UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-09561
Century Capital Management Trust
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
c/o Century Capital Management, LLC
100 Federal Street, Boston, Massachusetts 02110
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(Address of principal executive offices) (Zip code)
Maureen Kane
Century Capital Management, LLC
100 Federal Street, Boston, Massachusetts 02110
- -------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 482-3060
--------------
Date of fiscal year end: October 31
-----------------
Date of reporting period: October 31, 2009
-----------------
Item 1. Reports to Shareholders.
logo: Century Funds
CENTURY
FUNDS
Century Funds Annual Report
October 31, 2009
Century Shares Trust &
Century Small Cap Select Fund
photo: skyline
TOTAL RETURNS FOR THE YEAR ENDED OCTOBER 31, 2009
TICKER SYMBOL 1 YEAR
------------- -------
CENTURY SHARES TRUST ("CST")
INSTITUTIONAL SHARES CENSX 8.59%
INVESTOR SHARES CENVX 8.35%
S&P 500 INDEX 9.80%
CENTURY SMALL CAP SELECT FUND ("CSCS")
INSTITUTIONAL SHARES CSMCX 11.69%
INVESTOR SHARES CSMVX 11.27%
RUSSELL 2000 GROWTH INDEX 11.34%
Past performance is no guarantee of future results.
TABLE OF CONTENTS
Page
Letter to Shareholders 1
Fund Summaries:
Century Small Cap Select Fund 5
Century Shares Trust 8
Shareholder Expense Example 11
Financial Statements:
Portfolios of Investments 12
Statements of Assets and Liabilities 16
Statements of Operations 17
Statements of Changes in Net Assets 18
Financial Highlights 19
Notes to Financial Statements 23
Report of Independent Public Accounting Firm 30
Tax Information 31
Trustees and Officers 32
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, WHICH INCLUDES INFORMATION REGARDING THE FUNDS'
OBJECTIVE(S), RISKS, AND CHARGES AND EXPENSES, EXPERIENCE OF ITS MANAGEMENT,
AND OTHER INFORMATION. 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 views in this report were those of the Century Funds' Chief Investment
Officer and Portfolio Managers as of October 31, 2009 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 FUNDS
DEAR FELLOW SHAREHOLDERS:
A fragile optimism has taken hold over the last several months, replacing the
dark storm clouds that plunged the capital markets and economy into uncertainty
last year. The unbridled pessimism of 2008 (with the S&P 500 and the Russell
2000 Growth Indices both declining over 30% for the year) gave way to a relief
rally, with the S&P 500 and Russell 2000 Growth Indices both up over 17% for
the period January 1, 2009.
It is easy for investors to become confused as the pendulum of market noise
swings between fear and greed. Our investment focus gravitates toward
high-quality, market leaders with strong balance sheets and cash flow that can
sustain organic growth even during difficult markets. We hope this approach
aligns our goal of providing attractive risk-adjusted returns over a full
market cycle with the long-term financial goals of our shareholders.
It is hard to believe that December will mark the 10-year anniversary of the
launch of the Century Small Cap Select Fund. In the Fund's first annual report,
we discussed the unwinding of excess and turmoil in the financial markets and
the collapse of the internet bubble. A decade later, it seems only appropriate
that we speak to the unwinding of other excesses and the anticipation of
another recovery to come.
This report presents our thoughts on the past one-year period and the current
environment, shares our optimism for quality companies over the next few years,
and provides an update on your Century Funds' investment.
REPORTING VERSUS ANTICIPATING CHANGE
The market volatility over the last year highlights the difference between
reporting what has already taken place in the economy and anticipating future
trends. Capital markets have historically been relatively efficient, and we
believe portfolio decisions based on forward-looking analysis usually deliver
more value than portfolio decisions based on what consensus investors already
know. Our research process combines the analysis of reported information with
company-specific field work, in order to anticipate whether a company's growth
or valuation is being over or under estimated by the market.
"I skate to where the puck is going to be, not to where it has been." --
Hockey Hall-of-Famer, Wayne Gretzky
We believe we are at an economic inflection point, where market leaders and
forward-thinking management teams can extend their market share, margins, and
profits, over struggling competitors with less ability to reinvest in their
products. Our research strives to uncover companies that have the patience and
courage to manage their earnings beyond the next year by adapting to changes in
their competitive arena.
1
CENTURY FUNDS
October marked the first negative month of performance for both of the Funds'
benchmarks since the March 9th rally commenced. The equity benchmark indices
marched higher at a breathtaking pace through September. Much of this
enthusiasm was driven by the credit crisis abating and corporate America's
surprising ability to cut expenses rapidly. We believe that the Federal
government's unprecedented fiscal (taxation and spending) and monetary (Federal
Reserve Board actions on interest rates and issuing credit) intervention
ensures that spending initiatives and low interest rates will grease the wheels
of commerce for the next several months.
Institutional investors responded to this extended government safety net and
unexpected profit recovery by propelling the markets higher. This rally from
the March market bottom has been characterized by a large increase in the stock
prices of low priced, lower quality companies, which some believed were headed
toward bankruptcy. While this occurrence overshadowed the higher quality
companies we tend to favor, it served as a sign that the financial markets were
stabilizing and the overall economic situation had improved.
Retail investors appear to have been less inclined to embrace this stock market
rally, and their assets have remained in money market funds or moved into fixed
income offerings. Economic concerns still remain, and the average consumer's
balance sheet and income statement are still stinging from depressed home
values, reduced 401(k) balances, and an unemployment rate hovering above 10%.
CONSUMER RESTRAINT AND SLOWER GROWTH
Does the economic reality support the run-up in the equity markets? Our answer
is yes, though it is too early to determine sustainability due to the swirling
crosswinds of our current environment. The government's bailout and stimulus
programs appear to have pulled the economy from its doldrums. Inflation remains
tame, but our huge deficit spending and the dollar's weakness may accelerate
the inflation outlook beyond 2010. According to gross domestic product (GDP)
statistics, the economy grew at a rate of 2.8% in the third quarter versus a
decrease of 0.7% in the second quarter.
Third quarter earnings and profit guidance were encouraging, but revenue growth
is proving elusive. Managements' commentary regarding the business outlook is
increasingly optimistic. We note the following trends. Productivity continues
to improve at a terrific pace, and businesses are resuming capital expenditures
on technology upgrades that enable people to do more (data and video) with less
cost and from any location. The residential housing market appears to be slowly
regaining its footing, and there seems to be consensus that the recession that
has affected us since 2007 is drawing to an end.
We remain concerned about the financial health of the consumer, which accounts
for 70% of GDP spending. The resilient American consumer appears to be unnerved
by the uncertain job market and limited access to credit. October 2009 consumer
bankruptcy filings increased 27.9% year-over-year.
2
CENTURY FUNDS
We believe that households are watching their budgets vigilantly, and consumers
are trading down to lower priced private label choices. We believe a frugal
consumer with less access to credit will lead to a lower level of economic
growth, a more competitive business environment and reduced opportunities for
struggling firms to prosper.
The following chart highlights the growing divergence between consumer spending
and workers' wage income. The government has temporarily filled this gap with
spending initiatives and tax credits, but there is a limit to how far spending
can extend beyond income, before it adversely impacts inflation, our debt
burden and economic growth. As government stimulus slows, workers will need to
spend less or be paid more. We believe economic recovery will depend on the
return of revenue and job growth across many industries.
ARTWORK: AN UNSUSTAINABLE EARNINGS VERUS SPENDING GAP
Source: BEA; Morgan Stanley Research
We believe that the tight lending environment will persist, reducing credit
availability further. Small businesses represent 70% of the nation's workers
and have seen their credit lines reduced and interest rates increased. These
actions inhibit their ability to expand their products, invest in new
equipment, or hire new employees. A robust recovery will require credit growth
to return and companies to begin hiring again. Our research analysts will be
looking for these signs over the coming months.
We believe the October downturn has marked a divergence in the markets. The low
priced, low quality leadership that characterized the initial upturn appears to
have run its course. We feel that higher quality companies are regaining the
attention of investors as they realize that revenue growth will be essential
for the market to move higher from here.
Companies with strong competitive positions, margins, returns, and balance
sheets should thrive and capture market share gains over the next several
years. We believe market share gains will be highly correlated with earnings
growth and share price appreciation going forward.
Our 2008 annual report discussed our long-term focus and belief that
opportunity rises out of great struggles. The divergent stock market
performance of 2008 and 2009 reinforced the need for that long-term focus.
CENTURY FUNDS
3
We expect the next decade will endure unexpected peaks and valleys, and we hope
to be worthy stewards that can listen and learn to anticipate the changes that
transpire as investment styles swing into and out of favor. The Century Funds
remain committed to fundamental investing, with a focus on long-term,
risk-adjusted returns.
We greatly appreciate the trust and investments that you place with Century. We
look forward to partnering with you through the opportunities and challenges
ahead, as we seek to achieve our shared goals. We welcome your questions and
comments always.
Respectfully submitted,
/s/ Alexander L. Thorndike
Alexander L. Thorndike
Chairman of the Century Funds
4
CENTURY FUNDS
CENTURY SMALL CAP SELECT FUND COMMENTARY
HOW DID THE PORTFOLIO PERFORM?
For the one-year period ended October 31, 2009, Century Small Cap Select Fund's
Institutional Shares returned 11.69%, outperforming the Russell 2000 Growth
Index's return of 11.34%, while the Investor Shares' return of 11.27% slightly
underperformed the benchmark.
WHAT FACTORS INFLUENCED PERFORMANCE?
From November 2008 to March 2009, the market declined dramatically, with the
Russell 2000 Growth Index falling more than 40% from its peak in October 2007.
Investors reversed course, in the spring, and stocks rebounded, rising more
than 50% from the low in March. Due in large part to these dramatic shifts in
the market, the Fund's performance was volatile during the year. The Fund's
more defensive positioning helped performance during the first half of the
year, but relative performance began to lag during the second half of the year,
as the market rebound favored lower quality stocks.
The Fund's performance over the past year was due to a combination of stock
selection and sector allocation. Bruker Corp. (a producer of life science
tools), Brookdale Senior Living (a senior living operator), and HMS Holdings (a
health care cost management provider) all contributed significantly to
performance. MFA Financial (a mortgage-backed REIT), Wintrust Financial (a
diversified bank) and Eaton Vance (an investment manager) also provided
meaningful contributions to the Fund's performance. These positive results were
partially offset by weakness in Matthews International (a diversified
manufacturer) and Ralcorp (a private label food producer).
Underweighting the Industrials sector contributed to performance, but
underweighting the Consumer Discretionary sector and overweighting the
Financials sector partially offset the benefit. Underweighting the Energy
sector also led to positive sector contribution, but the benefit was offset by
stock selection within the sector. The biggest surprise was the strength in the
Russell 2000 Growth Consumer Discretionary sector, which increased 32% for the
fiscal year and was ahead of the Information Technology sector's 30% return.
Consumer stocks performed very well, despite high unemployment rates and tight
credit.
DESCRIBE RECENT PORTFOLIO ACTIVITY.
The Portfolio's exposure to the Information Technology sector and the Materials
sector increased over the past year and we trimmed holdings in the Financial,
Industrial, and Health Care sectors. Given the turmoil in the capital markets,
we believe that the financial strength of Information Technology stocks enabled
them to better manage the crisis than stocks in other sectors. As companies
realigned their operations for a lower revenue base, they continued to invest
in productivity-improving software and tools with the aim of "doing more with
less." The recent economic stability has increased merger and acquisition
activity.Two of the Fund's holdings, Avocent and Starent, are being acquired by
Emerson Electric and Cisco Systems, respectively.
CENTURY FUNDS
5
CENTURY SMALL CAP SELECT FUND COMMENTARY (CONTINUED)
DESCRIBE PORTFOLIO POSITIONING AT PERIOD-END.
We believe that the economy will continue to improve, but that the growth rate
will be slower than a typical recovery. As of October 31, 2009, the Portfolio
is positioned with a mix of high quality, franchise companies and
well-financed, cyclical firms. Relative to the Russell 2000 Growth Index, the
Fund is overweight Information Technology, Materials, and Financial Services
sectors. We believe that the Materials sector should benefit as the economy
rebounds while Financial Services holdings are attractively valued. Due to our
concern regarding consumer spending, the Fund has a below average allocation to
Consumer Discretionary stocks.
TEN LARGEST HOLDINGS*
Core Laboratories NV 3.48%
ENERGY RESERVOIR MANAGEMENT PROVIDER
PSS World Medical, Inc. 3.46%
HEALTH PRODUCTS DISTRIBUTOR
BJ's Wholesale Club, Inc. 3.26%
WAREHOUSE CLUB OPERATOR
Cornell Companies, Inc. 3.19%
CORRECTIONAL SERVICES
Capella Education Co. 3.18%
EDUCATION SERVICES
MFA Financial, Inc. 3.13%
REAL ESTATE INVESTMENT TRUST
Bruker Corp. 3.12%
LIFE SCIENCE INSTRUMENTS
HUB Group, Inc. 2.97%
FREIGHT TRANSPORTATION MANAGEMENT
j2 Global Communications, Inc. 2.89%
ELECTRONIC COMMUNICATION SERVICES
Wintrust Financial Corp. 2.61%
COMMUNITY BANKING AND SPECIALTY
FINANCIAL SERVICES
PORTFOLIO COMPOSITION*
Information Technology 27.7%
Health Care 24.8%
Industrials 12.7%
Financials 9.4%
Consumer Discretionary 9.4%
Energy 5.7%
Materials 4.9%
Consumer Staples 4.1%
Short-term investment
less net liabilities 1.3%
*Based on the Fund's net assets at October 31, 2009 and subject to change.
6
CENTURY FUNDS
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. 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 SUBSTANTIALLY LOWER OR HIGHER
THAN THE FUND'S HISTORICAL PERFORMANCE. PLEASE CALL (800) 303-1928 FOR THE
FUND'S MOST RECENT MONTH-END PERFORMANCE. AS STATED IN THE FUND'S CURRENT
PROSPECTUS, THE TOTAL (GROSS) ANNUAL OPERATING EXPENSES IS 1.50% FOR THE
INVESTOR SHARES AND 1.11% FOR THE INSTITUTIONAL SHARES. RETURNS WOULD HAVE BEEN
LOWER DURING RELEVANT PERIODS IF CERTAIN FEES HAD NOT BEEN WAIVED OR EXPENSES
REIMBURSED. TO DISCOURAGE SHORT-TERM TRADING, THE FUND MAY IMPOSE A REDEMPTION
FEE OF 1.00% ON SHARES HELD LESS THAN 90 DAYS. PERFORMANCE FIGURES AND GRAPHS
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.
THE RECENT GROWTH RATE IN THE GLOBAL EQUITY MARKETS HAS HELPED TO PRODUCE
SHORT-TERM RETURNS FOR SOME SECTORS/ASSET CLASSES THAT ARE NOT TYPICAL AND MAY
NOT CONTINUE IN THE FUTURE. BECAUSE OF ONGOING MARKET VOLATILITY, FUND
PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES.
- --------------------------------------------------------------------------------
Average Annual Total Returns as of 10/31/09 (%)
SINCE
1 YEAR 3 YEARS 5 YEARS INCEPTION*
------ ------- ------- -----------
CENTURY SMALL CAP SELECT INSTITUTIONAL SHARES 11.69 (8.35) (1.70) 8.86
RUSSELL 2000 GROWTH INDEX 11.34 (6.88) 0.95 (4.09)
RUSSELL 2000 INDEX 6.46 (8.51) 0.59 1.48
SINCE
1 YEAR 3 YEARS 5 YEARS INCEPTION**
------ ------- ------- -----------
CENTURY SMALL CAP SELECT INVESTOR SHARES 11.27 (8.66) (2.02) 8.49
RUSSELL 2000 GROWTH INDEX 11.34 (6.88) 0.95 (2.52)
RUSSELL 2000 INDEX 6.46 (8.51) 0.59 3.29
Sources: Century Capital Management, LLC and Russell
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LINE CHART:
GROWTH OF $100,000
Institutional Shares*
CSCS Russell 2000
Institutional Growth
Dec-99 $100000 $100000
100100 111454
101000 110416
101600 136106
111600 121800
Apr-00 111500 109502
114100 99914
116100 112821
123900 103152
132800 114002
140100 108338
Oct-00 145700 99544
143200 81470
155100 86455
153043 93453
149135 80643
141009 73311
01-Apr 148620 82286
154380 84192
160860 86488
160243 79110
157466 74170
153557 62202
01-Oct 151089 68186
157157 73877
164100 78477
163374 75685
165965 70787
174362 76939
02-Apr 175917 75275
175710 70873
167520 64863
157672 54894
160368 54869
152386 50906
02-Oct 159849 53481
169594 58782
165328 54728
163087 53242
161486 51822
164368 52607
03-Apr 173760 57585
187102 64075
194360 65309
204819 70246
210370 74020
213678 72146
03-Oct 229795 78378
242283 80934
243513 81295
255875 85566
254526 85434
253178 85833
04-Apr 244188 81524
244862 83146
253739 85913
240255 78201
236209 76518
248570 80749
04-Oct 252391 82711
263496 89702
273515 92926
265569 88740
274436 89958
274091 86583
05-Apr 266605 81073
272133 86789
279043 89595
292402 95858
286068 94507
285492 95256
05-Oct 278121 91736
286813 96930
284577 96785
301997 106121
300361 105555
308662 110686
06-Apr 308662 110366
296385 102599
292995 102661
285395 97328
290072 100179
295099 100857
06-Oct 300945 107392
311071 109963
311838 109702
316723 111743
313895 111389
320579 112418
07-Apr 326749 115365
341402 120631
338060 119936
316851 113709
323278 116569
328805 119955
07-Oct 335875 125356
315180 116699
320710 117432
292779 106659
284840 102967
286541 102368
08-Apr 297600 107628
309226 113724
290086 106945
286116 109432
296324 112150
265274 99475
08-Oct 207427 77885
192965 68460
194666 72174
177369 66683
165601 59778
176944 65144
09-Apr 194383 74948
203032 77850
210830 80372
221889 86605
224441 87450
240462 93192
09-Oct 231671 86718
Line Chart:
GROWTH OF $10,000
Investor Shares**
Russell 2000
CSCS Investor Growth
Feb-00 $10000 $10000
10010 10472
10940 9372
Apr-00 10920 8425
11180 7688
11380 8681
12130 7937
13000 8772
13710 8336
Oct-00 14260 7659
14000 6269
15170 6652
14978 7191
14633 6205
13843 5641
01-Apr 14593 6331
15150 6478
15798 6655
15727 6087
15443 5707
15059 4786
01-Oct 14785 5246
15383 5684
16061 6038
15990 5823
16244 5447
17055 5920
02-Apr 17208 5792
17177 5453
16366 4991
15412 4224
15665 4222
14854 3917
02-Oct 15574 4115
16518 4523
16090 4211
15871 4097
15714 3987
15996 4048
03-Apr 16902 4431
18174 4930
18872 5025
19883 5405
20414 5695
20727 5551
03-Oct 22290 6031
23488 6227
23608 6255
24792 6584
24660 6574
24518 6604
04-Apr 23652 6273
23707 6397
24562 6610
23246 6017
22841 5887
24036 6213
04-Oct 24397 6364
25469 6902
26424 7150
25649 6828
26503 6922
26469 6662
05-Apr 25739 6238
26267 6678
26930 6894
28211 7376
27604 7272
27537 7329
05-Oct 26806 7058
27643 7458
27416 7447
29089 8165
28929 8122
29715 8516
06-Apr 29703 8492
28520 7894
28178 7899
27438 7489
27882 7708
28360 7760
06-Oct 28907 8263
29881 8461
29956 8441
30406 8598
30131 8571
30769 8650
07-Apr 31357 8876
32746 9282
32421 9228
30381 8749
30982 8969
31508 9230
07-Oct 32183 9645
30181 8979
30698 9036
28027 8207
27256 7923
27408 7876
08-Apr 28468 8281
29555 8750
27724 8229
27325 8420
28289 8629
25329 7654
08-Oct 19795 5993
18419 5267
18570 5553
16918 5131
15789 4599
16863 5012
09-Apr 18515 5767
19341 5990
20071 6184
21117 6664
21365 6729
22879 7170
09-Oct 22025 6672
The graphs and table reflect the change in value of a hypothetical investment
in the Fund, including reinvest of dividends and distributions, compared with
the listed indices.
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 $100,000.
The Russell 2000[R] Growth Index measures the performance of the small-cap
growth segment of the U.S. equity universe. It includes those Russell 2000[R]
companies with higher price-to-value ratios and higher forecasted growth
values.
*Inception Date December 9, 1999
**Inception Date February 24, 2000
CENTURY FUNDS
7
CENTURY SHARES TRUST COMMENTARY
HOW DID THE PORTFOLIO PERFORM?
For the one-year period ended October 31, 2009, Century Shares Trust's
Institutional Shares and Investor Shares returned 8.59% and 8.35%,
respectively, but underperformed the S&P 500 Index, which returned 9.80% .
WHAT FACTORS INFLUENCED PERFORMANCE?
From November 2008 to March 2009, the market declined dramatically, with the
S&P 500 Index falling more than 50% from its peak in October 2007. Investors
reversed course in the spring, and stocks rebounded, rising more than 50% from
the low in March. Due in large part to these dramatic shifts in the market, the
Fund's performance was volatile during the year. The Fund's more defensive
positioning helped performance during the first half of the year, but relative
performance lagged during the second half of the year, as the market rebound
favored lower quality stocks.
Sector allocation contributed to the Fund's performance. The Fund overweighted
the Information Technology sector, which was the best performing sector in
fiscal 2009, and underweighted the Financial Services sector, which was the
worst performing sector. Within the Information Technology sector, we
overweighted IT Services and Software because these businesses tend to have low
capital expenditures and their products generally help other companies improve
their overall productivity.
Despite strong contributions from companies such as Ross Stores (an off-price
retailer), MasterCard (a payment processor), and Express Scripts (a pharmacy
benefit manager), weak overall stock selection was a drag on performance.
Stericycle (a medical water disposal firm) and Berkshire Hathaway (a
diversified insurer) were two long time holdings that under-performed last
year. We believe both companies were affected by macroeconomics, as investors
sought riskier, cyclical equities. Intel and Xilinx, two semi-conductor
companies, also had a negative impact on performance as anticipated improvement
in their results failed to materialize. Gamestop (a videogame retailer) also
detracted from performance, due to weak consumer demand.
DESCRIBE RECENT PORTFOLIO ACTIVITY.
During the second half of the year, we increased the Fund's exposure to
Information Technology stocks. We think that Technology companies with
attractive business models and solid balance sheets will outperform as the
economy rebounds. We have reduced the Fund's exposure to Health Care stocks,
which tend to be more defensive, in order to increase the Fund's positions in
companies likely to benefit from an economic rebound.
DESCRIBE PORTFOLIO POSITIONING AT PERIOD-END.
The Portfolio continues to invest in high quality, profitable growth companies.
We have shifted the portfolio modestly toward more cyclically-oriented
companies to gain exposure to an improving economy over the next 3 to 5 years.
CENTURY FUNDS
8
CENTURY SHARES TRUST COMMENTARY (CONTINUED)
As of October 31, 2009, the Information Technology sector was overweighted,
while the Financials, Energy, and Utility sectors were underweighted. Despite a
highly uncertain near term economic outlook, we believe financially strong,
market leaders will grow market share during these difficult times and emerge
even stronger as the current economic challenges recede.
Ten Largest Holdings*
Express Scripts, Inc. 4.36%
PHARMACY BENEFIT MANAGEMENT
Oracle Corp. 3.74%
ENTERPRISE SOFTWARE PROVIDER
Cisco Systems, Inc. 3.62%
TECHNOLOGY NETWORKING
Accenture PLC 3.43%
MANAGEMENT AND TECHNOLOGY SERVICES
Google, Inc. Class A 3.36%
WEB-BASED TECHNOLOGY
International Business Machines
Corp. (IBM) 3.33%
TECHNOLOGY, SOFTWARE AND SERVICES
Ecolab, Inc. 3.29%
CLEANING AND SANITATION
Microsoft Corp. 3.26%
WORLDWIDE SOFTWARE AND HARDWARE PROVIDER
Stericycle, Inc. 3.00%
MEDICAL WASTE DISPOSAL
QUALCOMM, Inc. 2.99%
WIRELESS COMMUNICATION
Portfolio Composition*
Information Technology 32.3%
Health Care 12.2%
Industrials 11.7%
Consumer Staples 10.1%
Consumer Discretionary 10.0%
Financials 9.6%
Energy 6.8%
Materials 3.3%
Short-term investment less
net liabilities 2.8%
Telecommunication Services 1.2%
*Based on the Fund's net assets at October 31, 2009 and subject to change.
CENTURY FUNDS
9
PERFORMANCE SUMMARY
Century Shares Trust -- Institutional Shares and Investor Shares
THE PERFORMANCE INFORMATION SHOWN BELOW IS HISTORICAL AND DOES NOT GUARANTEE
FUTURE RESULTS. 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 SUBSTANTIALLY LOWER OR HIGHER
THAN THE FUND'S HISTORICAL PERFORMANCE. PLEASE CALL (800) 303-1928 FOR THE
FUND'S MOST RECENT MONTH-END PERFORMANCE. AS STATED IN THE FUND'S CURRENT
PROSPECTUS, THE TOTAL (GROSS) ANNUAL OPERATING EXPENSE, IS 1.17% FOR THE
INSTITUTIONAL SHARES AND 1.61% FOR THE INVESTOR SHARES. THE ADVISER HAS AGREED
CONTRACTUALLY TO REIMBURSE OR PAY OPERATING EXPENSES FOR THE FUND'S INVESTOR
SHARES TO THE EXTENT NECESSARY TO MAINTAIN NET OPERATING EXPENSES AT 1.45%
THROUGH FEBRUARY 28, 2010. RETURNS WOULD HAVE BEEN LOWER DURING RELEVANT
PERIODS IF CERTAIN FEES HAD NOT BEEN WAIVED OR EXPENSES REIMBURSED. TO
DISCOURAGE SHORT-TERM TRADING, THE FUND MAY IMPOSE A REDEMPTION FEE OF 1.00% ON
SHARES HELD LESS THAN 90 DAYS. PERFORMANCE FIGURES AND GRAPHS 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.
THE RECENT GROWTH RATE IN THE GLOBAL EQUITY MARKETS HAS HELPED TO PRODUCE
SHORT-TERM RETURNS FOR SOME SECTORS/ASSET CLASSES THAT ARE NOT TYPICAL AND MAY
NOT CONTINUE IN THE FUTURE. BECAUSE OF ONGOING MARKET VOLATILITY, FUND
PERFORMANCE MAY BE SUBJECT TO SUBSTANTIAL SHORT-TERM CHANGES.
- --------------------------------------------------------------------------------
Average Annual Total Returns as of 10/31/09 (%)
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- -------- --------
CST INSTITUTIONAL SHARES 8.59 (6.32) 0.14 3.90
S&P 500 INDEX 9.80 (7.02) 0.33 (0.95)
SINCE
1 YEAR 3 YEARS INCEPTION*
------ ------- ----------
CST INVESTOR SHARES 8.35 (6.58) (2.45)
S&P 500 INDEX 9.80 (7.02) (1.70)
Sources: Century Capital Management, LLC and S&P
- --------------------------------------------------------------------------------
Line Chart:
GROWTH OF $100,000
Institutional Shares
CST S&P 500
Oct-99 $100000 $100000
94899.4 102033
95529.7 108042
86650.3 102614
75516.3 100671
96058.5 110520
92941 107195
102628 104996
93930 107584
104566 105902
112123 112480
119232 106542
Oct-00 125277 106091
122143 97727.3
131295 98205.6
122526 101690
121945 92417.6
121273 86562.9
122984 93289.7
129462 93914.7
131020 91629
127403 90727
123726 85047.3
123389 78179.5
1-Oct 121059 79670.3
127587 85781.5
127986 86533
125736 85270.2
129161 83625.8
132250 86770.9
133895 81510.1
132753 80909.6
127482 75145.7
117363 69288.5
116724 69743.4
108252 62163.7
2-Oct 114136 67635.1
116354 71616
111902 67408.8
109846 65642.9
106107 64658
109210 65285.8
118408 70663.4
124128 74386.5
123866 75335.4
127535 76663.6
128846 78158.8
127722 77328.8
3-Oct 133526 81703.2
136035 82422.1
139911 86744.7
144647 88336.9
149832 89564.7
148770 88213.5
146810 86828.7
147709 88020.3
149587 89731.8
144190 86762
144231 87112.9
145948 88056.4
4-Oct 145621 89401.6
151568 93019
157418 96184.3
153678 93839.8
154362 95814.6
152402 94117.9
151261 92332.9
156916 95270.8
158693 95406
160614 98954
158419 98051.2
160385 98845.3
5-Oct 161894 97197.5
168034 100874
167399 100909
167598 103581
168641 103862
169734 105155
171275 106567
166505 103499
166721 103640
167821 104279
172369 106760
175867 109511
6-Oct 178366 113080
180512 115230
184177 116847
185453 118614
182565 116294
183505 117595
189953 122803
196334 127089
193509 124977
187967 121102
191955 122918
197700 127515
7-Oct 199525 129543
196483 124127
196458 123266
183909 115872
178802 112108
174129 111624
182524 117061
186851 118577
174255 108580
172952 107668
174081 109225
159828 99492.3
8-Oct 135059 82782.8
125933 76842.7
125236 77660.3
117660 71114.6
111563 63542.5
118618 69108.5
128023 75722.8
131681 79958.3
132813 80116.9
140042 86176.7
143438 89288
149361 92620.3
9-Oct 146661 90899.4
Line Chart:
GROWTH OF $10,000
Investor Shares*
CST S&P 500
7/18/2005 $10000 $10000
10011 10113
9871 10020
9997 10102
5-Oct 10100 9933
10484 10309
10435 10312
10432 10585
10488 10614
10543 10746
6-Apr 10630 10891
10323 10577
10330 10591
10389 10657
10666 10910
10878 11192
6-Oct 11027 11556
11154 11776
11375 11941
11445 12122
11262 11885
11316 12018
7-Apr 11712 12550
12098 12988
11924 12772
11578 12376
11819 12562
12174 13031
7-Oct 12282 13239
12094 12685
12099 12597
11324 11842
11006 11457
10714 11407
8-Apr 11229 11963
11499 12118
10722 11096
10642 11003
10706 11162
9821 10168
8-Oct 8297 8460
7754 7853
7711 7937
7242 7268
6858 6494
7290 7063
9-Apr 7865 7739
8079 8171
8148 8188
8585 8807
8793 9125
9160 9465
9-Oct 8990 9289
The graphs and table reflect the change in value of a hypothetical investment
in the Fund, including reinvest of dividends and distributions, compared with
the listed indices.
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 $100,000.
The S&P 500[R] Index is a broad based unmanaged index representing the
performance of 500 widely held common stocks. One cannot invest directly in an
index.
*Inception Date July 18, 2005
10
CENTURY FUNDS
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, 2009 to October 31, 2009).
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, 2009 OCTOBER 31, 2009 OCTOBER 31, 2009
------------- ---------------- -----------------
Based on Actual Fund Return
Institutional Shares $1,000.00 $1,145.60 $6.54
Investor Shares $1,000.00 $1,143.00 $7.83
Based on Hypothetical 5% Yearly Return before expenses
Institutional Shares $1,000.00 $1,019.11 $6.16
Investor Shares $1,000.00 $1,017.90 $7.37
* The Fund's annualized expense ratios are 1.20% 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 365.
Century Small Cap Select Fund EXPENSES PAID
BEGINNING ENDING DURING PERIOD*
ACCOUNT VALUE ACCOUNT VALUE SIX MONTHS ENDING
MAY 1, 2009 OCTOBER 31, 2009 OCTOBER 31, 2009
------------- ---------------- -----------------
Based on Actual Fund Return
Institutional Shares $1,000.00 $1,191.80 $6.41
Investor Shares $1,000.00 $1,189.60 $8.44
Based on Hypothetical 5% Yearly Return before expenses
Institutional Shares $1,000.00 $1,019.36 $5.90
Investor Shares $1,000.00 $1,017.49 $7.78
* The Fund's annualized expense ratios are 1.14% for Institutional Shares and
1.53% 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 365.
CENTURY FUNDS
11
CENTURY SHARES TRUST
PORTFOLIO OF INVESTMENTS -- AS OF OCTOBER 31, 2009
Shares Value
- -------------------------------------------------------------
Common Stock - 97.2%
CONSUMER DISCRETIONARY - 10.0%
DIVERSIFIED CONSUMER SERVICES - 2.3%
19,300 Strayer Education, Inc. $ 3,917,321
------------
HOTELS, RESTAURANTS & LEISURE - 2.4%
208,250 Starbucks Corp.* 3,952,585
------------
MEDIA - 2.2%
141,200 The DIRECTV Group, Inc.* 3,713,560
------------
SPECIALTY RETAIL - 3.1%
145,850 GameStop Corp. Class A* 3,542,696
38,200 Ross Stores, Inc. 1,681,182
------------
5,223,878
------------
16,807,344
------------
CONSUMER STAPLES - 10.1%
BEVERAGES - 2.0%
56,350 PepsiCo, Inc. 3,411,992
------------
FOOD AND STAPLES RETAILING - 4.5%
123,150 CVS Caremark Corp. 4,347,195
64,000 Wal-Mart Stores, Inc. 3,179,520
------------
7,526,715
------------
FOOD PRODUCTS - 2.1%
165,000 ConAgra Foods, Inc. 3,465,000
------------
PERSONAL PRODUCTS - 1.5%
76,350 Avon Products, Inc. 2,447,018
------------
16,850,725
------------
ENERGY - 6.8%
ENERGY EQUIPMENT AND SERVICES - 4.6%
100,650 Helmerich & Payne, Inc. 3,826,713
62,200 Schlumberger Ltd. 3,868,840
------------
7,695,553
------------
OIL, GAS AND CONSUMABLE FUELS - 2.2%
85,100 CONSOL Energy, Inc. 3,643,131
------------
11,338,684
------------
Shares Value
- -------------------------------------------------------------
FINANCIALS - 9.6%
CAPITAL MARKETS - 3.2%
92,850 The Charles Schwab Corp. $1,610,019
22,250 The Goldman Sachs Group, Inc. 3,786,283
----------
5,396,302
----------
DIVERSIFIED FINANCIAL SERVICES - 4.3%
95,250 JPMorgan Chase & Co. 3,978,592
123,700 NYSE Euronext 3,197,645
----------
7,176,237
----------
INSURANCE - 2.1%
35 Berkshire Hathaway, Inc. Class A* 3,465,000
4,300 Verisk Analytics, Inc.* 117,949
----------
3,582,949
----------
16,155,488
----------
HEALTH CARE - 12.2%
HEALTH CARE EQUIPMENT AND SUPPLIES - 5.3%
24,900 C.R. Bard, Inc. 1,869,243
102,050 St Jude Medical, Inc.* 3,477,864
66,500 Zimmer Holdings, Inc.* 3,495,905
----------
8,843,012
----------
HEALTH CARE PROVIDERS AND SERVICES - 6.9%
193,750 AmerisourceBergen Corp. 4,291,562
91,400 Express Scripts, Inc.* 7,304,688
----------
11,596,250
----------
20,439,262
----------
INDUSTRIALS - 11.7%
AIR FREIGHT AND LOGISTICS - 2.6%
79,450 CH Robinson Worldwide, Inc. 4,378,489
----------
COMMERCIAL SERVICES AND SUPPLIES - 3.0%
95,950 Stericycle, Inc.* 5,024,901
----------
MACHINERY - 1.7%
63,450 Deere & Co. 2,890,148
----------
ROAD AND RAIL - 2.1%
82,900 CSX Corp. 3,496,722
----------
See notes to financial statements.
12
CENTURY FUNDS
CENTURY SHARES TRUST (CONTINUED)
PORTFOLIO OF INVESTMENTS -- ASOF OCTOBER 31, 2009
Shares Value
- ------------------------------------------------ ------------
INDUSTRIALS (continued)
TRADING COMPANIES AND DISTRIBUTORS - 2.3%
40,450 WW Grainger, Inc. $ 3,791,379
------------
19,581,639
------------
INFORMATION TECHNOLOGY - 32.3%
COMMUNICATIONS EQUIPMENT - 6.6%
265,200 Cisco Systems, Inc.* 6,059,820
121,100 QUALCOMM, Inc. 5,014,751
------------
11,074,571
------------
COMPUTERS AND PERIPHERALS - 5.3%
17,600 Apple, Inc.* 3,317,600
46,300 International Business Machines Corp. 5,584,243
------------
8,901,843
------------
INTERNET SOFTWARE AND SERVICES - 3.4%
10,500 Google, Inc. Class A* 5,629,260
------------
IT SERVICES - 6.2%
154,950 Accenture PLC 5,745,546
21,500 MasterCard, Inc. Class A 4,708,930
------------
10,454,476
------------
SEMICONDUCTORS AND
SEMICONDUCTOR EQUIPMENT - 3.8%
165,300 Intel Corp. 3,158,883
146,200 Xilinx, Inc. 3,179,850
------------
6,338,733
------------
SOFTWARE - 7.0%
196,890 Microsoft Corp. 5,459,760
296,950 Oracle Corp. 6,265,645
------------
11,725,405
------------
54,124,288
------------
MATERIALS - 3.3%
CHEMICALS - 3.3%
125,300 Ecolab, Inc. 5,508,188
------------
Shares Value
- ------------------------------------------------ ------------
TELECOMMUNICATION SERVICES - 1.2%
WIRELESS TELECOMMUNICATION SERVICES - 1.2%
77,250 NII Holdings, Inc.* $ 2,080,343
------------
Total Investment in Common Stocks - 97.2%
(Identified cost, $129,462,720) 162,885,961
------------
SHORT-TERM INVESTMENT - 1.7%
2,850,705 SSgA US Government Money
Market Fund
(Identified cost, $2,850,705) 2,850,705
------------
Total Investments - 98.9%
(Identified cost, $132,313,425) 165,736,666
------------
Other Assets
Less Liabilities - 1.1%
Other Assets in Excess of Liabilities 1,888,384
------------
Net Assets - 100% $167,625,050
============
* Non-income producing security
See notes to financial statements.
CENTURY FUNDS
13
CENTURY SMALL CAP SELECT FUND
PORTFOLIO OF INVESTMENTS -- AS OF OCTOBER 31, 2009
Shares Value
- ---------------------------------------------------------------
Common Stock - 98.7%
CONSUMER DISCRETIONARY - 9.4%
DIVERSIFIED CONSUMER SERVICES - 3.2%
142,400 Capella Education Co.* $ 9,811,360
--------------
LEISURE EQUIPMENT AND PRODUCTS - 1.4%
212,650 Pool Corp. 4,163,687
--------------
MEDIA - 1.8%
154,250 John Wiley & Sons, Inc. 5,432,685
--------------
SPECIALTY RETAIL - 2.5%
253,400 Monro Muffler Brake, Inc. 7,852,866
--------------
TEXTILES, APPAREL AND LUXURY GOODS - 0.5%
81,200 Fuqi International, Inc.* 1,663,788
--------------
28,924,386
--------------
CONSUMER STAPLES - 4.1%
FOOD AND STAPLES RETAILING - 3.3%
286,850 BJ's Wholesale Club, Inc.* 10,048,356
--------------
FOOD PRODUCTS - 0.8%
70,200 TreeHouse Foods, Inc.* 2,625,480
--------------
12,673,836
--------------
ENERGY - 5.7%
ENERGY EQUIPMENT AND SERVICES - 5.0%
102,750 Core Laboratories NV 10,716,825
96,300 Dril-Quip, Inc.* 4,679,217
--------------
15,396,042
--------------
OIL, GAS AND CONSUMABLE FUELS - 0.7%
85,400 Goodrich Petroleum Corp.* 2,192,218
--------------
17,588,260
--------------
FINANCIALS - 9.4%
CAPITAL MARKETS - 1.6%
143,350 Cohen & Steers, Inc. 2,770,956
49,500 Piper Jaffray Companies, Inc.* 2,296,305
--------------
5,067,261
--------------
Shares Value
- ---------------------------------------------------------------
FINANCIALS (continued)
COMMERCIAL BANKS - 2.6%
285,400 Wintrust Financial Corp. $ 8,051,134
--------------
INSURANCE - 1.7%
142,150 Platinum Underwriters Holdings, Ltd. 5,084,705
--------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 3.5%
1,301,200 MFA Financial, Inc. 9,654,904
75,350 Redwood Trust, Inc. 1,050,379
--------------
10,705,283
--------------
28,908,383
--------------
HEALTH CARE - 24.8%
HEALTH CARE EQUIPMENT AND SUPPLIES - 6.6%
200,600 ICU Medical, Inc.* 7,021,000
155,142 Kensey Nash Corp.* 3,709,445
215,600 Masimo Corp.* 5,728,492
171,200 Meridian Bioscience, Inc. 3,798,928
--------------
20,257,865
--------------
HEALTH CARE PROVIDERS AND SERVICES - 9.4%
464,900 Brookdale Senior Living, Inc.* 7,828,916
117,450 IPC The Hospitalist Co, Inc.* 3,558,735
221,150 Lincare Holdings, Inc.* 6,946,321
527,200 PSS World Medical, Inc.* 10,659,984
--------------
28,993,956
--------------
HEALTH CARE TECHNOLOGY - 3.1%
65,500 Quality Systems, Inc. 3,996,810
120,200 SXC Health Solutions Corp.* 5,490,736
--------------
9,487,546
--------------
LIFE SCIENCES TOOLS AND SERVICES - 3.1%
887,300 Bruker Corp.* 9,618,332
--------------
PHARMACEUTICALS - 2.6%
380,550 Par Pharmaceutical Cos, Inc.* 7,980,134
--------------
76,337,833
--------------
See notes to financial statements.
CENTURY FUNDS
14
CENTURY SMALL CAP SELECT FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS -- AS OF OCTOBER 31, 2009
Shares Value
- ---------------------------------------------------------------
INDUSTRIALS - 12.7%
AIR FREIGHT AND LOGISTICS - 3.0%
367,600 HUB Group, Inc. Class A* $ 9,138,536
--------------
COMMERCIAL SERVICES AND SUPPLIES - 4.4%
65,800 Clean Harbors, Inc.* 3,714,410
429,859 Cornell Companies, Inc.* 9,817,980
--------------
13,532,390
--------------
CONSTRUCTION AND ENGINEERING - 1.3%
136,350 Granite Construction, Inc. 3,894,156
--------------
ELECTRICAL EQUIPMENT - 2.3%
54,700 General Cable Corp.* 1,703,358
235,750 Woodward Governor Co. 5,542,482
--------------
7,245,840
--------------
MACHINERY - 1.7%
135,150 ESCO Technologies, Inc.* 5,308,692
--------------
39,119,614
--------------
INFORMATION TECHNOLOGY - 27.7%
COMMUNICATIONS EQUIPMENT - 4.7%
132,450 Avocent Corp.* 3,294,032
220,050 Polycom, Inc.* 4,724,473
195,450 Starent Networks Corp.* 6,594,483
--------------
14,612,988
--------------
INTERNET SOFTWARE AND SERVICES - 3.6%
435,400 j2 Global Communications, Inc.* 8,903,930
445,950 LivePerson, Inc.* 2,243,129
--------------
11,147,059
--------------
IT SERVICES - 2.1%
177,500 CyberSource Corp.* 2,907,450
663,300 Online Resources Corp.* 3,482,325
--------------
6,389,775
--------------
Shares Value
- ---------------------------------------------------------------
INFORMATION TECHNOLOGY (continued)
SEMICONDUCTORS AND
SEMICONDUCTOR EQUIPMENT - 5.3%
174,800 Cabot Microelectronics Corp.* $ 5,590,104
183,450 Hittite Microwave Corp.* 6,750,960
97,550 Silicon Laboratories, Inc.* 4,087,345
--------------
16,428,409
-------------
SOFTWARE - 12.0%
285,550 Commvault Systems, Inc.* 5,625,335
538,074 EPIQ Systems, Inc.* 6,785,113
371,200 Informatica Corp.* 7,880,576
251,550 MICROS Systems, Inc.* 6,771,726
236,150 Sourcefire, Inc.* 4,793,845
314,100 Websense, Inc.* 5,044,446
--------------
36,901,041
--------------
85,479,272
--------------
MATERIALS - 4.9%
CHEMICALS - 2.5%
276,050 Balchem Corp. 7,616,219
--------------
CONTAINERS AND PACKAGING - 2.4%
138,700 Greif, Inc. Class A 7,423,224
--------------
15,039,443
--------------
Total Investment in Common Stocks - 98.7%
(Identified cost, $263,785,777) 304,071,027
--------------
SHORT-TERM INVESTMENT - 1.6%
4,824,053 SSgA US Government Money
Market Fund
(Identified cost, $4,824,053) 4,824,053
--------------
Total Investments - 100.3%
(Identified cost, $268,609,830) 308,895,080
--------------
Other Assets
Less Liabilities - (0.3)%
Liabilities in Excess of Other Assets (790,862)
--------------
Net Assets - 100% $ 308,104,218
==============
* Non-income producing security
See notes to financial statements.
CENTURY FUNDS
15
STATEMENTS OF ASSETS AND LIABILITIES - AS OFOCTOBER 31, 2009
CENTURY SHARES CENTURY SMALL CAP
TRUST SELECT FUND
---------------- ----------------
Assets:
Investments, at value (Note 1A) (Identified cost of
$132,313,425 and $268,609,830, respectively) $ 165,736,666 $ 308,895,080
Dividends receivable 180,194 8,735
Receivable for investments sold 2,678,655 2,216,155
Receivable for Fund shares sold 974 310,392
Receivable for dividend reclaims 30,846 --
Prepaid expenses 2,776 5,760
---------------- ----------------
Total Assets 168,630,111 311,436,122
---------------- ----------------
Liabilities:
Payable to Affiliates:
Investment adviser fee (Note 4) 116,860 267,290
Administration fee (Note 5) 14,716 12,000
Distribution and service fees (Note 6) 1,049 23,095
Accrued expenses and other liabilities 149,920 190,440
Payable for investments purchased 721,516 2,555,391
Payable for Fund shares repurchased 1,000 213,688
Due to custodian -- 70,000
---------------- ----------------
Total Liabilities 1,005,061 3,331,904
---------------- ----------------
Net Assets $ 167,625,050 $ 308,104,218
================ ================
At October 31, 2009, net assets consisted of:
Paid-in capital $ 146,563,024 $ 466,288,932
Accumulated net realized loss on investments (12,361,215) (198,469,964)
Unrealized appreciation in value of investments 33,423,241 40,285,250
---------------- ----------------
Net assets applicable to outstanding capital stock $ 167,625,050 $ 308,104,218
================ ================
Net Assets consist of:
Institutional Shares $ 166,573,970 $ 216,294,798
Investor Shares $ 1,051,080 $ 91,809,420
Shares Outstanding consist of (Note 2):
Institutional Shares 9,894,060 13,238,615
Investor Shares 62,316 5,737,262
Net Asset Value Per Share
(Represents both the offering and redemption price*)
Institutional Shares $ 16.84 $ 16.34
Investor Shares $ 16.87 $ 16.00
* 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
16
STATEMENTS OF OPERATIONS - YEAR ENDED OCTOBER 31, 2009
CENTURY SHARES CENTURY SMALL CAP
TRUST SELECT FUND
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of $0 and $40,706, respectively) $ 1,887,351 $ 3,143,981
Interest 9,003 16,951
Other Income -- 91,368
-------------- --------------
Total investment income 1,896,354 3,252,300
-------------- --------------
EXPENSES:
Investment adviser fee (Note 4) 1,239,193 2,916,346
Non-interested trustees' remuneration 91,295 178,614
Transfer agent
Institutional Shares 123,469 69,234
Investor Shares 10,497 195,522
Custodian 55,135 77,124
Administration fees (Note 5) 154,899 9,056
Insurance 15,891 29,609
Professional fees 63,228 81,208
Registration 29,983 52,852
Distribution and service fees (Note 6) 2,022 174,630
Printing and other expenses 82,251 71,070
-------------- --------------
Total expenses 1,867,863 3,855,265
Adviser reimbursement (Note 7) (9,749) --
-------------- --------------
Net expenses 1,858,114 3,855,265
-------------- --------------
Net investment income/(loss) 38,240 (602,965)
-------------- --------------
Realized and unrealized gain/(loss) on investments:
Net realized loss from investment transactions (9,196,030) (89,355,285)
Increase in unrealized appreciation on investments 21,964,091 121,153,665
-------------- --------------
Net realized and unrealized gain on investments 12,768,061 31,798,380
-------------- --------------
Net increase in net assets resulting from operations $ 12,806,301 $ 31,195,415
============== ==============
See notes to financial statements.
CENTURY FUNDS
17
STATEMENTS OF CHANGES IN NET ASSETS
CENTURY SHARES CENTURY SMALL CAP
TRUST SELECT FUND
INCREASE (DECREASE) Year Ended Year Ended Year Ended Year Ended
IN NET ASSETS: October 31, 2009 October 31, 2008 October 31, 2009 October 31, 2008
------------------------- ---------------- ---------------- ----------------
Operations:
Net investment income/(loss) $ 38,240 $ (60,054) $ (602,965) $ (4,234,899)
Net realized loss on investment
transactions (9,196,030) (3,040,118) (89,355,285) (107,528,818)
Change in net unrealized appreciation 21,964,091 (80,963,010) 121,153,665 (147,196,812)
------------------------- ---------------- ---------------- ----------------
Net increase/(decrease) in net assets
resulting from operations 12,806,301 (84,063,182) 31,195,415 (258,960,529)
Distributions to shareholders from:
Net investment income
Institutional Shares (321,578) (2,847,889) -- (1,685,889)
Investor Shares -- (4,026) -- --
Net realized gain from investment transactions
Institutional Shares -- (59,501,761) -- (42,722,585)
Investor Shares -- (194,447) -- (19,828,953)
Tax return of capital
Institutional Shares -- -- -- (4,213,810)
Investor Shares -- -- -- (1,794,048)
Capital share transactions - net (Note 2) (13,680,291) 26,755,389 (88,146,797) (138,623,491)
Redemption fees 553 274 10,751 97,806
------------------------- ---------------- ---------------- ----------------
Total decrease (1,195,015) (119,855,642) (56,940,631) (467,731,499)
NET ASSETS:
Beginning of year 168,820,065 288,675,707 365,044,849 832,776,348
------------------------- ---------------- ---------------- ----------------
End of year $ 167,625,050 $ 168,820,065 $ 308,104,218 $ 365,044,849
========================= ================ ================ ================
See notes to financial statements.
CENTURY FUNDS
18
FINANCIAL HIGHLIGHTS
Century Shares Trust YEAR ENDED OCTOBER 31,
Institutional Shares 2009 2008 2007 2006 2005
----------- ----------- ----------- ------------ -----------
Net Asset Value, beginning of period $ 15.51 $ 29.52 $ 35.69 $ 35.40 $ 35.62
----------- ----------- ----------- ---------- -----------
Income/(loss) from Investment Operations:
Net investment income/(loss)(a) 0.00+ (0.01) 0.16 0.10 0.19
Net realized and unrealized gain/(loss) on investments 1.36 (7.44) 2.95 3.31 3.54
----------- ----------- ----------- ---------- -----------
Total income/(loss) from investment operations 1.36 (7.45) 3.11 3.41 3.73
----------- ----------- ----------- ---------- -----------
Less Distributions From:
Net investment income (0.03) (0.30) (0.43) (0.77) (0.32)
Net realized gain on investment transactions (0.00) (6.26) (8.85) (2.35) (3.63)
----------- ----------- ----------- ---------- -----------
Total distributions (0.03) (6.56) (9.28) (3.12) (3.95)
----------- ----------- ----------- ---------- -----------
Redemption fees 0.00+ 0.00+ 0.00+ 0.00+ 0.00+
----------- ----------- ----------- ---------- -----------
Net Asset Value, end of period $ 16.84 $ 15.51 $ 29.52 $ 35.69 $ 35.40
=========== =========== =========== ========== ===========
Total Return 8.59% (32.31)% 11.86% 10.17% 11.18%
Ratios and supplemental data
Net assets, end of period (000 omitted) $ 166,574 $168,199 $287,670 $305,172 $ 323,643
Ratio of expenses to average net assets 1.20% 1.17% 1.10% 1.11% 1.12%
Ratio of net investment income/(loss) to average net assets 0.03% (0.02)% 0.56% 0.29% 0.55%
Portfolio Turnover Rate 79% 91% 38% 48% 19%
(a) Calculated based on average shares outstanding during the period.
+ Amount represents less than $0.005 per share.
See notes to financial statements.
CENTURY FUNDS
19
FINANCIAL HIGHLIGHTS
PERIOD
ENDED
Century Shares Trust YEAR ENDED OCTOBER 31, OCTOBER 31,
Investor Shares 2009 2008 2007 2006 2005(A)
----------- ----------- ----------- ------------ -----------
Net Asset Value, beginning of period $ 15.54 $ 29.46 $ 35.41 $ 35.35 $ 35.00
----------- ----------- ----------- ---------- -----------
Income/(loss) from Investment Operations:
Net investment income/(loss)(b) (0.03) (0.06) 0.01 (0.19) (0.03)
Net realized and unrealized gain/(loss) on investments 1.36 (7.47) 2.96 3.27 0.29
----------- ----------- ----------- ---------- -----------
Total income/(loss) from investment operations 1.33 (7.53) 2.97 3.08 0.26
----------- ----------- ----------- ---------- -----------
Less Distributions From:
Net investment income (0.00) (0.13) (0.07) (0.68) (0.00)
Net realized gain on investment transactions (0.00) (6.26) (8.85) (2.35) (0.00)
----------- ----------- ----------- ---------- -----------
Total distributions (0.00) (6.39) (8.92) (3.03) (0.00)
----------- ----------- ----------- ---------- -----------
Redemption fees 0.00+ 0.00+ 0.00+ 0.01 0.09
----------- ----------- ----------- ---------- -----------
Net Asset Value, end of period $ 16.87 $ 15.54 $ 29.46 $ 35.41 $ 35.35
=========== =========== =========== ========== ===========
Total Return 8.35% (32.45)% 11.38% 9.18% 1.00%**
Ratios and supplemental data
Net assets, end of period (000 omitted) $ 1,051 $ 621 $ 1,006 $ 1,844 $ 1,139
Ratio of expenses to average net assets 1.45% 1.45% 1.56% 2.00% 1.20%*
Ratio of expenses to average net assets without giving
effect to contractual expense agreement 2.64% 1.61% 1.95% 2.15% 1.35%*
Ratio of net investment income/(loss) to average net assets (0.22)% (0.31)% 0.05% (0.58)% (0.36)%*
Portfolio turnover rate 79% 91% 38% 48% 19%(c)
(a) From the commencement date of investment operations, July 18, 2005 to
October 31, 2005.
(b) Calculated based on average shares outstanding during the period.
(c) For the one year period ended October 31, 2005.
+ Amount represents less than $0.005 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 2009 2008 2007 2006 2005
----------- ----------- ----------- ------------ -----------
Net Asset Value, beginning of period $ 14.62 $ 26.13 $ 25.74 $ 24.15 $ 22.46
----------- ----------- ----------- ---------- -----------
Income/(loss) from Investment Operations:
Net investment income/(loss)(a) (0.01) (0.12) 0.00+ 0.06 0.03
Net realized and unrealized gain/(loss) on investments 1.73 (9.00) 2.75 1.90 2.22
----------- ----------- ----------- ---------- -----------
Total income/(loss) from investment operations 1.72 (9.12) 2.75 1.96 2.25
----------- ----------- ----------- ---------- -----------
Less Distributions From:
Net investment income (0.00) (0.10) (0.35) (0.09) (0.00)
Net realized gain on investment transactions (0.00) (2.10) (2.01) (0.28) (0.56)
Tax return of capital (0.00) (0.19) (0.00) (0.00) (0.00)
----------- ----------- ----------- ---------- -----------
Total distributions (0.00) (2.39) (2.36) (0.37) (0.56)
----------- ----------- ----------- ---------- -----------
Redemption fees 0.00+ 0.00+ 0.00+ 0.00+ 0.00+
----------- ----------- ----------- ---------- -----------
Net Asset Value, end of period $ 16.34 $ 14.62 $ 26.13 $ 25.74 $ 24.15
=========== =========== =========== ========== ===========
Total Return 11.69% (38.24)% 11.61% 8.21% 10.19%
Ratios and supplemental data
Net assets, end of period (000 omitted) $ 216,295 $262,793 $575,027 $540,697 $585,723
Ratio of expenses to average net assets 1.14% 1.11% 1.08% 1.07% 1.06%
Ratio of net investment income/(loss) to average net assets (0.08)% (0.57)% 0.02% 0.25% 0.13%
Portfolio Turnover Rate 133% 104% 100% 127% 96%
(a) Calculated based on average shares outstanding during the period.
+ Amount represents less than $0.005 per share.
See notes to financial statements.
CENTURY FUNDS
21
FINANCIAL HIGHLIGHTS
Century Small Cap Select Fund YEAR ENDED OCTOBER 31,
Investor Shares 2009 2008 2007 2006 2005
----------- ----------- ----------- ------------ -----------
Net Asset Value, beginning of period $ 14.37 $ 25.72 $ 25.40 $ 23.86 $ 22.26
----------- ----------- ----------- ------------ -----------
Income/(loss) from Investment Operations:
Net investment loss(a) (0.07) (0.20) (0.06) (0.02) (0.04)
Net realized and unrealized gain/(loss) on investments 1.70 (8.86) 2.71 1.86 2.20
----------- ----------- ----------- ------------ -----------
Total income/(loss) from investment operations 1.63 (9.06) 2.65 1.84 2.16
----------- ----------- ----------- ------------ -----------
Less Distributions From:
Net investment income (0.00) (0.00) (0.32) (0.03) (0.00)
Net realized gain on investment transactions (0.00) (2.10) (2.01) (0.28) (0.56)
Tax return of capital (0.00) (0.19) (0.00) (0.00) (0.00)
----------- ----------- ----------- ------------ -----------
Total distributions (0.00) (2.29) (2.33) (0.31) (0.56)
----------- ----------- ----------- ------------ -----------
Redemption fees 0.00+ 0.00+ 0.00+ 0.01 0.00+
----------- ----------- ----------- ------------ -----------
Net Asset Value, end of period $ 16.00 $ 14.37 $ 25.72 $ 25.40 $ 23.86
=========== =========== =========== ============ ===========
Total Return 11.27% (38.49)% 11.34% 7.83% 9.87%
Ratios and supplemental data
Net assets, end of period (000 omitted) $91,809 $102,252 $257,750 $ 353,581 $407,048
Ratio of expenses to average net assets 1.53% 1.50% 1.36% 1.45% 1.35%
Ratio of net investment loss to average net assets (0.47)% (0.96)% (0.24)% (0.09)% (0.17)%
Portfolio turnover rate 133% 104% 100% 127% 96%
(a) Calculated based on average shares outstanding during the period.
+ Amount represents less than $0.005 per share.
See notes to financial statements.
CENTURY FUNDS
22
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES ---- Century Capital Management Trust (the
"Trust") is registered under the Investment Company Act of 1940 ("1940 Act"),
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 ("generally accepted accounting
principles").
A. Security Valuations ---- Equity securities are valued at the last reported
sale price or official closing price on the primary exchange or market on which
they are traded, as reported by an independent pricing service. If no sale
price or official closing price is reported, market value is generally
determined based on quotes or closing prices obtained from a quotation
reporting system, established market maker, or reputable pricing service. For
unlisted securities and for exchange-listed securities for which there are no
reported sales or official closing prices, fair value is generally determined
using closing bid prices. Short-term obligations, maturing in 60 days or less,
are valued at amortized cost, which approximates fair value. Investments in
open-end mutual funds are valued at their closing net asset value each business
day.
The Funds adopted Financial Accounting Standards Board ("FASB") Statement of
Financial Accounting Standards No. 157 "Fair Value Measurements" (currently
FASB ASC 820-10), effective November 1, 2008, which establishes a single
definition of fair value, creates a three-tier hierarchy as a framework for
measuring fair value based on inputs used to value each Fund's investments, and
requires additional disclosure about fair value. The hierarchy of inputs is
summarized below.
o Level 1 -- quoted prices in active markets for identical investments
o Level 2 -- significant other observable inputs (including quoted
prices for similar investments, interest rates, prepayment speeds,
credit risk, etc.)
o Level 3 -- significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of October 31, 2009 in valuing
the Funds' investments carried at fair value:
QUOTED PRICES
IN ACTIVE SIGNIFICANT
MARKET FOR SIGNIFICANT OTHER UNOBSERVABLE
IDENTICAL ASSETS OBSERVABLE INPUTS INPUTS
(LEVEL 1) (LEVEL 2) (LEVEL 3) TOTAL
- ----------------------------- ---------------- ------------------ ------------- ------------
CENTURY SHARES TRUST
Common Stock* $ 162,885,961 $ -- $ -- $162,885,961
Money Market Funds 2,850,705 -- -- 2,850,705
---------------- ---------- ---------- ------------
Total Investments $ 165,736,666 $ -- $ -- $165,736,666
---------------- ---------- ---------- ------------
CENTURY SMALL CAP SELECT FUND
Common Stock* $ 304,071,027 $ -- $ -- $304,071,027
Money Market Funds 4,824,053 -- -- 4,824,053
---------------- ---------- ---------- ------------
Total Investments $ 308,895,080 $ -- $ -- $308,895,080
---------------- ---------- ---------- ------------
* At October 31, 2009 the Funds held investments in common stocks classified as
Level 1, with corresponding major categories as shown on each Fund's Portfolio
of Investments.
CENTURY FUNDS
23
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. Payments received
from certain investments held by the Funds may be comprised of dividends,
capital gains and return of capital. The Funds originally estimate the expected
classification of such payments. The amounts may subsequently be reclassified
upon receipt of information from the issuer. 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 generally accepted accounting principles 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 certain industries detailed in the Portfolio of Investments,
which subjects 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
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 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. Generally accepted accounting principles
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
24
In order to present undistributed (distributions in excess of ) net investment
income ("UNII") and accumulated net realized loss ("Accumulated Loss") more
closely to its tax character, the following accounts for each Fund were
increased (decreased):
PAID-IN ACCUMULATED
CAPITAL UNII LOSS
- ----------------------------- ---------- -------- -----------
Century Shares Trust $(283,338) $283,338 $ --
Century Small Cap Select Fund $(714,179) $602,965 $111,214
These reclassifications have no impact on net assets or the results of
operations. The Funds had temporary book/tax differences primarily attributable
to wash sales on portfolio securities and permanent book/tax differences
primarily attributable to net operating losses. Temporary differences will
reverse in a subsequent period.
The tax-basis components of distributable earnings and the federal income tax
cost of investments as of October 31, 2009 were as follows:
CENTURY SHARES TRUST
Gross unrealized appreciation $ 34,119,786
Gross unrealized depreciation (906,690)
------------
Unrealized net appreciation $ 33,213,096
Cost for federal income tax purposes $ 132,523,570
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, 2009, the Fund had a capital loss carryforward of
$12,151,070, of which $2,618,549 will expire on October 31, 2016 and $9,532,521
which will expire on October 31, 2017. 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,
2009 2008
---- ----
Ordinary Income
Institutional shares $ 321,578 $ 5,830,327
Investor shares $ -- $ 18,559
Long-term capital gain
Institutional shares $ -- $56,519,280
Investor shares $ -- $ 179,957
The tax-basis components of distributable earnings and the federal income tax
cost of investments as of October 31, 2009 were as follows:
CENTURY SMALL CAP SELECT FUND
Gross unrealized appreciation $ 46,190,358
Gross unrealized depreciation (7,660,598)
------------
Unrealized net appreciation $ 38,529,760
Cost for federal income tax purposes $ 270,365,320
CENTURY FUNDS
25
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, 2009, the Fund had a capital loss carryforward of
$196,714,474, of which $106,779,845 will expire on October 31, 2016 and
$89,934,629 which will expire on October 31, 2017. 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,
2009 2008
---- ----
Ordinary Income
Institutional shares $ -- $22,029,976
Investor shares $ -- $ 9,442,359
Long-term capital gain
Institutional shares $ -- $22,378,498
Investor shares $ -- $10,386,594
Tax return of capital
Institutional shares $ -- $4,213,810
Investor shares $ -- $1,794,048
As of October 31, 2009, 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, 2006, October 31, 2007 and
October 31, 2008 remain subject to examination by the Internal Revenue
Service.
(2) TRANSACTIONS IN SHARES
CENTURY SHARES TRUST ---- The number of authorized shares is unlimited.
Transactions in each class of shares were as follows:
YEAR ENDED OCTOBER 31, 2009
------------- ----------------------------- -----------
INSTITUTIONAL SHARES INVESTOR SHARES
SHARES AMOUNT SHARES AMOUNT
------------- ------------- ----------- --------------
Sold 139,209 $ 2,019,011 49,061 $ 712,476
Issued to shareholders in reinvestment of distributions from:
Net investment income 18,364 266,814 -- --
Realized gain on investment transactions -- -- -- --
------------- ------------- ----------- --------------
157,573 2,285,825 49,061 712,476
Repurchased (1,105,452) (16,290,154) (26,716) (388,438)
------------- ------------- ----------- --------------
Net increase (decrease) (947,879) $(14,004,329) 22,345 $ 324,038
============= ============= =========== ==============
CENTURY FUNDS
26
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 1,097,892 $ 26,638,501 5,829 $ 116,888
============= ============= =========== ==============
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, 2009
------------- ----------------------------- -----------
INSTITUTIONAL SHARES INVESTOR SHARES
SHARES AMOUNT SHARES AMOUNT
------------- ------------- ----------- --------------
Sold 4,979,230 $ 66,831,146 938,066 $ 12,686,105
Repurchased (9,720,611) (135,453,439) (2,315,783) (32,210,609)
------------- ------------- ----------- --------------
Net decrease (4,741,381) $ (68,622,293) (1,377,717) $(19,524,504)
============= ============= =========== ==============
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 decrease (4,023,306) $ (81,679,313) (2,907,083) $ (56,944,178)
============= ============= =========== ==============
(3) INVESTMENT SECURITIES TRANSACTIONS
CENTURY SHARES TRUST purchases and sales of investment securities (excluding
short-term securities and U.S. Government obligations) aggregated $119,127,455
and $130,635,753, respectively, during the year ended October 31, 2009.
CENTURY SMALL CAP SELECT FUND purchases and sales of investment securities
(excluding short-term securities and U.S. Government obligations) aggregated
$397,370,240 and $470,540,100, respectively, during the year ended October 31,
2009.
CENTURY FUNDS
27
(4) INVESTMENT ADVISER FEE
CENTURY SHARES TRUST: The Trust has entered into an Investment Advisory
Agreement (the "Agreement") with Century Capital Management, LLC ("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 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 at the annual rate of 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.
CCM has 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) 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.
(7) ADVISER 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, 2010.
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
28
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.
(8) SUBSEQUENT EVENTS -- In preparing the financial statements as of October
31, 2009, management considered the impact of subsequent events occurring
through December 18, 2009, for potential recognition or disclosure in these
financial statements and have determined that there have been no recognized or
non-recognized subsequent events.
CENTURY FUNDS
29
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, 2009, 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, 2009, 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 positions of
Century Shares Trust and Century Small Cap Select Fund as of October 31, 2009,
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 18, 2009
CENTURY FUNDS
30
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, 2009.
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 $321,578, or the maximum
amount allowable as qualified dividend income for purposes of Internal Revenue
Code Section 1(h)(11).
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
31
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, 2009. 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.
Name, Age, Position(s) No. of
held with Trust and Principal Occupation During Past 5 Years Portfolios
Length of Time Served and Other Directorships Held in Fund
Complex
Overseen
WILLIAM GRAY (57) Vice Chairman and Co-Chief Executive Officer, North America Region, 2
Trustee, 2006 to present Ogilvy & Mather Worldwide (advertising firm); President, Ogilvy &
Mather, New York (1997 to 2005). Other Directorships: Harleysville
Group, Inc.; American Red Cross of Greater New York, (Chairman 2002-
2008, Member since 1999); The New York Public Library; The National
Advertising Review Board; Wakeman Boys Club.
LAURA A. JOHNSON (55) President, Massachusetts Audubon Society. Other directorships: 2
Trustee, 2007 to present Corporation Member,Woods Hole Oceanographic Institute (2003 to pres-
ent); Stewardship Council, Massachusetts Department of Conservation
and Recreation (2004 to present).
STEPHEN W. KIDDER (56) 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 (70) Independent investment advisor; Partner, Saltonstall & Co. (family invest- 2
Trustee, 2004 to present ment office) (2007 to present). Formerly, 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 (70) Professor of Insurance and Risk Management and Academic Director, 2
Trustee, 1998 to present Certified Employee Benefit Specialist Program, Wharton School,
University of Pennsylvania. Other Directorships: Harleysville Group, Inc.;
American Institute for Chartered Property Casualty Underwriters.
CENTURY FUNDS
32
Name, Age, Position(s) No. of
held with Trust and Principal Occupation During Past 5 Years Portfolios
Length of Time Served and Other Directorships Held in Fund
Complex
Overseen
DAVID D.TRIPPLE (65) Private investor. Formerly, Chief Executive Officer and Trustee, Pioneer 2
Trustee, 2004 to present Funds (2000 to 2001); Executive Vice President and Director,The Pioneer
Group, Inc. (asset management) (1998 to 2000). Other Directorships: The
Calamos Funds (21 portfolios).
ELLEN M. ZANE (58) President and Chief Executive Officer, Tufts Medical Center and Floating 2
Trustee, 2007 to present Hospital for Children. Formerly, Network President, Partners Healthcare
System (1994 to 2004). Other directorships: Parexel International
Corporation; Fiduciary Trust Company; Harvard School of Public
Health, Health Policy & Management Executive Council; Trustee,
Northeastern University; Board of Overseers, Tufts University School of
Medicine; Massachusetts Hospital Association; Sisters of Mercy Health
System -- St. Louis.
Interested Trustees and Officers (1)
ALEXANDER L.THORNDIKE (43) Managing Partner, Century Capital Management, LLC. No other 2
Trustee, 1999 to present; directorships held.
Chairman and Chief Executive
Officer, 2004 to present
DAVIS R. FULKERSON (44) Managing Partner, Century Capital Management, LLC. No other 2
Trustee, 2000 to present directorships held.
JULIE A. SMITH (38) Director of Finance, Century Capital Management, LLC (2008 to present); N/A
Chief Financial Officer, prior thereto, Controller,Third Avenue Management LLC (1997 to 2006).
2008 to present
MAUREEN E. KANE (47) General Counsel, Century Capital Management, LLC (2004 to pres- N/A
Chief Legal Officer, 2006 to pres- ent); prior thereto, Vice President, Deutsche Asset Management (1997
ent; Secretary, 2007 to present; to 2004).
Chief Compliance Officer, June
2009 to present
- ------------
(1) Each person listed is considered an "interested person" of the Trust within
the meaning of the 1940 Act by virtue of being an officer or employee of
the Adviser.
CENTURY FUNDS
33
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.
CENTURY FUNDS
34
This Page Intentionally Left Blank.
35
This Page Intentionally Left Blank.
36
FUND INFORMATION
INVESTMENT ADVISER
Century Capital Management, LLC
100 Federal Street
Boston, Massachusetts 02110
REGULAR MAILING ADDRESS
Century Funds
PO Box 588
Portland, ME 04112
DISTRIBUTOR
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
www.foreside.com
SHAREHOLDER INFORMATION
1-800-303-1928
OVERNIGHT MAILING ADDRESS
Century Funds
c/o Atlantic Shareholder Services, LLC
3 Canal Plaza, Ground Floor
Portland, ME 04101
----------------------------------
THE ADVISER'S MISSION STATEMENT
TO EXCEED THE EXPECTATIONS OF OUR CLIENTS, WHO ENTRUST US WITH THEIR
HARD-EARNED ASSETS
- --------------------------------------------------------------------------------
GOALS
>> To deliver exceptional risk-adjusted returns over time
>> To develop long-term and deeper relationships with our clients
>> To do the right thing, even when no one is watching
>> To attract, develop and retain the best people
- --------------------------------------------------------------------------------
VALUES
o DISCIPLINE
-- We are passionate about our research intensity and adhering to our
investment process
o CONVICTION
-- We challenge the consensus and act on our convictions
o EXCELLENCE
-- We strive to be great at what we do, both individually and
collectively
o CURIOSITY
-- Our goal is to learn every day
o THE 3 HS
o Humility: there is always room for improvement
o Humor: we have fun
o Hustle: we are tireless in our pursuit of success
CENTURY FUNDS
37
photo: skyline
CENTURY CAPITAL (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
--- ----------
10/31/09 $77,000
10/31/08 $77,000
(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
--- ----------
10/31/09 $10,800
10/31/08 $10,800
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, 2009 None None None
October 31, 2008 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)(1) Registrant's Code of Ethics required to be disclosed under Item 2
hereof is filed and attached hereto as Exhibit 99.CODE ETH.
(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as
Exhibit 99.302CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as
Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Century Capital Management Trust
By: /s/ Alexander L. Thorndike
-----------------------------------
Alexander L. Thorndike, Chairman
Date: January 8, 2010
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, 2010
By: /s/ Julie Smith
-----------------------------------
Julie Smith, Principal Financial Officer
Date: January 8, 2010