UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR/A
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, Inc.
One Liberty Square, Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Steven Alfano
Century Capital Management, Inc.
One Liberty Square, Boston, Massachusetts 02109
(Name and address of agent for service)
with a copy to:
Matthew C. Dallet, Esq.
Palmer & Dodge LLP
111 Huntington Avenue, Boston, Massachusetts 02199-7613
Registrant's telephone number, including area code: (617) 482-3060
--------------
Date of fiscal year end: October 31
----------
Date of reporting period: November 1 - April 30, 2003
---------------------------
Item 1. Reports to Stockholders.
CENTURY CAPITAL MANAGEMENT Seventy-Five
Years of
Investing
1928 - 2003
[graphic omitted]
CENTURY
FUNDS
CENTURY SHARES
TRUST
AND
CENTURY SMALL
CAP SELECT FUND
SEMI-ANNUAL
REPORTS
APRIL 30, 2003
[logo] CENTURY FUNDS
CENTURY
SHARES TRUST
EST. 1928
CENTURY SMALL CAP
SELECT FUND
EST. 1999
TRUSTEES AND OFFICERS
Allan W. Fulkerson, Chairman and Trustee
John E. Beard, Trustee
Davis R. Fulkerson, Trustee
Ernest E. Monrad, Trustee
Michael J. Poulos, Trustee
Jerry S. Rosenbloom, Trustee
Alexander L. Thorndike, Vice Chairman and Trustee
Steven Alfano, Secretary
INVESTMENT ADVISOR
Century Capital Management, Inc.
One Liberty Square
Boston, Massachusetts 02109
Shareholder Hotline
800-303-1928
www.centuryfunds.com
CENTURY SHARES TRUST
75 YEARS
OF DEDICATED SERVICE
TRUSTEES OF CENTURY YEARS OF SERVICE
- ------------------- ----------------
Charles P. Curtis, Jr. 1928-1959
Louis Curtis, Jr. 1928-1947*
Charles D. Dickey 1928-1932
Robert H. Gardiner 1928-1944
Ellery S. James 1928-1932
Donald C. Watson 1928-1951
Prescott S. Bush 1932-1934
Charles F. Adams 1933-1943
Henry R. Guild 1943-1978
O. Kelley Anderson 1943-1988
William H. Davies 1951-1968
Vinton C. Johnson 1951-1989
Henry T. Vance 1952-1970
William H. Spaulding 1963-1971
Allan W. Fulkerson 1969-
Robert A. Hall 1971-1976
Ernest E. Monrad 1977-
William W. Dyer, Jr. 1977-2001
John E. Beard 1983-
Thomas B. Wheeler 1983-1987
William O. Bailey 1989-2001
Michael J. Poulos 1998-
Jerry S. Rosenbloom 1998-
John R. Casey 1999-2000
Alexander L. Thorndike 1999-
Davis R. Fulkerson 2000-
*Served as an Advisor to the Trust from 1947 to 1963.
This report is submitted for the general information of the shareholders of the
Funds. It is not authorized for distribution to prospective investors unless
preceded or accompanied by a prospectus. The Statements of Additional
Information (SAI) for the Funds include additional information about our
Trustees and are available, without charge, upon request. Shareholders may
contact the Funds to request an SAI by calling the Shareholder Hotline at the
number indicated above. (06/03).
DEAR FELLOW SHAREHOLDERS
HISTORICAL PERSPECTIVE
March 1, 2003, marked the 75th anniversary of Century Shares Trust (CST). CST
has a long and rich history thanks to shareholders like you and our long-term
commitment to managing the Trust on your behalf. Although being the fifth oldest
mutual fund firm in the United States has taken a lot of hard work and some
luck, we believe that there are five enduring principles which have and should
continue to guide our mission over the next 75 years:
1. Pursue a long-term focus on increasing shareholder value
2. Align our incentives with those of our shareholders
3. Maintain a research-intensive investment process
4. Strive to be a better manager, not necessarily a bigger one
5. Hire the best people
Our firm is small, independent and entrepreneurial and we are focused on doing
what is right for our shareholders. Our incentives are aligned with you, since
we are also shareholders in our mutual funds. We believe this approach will
enable us to deliver continued outstanding performance for the Funds'
shareholders. Going forward, we will strive to remain an independent, focused
and vibrant organization where we only succeed by delivering value to you, our
clients.
There are three matters we would like to bring to your attention. First, we are
grateful for the trust you confer upon us and will continue to work diligently
and prudently to maintain that trust. Second, we enclose a questionnaire that
will help us learn the degree to which Century has satisfied your needs and what
we might focus on (or not) in the future. Third, we are considering hosting a
shareholder forum in the fall of 2003 to: (1) celebrate the 75th anniversary of
Century Shares Trust, (2) discuss the topic of delivering long-term shareholder
value and (3) most importantly, thank you, our shareholders, for your continued
support. We are interested in whether you consider this a good idea and whether
you might attend such an event. Please note your responses on the enclosed
questionnaire.
MARKET CONDITIONS: GRADUALLY IMPROVING
After a nearly three-year downturn in the markets, stocks posted a refreshing
gain over the six months ended April 30, 2003, with the S&P 500 up 4.5% and the
Russell 2000 up 7.6%. It was a rocky ride for equity investors, with stocks
dropping to a six-year low before rallying in mid-March ahead of the Iraq
invasion. By early April, the uncertainty began to subside despite nervousness
about the war's final outcome and the economic clouds of rising unemployment and
energy prices.
Looking forward, we remain cautiously optimistic due to a confluence of events
that are benefiting investors, including declining interest rates that are at
forty-year lows, GDP growth that is improving, and business investment that
seems to be accelerating. Equity investors should also benefit from the recent
income tax cut. Our primary concerns revolve around a myriad of geopolitical
issues, including the crises in the Middle East, SARS and the growing
socioeconomic gap between rich and poor societies.
On the domestic front, we see a recovery gradually taking hold. The quality of
2003 earnings appears to be improving as firms work through the excesses of
aggressive accounting and poor decision-making during the late 1990s. The
consumer continues to spend and remains the primary driver of the economy. The
economy continues to be held back by high corporate and household debt levels,
rising unemployment and sluggish manufacturing growth stemming from rising
energy and insurance costs, as well as lingering overcapacity in the technology
markets. On balance, the economy seems to be headed in the right direction, but
such improvement is unlikely to occur in a smooth, predictable way.
INVESTMENT STYLE AND PERFORMANCE
As shareholders, you should understand how we try to invest the funds you
entrust to us. We are focused on equity investing (typically holding stocks for
three to five years) with an emphasis on profitability.
However, we never lose sight of how the market values a company's stock. In
other words, we are sensitive to valuation. We are not momentum investors whose
results tend to be more volatile and whose time horizon appears to be measured
in days or weeks rather than in years.
We believe our approach requires a lot of fundamental research (visiting
companies, talking with industry contacts, creating earnings models, etc.).
These efforts should result in a higher knowledge base and conviction level when
we make portfolio decisions. It is our view that this approach will lead to
strong relative investment performance during most phases of a normal investment
cycle, especially in nervous or stable market conditions. On the other hand, we
are likely to underperform during periods of market exuberance.
CORPORATE GOVERNANCE: RESTORING INVESTOR TRUST
News headlines continue to highlight investigations into the accounting and
business practices of corporate executives, their auditors, and their boards of
directors. Although disruptive in the short run, we believe this process is a
necessary and healthy part of addressing unethical behavior and systemic
excesses and will be an essential part of restoring investor trust in
publicly-traded stocks. We view this type of regulatory environment as
constructive even though it will result in more oversight of our industry and
higher auditing and compliance costs.
WHAT IS CENTURY'S ROLE IN THIS PROCESS?
We hope to act as a positive force for change during this period and want to
explain how we try to promote better corporate governance practices, on your
behalf. We are strong believers that the best management teams consider
themselves custodians of their shareholders' assets; how well executives manage
these assets (and treat themselves) is a reflection of their management style
and priorities. When we analyze a company, we focus on whether management is
acting in the best interests of its shareholders.
We take our role as fiduciaries very seriously. Our proxy voting reflects our
belief in better corporate governance. We favor 1) the expensing of stock
options, 2) conservative accounting policies with full and clear disclosure, 3)
executive compensation incentives (and disincentives) which mirror the long-term
returns to shareholders and are proportional to each individual's contribution
to that performance and 4) a large majority of independent board directors. We
believe other investors are increasingly focusing on these issues, and corporate
policies will become an essential part of analyzing and valuing companies in the
future.
PORTFOLIO PERFORMANCE
CENTURY SHARES TRUST
The Trust reported a 3.74% return for the six months through April 30th. This
compares with a 4.48% return for the S&P 500 Index and 4.34% return for the
Lipper Growth and Income Fund Index. In general, the first half results seem to
indicate encouraging trends for the Trust's holdings. As shown in the chart
below, the Trust has outperformed its benchmarks over the one, three, five and
ten year periods.
- ------------------------------
PERFORMANCE COMPARISON 4/30/03
- ------------------------------
1 Year 3 Years 5 Years 10 Years
Century Shares Trust -11.57% 8.41% 1.08% 10.02%
S&P 500 Index -13.31% -12.97% -2.43% 9.66%
Lipper Growth and Income Index -13.32% -7.57% -2.20% 8.18%
Past performance is no guarantee of future results. For additional Trust
performance and disclosure information please refer to page 6.
Over the last six months, the Trust's best performers include J.P. Morgan Chase
& Co. (money-center bank), Iron Mountain, Inc. (records storage), Barr
Laboratories Inc. (pharmaceuticals) and The Progressive Corp. (auto insurer).
The Trust's underperformers included Concord EFS, Inc. (transaction processing),
Cardinal Health Inc. (drug distributor) and American International Group Inc.
(diversified financials). Currently, we continue to trim some holdings in
financial services as they approach our fair value price targets. We redeployed
the assets into the consumer and business services sectors, which we believe
will benefit from a continued upturn in the economy.
- ----------------------------------
FUND COMPOSITION 4/30/03
- ----------------------------------
Financial Services 72%
Health Care 16%
Cash 7%
Consumer Discretionary 3%
Other 2%
CENTURY SMALL CAP SELECT FUND
For the Fund's six-month performance through April 30, 2003, the Institutional
and the Investor Class returns were up 8.70% and 8.53%, respectively, versus
7.55% for the Russell 2000 Index. Although we have continued to outperform the
Russell 2000 Index, we continue to underweight the technology and other
momentum-driven sectors, which appear to be performing well year-to-date.
As shown in the chart below, Institutional Shares have outperformed the
benchmark for the one and three year periods, as well as since inception.
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON 4/30/03
- --------------------------------------------------------------------------------
Small Cap Performance as of 4/30/03
Since Inception
1 year 3 Years (12/9/99)
CSCS Institutional Shares -1.23% 15.94% 17.70%
Russell 2000 Index -20.76% -6.36% -3.11%
Past performance is no guarantee of future results. Average Annual Total
Return. For additional Trust performance and disclosure information please
refer to page 6.
The largest contributors to Fund performance over the last six months include:
CoStar Group, Inc. (information services), Rogers Corp. (materials processing),
Sunrise Assisted Living, Inc. (health provider) and Stericycle, Inc.
(environmental services).
The Fund's underperformers reflected the struggling conditions impacting the
economic recovery: Investment Technology Group Inc. (financial processing),
Vertex Pharmaceuticals, Inc. (biotechnology) and Hub International Ltd.
(commercial broker).
CENTURY SMALL CAP SELECT FUND
- ----------------------------------
FUND COMPOSITION 4/30/03
- ----------------------------------
Financial Services 31%
Health Care 26%
Consumer Discretionary 14%
Technology 10%
Cash 10%
Other 4%
Materials and Process 2%
Producer Durables 2%
Utilities 1%
Over the last several months, retail and business services companies have grown
as a percentage of the Fund due to their strong earnings potential beyond 2003.
In contrast, we have selectively reduced financial and health care stocks as
valuations reflect fair value.
NEW APPOINTMENT
The Trustees are pleased to announce that at the May meeting of the Trustees,
chief investment officer Alexander L. Thorndike, was elected to the additional
position of Vice Chairman of the Funds and Century Capital Management Trust.
Thank you for your continued support and we hope you will contact us anytime via
telephone (1-800-321-1928) or by email (www.centuryfunds.com) with any questions
or comments.
Respectfully submitted, for the Trustees,
/s/ Alexander L. Thorndike /s/ Allan W. Fulkerson
Alexander L. Thorndike Allan W. Fulkerson
Vice Chairman and Chief Investment Officer Chairman
CENTURY SHARES TRUST
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 - (UNAUDITED)
COMMON STOCKS: CONSUMER DISCRETIONARY - 3.5%
SHARES VALUE
- ------ -----
68,500 ChoicePoint, Inc. * $ 2,416,680
125,000 Iron Mountain, Inc.* 4,981,250
20,000 Mohawk Industries, Inc.* 1,109,400
5,000 Omnicom Group, Inc. 309,500
30,000 TJX Companies, Inc. 577,500
20,000 Walgreen Co. 617,200
------------
10,011,530
------------
COMMON STOCKS: FINANCIAL SERVICES - 72.0%
275,000 AFLAC, Inc. 8,995,250
40,000 Alliance Capital Management Holding LP 1,275,200
191,394 Allstate Corp. 7,232,779
190,000 American Capital Strategies, Ltd. 4,609,400
464,016 American International Gr., Inc. 26,889,727
135,000 Aon Corp. 2,991,600
215 Berkshire Hathaway, Inc. CL A* 15,010,225
213,000 Cincinnati Financial Corp. 7,849,050
98,335 Citigroup, Inc. 3,859,649
150,000 Concord EFS, Inc.* 2,074,500
73,400 Everest Re Group Ltd. 5,112,310
99,200 First Tennessee National Corp. 4,344,960
206,200 Gallagher (Arthur J.) & Co. 5,152,938
20,000 HCC Insurance Holdings, Inc. 550,000
280,000 J.P. Morgan Chase & Co. 8,218,000
160,000 Marsh & McLennan Cos., Inc. 7,628,800
383,750 MBIA, Inc. 17,153,625
70,000 Moody's Corp.* 3,380,300
8,000 Ohio Casualty Corp.* 100,200
300,000 Protective Life Corp. 8,619,000
290,100 RenaissanceRe Holdings Ltd. 12,848,529
71,500 SAFECO Corp. 2,753,465
120,000 SouthTrust Corp. 3,223,320
190,000 The Chubb Corp. 10,049,100
229,000 The Progressive Corp. 15,572,000
298,300 Torchmark Corp. 11,559,125
92,666 Waddell & Reed Fin'l, Inc. CL A 1,853,320
90,000 Wells Fargo & Co. 4,343,400
65,000 XL Capital Ltd. CL A 5,349,500
------------
208,599,272
------------
COMMON STOCKS: HEALTHCARE - 16.1%
85,000 Anthem, Inc.* 5,834,400
80,000 C.R. Bard, Inc. 5,070,400
60,000 Cardinal Health, Inc. 3,316,800
290,000 Caremark Rx, Inc.* 5,773,900
35,000 Charles River Laboratories Int'l, Inc.* 950,250
90,000 First Health Group Corp.* 2,254,500
150,000 HCA, Inc. 4,815,000
50,000 Henry Schein, Inc.* 2,157,500
125,000 Pfizer, Inc. 3,843,750
11,600 Stericycle, Inc.* 455,764
100,000 UnitedHealth Group, Inc. 9,213,000
81,000 Universal Health Services, Inc.* 3,132,270
------------
46,817,534
------------
COMMON STOCKS: OTHER - 1.6%
18,000 Jacobs Engineering Group, Inc.* 740,700
90,000 Thermo Electron Corp.* 1,635,300
100,000 Waters Corp.* 2,401,000
------------
4,777,000
------------
Total Investment in Common Stocks - 93.2%
(Identified cost, $113,679,213) 270,205,336
------------
Cash Equivalents - 6.8%
$19,701,000 State Street Bank and Trust
Eurodollar Time Deposit, at
cost approximating value,
maturity 05/01/03 19,701,000
Total Investments - 100%
(Identified cost, $133,380,213) $289,906,336
============
* Non-income producing security
See notes to financial statements.
CENTURY SMALL CAP SELECT FUND
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 - (UNAUDITED)
COMMON STOCKS: CONSUMER DISCRETIONARY - 13.8%
SHARES VALUE
- ------ -----
15,000 America's Car-Mart, Inc.* $ 225,000
26,000 Bright Horizons Family Solutions, Inc.* 780,780
50,000 Century Business Services, Inc.* 141,000
12,490 Charles River Associates, Inc.* 270,284
5,000 Cost Plus, Inc.* 153,650
39,500 CoStar Group, Inc.* 879,270
20,000 Helen of Troy, Ltd.* 283,000
5,000 Lee Enterprises, Inc. 179,350
20,000 Scholastic Corp.* 568,200
18,600 The Advisory Board Company* 681,132
20,000 Tuesday Morning Corp.* 467,600
32,900 Watson Wyatt & Company Holdings* 671,160
------------
5,300,426
------------
COMMON STOCKS: FINANCIAL SERVICES - 30.1%
45,000 American Capital Strategies, Ltd. 1,091,700
10,000 Boston Private Fin'l Holdings, Inc. 188,500
13,000 Delphi Financial Group, Inc. 572,650
9,500 Eaton Vance Corp. 283,100
20,100 FirstFed America Bancorp, Inc. 619,080
9,000 Gallagher (Arthur J.) & Co. 224,910
85,000 Hub International Ltd. 1,250,350
30,000 Investment Technology Group, Inc. 428,700
25,000 Investors Financial Services Corp. 545,250
20,000 IPC Holdings, Ltd.* 687,000
56,000 Max Re Capital, Ltd. 742,000
50,000 Metris Companies, Inc. 180,500
5,200 NDCHealth Corp. 100,100
25,000 Ohio Casualty Corp.* 313,125
11,000 Philadelphia Consol. Holding Corp.* 429,110
31,000 Platinum Underwriters Holding, Ltd. 819,950
20,000 Providian Financial Corp.* 147,400
20,000 Redwood Trust, Inc. 664,800
22,000 Reinsurance Group of America, Inc. 630,300
20,500 Scottish Annuity & Life Holdings, Ltd. 362,850
11,000 StanCorp Financial Group, Inc. 590,700
117,900 Universal American Financial Corp.* 687,357
------------
11,559,432
------------
COMMON STOCKS: HEALTH CARE - 25.4%
5,000 American Healthways, Inc.* $ 123,450
15,000 Apria Healthcare Group, Inc.* 351,750
15,000 Charles River Laboratories, Inc.* 407,250
21,655 CorVel Corp.* 677,801
7,000 First Health Group Corp.* 175,350
21,500 Henry Schein, Inc.* 927,725
15,000 IDEXX Laboratories, Inc.* 585,000
20,000 IDX Systems Corp.* 293,400
19,000 Mid Atlantic Medical Services, Inc.* 827,450
20,000 Odyssey Healthcare, Inc.* 516,800
25,000 Pediatrix Medical Group, Inc.* 796,750
25,000 Pharmaceutical Product Dev., Inc.* 654,250
10,000 Sierra Health Services, Inc.* 166,000
26,900 Stericycle, Inc.* 1,056,901
44,000 Sunrise Assisted Living, Inc.* 1,188,000
30,000 Triad Hospitals, Inc.* 660,300
32,000 Vertex Pharmaceuticals, Inc.* 386,240
------------
9,794,417
------------
COMMON STOCKS: MATERIALS AND PROCESS - 1.7%
20,000 Rogers Corp.* 662,000
------------
COMMON STOCKS: PRODUCER DURABLES - 1.8%
10,000 Mettler-Toledo International, Inc.* 355,000
10,000 Standard Pacific Corp.* 302,500
------------
657,500
------------
COMMON STOCKS: TECHNOLOGY - 9.8%
10,000 ANSYS, Inc.* 264,500
20,000 Citrix Systems, Inc.* 379,200
10,000 FLIR Systems, Inc.* 520,800
25,000 Inter-Tel, Inc. 411,250
60,000 Lawson Software, Inc.* 304,200
57,000 OneSource Information Services, Inc.* 361,950
99,700 Online Resources Corp.* 326,019
24,000 Scansource, Inc.* 477,840
46,300 SERENA Software, Inc.* 729,688
------------
3,775,447
------------
See notes to financial statements.
CENTURY SMALL CAP SELECT FUND
PORTFOLIO OF INVESTMENTS - APRIL 30, 2003 - (UNAUDITED) (CONTINUED)
COMMON STOCKS: OTHER - 3.8%
SHARES/FACE AMOUNT VALUE
- ------------------ -----
15,000 iShares Trust/Russell 2000 Growth $ 632,700
9,000 iShares Trust/S&P Smallcap 600 Barra 604,530
15,000 Longs Drug Stores Corp. 232,350
------------
1,469,580
------------
COMMON STOCKS: UTILITIES - 1.2%
25,000 Boston Communications Group, Inc. * 452,250
------------
TOTAL INVESTMENTS IN COMMON STOCKS - 87.6%
(Identified cost, $32,330,259) 33,671,052
------------
CASH EQUIVALENTS - 12.4%
$4,755,000 State Street Bank and Trust
Eurodollar Time Deposit, at
cost approximating value,
maturity 05/01/03 4,755,000
------------
TOTAL INVESTMENTS - 100%
(Identified cost, $37,085,259) $ 38,426,052
============
*Non-income producing security
- --------------------------------------------------------------------------------
Concerning Century Funds, performance and portfolio data as discussed in this
report:
The views in this report were those of the Funds' Chief Investment Officer as of
April 30, 2003 and may not reflect his views on the date this report is first
published or anytime thereafter. These views are intended to assist shareholders
of the Funds in understanding their investments and do not constitute investment
advise.
As of 3/31/03 Century Shares Trust's one year, three year, five year and ten
year average annual returns were -17.42%, 4.37% -0.43% and 8.77% respectively.
The average annual returns for Century Small Cap Select Fund as of 3/31/03 for
the one- and three-years ended that date, as well as since inception, were
- -5.73%, 13.78%, and 16.21% for Institutional Shares (12/9/99 inception date) and
- -6.21%, 13.50%, and 16.38% for Investor Shares (2/24/00 inception date),
respectively.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. MARKET VOLATILITY CAN
SIGNIFICANTLY IMPACT SHORT TERM PERFORMANCE. RESULTS OF AN INVESTMENT MADE TODAY
MAY DIFFER SUBSTANTIALLY FROM THE FUNDS' HISTORICAL PERFORMANCE. Investment
return and principal value will fluctuate so that shares, when redeemed, may be
worth more or less than original cost. Returns include reinvestment of dividends
and capital gains. Performance for Century Small Cap Select Fund would have been
lower during the period if certain fees had not been waived or expenses
reimbursed. The Funds will deduct a short term trading fee of 1.0% from the
redemption proceeds if shares are sold after being held less than 180 days.
Focusing in the financial services field will subject the Funds to the risks
associated with that field (e.g., government regulation, interest rates, claims
activity, and exposure to natural and man-made disasters) and may result in
greater fluctuation in share value than is experienced in less focused
portfolios. In addition, Century Small Cap Select Fund invests in smaller
companies which pose greater risks than those associated with larger, more
established companies. The S&P 500 Index is a broad-based, unmanaged measurement
of changes in stock market conditions based on the average of 500 widely held,
large capitalization common stocks. The Russell 2000 Index is an unmanaged,
market value weighted index, which measures performance of the 2,000 smallest
companies in the Russell 3000 Index. The Lipper Growth and Income Fund Index
tracks the results of 30 large mutual funds that seek growth of capital and
income. One cannot invest directly in an index. For more current performance,
please call 1-800-303-1928 or visit www.centuryfunds.com. Forum Fund Services,
LLC, Distributor.
See notes to financial statements.
STATEMENT OF ASSETS AND LIABILITIES - APRIL 30, 2003 - (UNAUDITED)
Century Shares Century Small Cap
Trust Select Fund
------------ ------------
ASSETS:
Investments, at value (Note 1A)
(Identified cost of $133,380,213 and $37,085,259, respectively)..................... $289,906,336 $ 38,426,052
Cash.................................................................................... 696 3,674
Dividends and interest receivable....................................................... 125,195 2,293
Other assets............................................................................ 12,619 --
Receivable for Trust/Fund shares sold................................................... 33,779 306,422
------------ ------------
Total Assets........................................................................ 290,078,625 38,738,441
------------ ------------
LIABILITIES:
Payable to Affiliates:
Investment adviser fee (Note 5)..................................................... 193,440 24,156
Administration fee (Note 6)......................................................... 34,621 --
Accrued expenses and other liabilities.................................................. 86,607 75,942
Payable for investments purchased....................................................... -- 1,112,252
Payable for Trust/Fund shares repurchased............................................... 7,400 5,620
------------ ------------
Total Liabilities................................................................... 322,068 1,217,971
------------ ------------
Net Assets (Note 3)..................................................................... $289,756,557 $ 37,520,470
============ ============
Net Assets consist of:
Investor Class.......................................................................... $ 20,994,968
Institutional Class..................................................................... $ 16,525,502
Shares Outstanding consist of (Note 2):
Century Shares Trust.................................................................... 9,147,814
Investor Class.......................................................................... 1,294,403
Institutional Class..................................................................... 1,015,175
NET ASSET VALUE PER SHARE (Represents both the offering and redemption price)
Century Shares Trust.................................................................... $31.67
Investor Class.......................................................................... $16.22
Institutional Class..................................................................... $16.28
See notes to financial statements.
STATEMENT OF OPERATIONS - SIX MONTHS ENDED APRIL 30, 2003 - (UNAUDITED)
Century Shares Century Small Cap
Trust Select Fund
------------ ------------
Investment Income:
Dividends........................................................................... $ 1,986,945 $ 114,001
Interest............................................................................ 45,141 7,560
----------- ----------
Total income...................................................................... 2,032,086 121,561
----------- ----------
Expenses:
Investment adviser fee (Note 5)..................................................... 1,087,495 131,220
Non-interested trustees' remuneration............................................... 41,740 4,189
Transfer agent...................................................................... 68,840 32,247
Custodian........................................................................... 32,550 37,260
Administration (Note 6)............................................................. 203,905 --
Insurance........................................................................... 12,140 2,427
Professional fees................................................................... 52,680 29,315
Registration........................................................................ 13,105 15,745
Printing and other.................................................................. 75,505 18,296
Distribution fee (Note 8)........................................................... -- 16,341
----------- ----------
Total expenses.................................................................... 1,587,960 287,040
Advisor reimbursement (Note 7).................................................. -- (63,848)
----------- ----------
Net expenses...................................................................... 1,587,960 223,192
----------- ----------
Net investment income/(loss)...................................................... 444,126 (101,631)
----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from investment transactions...................................... 8,504,037 1,004,816
Increase in unrealized appreciation on investments.................................. 1,354,253 1,516,467
----------- ----------
Net realized and unrealized gain on investments................................... 9,858,291 2,521,283
----------- ----------
Net increase in net assets resulting from operations.................................... $10,302,416 $2,419,652
=========== ==========
See notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
Century Small Cap
Century Shares Trust Select Fund
INCREASE (DECREASE) Six Months Ended Period Ended Year Ended Six Months Ended Year Ended
IN NET ASSETS: April 30, 2003 October 31, 2002 December 31, 2001 April 30, 2003 October 31, 2002
-------------- ---------------- ----------------- --------------- ----------------
(unaudited) (unaudited)
Operations:
Net investment income/(loss) $ 444,126 $ 708,468 $ 1,492,941 $ (101,631) $ (197,665)
Net realized gain on investment
transactions 8,504,037 28,395,323 34,170,401 1,004,816 872,674
Change in net unrealized appreciation 1,354,253 (65,168,490) (49,630,190) 1,516,467 (652,230)
------------ ------------ ------------ ----------- -----------
Net increase/(decrease) in net assets
resulting from operations 10,302,416 (36,064,699) (13,966,848) 2,419,652 22,779
Net equalization (Note 1C) (231) (1,890) (11,850) -- --
Distributions to shareholders from:
Net investment income (420,948) (437,544) (1,488,873) (145,527) --
Realized gain from investment
transactions:
Century Shares Trust (27,698,387) -- (30,463,614)
Institutional Class -- (71,314)
Investor Class (588,021) (20,118)
Trust/Fund share transactions - net 16,255,016 (18,060,849) (25,921,627) 12,776,626 7,683,159
Redemption fees 7,432 27,639 103,436 1,083 47,973
------------ ------------ ------------ ----------- -----------
Total increase/(decrease) (1,554,702) (54,537,343) (71,749,376) 14,463,813 7,662,479
Net Assets:
At beginning of period 291,311,259 345,848,602 417,597,978 23,056,657 15,394,178
------------ ------------ ------------ ----------- -----------
At end of period $289,756,557 $291,311,259 $345,848,602 $37,520,470 $23,056,657
============ ============ ============ =========== ===========
Distributions in excess of net
investment income at end of
period $ 69,824 $ 92,770 $ 361,804 $ 247,158 $ --
============ ============ ============ =========== ===========
See notes to financial statements.
FINANCIAL HIGHLIGHTS
SIX MONTHS PERIOD
ENDED ENDED
APRIL 30, OCTOBER 31, YEAR ENDED DECEMBER 31,
CENTURY SHARES TRUST 2003 (UNAUDITED) 2002(A) 2001 2000 1999 1998 1997
---------------- -------- -------- -------- -------- -------- --------
Net Asset Value, beginning of
period $ 33.95 $ 38.12 $ 42.97 $ 34.32 $ 44.66 $ 44.66 $ 31.30
-------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income/(loss) 0.05 0.08 0.17 0.39 0.42 0.41 0.39
Net realized and unrealized
gain on investments 1.01 (4.20) (1.26) 12.39 (6.05) 2.71 15.25
-------- -------- -------- -------- -------- -------- --------
Total income from investment
operations 1.06 (4.12) (1.09) 12.78 (5.63) 3.12 15.64
-------- -------- -------- -------- -------- -------- --------
Less Distributions From:
Net investment income (0.05) (0.05) (0.17) (0.38) (0.41) (0.40) (0.38)
Net realized gain on investment
transactions (3.29) (3.60) (3.75) (4.30) (2.72) (1.90)
-------- -------- -------- -------- -------- -------- --------
Total distributions (3.34) (0.05) (3.77) (4.13) (4.71) (3.12) (2.28)
-------- -------- -------- -------- -------- -------- --------
Redemption fees -- -- 0.01 -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Net Asset Value, end of period $ 31.67 $ 33.95 $ 38.12 $ 42.97 $ 34.32 $ 44.66 $ 44.66
======== ======== ======== ======== ======== ======== ========
Total Return 3.74%** -10.82%** -2.52% 37.44% -12.38% 7.00% 50.1%
Ratios and supplemental data:
Net assets, end of period
(000 omitted) $289,757 $291,311 $345,849 $417,598 $309,644 $415,129 $414,576
Ratio of expenses to average
net assets 1.16%* 1.19%* 1.05% 0.83% 0.82% 0.78% 0.82%
Ratio of net investment income
to average net assets 0.32%* 0.26%* 0.41% 1.05% 1.00% 0.88% 1.04%
Portfolio Turnover Rate 7% 22% 17% 17% 11% 6% 6%
CENTURY SMALL CAP SELECT FUND
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 2003 (UNAUDITED) 2002 2001 2000 2002 2001 2000
INSTITU- INSTITU- INSTITU- INSTITU-
TIONAL INVESTOR TIONAL TIONAL TIONAL INVESTOR INVESTOR INVESTOR
CLASS CLASS CLASS CLASS CLASS(C) CLASS CLASS CLASS(D)
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value, beginning of
period $ 15.42 $ 15.35 $ 14.68 $ 14.57 $ 10.00 $ 14.60 $ 14.26 $ 10.00
-------- -------- -------- -------- -------- -------- -------- --------
Income from Investment Operations:
Net investment income/(loss) (0.04) (0.05) (0.10) -- 0.04 (0.18) (0.03) (0.01)
Net realized and unrealized gain
on investments 1.36 1.34 0.93 0.52(b) 4.53 0.94 0.53(b) 4.27
-------- -------- -------- -------- -------- -------- -------- --------
Total income from investment
operations 1.32 1.29 0.83 0.52 4.57 0.76 0.50 4.26
-------- -------- -------- -------- -------- -------- -------- --------
Less Distributions From:
Net investment income (0.11) (0.07) -- (0.02) -- -- -- --
Net realized gain on investment
transactions (0.35) (0.35) (0.13) (0.41) -- (0.03) (0.19) --
-------- -------- -------- -------- -------- -------- -------- --------
Total distributions (0.46) (0.42) (0.13) (0.43) -- (0.03) (0.19) --
-------- -------- -------- -------- -------- -------- -------- --------
Redemption fees -- -- 0.04 0.02 -- 0.02 0.03 --
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value, end of period $ 16.28 $ 16.22 $ 15.42 $ 14.68 $ 14.57 $ 15.35 $ 14.60 $ 14.26
======== ======== ======== ======== ======== ======== ======== ========
Total Return 8.70%** 8.53%** 5.87% 3.63% 45.70%** 5.34% 3.68% 42.60%**
Ratios and supplemental data:
Net assets, end of period
(000 omitted) $ 16,526 $ 20,995 $ 12,938 $ 6,093 $ 2,253 $ 10,119 $ 9,302 $ 690
Ratio of expenses to average net
assets 1.45%* 1.80%* 1.45% 1.45% 1.45%* 1.80% 1.80% 1.80%*
Ratio of expenses to average net
assets without giving effect
to voluntary expense agreement 1.82%* 2.35%* 1.87% 4.04% 11.58%* 2.53% 4.38% 14.73%*
Ratio of net investment income to
average net assets -0.55%* -0.93%* -0.70% -0.02% 0.38% -1.05% -0.48% -0.14%
Portfolio Turnover Rate 35% 35% 123% 48% 24% 123% 48% 24%
(a) For the period from January 1, 2002 to October 31, 2002. Effective September 5, 2002, CST changed its fiscal year end from
December 31 to October 31.
(b) The per share amount is not in accord with the net realized and unrealized gain/loss for the period because of the timing of
sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time
(c) From the commencement date of investment operations, December 9, 1999 to October 31, 2000.
(d) From the commencement date of investment operations, February 24, 2000 to October 31, 2000.
* Annalized
** Not annualized
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) SIGNIFICANT ACCOUNTING POLICIES -- Century Capital Management Trust (the
"Master Trust") is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. Century Shares Trust (the
"Trust") and Century Small Cap Select Fund (the "Fund") are diversified series
of the Master Trust. The following is a summary of significant accounting
policies consistently followed by both the Trust and the Fund in the preparation
of their financial statements. The policies are in conformity with accounting
principles generally accepted in the United States of America.
A. INVESTMENT SECURITY VALUATIONS -- Securities listed on national securities
exchanges are valued at closing prices. Unlisted securities or listed securities
for which closing prices are not available generally are valued at the latest
bid prices. Short-term obligations, maturing in 60 days or less, are valued at
amortized cost, which approximates value.
B. FEDERAL TAXES -- It is the policy of the Trust and the Fund to comply with
the provisions of the Internal Revenue Code applicable to investment companies
and to distribute to shareholders each year all of its taxable income, including
any net realized gain on investments. Accordingly, no provision for Federal
income or excise tax is necessary.
C. EQUALIZATION -- The Trust follows the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
repurchases of Trust shares equivalent, on a per share basis, to the amount of
undistributed net investment income on the date of the transaction, is credited
or charged to undistributed net investment income. As a result, undistributed
net investment income per share is unaffected by sales or repurchases of Trust
shares.
D. OTHER -- Investment security transactions are accounted for on the date the
securities are purchased or sold. Gain or loss on sales is determined on the
basis of identified cost. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Shares issuable to shareholders electing to
receive income dividends and capital gain distributions in shares are recorded
on the ex-dividend date. Effective September 5, 2002, Century Shares Trust
changed its fiscal year end from December 31 to October 31.
E. 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,
revenues and expenses of the Trust and Fund. Actual results could differ from
those estimates.
F. MULTIPLE CLASSES OF SHARES -- The Fund offers multiple classes of shares,
which differ in their respective distribution and transfer agent fees. All
shareholders bear the common expenses of the Fund based upon daily net assets of
each class, without distinction between share classes.
G. REDEMPTION FEES -- In general, shares of the Trust and Fund may be redeemed
at net asset value. However, upon the redemption of shares held less than 180
days, a fee of 1% of the current net asset value of the shares will be assessed
and retained by each for the benefit of their respective remaining shareholders.
The redemption fee is accounted for as an addition to paid-in-capital.
(2) TRANSACTIONS IN SHARES
A. TRUST SHARES -- The number of authorized shares is unlimited. Transactions in Trust shares were as follows:
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002 DECEMBER 31, 2001
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
--------- ----------- -------- ----------- ---------- ------------
Sold.......................................... 346,523 $ 10,344,713 227,051 $ 8,402,719 630,308 $ 25,647,948
Issued to shareholders in reinvestment of
distributions from:
Net investment income..................... 10,049 299,347 8,211 311,411 24,977 1,039,151
Realized gain on investment transactions.. 728,825 21,711,689 -- -- 619,893 23,630,306
--------- ------------ -------- ------------ ---------- ------------
1,085,397 32,355,749 235,262 8,714,130 1,275,178 50,317,405
Repurchased................................... (517,516) (16,100,733) (727,746) (26,774,979) (1,920,512) (76,239,032)
--------- ------------ -------- ------------ ---------- ------------
Net increase (decrease)................... 567,881 $ 16,255,016 (492,484) $(18,060,849) (645,334) $(25,921,627)
========= ============ ======== ============ ========== ============
B. FUND SHARES - The number of authorized shares is unlimited. Shares of the Fund are currently divided into an Investor
class and an Institutional class. Transactions in Fund shares were as follows:
SIX MONTHS ENDED APRIL 30, 2003
INSTITUTIONAL CLASS INVESTOR CLASS
SHARES AMOUNT SHARES AMOUNT
Sold..................................................... 354,852 $ 5,583,027 741,931 $11,604,735
Issued to shareholders in reinvestment of distributions from:
Net investment income............................... 5,436 83,552 2,792 42,793
Realized gain on investment transactions............ 18,120 278,505 15,148 232,215
-------- ------------ -------- -----------
378,408 5,945,084 759,871 11,879,743
Repurchased.............................................. (202,242) (3,128,541) (124,765) (1,919,660)
-------- ------------ -------- -----------
Net Increase............................................. 176,166 $ 2,816,543 635,106 $ 9,960,083
======== ============ ======== ===========
YEAR ENDED OCTOBER 31, 2002
INSTITUTIONAL CLASS INVESTOR CLASS
SHARES AMOUNT SHARES AMOUNT
Sold..................................................... 659,199 $ 10,357,752 494,056 $ 7,850,975
Issued to shareholders in reinvestment of distributions from:
Realized gain on investment transactions............ 3,825 60,546 978 15,478
-------- ------------ -------- -----------
663,024 10,418,298 495,034 7,866,453
Repurchased.............................................. (238,954) (3,649,371) (472,892) (6,952,221)
-------- ------------ -------- -----------
Net Increase............................................. 424,070 $ 6,768,927 22,142 $ 914,232
======== ============ ======== ===========
(3) SOURCES OF NET ASSETS
CENTURY SHARES TRUST
At April 30, 2003, net assets consisted of:
Capital paid-in.................................................................................................... $124,716,620
Accumulated distributions in excess of net investment income....................................................... (69,824)
Accumulated undistributed net realized gains on investments........................................................ 8,583,638
Unrealized appreciation in value of investments.................................................................... 156,526,123
------------
Net assets applicable to outstanding capital stock............................................................. $289,756,557
============
CENTURY SMALL CAP SELECT FUND
At April 30, 2003, net assets consisted of:
Capital paid-in.................................................................................................... $ 35,341,467
Accumulated distributions in excess of net investment income....................................................... (247,158)
Unrealized appreciation on investments............................................................................. 1,340,793
Accumulated undistributed net realized gains on investments........................................................ 1,085,368
------------
Net assets applicable to outstanding capital stock............................................................. $ 37,520,470
============
(4) INVESTMENT SECURITY TRANSACTIONS
FOR THE TRUST, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated $17,184,416 and
$32,646,707, respectively, during the six months ended April 30, 2003. At April
30, 2003, the cost of investments for federal tax purposes was $133,380,213. Net
unrealized appreciation for all securities at that date was $156,526,123. This
consisted of aggregate gross unrealized appreciation for all securities in which
there was an excess of market value over tax cost of $161,342,043 and aggregate
gross unrealized depreciation for all securities in which there was an excess
tax cost over market value of $4,815,920.
FOR THE FUND, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated $19,124,028 and
$9,151,117, respectively, during the six months ended April 30, 2003. At April
30, 2003, the cost of investments for federal tax purposes was $37,085,259. Net
unrealized depreciation for all securities at that date was $1,340,793. This
consisted of aggregate gross unrealized appreciation for all securities in which
there was an excess of market value over tax cost of $2,648,888 and aggregate
gross unrealized depreciation for all securities in which there was an excess
tax cost over market value of $1,308,095.
(5) INVESTMENT ADVISER FEE
FOR THE TRUST, the investment adviser fee is earned by Century Capital
Management, Inc. ("CCM"), as compensation for providing investment advisory,
management and administrative services to the Trust. CCM receives a monthly fee
equal on an annualized basis to 0.8% of the first $500 million and 0.7% of the
amounts exceeding $500 million of the Trust's average daily net asset value. For
the six months ended April 30, 2003, the fee amounted to $1,087,495. Officers
and Trustees of the Master Trust who are employed by CCM receive remuneration
for their services out of such investment adviser fee.
FOR THE FUND, the investment adviser fee is earned by CCM as compensation
for providing investment advisory, management and administrative services to the
Fund. CCM receives a monthly fee equal on an annualized basis to 0.95% of the
Fund's average daily net asset value. For the year ended April 30, 2003, the fee
amounted to $131,220. Officers and Trustees of the Master Trust who are employed
by CCM receive remuneration for their services out of such investment adviser
fee.
(6) ADMINISTRATION FEES -- The Trust has an Administration Agreement with CCM.
Under the agreement CCM provides or procures, at its expense, non-investment
advisory services to the Trust. CCM receives a monthly fee equal on an
annualized basis to 0.15% of the Trust's net asset value. The fee was $203,905
for the six months ended April 30, 2003.
(7) ADVISER REIMBURSEMENT -- CCM has voluntarily waived a portion of its
management fee for both classes of the Fund and reimbursed certain other
expenses to the extent necessary so that net fund annual operating expenses
(exclusive of brokerage commissions, taxes, interest and litigation,
indemnification and other extraordinary expenses) will not exceed certain
expense limitations through at least February 28, 2004. The expense limitations
for the Investor and Institutional Class are 1.80% and 1.45%, respectively.
During the six months ended April 30, 2003, the adviser reimbursement amounted
to $63,848.
(8) DISTRIBUTION AND SERVICE PLAN -- The Fund has adopted a distribution and
service plan for the Investor class under Rule 12b-1 of the 1940 Act.
Distribution plans permit a fund to pay for all or a portion of the costs
incurred in connection with the distribution and/or servicing of shares. The
Investor Class currently pays a distribution and service fee equal to 0.25% of
the average daily net assets of the class. During the six months ended April 30,
2003, $16,341 was accrued under the distribution and service plan. The plan may
be terminated at any time by the vote of a majority of the independent Trustees
or by the vote of the holders of a majority of the outstanding shares of the
Investor class.
[logo] CENTURY FUNDS
One Liberty Square Boston, Massachusetts 02109
GROWTH INVESTORS IN
VALUE INDUSTRIES
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. [Reserved]
Item 9. 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)) 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 adequate and 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
requisite time periods.
(b) There have been no significant changes in the registrant's internal
controls or in other factors that could significantly affect these controls
subsequent to the date of the Evaluation Date.
Items 10. Exhibits.
(a) Not applicable.
(b) Attached hereto.
Exhibit 99.CERT Certifications pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002 and under Rule 30a-2
of the Investment Company Act of 1940.
Exhibit 99.906CERT Certifications pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
Century Capital Management Trust
By: /s/ Allan W. Fulkerson
----------------------------
Allan W. Fulkerson, Chairman
Date: September 5, 2003
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 indicate.
By: /s/ Allan W. Fulkerson
----------------------------
Allan W. Fulkerson, Chairman (Principal Executive Officer)
Date: September 5, 2003
By: /s/ Steven Alfano
----------------------------
Steven Alfano, Secretary (Principal Financial Officer)
Date: September 5, 2003