520 $ 7,894
$ 28,178 $ 7,899
$ 27,438 $ 7,489
$ 27,882 $ 7,708
$ 28,360 $ 7,760
Oct-06 $ 28,907 $ 8,263
$ 29,881 $ 8,461
$ 29,956 $ 8,441
$ 30,406 $ 8,598
$ 30,131 $ 8,571
$ 30,769 $ 8,650
Apr-07 $ 31,357 $ 8,876
$ 32,746 $ 9,282
$ 32,421 $ 9,228
$ 30,381 $ 8,749
$ 30,982 $ 8,969
$ 31,508 $ 9,230
Oct-07 $ 32,183 $ 9,645
$ 30,181 $ 8,979
$ 30,698 $ 9,036
$ 28,027 $ 8,207
$ 27,256 $ 7,923
$ 27,408 $ 7,876
Apr-08 $ 28,468 $ 8,281
$ 29,555 $ 8,750
$ 27,724 $ 8,229
$ 27,325 $ 8,420
$ 28,289 $ 8,629
$ 25,329 $ 7,654
Oct-08 $ 19,795 $ 5,993
Index returns assume reinvestment of dividends and, unlike Fund returns, do not
reflect any fees or expenses. It is not possible to invest directly in an index.
Minimum initial investment for Institutional Shares is $250,000.
* Inception Date 12/9/99
** Inception Date 2/24/00
CENTURY FUNDS
------
11
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 (May 1, 2008 to October 31, 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 were, 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
May 1, 2008 October 31, 2008 October 31, 2008
------------- ---------------- -----------------
Based on Actual Fund Return
Institutional Shares $1,000.00 $ 740.00 $5.07
Investor Shares $1,000.00 $ 738.90 $6.34
Based on Hypothetical 5% Yearly Return before expenses
Institutional Shares $1,000.00 $1,019.30 $5.89
Investor Shares $1,000.00 $1,017.85 $7.35
* The Fund's annualized expense ratios are 1.16% for Institutional Shares
and 1.45% 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
May 1, 2008 October 31, 2008 October 31, 2008
------------- ---------------- -----------------
Based on Actual Fund Return
Institutional Shares $1,000.00 $ 697.00 $4.73
Investor Shares $1,000.00 $ 695.40 $6.18
Based on Hypothetical 5% Yearly Return before expenses
Institutional Shares $1,000.00 $1,019.56 $5.63
Investor Shares $1,000.00 $1,017.85 $7.35
* The Fund's annualized expense ratios are 1.11% for Institutional Shares
and 1.45% 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 FUNDS
- ------
12
CENTURY SHARES TRUST
PORTFOLIO OF INVESTMENTS - AS OF OCTOBER 31, 2008
COMMON STOCK - 95.7%
SHARES VALUE
- ------- --------------
CONSUMER DISCRETIONARY - 6.4%
DIVERSIFIED CONSUMER SERVICES - 1.2%
8,950 Strayer Education, Inc. $ 2,025,117
-------------
FOOD PRODUCTS - 0.7%
41,800 Yum! Brands, Inc. 1,212,618
-------------
MEDIA - 0.9%
95,500 Liberty Media Corp. -
Entertainment * 1,537,550
-------------
SPECIALTY RETAIL - 1.9%
94,650 Ross Stores, Inc. 3,094,108
-------------
TEXTILES, APPAREL AND
LUXURY GOODS - 1.7%
50,750 NIKE, Inc. 2,924,723
-------------
10,794,116
-------------
CONSUMER STAPLES - 14.4%
BEVERAGES - 3.0%
87,350 PepsiCo, Inc. 4,979,823
-------------
FOOD AND STAPLES RETAILING - 6.1%
119,200 CVS Caremark Corp. 3,653,480
64,000 SYSCO Corp. 1,676,800
181,550 The Kroger Co. 4,985,363
-------------
10,315,643
-------------
FOOD PRODUCTS - 1.9%
47,900 General Mills, Inc. 3,244,746
-------------
HOUSEHOLD PRODUCTS - 3.4%
89,550 Proctor & Gamble Co. 5,779,557
-------------
24,319,769
-------------
ENERGY - 7.3%
ENERGY EQUIPMENT
AND SERVICES - 3.4%
158,450 Nabors Industries Ltd * 2,278,511
111,850 National-Oilwell Varco, Inc. * 3,343,197
-------------
5,621,708
-------------
OIL, GAS AND
CONSUMABLE FUELS - 3.9%
64,650 CONSOL Energy, Inc. 2,029,363
61,950 Exxon Mobil Corp. 4,591,734
-------------
6,621,097
-------------
12,242,805
-------------
SHARES VALUE
- ------- -------------
FINANCIALS - 10.5%
DIVERSIFIED FINANCIAL SERVICES - 3.0%
123,000 J.P. Morgan Chase & Co. $ 5,073,750
-------------
INSURANCE - 7.5%
20,450 AFLAC, Inc. 905,526
65,900 Aon Corp. 2,787,570
35 Berkshire Hathaway, Inc. CL A * 4,042,150
79,850 The Chubb Corp. 4,137,827
20,700 Torchmark Corp. 864,639
-------------
12,737,712
-------------
17,811,462
-------------
HEALTH CARE - 18.5%
BIOTECHNOLOGY - 3.3%
37,400 Genzyme Corp. * 2,725,712
62,850 Gilead Sciences, Inc. * 2,881,672
-------------
5,607,384
-------------
HEALTH CARE EQUIPMENT
AND SUPPLIES - 3.8%
48,750 C.R. Bard, Inc. 4,302,187
45,150 Zimmer Holdings, Inc. * 2,096,315
-------------
6,398,502
-------------
HEALTH CARE PROVIDERS
AND SERVICES - 5.8%
80,650 AmerisourceBergen Corp. 2,521,925
91,400 Express Scripts, Inc. * 5,539,754
28,250 Laboratory Corp. of
America Holdings * 1,737,093
-------------
9,798,772
-------------
LIFE SCIENCES TOOLS AND SERVICES - 2.6%
28,200 TECHNE Corp. 1,946,364
59,500 Thermo Fisher Scientific, Inc. * 2,415,700
-------------
4,362,064
-------------
PHARMACEUTICALS - 3.0%
54,600 Johnson & Johnson, Inc. 3,349,164
49,750 Perrigo Co. 1,691,500
-------------
5,040,664
-------------
31,207,386
-------------
INDUSTRIALS - 13.1%
AEROSPACE AND DEFENSE - 2.5%
78,310 United Technologies Corp. 4,303,918
-------------
See notes to financial statements.
CENTURY FUNDS
------
13
CENTURY SHARES TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED) - AS OF OCTOBER 31, 2008
SHARES VALUE
- ------- --------------
INDUSTRIALS (CONT.)
COMMERCIAL SERVICES
AND SUPPLIES - 5.0%
95,950 Stericycle, Inc. * $ 5,606,358
83,203 Waste Connections, Inc. * 2,816,422
-------------
8,422,780
-------------
MACHINERY - 5.6%
94,050 Danaher Corp. 5,571,522
109,850 Donaldson Co., Inc. 3,861,227
-------------
9,432,749
-------------
22,159,447
-------------
INFORMATION TECHNOLOGY - 25.5%
COMMUNICATIONS EQUIPMENT - 5.0%
344,600 Cisco Systems, Inc. * 6,123,542
60,350 QUALCOMM, Inc. 2,308,991
-------------
8,432,533
-------------
COMPUTERS AND PERIPHERALS - 1.9%
83,850 Hewlett-Packard Co. 3,209,778
-------------
ELECTRONIC EQUIPMENT
AND INSTRUMENTS - 2.0%
25,650 Amphenol Corp. CL A 734,873
82,350 Flir Systems, Inc. * 2,643,435
-------------
3,378,308
-------------
INTERNET SOFTWARE
AND SERVICES - 1.5%
6,900 Google, Inc. CL A * 2,479,584
-------------
IT SERVICES - 5.8%
128,900 Accenture Ltd. 4,260,145
11,550 Mastercard, Inc. CL A 1,707,321
133,600 Paychex, Inc. 3,812,944
-------------
9,780,410
-------------
SOFTWARE - 9.3%
94,400 Intuit, Inc. * 2,365,664
287,740 Microsoft Corp. 6,425,234
383,800 Oracle Corp. * 7,019,702
-------------
15,810,600
-------------
43,091,213
-------------
SHARES VALUE
- ------- --------------
TOTAL INVESTMENT IN COMMON STOCKS - 95.7%
(Identified cost, $150,167,048) $ 161,626,198
-------------
SHORT-TERM INVESTMENTS - 6.6%
(Identified cost, $11,152,232)
11,152,232 SSGA Government Money
Market Fund 11,152,232
-------------
TOTAL INVESTMENTS - 102.3%
(Identified cost, $161,319,280) 172,778,430
-------------
CASH AND RECEIVABLES LESS
LIABILITIES - (2.3)%
Liabilities in Excess of Other Assets (3,958,365)
-------------
NET ASSETS - 100% $ 168,820,065
=============
* Non-Income producing security
See notes to financial statements.
CENTURY FUNDS
- ------
14
CENTURY SMALL CAP SELECT FUND
PORTFOLIO OF INVESTMENTS - AS OF OCTOBER 31, 2008
COMMON STOCK - 94.6%
SHARES VALUE
- ------- --------------
CONSUMER DISCRETIONARY - 8.0%
DIVERSIFIED CONSUMER SERVICES - 3.4%
93,150 Capella Education Co.* $ 4,415,310
181,000 Matthews International Corp. 8,078,030
-------------
12,493,340
-------------
FOOD PRODUCTS - 0.5%
44,150 Chipotle Mexican Grill, Inc. CL B* 1,888,296
-------------
HOTELS, RESTAURANTS & LEISURE - 1.4%
272,100 Scientific Games Corp.* 4,897,800
-------------
MEDIA - 2.7%
286,150 John Wiley & Sons, Inc. 9,952,297
-------------
29,231,733
-------------
CONSUMER STAPLES - 4.6%
FOOD AND STAPLES RETAILING - 1.4%
228,900 United Natural Foods, Inc.* 5,113,626
-------------
FOOD PRODUCTS - 1.5%
82,400 Ralcorp Holdings, Inc.* 5,576,832
-------------
PERSONAL PRODUCTS - 1.7%
81,500 Chattem, Inc.* 6,167,105
-------------
16,857,563
-------------
ENERGY - 6.2%
ENERGY EQUIPMENT AND SERVICES - 4.0%
241,800 Bristow Group, Inc. 5,989,386
1,327,600 Grey Wolf, Inc.* 8,523,192
-------------
14,512,578
-------------
OIL, GAS AND CONSUMABLE FUELS - 2.2%
167,550 Berry Petroleum Co. 3,903,915
201,960 Foundation Coal Holdings, Inc. 4,192,690
-------------
8,096,605
-------------
22,609,183
-------------
FINANCIALS - 12.5%
CAPITAL MARKETS - 4.2%
189,800 Eaton Vance Corp. 4,175,600
62,741 Greenhill & Co., Inc. 4,139,024
396,750 optionsXpress Holdings, Inc. 7,046,280
-------------
15,360,904
-------------
COMMERCIAL BANKS - 1.5%
228,050 Bancorpsouth, Inc. 5,534,773
-------------
SHARES VALUE
- ------- --------------
FINANCIALS (CONT.)
CONSUMER FINANCE - 1.0%
654,459 Cardtronics, Inc.* $ 3,651,881
-------------
DIVERSIFIED FINANCIAL SERVICES - 1.1%
108,100 Portfolio Recovery Associates, Inc.* 3,878,628
-------------
INSURANCE - 4.1%
282,050 Brown & Brown, Inc. 5,787,666
48,900 Enstar Group Ltd.* 3,723,735
176,550 Platinum Underwriters Holdings, Ltd. 5,603,697
-------------
15,115,098
-------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 0.6%
393,950 MFA Mortgage Investments, Inc. 2,166,725
-------------
45,708,009
-------------
HEALTH CARE - 24.8%
BIOTECHNOLOGY - 0.5%
97,150 BioMarin Pharmaceutical, Inc.* 1,779,788
-------------
HEALTH CARE EQUIPMENT AND SUPPLIES - 7.2%
206,519 Exactech, Inc.* 4,171,684
102,450 Idexx Laboratories, Inc.* 3,605,216
432,385 IRIS International, Inc.* 4,821,093
250,642 Kensey Nash Corp.* 6,363,800
79,700 Meridian Bioscience, Inc. 1,959,026
230,900 Wright Medical Group, Inc.* 5,352,262
-------------
26,273,081
-------------
HEALTH CARE PROVIDERS AND SERVICES - 8.8%
50,080 Air Methods Corp.* 840,342
303,500 Catalyst Health Solutions, Inc.* 5,120,045
300,900 HMS Holdings Corp.* 7,453,293
121,550 Owens & Minor, Inc. 5,259,469
274,850 Psychiatric Solutions, Inc.* 9,149,756
244,000 VCA Antech, Inc.* 4,416,400
-------------
32,239,305
-------------
LIFE SCIENCES TOOLS AND SERVICES - 4.8%
849,200 Bruker BioSciences Corp.* 3,473,228
198,300 Kendle International, Inc.* 3,583,281
75,150 Life Sciences Research, Inc.* 1,385,766
131,600 TECHNE Corp. 9,083,032
-------------
17,525,307
-------------
PHARMACEUTICALS - 3.5%
369,650 Perrigo Co. 12,568,100
-------------
90,385,581
-------------
See notes to financial statements.
CENTURY FUNDS
------
15
CENTURY SMALL CAP SELECT FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) - AS OF OCTOBER 31, 2008
SHARES VALUE
- ------- --------------
INDUSTRIALS - 14.4%
AEROSPACE AND DEFENSE - 2.8%
162,550 Curtiss-Wright Corp. $ 5,998,095
168,450 Hexcel Corp.* 2,223,540
105,100 Orbital Sciences Corp.* 2,153,499
-------------
10,375,134
-------------
COMMERCIAL SERVICES AND SUPPLIES - 4.7%
104,550 Clean Harbors, Inc.* 6,855,344
399,659 Cornell Companies, Inc.* 9,100,235
323 Heritage-Crystal Clean, Inc.* 3,246
33,642 Waste Connections, Inc.* 1,138,782
-------------
17,097,607
-------------
ELECTRICAL EQUIPMENT - 1.8%
187,850 General Cable Corp.* 3,208,478
114,700 II-VI, Inc.* 3,221,923
-------------
6,430,401
-------------
MACHINERY - 4.1%
75,650 Chart Industries, Inc.* 1,030,353
153,500 Donaldson Co., Inc. 5,395,525
6,978 Nordson Corp. 257,698
222,050 RBC Bearings, Inc.* 5,269,246
80,900 Wabtec Corp. 3,216,584
-------------
15,169,406
-------------
TRADING COMPANIES
AND DISTRIBUTORS - 1.0%
123,200 GATX Corp. 3,517,360
-------------
52,589,908
-------------
INFORMATION TECHNOLOGY - 22.0%
COMMUNICATIONS EQUIPMENT - 1.7%
297,850 Polycom, Inc.* 6,257,829
-------------
COMPUTERS AND PERIPHERALS - 1.1%
126,000 Synaptics, Inc.* 3,892,140
-------------
ELECTRONIC EQUIPMENT AND INSTRUMENTS - 1.9%
134,500 DTS, Inc.* 2,777,425
138,600 National Instruments Corp. 3,520,440
29,150 Rofin-Sinar Technologies, Inc.* 649,753
-------------
6,947,618
-------------
SHARES VALUE
- ------- --------------
INFORMATION TECHNOLOGY (CONT.)
INTERNET SOFTWARE AND SERVICES - 4.9%
531,650 j2 Global Communications, Inc.* $ 8,570,198
484,000 Websense, Inc.* 9,447,680
-------------
18,017,878
-------------
IT SERVICES - 1.4%
642,750 Online Resources Corp.* 2,249,625
218,600 Wright Express Corp.* 2,992,634
-------------
5,242,259
-------------
SEMICONDUCTORS AND SEMICONDUCTOR EQUIPMENT - 1.9%
157,600 Hittite Microwave Corp.* 5,164,552
82,600 Power Integrations, Inc.* 1,733,774
-------------
6,898,326
-------------
SOFTWARE - 9.1%
536,853 Blackbaud, Inc. 8,160,165
427,550 Commvault Systems, Inc.* 4,574,785
654,174 EPIQ Systems, Inc.* 8,890,225
95,609 FactSet Research Systems, Inc. 3,708,673
212,100 Informatica Corp.* 2,980,005
281,600 MICROS Systems, Inc.* 4,795,648
-------------
33,109,501
-------------
80,365,551
-------------
MATERIALS - 2.1%
CHEMICALS - 2.1%
61,900 Balchem Corp. 1,582,164
430,480 RPM International, Inc. 6,112,816
-------------
7,694,980
-------------
TOTAL INVESTMENT IN COMMON STOCKS- 94.6%
(Identified cost, $426,310,923) 345,442,508
-------------
SHORT-TERM INVESTMENTS - 5.5%
(Identified cost, $19,857,296)
19,857,296 SSGA Government Money Market Fund 19,857,296
-------------
TOTAL INVESTMENTS - 100.1%
(Identified cost, $446,168,219) 365,299,804
-------------
CASH AND RECEIVABLES LESS LIABILITIES - (0.1)%
Liabilities in Excess of Other Assets (254,955)
-------------
NET ASSETS - 100% $ 365,044,849
=============
* Non-Income producing security
See notes to financial statements.
CENTURY FUNDS
- ------
16
STATEMENTS OF ASSETS AND LIABILITIES - AS OF OCTOBER 31, 2008
Century Shares Century Small Cap
Trust Select Fund
ASSETS:
Investments, at value (Note 1A) (Identified cost of $161,319,280 and
$446,168,219, respectively) ................................................. $ 172,778,430 $ 365,299,804
Cash ........................................................................... 1,285 1,884
Dividends and interest receivable .............................................. 107,670 60,558
Receivable for investments sold ................................................ 10,715,942 13,689,752
Receivable for Fund shares sold ................................................ 2,644 701,963
Other assets ................................................................... 7,604 --
Prepaid expenses ............................................................... 3,993 3,918
-------------- -----------------
Total Assets ................................................................ 183,617,568 379,757,879
-------------- -----------------
LIABILITIES:
Payable to Affiliates:
Investment adviser fee (Note 4) ............................................. 114,929 309,699
Administration fee (Note 5) ................................................. 14,364 15,000
Distribution and service fees (Note 7) ...................................... 1,431 41,266
Accrued expenses and other liabilities ......................................... 168,753 269,290
Payable for investments purchased .............................................. 14,449,685 13,567,578
Payable for Fund shares repurchased ............................................ 48,341 510,197
-------------- -----------------
Total Liabilities ........................................................... 14,797,503 14,713,030
-------------- -----------------
NET ASSETS ..................................................................... $ 168,820,065 $ 365,044,849
============== =================
At October 31, 2008, net assets consisted of:
Capital paid-in ................................................................ $ 160,526,100 $ 555,139,157
Accumulated net realized loss on investments ................................... (3,165,185) (109,225,893)
Unrealized appreciation/(depreciation) in value of investments ................. 11,459,150 (80,868,415)
-------------- -----------------
Net assets applicable to outstanding capital stock ............................. $ 168,820,065 $ 365,044,849
============== =================
Net Assets consist of:
Institutional Shares ........................................................ $ 168,198,835 $ 262,792,938
Investor Shares ............................................................. $ 621,230 $ 102,251,911
Shares Outstanding consist of (Note 2):
Institutional Shares ........................................................ 10,841,939 17,979,996
Investor Shares ............................................................. 39,971 7,114,979
NET ASSET VALUE PER SHARE
(Represents both the offering and redemption price*)
Institutional Shares ........................................................ $ 15.51 $ 14.62
Investor Shares ............................................................. $ 15.54 $ 14.37
* In general, shares of the Funds may be redeemed at net asset value.
However, upon the redemption of shares held less than 90 days, a
redemption fee of 1% of the current net asset value of the shares may be
assessed and retained by each share class of each Fund 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
------
17
STATEMENTS OF OPERATIONS
YEAR ENDED OCTOBER 31, 2008
Century Shares Century Small Cap
Trust Select Fund
Investment Income:
Dividends (net of withholding tax of $44,142 and $0, respectively) .......... $ 2,451,478 $ 2,594,640
Interest .................................................................... 229,871 615,759
Other income ................................................................ -- 109,376
-------------- -----------------
Total investment income .................................................. 2,681,349 3,319,775
-------------- -----------------
Expenses:
Investment adviser fee (Note 4) ............................................. 1,881,177 5,862,890
Non-interested trustees' remuneration ....................................... 54,445 162,830
Transfer agent
Institutional Shares ..................................................... 145,019 79,321
Investor Shares .......................................................... 2,152 331,547
Custodian ................................................................... 58,708 121,760
Administration (Note 5) ..................................................... 313,182 28,761
Insurance ................................................................... 7,104 34,587
Professional fees ........................................................... 89,436 114,492
Registration ................................................................ 51,188 53,915
Printing and other .......................................................... 129,427 234,966
Distribution and service fees (Note 7) ...................................... 2,069 389,703
Other expenses .............................................................. 8,824 139,902
-------------- -----------------
Total expenses ........................................................... 2,742,731 7,554,674
Advisor waiver (Note 6) ..................................................... (1,328) --
-------------- -----------------
Net expenses ................................................................ 2,741,403 7,554,674
-------------- -----------------
Net investment loss ......................................................... (60,054) (4,234,899)
-------------- -----------------
Realized and Unrealized Loss on Investments:
Net realized loss from investment transactions .............................. (3,040,118) (107,528,818)
Decrease in unrealized appreciation/(depreciation) on investments ........... (80,963,010) (147,196,812)
-------------- -----------------
Net realized and unrealized loss on investments .......................... (84,003,128) (254,725,630)
-------------- -----------------
Net decrease in net assets resulting from operations ........................... $ (84,063,182) $ (258,960,529)
============== =================
See notes to financial statements.
CENTURY FUNDS
- ------
18
STATEMENTS OF CHANGES IN NET ASSETS
Century Shares Century Small Cap
Trust Select Fund
Year Ended Year Ended Year Ended Year Ended
October 31, 2008 October 31, 2007 October 31, 2008 October 31, 2007
---------------- ---------------- ---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income/(loss) $ (60,054) $ 1,635,090 $ (4,234,899) $ (632,683)
Net realized gain/(loss) on investment transactions (3,040,118) 62,813,977 (107,528,818) 68,702,337
Change in net unrealized appreciation/(depreciation) (80,963,010) (31,685,500) (147,196,812) 27,688,064
---------------- ---------------- ---------------- ----------------
Net increase/(decrease) in net assets resulting from
operations (84,063,182) 32,763,567 (258,960,529) 95,757,718
Distributions to shareholders from:
Net investment income
Institutional Shares (2,847,889) (4,517,444) (1,685,889) (7,516,448)
Investor Shares (4,026) (2,257) -- (4,411,492)
Net realized gain from investment transactions
Institutional Shares (59,501,761) (75,570,929) (42,722,585) (42,614,264)
Investor Shares (194,447) (459,673) (19,828,953) (27,610,318)
Tax return of capital
Institutional Shares -- -- (4,213,810) --
Investor Shares -- -- (1,794,048) --
Capital share transactions - net (Note 2) 26,755,389 29,443,454 (138,623,491) (75,118,501)
Redemption fees 274 3,271 97,806 10,896
---------------- ---------------- ---------------- ----------------
Total decrease (119,855,642) (18,340,011) (467,731,499) (61,502,409)
Net Assets:
Beginning of year 288,675,707 307,015,718 832,776,348 894,278,757
---------------- ---------------- ---------------- ----------------
End of year $ 168,820,065 $ 288,675,707 $ 365,044,849 $ 832,776,348
================ ================ ================ ================
See notes to financial statements.
CENTURY FUNDS
------
19
FINANCIAL HIGHLIGHTS
CENTURY SHARES TRUST Year Ended October 31,
Institutional Shares 2008 2007 2006 2005 2004
-------- -------- -------- -------- --------
Net Asset Value, beginning of period $ 29.52 $ 35.69 $ 35.40 $ 35.62 $ 35.66
-------- -------- -------- -------- --------
Income/(loss) from Investment Operations:
Net investment income/(loss)(a) (0.01) 0.16 0.10 0.19 0.03
Net realized and unrealized gain/(loss) on investments (7.44) 2.95 3.31 3.54 3.02
-------- -------- -------- -------- --------
Total income/(loss) from investment operations (7.45) 3.11 3.41 3.73 3.05
-------- -------- -------- -------- --------
Less Distributions From:
Net investment income (0.30) (0.43) (0.77) (0.32) (0.34)
Net realized gain on investment transactions (6.26) (8.85) (2.35) (3.63) (2.75)
-------- -------- -------- -------- --------
Total distributions (6.56) (9.28) (3.12) (3.95) (3.09)
-------- -------- -------- -------- --------
Redemption fees --+ --+ --+ --+ --+
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 15.51 $ 29.52 $ 35.69 $ 35.40 $ 35.62
======== ======== ======== ======== ========
Total Return (32.31)% 11.86% 10.17% 11.18% 9.06%
Ratios and supplemental data
Net assets, end of period (000 omitted) $168,199 $287,670 $305,172 $323,643 $362,392
Ratio of expenses to average net assets 1.17% 1.10% 1.11% 1.12% 1.15%
Ratio of net investment income/(loss) to average net assets (0.02)% 0.56% 0.29% 0.55% 0.07%
Portfolio Turnover Rate 91% 38% 48% 19% 43%
Period
Ended
CENTURY SHARES TRUST Year Ended October 31, October 31,
Investor Shares 2008 2007 2006 2005(b)
-------- -------- -------- -----------
Net Asset Value, beginning of period $ 29.46 $ 35.41 $ 35.35 $ 35.00
-------- -------- -------- -----------
Income/(loss) from Investment Operations:
Net investment income/(loss)(a) (0.06) 0.01 (0.19) (0.03)
Net realized and unrealized gain/(loss) on investments (7.47) 2.96 3.27 0.29
-------- -------- -------- -----------
Total income/(loss) from investment operations (7.53) 2.97 3.08 0.26
-------- -------- -------- -----------
Less Distributions From:
Net investment income (0.13) (0.07) (0.68) --
Net realized gain on investment transactions (6.26) (8.85) (2.35) --
-------- -------- -------- -----------
Total distributions (6.39) (8.92) (3.03) --
-------- -------- -------- -----------
Redemption fees --+ --+ 0.01 0.09
-------- -------- -------- -----------
Net Asset Value, end of period $ 15.54 $ 29.46 $ 35.41 $ 35.35
======== ======== ======== ===========
Total Return (32.45)% 11.38% 9.18% 1.00%**
Ratios and supplemental data
Net assets, end of period (000 omitted) $ 621 $ 1,006 $ 1,844 $ 1,139
Ratio of expenses to average net assets 1.45% 1.56% 2.00% 1.20%*
Ratio of expenses to average net assets without giving 1.61% 1.95% 2.15% 1.35%*
effect to contractual expense agreement
Ratio of net investment income/(loss) to average net assets (0.31)% 0.05% (0.58)% (0.36)%*
Portfolio Turnover Rate 91% 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
- ------
20
FINANCIAL HIGHLIGHTS
CENTURY SMALL CAP SELECT FUND Year Ended October 31,
Institutional Shares 2008 2007 2006 2005 2004
-------- -------- -------- -------- --------
Net Asset Value, beginning of period $ 26.13 $ 25.74 $ 24.15 $ 22.46 $ 21.53
-------- -------- -------- -------- --------
Income/(loss) from Investment Operations:
Net investment income/(loss)(a) (0.12) -- 0.06 0.03 (0.08)
Net realized and unrealized gain/(loss) on investments (9.00) 2.75 1.90 2.22 2.14
-------- -------- -------- -------- --------
Total income/(loss) from investment operations (9.12) 2.75 1.96 2.25 2.06
-------- -------- -------- -------- --------
Less Distributions From:
Net investment income (0.10) (0.35) (0.09) -- (0.94)
Net realized gain on investment transactions (2.10) (2.01) (0.28) (0.56) (0.19)
Tax return of capital (0.19) -- -- -- --
-------- -------- -------- -------- --------
Total distributions (2.39) (2.36) (0.37) (0.56) (1.13)
-------- -------- -------- -------- --------
Redemption fees --+ --+ --+ --+ --+
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 14.62 $ 26.13 $ 25.74 $ 24.15 $ 22.46
======== ======== ======== ======== ========
Total Return (38.24)% 11.61% 8.21% 10.19% 9.83%
Ratios and supplemental data
Net assets, end of period (000 omitted) $262,793 $575,027 $540,697 $585,723 $140,208
Ratio of expenses to average net assets 1.11% 1.08% 1.07% 1.06% 1.13%
Ratio of net investment income/(loss) to average net assets (0.57)% 0.02% 0.25% 0.13% (0.36)%
Portfolio Turnover Rate 104% 100% 127% 96% 103%
CENTURY SMALL CAP SELECT FUND Year Ended October 31,
Investor Shares 2008 2007 2006 2005 2004
-------- -------- -------- -------- --------
Net Asset Value, beginning of period $ 25.72 $ 25.40 $ 23.86 $ 22.26 $ 21.39
-------- -------- -------- -------- --------
Income/(loss) from Investment Operations:
Net investment loss(a) (0.20) (0.06) (0.02) (0.04) (0.15)
Net realized and unrealized gain/(loss) on investments (8.86) 2.71 1.86 2.20 2.12
-------- -------- -------- -------- --------
Total income/(loss) from investment operations (9.06) 2.65 1.84 2.16 1.97
-------- -------- -------- -------- --------
Less Distributions From:
Net investment income -- (0.32) (0.03) -- (0.91)
Net realized gain on investment transactions (2.10) (2.01) (0.28) (0.56) (0.19)
Tax return of capital (0.19) -- -- -- --
-------- -------- -------- -------- --------
Total distributions (2.29) (2.33) (0.31) (0.56) (1.10)
-------- -------- -------- -------- --------
Redemption fees --+ --+ 0.01 --+ --+
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 14.37 $ 25.72 $ 25.40 $ 23.86 $ 22.26
======== ======== ======== ======== ========
Total Return (38.49)% 11.34% 7.83% 9.87% 9.45%
Ratios and supplemental data
Net assets, end of period (000 omitted) $102,252 $257,750 $353,581 $407,048 $150,418
Ratio of expenses to average net assets 1.50% 1.36% 1.45% 1.35% 1.50%
Ratio of net investment loss to average net assets (0.96)% (0.24)% (0.09)% (0.17)% (0.69)%
Portfolio Turnover Rate 104% 100% 127% 96% 103%
(a) Calculated based on average shares outstanding during the period.
+ Amount represents less than $0.01 per share.
See notes to financial statements.
CENTURY FUNDS
------
21
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES -- Century Capital Management Trust (the
"Trust") is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company organized as a Massachusetts business
trust. Century Shares Trust and Century Small Cap Select Fund (each a "Fund"
and, collectively, the "Funds") are diversified series of the Trust. The
following is a summary of significant accounting policies consistently followed
by both Funds in the preparation of their financial statements. The policies are
in conformity with accounting principles generally accepted in the United States
of America.
A. Security Valuations -- Equity securities are valued at the last reported sale
price on the primary exchange, or, if available, the official closing price
reported for an issue traded on the NASDAQ. If no sale price or official closing
price is reported, market value is generally determined based on quotes or other
closing prices obtained from a quotation reporting system, established market
makers, or reputable pricing services. For unlisted securities or for
exchange-listed securities for which there are no reported sale or official
closing prices, market value is determined using closing bid prices. Short-term
obligations, maturing in 60 days or less, are valued at amortized cost, which
approximates fair value. In the absence of readily available market quotes,
securities and other assets will be valued at fair value, as determined in good
faith by the Board of Trustees, its Valuation Committee, or Century Capital
Management LLC ("CCM or the "Adviser") or a delegate pursuant to instructions
from the Board of Trustees or its Valuation Committee. Factors used in
determining fair value may include trading volumes, the value of other financial
instruments, changes in interest rates and government actions.
B. Security Transactions --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 is 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 practicable after
the Fund determines 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.
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, income and expenses of the Funds. Actual results
could differ from those estimates.
D. Risks and Uncertainty --Century Small Cap Select 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 either Fund may be invested in securities 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 either 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 -- Each Fund offers two classes of shares, which
differ in their respective distribution and service fees. Investment income,
realized and unrealized capital gains and losses, the common expenses of the
Fund, and certain fund-level expense reductions, if any, are allocated on a pro
rata basis to each class based on the relative net assets of each class to the
total net assets of the Fund. Certain expense reductions may differ by class.
Because transfer agent fees include a per account fee, each class differs with
respect to transfer agent fees incurred.
F. Redemption Fees -- In general, shares of each 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 the Fund for the benefit of the Fund's remaining shareholders. 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 sufficient net investment income and net realized gains,
if any, 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. Accounting principles generally accepted in the United States of
America require that any distributions in excess of tax basis earnings and
profits be reported in the financial statements as a tax return of capital.
CENTURY FUNDS
- ------
22
In order to present undistributed (distributions in excess of ) net investment
income ("UNII") and accumulated net realized gain ("Accumulated Gain") more
closely to its tax character, the following accounts for each Fund were
increased (decreased):
Paid-In
Capital UNII Accumulated Gain
Century Shares Trust $ (60,067) $ 2,911,969 $(2,851,902)
Century Small Cap Select Fund $(10,242,757) $11,928,646 $(1,685,889)
These reclassifications have no impact on net assets or the results of
operations. Temporary differences will reverse in a subsequent period.
These differences are primarily due to equalization, net operating losses and
losses deferred due to wash sales and excise tax regulations.
The tax-basis components of distributable earnings and the federal income tax
cost of investments as of October 31, 2008 were as follows:
Century Shares Trust
- --------------------
Gross unrealized appreciation ................................. $ 20,830,633
Gross unrealized depreciation ................................. $ (9,918,118)
-------------
Unrealized net appreciation ................................... $ 10,912,515
Cost for federal income tax purposes .......................... $ 161,865,915
The differences between the components of distributable earnings on a tax basis
and the amounts reflected in the Statement of Assets and Liabilities are
primarily due to wash sales.
As of October 31, 2008, the Fund had a capital loss carryforward of $2,618,550
which will expire on October 31, 2016. This carryforward may be used to offset
future capital gains to the extent provided by regulations.
The tax character of distributions paid were as follows:
Year Ended October 31,
2008 2007
------------ -------------
Ordinary Income
Institutional shares ........................ $ 5,830,327 $ 4,517,444
Investor shares ............................. $ 18,559 $ 2,257
Long-term capital gain
Institutional shares ........................ $ 56,519,280 $ 75,570,929
Investor shares ............................. $ 179,957 $ 459,673
The tax-basis components of distributable earnings and the federal income tax
cost of investments as of October 31, 2008 were as follows:
Century Small Cap Select Fund
- -----------------------------
Gross unrealized appreciation ................................. $ 11,149,149
Gross unrealized depreciation ................................. $ (94,706,372)
-------------
Unrealized net depreciation ................................... $ (83,557,223)
Cost for federal income tax purposes .......................... $ 448,857,027
The differences between the components of distributable earnings on a tax basis
and the amounts reflected in the Statement of Assets and Liabilities are
primarily due to wash sales.
As of October 31, 2008, the Fund had a capital loss carryforward of $106,537,085
which will expire on October 31, 2016. This carryforward may be used to offset
future capital gains to the extent provided by regulations.
The tax character of distributions paid were as follows:
Year Ended October 31,
2008 2007
------------ -------------
Ordinary Income
Institutional shares ........................ $ 22,029,976 $ 7,516,448
Investor shares ............................. $ 9,442,359 $ 4,411,492
Long-term capital gain
Institutional shares ........................ $ 22,378,498 $ 42,614,264
Investor shares ............................. $ 10,386,594 $ 27,610,318
Tax return of capital
Institutional shares ........................ $ 4,213,810 $ --
Investor shares ............................. $ 1,794,048 $ --
CENTURY FUNDS
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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 Funds' 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. The Funds adopted the provisions of FIN 48 on November 1, 2007 and the
adoption did not have a material effect on the net asset value, financial
condition or results of operations of the Funds. As of October 31, 2008, the
Funds had no uncertain tax positions that would require financial statement
recognition or disclosure. The Funds' federal tax returns filed for the fiscal
years ended October 31, 2005, October 31, 2006 and October 31, 2007 remain
subject to examination by the Internal Revenue Service.
H. Recently Issued Accounting Pronouncements -- In September 2006, the Financial
Accounting Standards Board ("FASB") issued Statement of Financial Accounting
Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 defines fair
value, establishes a framework for measuring fair value and expands disclosures
about fair value measurements. FAS 157 is effective for fiscal years beginning
after November 15, 2007. As of October 31, 2008, management does not believe the
adoption of FAS 157 will impact the amounts reported in the financial
statements; however, additional disclosures may be required about the inputs
used to develop the measurements of fair value and the effect of certain of the
measurements on changes in net assets for the period.
(2) TRANSACTIONS IN SHARES
A. Century Shares Trust -- The number of authorized shares is unlimited.
Transactions in each class of shares were as follows:
Year Ended October 31, 2008
----------------------------------------------------------
Institutional Shares Investor Shares
Shares Amount Shares Amount
----------- ------------- ----------- --------------
Sold ................................................... 144,548 $ 3,036,728 5,244 $ 111,641
Issued to shareholders in reinvestment of
distributions from:
Net investment income ............................... 101,392 2,339,118 174 4,026
Realized gain on investment transactions ............ 2,266,057 52,201,673 8,406 194,447
----------- ------------- ----------- --------------
2,511,997 57,577,519 13,824 310,114
Repurchased ............................................ (1,414,105) (30,939,018) (7,995) (193,226)
----------- ------------- ----------- --------------
Net increase (decrease) ................................ 1,097,892 $ 26,638,501 5,829 $ 116,888
=========== ============= =========== ==============
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. Century Small Cap Select Fund -- The number of authorized shares is
unlimited. Transactions in each class of shares were as follows:
Year Ended October 31, 2008
----------------------------------------------------------
Institutional Shares Investor Shares
Shares Amount Shares Amount
----------- ------------- ----------- --------------
Sold ................................................... 6,774,044 $ 137,704,859 841,081 $ 17,253,196
Issued to shareholders in reinvestment of
distributions from:
Net investment income ............................... 65,362 1,517,041 -- --
Realized gain on investment transactions ............ 1,763,330 40,926,887 788,150 18,040,767
Tax return of capital ............................... 163,368 3,791,782 71,135 1,628,272
----------- ------------- ----------- --------------
8,766,104 183,940,569 1,700,366 36,922,235
Repurchased ............................................ (12,789,410) (265,619,882) (4,607,449) (93,866,413)
----------- ------------- ----------- --------------
Net increase (decrease) ................................ (4,023,306) $ (81,679,313) (2,907,083) $ (56,944,178)
=========== ============= =========== ==============
CENTURY FUNDS
- ------
24
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 SECURITIES TRANSACTIONS
For Century Shares Trust, purchases and sales of investment securities
(excluding short-term securities and U.S. Government obligations) aggregated
$205,889,279 and $227,712,736, respectively, during the year ended October 31,
2008.
For Century Small Cap Select Fund, purchases and sales of investment securities
(excluding short-term securities and U.S. Government obligations) aggregated
$625,141,407 and $812,825,102, respectively, during the year ended October 31,
2008.
(4) INVESTMENT ADVISER FEE
Century Shares Trust: The Trust has entered into an Investment Advisory
Agreement (the "Agreement") with CCM pursuant to which CCM provides an
investment program for Century Shares Trust. Under the Agreement, the Fund pays
a management fee based on the Fund's average daily net assets computed at the
following annual rates: 0.80% of the first $500 million and 0.70% of the amounts
exceeding $500 million. Century Shares Trust has guaranteed retirement benefits
to be paid to one former Trustee. CCM has assumed the obligation to make all
such payments on behalf of the Fund during the term of the Agreement and
therefore the payments are not reflected in the Fund's financial statements.
Retirement benefits are payable through June 2009.
Century Small Cap Select Fund: The Trust has entered into an Investment Advisory
and Management Services Agreement (the "Agreement") with CCM pursuant to which
CCM provides investment advisory, management and administrative services to
Century Small Cap Select Fund. Under the Agreement, the Fund pays a monthly
management fee at the annual rate of 0.95% of the Fund's average daily net
assets.
(5) ADMINISTRATION FEES The Trust has entered into an Administration Agreement
with CCM pursuant to which CCM provides certain administrative services to
Century Shares Trust. For the period from November 1, 2007 through June 15,
2008, CCM received a monthly fee equal on an annualized basis to 0.15% of the
Fund's average daily net assets. Effective June 16, 2008, CCM received a monthly
fee equal on an annualized basis to 0.10% of the Fund's average daily net
assets.
Per the Investment Advisory and Management Services Agreement between the Trust
and CCM, Century Small Cap Select Fund reimburses CCM for expenses associated
with having the adviser's personnel perform shareholder service functions and
certain financial, accounting, administrative and clerical services.
Effective March 18, 2008, CCM entered into a Sub-Administration Agreement with
State Street Bank and Trust Company ("State Street") pursuant to which State
Street provides certain administrative services to each Fund on behalf of CCM.
CCM pays State Street a sub-administration fee for sub-administration services
provided to each Fund.
(6) ADVISER WAIVER AND REIMBURSEMENTS --CCM contractually agreed to waive a
portion of its management fee and reimburse or pay operating expenses of Century
Shares Trust 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 year ended October 31, 2008, CCM reimbursed Century Shares Trust
Investor Shares and Institutional Shares $845 and $46,509, respectively, for
losses due to an error in the calculation of the net asset value for each share
class. These amounts are included in capital share transactions.
During the year ended October 31, 2008, CCM reimbursed Century Small Cap Select
Fund Investor Shares and Institutional Shares $17,750 and $19,921, respectively,
for losses due to an error in the calculation of the net asset value for each
share class. These amounts are included in capital share transactions.
CENTURY FUNDS
------
25
(7) DISTRIBUTION AND SERVICE FEES -- The Trust has adopted Distribution and
Service Plans (the "Plans") pursuant to Rule 12b-1 under the 1940 Act on behalf
of Century Shares Trust and Century Small Cap Select Fund. The Plans authorize
each Fund to pay up to 0.25% of the average daily net assets of the Funds'
Investor Shares class for distribution and shareholder services. The Plans 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.
The Trust has entered into agreements with financial intermediaries to provide
recordkeeping, processing, shareholder communications and other services to
customers of the intermediaries and have agreed to compensate the intermediaries
for providing such services. Certain services would be provided by the Funds if
the shares of each customer were registered directly with the Funds' transfer
agent. Each Fund pays a portion of the intermediary fees attributable to shares
of the Fund not exceeding the estimated expense the Fund would have paid its
transfer agent had each customer's shares been registered directly with the
transfer agent instead of held through the intermediary accounts.
CCM 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 Fund 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.
CENTURY FUNDS
- ------
26
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustees of Century Capital Management Trust and Shareholders of Century
Shares Trust and Century Small Cap Select Fund:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Century Shares Trust and Century Small Cap
Select Fund (the "Funds"), each a series of Century Capital Management Trust
(the "Trust"), as of October 31, 2008, and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Trust
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Trust's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of October 31, 2008, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Century Shares Trust and Century Small Cap Select Fund as of October 31, 2008,
the results of their operations for the year then ended, the changes in their
net assets for each of the two years in the period then ended, and the financial
highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
December 19, 2008
CENTURY FUNDS
------
27
TAX INFORMATION
(UNAUDITED)
The following information represents the tax status of dividends and
distributions paid by the Funds during the fiscal year ended October 31, 2008.
This information is presented to meet regulatory requirements and no current
action on your part is required.
CENTURY SHARES TRUST
For Federal Income Tax purposes, the Fund designates $2,491,018, or the maximum
amount allowable as qualified dividend income for purposes of Internal Revenue
Code Section 1(h)(11).
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$56,699,236 as long-term capital gain distribution of which 100% represents 15%
rate gains.
CENTURY SMALL CAP SELECT FUND
For Federal Income Tax purposes, the Fund designates $2,348,814, or the maximum
amount allowable as qualified dividend income for purposes of Internal Revenue
Code Section 1(h)(11).
Pursuant to Section 852 of the Internal Revenue Code, the Fund designates
$32,420,651 as long-term capital gain distribution of which 100% represents 15%
rate gains.
Please consult a tax advisor if you have questions about federal or state income
tax laws, or on how to prepare your tax returns.
CENTURY FUNDS
- ------
28
MANAGEMENT OF THE FUNDS
The following table provides certain information regarding the Trustees and
officers of Century Shares Trust and Century Small Cap Select Fund as of October
31, 2008. Unless otherwise noted, (i) each Trustee and officer has engaged in
the principal occupation(s) noted in the table for at least the most recent five
years, although not necessarily in the same capacity, and (ii) the address of
each Trustee and officer is c/o Century Capital Management, 100 Federal Street,
29th Floor, Boston, Massachusetts 02110. Each Trustee's term of office continues
until the Trustee retires, resigns or is removed in accordance with the
Declaration of Trust or until the next shareholders' meeting called for the
purpose of electing Trustees and until the election and qualification of a
successor.
NO. OF
PORTFOLIOS
NAME, AGE, POSITION(S) IN FUND
HELD WITH TRUST AND PRINCIPAL OCCUPATION DURING PAST 5 YEARS COMPLEX
LENGTH OF TIME SERVED AND OTHER DIRECTORSHIPS HELD OVERSEEN
William Gray (56) Co-Chief Executive Officer, North America Region, Ogilvy & Mather 2
Trustee, 2006 to present Worldwide (advertising firm) (2005 to present); President, Ogilvy &
Mather, New York (1997 to 2005). Other Directorships: American Red Cross
of Greater New York, Chairman (since 2002), Member (since 1999); The New
York Public Library (since 1999); The National Advertising Review Board
(since 2001); Wakeman Boys Club (since 1989).
Laura A. Johnson (54) President, Massachusetts Audubon Society (1999 to present). Other 2
Trustee, 2007 to present directorships: Massachusetts Department of Conservation and Recreation
(2004 to present); Woods Hole Oceanographic Institute (2003 to present);
The Fenn School, Concord, Massachusetts (2001-2007).
Stephen W. Kidder (55) Managing Partner, Hemenway & Barnes (law firm). Other Directorships: 2
Trustee, 2005 to present Trustee, Wellesley College; Trustee, Isabella Stewart Gardner Museum;
Trustee, Children's Hospital Trust; Director, The Concord Bookshop, Inc.
Jerrold Mitchell (69) Independent Investment Adviser (since 1995); Senior Advisor, Saltonstall 2
Trustee, 2004 to present & Co. (family investment office) (April 2007 to present); Chief
Investment Officer, The Boston Foundation (2005 to 2007); Chief
Investment Officer, Massachusetts Pension Reserves Investment Management
Board (2001 to 2004). Other Directorships: Trustee, Boston Athenaeum;
Trustee, Yale Library Associates; Trustee, Trustees of Donations;
Commissioner of Trust Funds, Town of Wayland.
Jerry S. Rosenbloom (69) The Wharton School, University of Pennsylvania, Professor of Insurance 2
Trustee, 1998 to present and Risk Management and Academic Director, Certified Employee Benefit
Specialist Program. Other Directorships: Harleysville Group, Inc.;
American Institute for Chartered Property Casualty Underwriters.
David D. Tripple (64) Pioneer Investment Management, a subsidiary of UniCredito Italiano 2
Trustee, 2004 to present (investment adviser), Chief Executive Officer and Trustee of all U.S.
Pioneer mutual funds (10/00 to 09/01); prior thereto, The Pioneer Group,
Inc. (asset management), Executive Vice President and Director (09/98 to
10/00). Other Directorships: The Calamos Funds (16 portfolios).
Ellen M. Zane (57) President and Chief Executive Officer, Tufts-New England Medical Center 2
Trustee, 2007 to present & Floating Hospital for Children (2004 to present); prior thereto,
Network President, Partners Healthcare System (1994-2004). Other
directorships: Fiduciary Trust Company (2000 to present); Parexel
International Corporation (2006 to present); John F. Kennedy Library
Foundation (1999 to present); Harvard School of Public Health, Health
Policy & Management Executive Council (1999 to present); Northeastern
University (2004 to present); Tufts University School of Medicine (2005
to present); Massachusetts Hospital Association (2005 to present).
CENTURY FUNDS
------
29
INTERESTED TRUSTEES AND OFFICERS (1)
NO. OF
PORTFOLIOS
NAME, AGE, POSITION(S) IN FUND
HELD WITH TRUST AND PRINCIPAL OCCUPATION DURING PAST 5 YEARS COMPLEX
LENGTH OF TIME SERVED AND OTHER DIRECTORSHIPS HELD OVERSEEN
Alexander L. Thorndike (42) Managing Partner, Century Capital Management, LLC; Managing Member, CCP 2
Trustee and Portfolio Manager, Capital II, LLC (since 1999) (investment management services); Member,
1999 to present; Chairman and CCP Capital IV, LLC (since 2007) (investment management). No other
Chief Executive Officer, 2004 directorships held.
to present
Davis R. Fulkerson (43) Managing Partner, Century Capital Management, LLC; Managing Member, CCP 2
Trustee, 2000 to present Capital II, LLC (since 1999) (investment management services); President
and Director, CCP Capital III, Inc. (since 2001) (investment management
services); Member, CCP Capital IV, LLC (since 2006) (investment
management services). No other directorships held.
Julie Smith (37) Director of Finance, Century Capital Management, LLC, (since May 2008); N/A
Chief Financial Officer, prior thereto, Controller, Third Avenue Management LLC (1997-2006).
June 2008 to present
Maureen E. Kane (46) General Counsel, Century Capital Management, LLC, (2004-present); prior N/A
Chief Legal Officer, thereto, Vice President, Deutsche Asset Management (1997-2004).
2006 to present;
Secretary, 2007 to present
Beth Lehman (37) Chief Compliance Officer, Century Capital Management, LLC, (since April N/A
Chief Compliance Officer, 2008); prior thereto, Staff Attorney and Senior Counsel, U.S. Securities
September 2008 to present and Exchange Commission (2001-2008).
The Funds' Statement of Additional Information ("SAI") includes additional
information about the Trustees. The SAI is available, without charge, upon
request. If you would like to request a copy of the SAI, you may do so by
calling the following toll-free number: 1-800-321-1928.
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 on the SEC's
website at http://www.sec.gov.
- ----------
(1) Each person listed is considered an "interested person" of the Funds
within the meaning of the 1940 Act by virtue of being an officer or
employee of the Adviser.
CENTURY FUNDS
- ------
30
FUND INFORMATION
INVESTMENT ADVISER
Century Capital Management, LLC
100 Federal Street
Boston, Massachusetts 02110
SHAREHOLDER HOTLINE
800-303-1928
WEBSITE
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
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
OVERNIGHT MAILING ADDRESS -
Century Funds
c/o Atlantic Shareholder Services, LLC
3 Canal Plaza, Ground Floor
Portland, ME 04101
SHAREHOLDER INFORMATION
800-303-1928
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116
- --------------------------------------------------------------------------------
MISSION STATEMENT
To exceed the expectations of our clients,
who entrust us with their hard-earned assets
- --------------------------------------------------------------------------------
Goals
o To deliver exceptional risk-adjusted returns over time
o To develop long-term and deeper relationships with our clients
o To do the right thing, even when no one is watching
o 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
------
31
[GRAPHIC]
CENTURYCAPITAL (R)
100 Federal Street
Boston, Massachusetts 02110
Item 2. Code of Ethics.
As of the end of the period covered by this report, Century Capital Management
Trust has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that
applies to its Principal Executive Officer, Principal Financial Officer and
Principal Accounting Officer.
During the period covered by this report, there were no amendments to, or
waivers from, any provision of the code of ethics.
A copy of the code of ethics is filed as an exhibit hereto.
Item 3. Audit Committee Financial Expert.
The Board of Trustees has determined that Jerry Rosenbloom, who is a member
of the Century Capital Management Trust Board of Trustees and Audit
Committee, qualifies as an audit committee financial expert. Mr. Rosenbloom
is an independent trustee, as defined in paragraph (a)(2) of this item's
instructions. The SEC has stated that the designation or identification of
a person as an audit committee financial expert pursuant to this Item 3 of
Form N-CSR does not impose on such person any duties, obligations or
liability that are greater than the duties, obligations and liability
imposed on such person as a member of the Audit Committee and the Board of
Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees. The aggregate fees billed to the Trust for each of the last two
fiscal years for professional services rendered by the principal accountant
for the audit of the financial statements of Century Capital Management
Trust (the "Trust") or services that are normally provided by the
accountant in connection with statutory and regulatory filings or
engagements for these fiscal years were as follows:
FYE Audit Fees
--- ----------
10/31/08 $77,000
10/31/07 $69,000
(b) Audit-Related Fees. For each of the last two fiscal years, there were no
fees billed to the Trust for assurance and related services by the
principal accountant that are reasonably related to the performance of the
audit of the Trust's financial statements and are not reported under Audit
Fees. For each of the last two fiscal years of the Trust, there were no
audit-related fees billed by the Fund's principal accountant to the Trust's
investment adviser and any entity controlling, controlled by, or under
common control with the adviser that provides ongoing services to the Fund
(together, "Adviser Related Entities") for services that were related
directly to the operations and financial reporting of the Trust.
(c) Tax Fees. The aggregate fees billed to the Trust for each of the last two
fiscal years for professional services provided by the Trust's principal
accountant for tax compliance, tax advice and tax planning were as follows:
FYE Tax Fees
--- ----------
10/31/08 $10,800
10/31/07 $ 9,800
For the last two fiscal years of the Trust, there were no tax fees billed
by the Fund's principal accountant to Adviser Related Entities for
services that were related directly to the operations and financial
reporting of the Trust.
(d) All Other Fees. All Other Fees are fees related to services other than
those reported above under "Audit Fees," "Audit-Related Fees," and "Tax
Fees." For each of the Trust's last two fiscal years, no such fees were
billed by the Trust's principal accountant to the Trust or to Adviser
Related Entities for services related directly to the operations and
financial reporting of the Trust.
(e) (1) The Audit Committee's pre-approval policies and procedures are as
follows:
The Charter of the Audit Committee of the Board requires that the Committee
approve (a) all audit and permissible non-audit services to be provided to
the Funds and (b) all permissible non-audit services to be provided by the
Funds' independent auditors to the Funds' investment adviser or any entity
controlling, controlled by, or under common control with the investment
adviser that provides ongoing services to the Funds, if the engagement
relates directly to the operations and financial reporting of the Funds.
(2) No services described in each of paragraphs (b) through (d) of this
Item were approved by the Audit Committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable
(g) The aggregate non-audit fees billed by the Trust's accountant, for the
Trust's last two fiscal years, for services rendered to the Trust and
Adviser Related Entities are shown in the table below:
Non-Audit Fees
Non-Audit Fees for Adviser Aggregate
for Trust Related Entities Non-Audit Fees
FYE
October 31, 2008 None None None
October 31, 2007 None None None
(h) The Audit Committee of the Board of Trustees has considered whether the
provision of services other than audit services performed by the auditors
to the Registrant is compatible with maintaining the auditors' independence
in performing audit services.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
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.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchases.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which
shareholders may recommend nominees to the Trust's Board of Trustees since the
Trust last provided disclosure as to such procedures in response to the
requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item
22(b)(15) of Schedule 14A), or this Item.
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.
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d))) that occurred during the registrant's second fiscal quarter of
the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
Items 12. Exhibits.
(a) Fund's Code of Ethics. The registrant's code of ethics required to be
disclosed under Item 2 of Form N-CSR attacheded hereto as Exhibit 99.CODE ETH.
(b) Attached hereto.
Exhibit 99.CERT A separate certification for each principal
executive officer and principal financial
officer of the registrant as required by
Rule 30a-2 of the Investment Company
Act of 1940.
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: January 8, 2009
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: January 8, 2009
By: /s/ Julie Smith
-----------------------------------
Julie Smith, Principal Financial Officer
Date: January 8, 2009