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.
100 Federal Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Steven Alfano
Century Capital Management, Inc.
100 Federal Street, Boston, Massachusetts 02110
(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
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Date of fiscal year end: October 31
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Date of reporting period: October 31, 2003
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ITEM 1. REPORT TO STOCKHOLDERS.
CENTURY CAPITAL MANAGEMENT
[GRAPHIC OMITTED]
SEVENTY-FIVE
YEARS OF
INVESTING
1928 - 2003
[GRAPHIC OMITTED]
CENTURY FUNDS
CENTURY
SHARES
TRUST
AND
CENTURY
SMALL CAP
SELECT FUND
ANNUAL REPORTS
OCTOBER 31, 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, Trustee and
Chief Investment Officer
Steven Alfano, Secretary and Principal
Accounting Officer
INVESTMENT ADVISOR
Century Capital Management, Inc.
100 Federal Street
Boston, Massachusetts 02110
Shareholder Hotline
800-303-1928
www.centuryfunds.com
CENTURY SHARES TRUST
76 YEARS OF INVESTING
[GRAPHICS OMITTED]
For information regarding the shareholder survey please refer to page 20. For
information pertaining to the Century Capital Management Proxy Policy please
call Century at 800-321-1928 or write us at the address above.
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 October 31, 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 does not
constitute investment advice.
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. For
more current performance, please call 1-800-303-1928 or visit
www.centuryfunds.com. For information on the risks associated with the Funds,
please refer to the Funds' most recent prospectuses. The performance information
of the Funds shown in this report do not reflect the deductions of taxes that
shareholders would pay on Fund distributions or the redemption of Fund shares.
The performance information assumes the reinvestment of dividends and
distributions. 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. Forum Fund Services, LLC, Distributor. (12/03)
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DEAR FELLOW SHAREHOLDERS
At the time of my first letter to shareholders of Century Shares Trust as
Chairman at the end of 1976, this country had just been through the traumas of
the Vietnam War and Watergate and was about to endure several years of
extraordinarily high double-digit interest rates and inflation. The mutual fund
industry had less than $100 billion in assets. The first money market mutual
funds were being formed. Century Shares Trust stood for trusteeship, low cost
management of our shareholders' monies and investing in growth that was better
than average at valuations that were more attractive than average. Our goal was
to provide shareholders with above-average long-term results. Today, the
industry manages assets of $7.0 trillion.
We have always played by the rules - committed to the highest standards. We
believe in the fundamentals of earnings and intrinsic values. We believe in
investing - being part-owners of the companies in which we invest. We do not
believe in late trading, speculation or market timing.
Over the past twenty-eight years since the time when I wrote my first annual
report to you, Century Shares Trust has compounded at an annual rate of more
than 14% per year. That result was achieved by investing your monies in a
compact, but diversified list of well-run companies. Occasionally, we made
mistakes - we sold too early, we stayed too late. While the Standard and Poor's
Index of 500 stocks is a widely-used measure of the stock market, you may find
it interesting that Century Shares Trust, net after all expenses, has done
better than this stock market measure over the past 5-10-15-20-25 and 28 years.
In fact, 14% compounded over 28 years adds up. $10,000 invested at the beginning
of 1976 would have been worth $386,251 at the end of October, 2003.*
Today, the national challenge is terrorism, not hyperinflation. In the late
1970's the international challenge was Iran; today it is Iraq and Afghanistan.
Today, the moral issues once again come from greed, arrogance and ego - but now
we see it in the corporate area and for the first time over a widespread basis
in the mutual fund industry. Our heritage in this industry goes back
seventy-five years. The disgraceful behavior we are seeing today is probably
comparable to behavior seen in the late 1920's. Human nature does not change.
But just as strong honest ethical leadership ultimately has provided the way
forward in the past - be it in the government or business, we need a
rededication to those highest values. In that way, America's shareholders will
again be well served. Knowledgeable regulation is effective and much needed;
excess regulation can be counterproductive and a fertile climate for those
without standards. It is only the honest who comply.
Beginning in 1998, I began a process of seeking management for the future. Lanny
Thorndike joined the firm in 1999, launched the Small Cap Select Fund later that
year and has proven himself to me as an investor, a leader, and, most
importantly, as a person. The successor management we have built today includes:
Lanny Thorndike, Vice Chairman of the Trust, Davis Fulkerson, a Trustee, and
Kevin Callahan, Managing Director of the Trust's investment adviser.
Over the past five years, in their own way, they have successfully continued the
tradition of investing in growth at a reasonable value, eschewed speculation and
market timing, and in every way showed themselves philosophically committed to
the highest standards of investing and acting as fiduciaries.
It is not often that a chairman can turn over management to successors with
confidence that the future will be even better than the past. Based on what I
have seen from this team, I have every confidence in the Trust's future.
Respectfully submitted,
/s/ Allan W. Fulkerson
Allan W. Fulkerson
Chairman
December 16, 2003
* Past performance is no guarantee of future results. The performance
information of the Funds shown in this report does not reflect the deductions
of taxes that shareholders would pay on Fund distributions or the redemption
of Fund shares. The performance information assumes the reinvestment of
dividends and distributions. For the periods ending October 31, 2003 Century
Shares Trust's 5-, 10-, 15-, 20- and 25-year average annual total returns
were 5.45%, 10.97%, 13.05%, 13.68% and 14.19% respectively. For the same
periods the average annual total returns for the S&P 500 Index were 0.53%,
10.43%, 11.78%, 12.74% and 13.75% respectively. For additional performance
information related to the Trust please refer to page 6.
Source ICI 8/03
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DEAR FELLOW SHAREHOLDERS
This is the 76th annual report for Century Shares Trust and the 4th annual
report for Century Small Cap Select Fund. Both funds have continued to perform
well during the last year and over longer periods of time. This report includes
a review of Century Shares Trust, Century Small Cap Select Fund, current market
conditions and our investment outlook.
A TRUST WORTH REPEATING
Last year's Century Funds' annual report focused on the definition of the word
"Trust" and borrowing from its introduction seems even more applicable today:
Trust is an integral part of the Century Shares Trust name, and it symbolizes
the enduring fiduciary relationship the Trust has maintained with
shareholders since its inception. It also represents the mortar binding many
of the relationships that exist among our shareholders, ourselves (each of us
at Century Capital Management), publicly- traded companies, their employees,
regulators, outside auditors and board members. Trust is not easily
obtained...However, it can be lost quickly..."
The recent mutual fund scandals involving late-trading and market timing make
these words resonate loudly. Last year, these words related to firms such as
Enron, Worldcom and Tyco International along with several investment banking
firms. Today, these words are pertinent to the mutual fund industry on which
millions of Americans rely for their retirement, education and financial future.
From a personal perspective, it is extremely disappointing that the reputation
of the industry in which we make our livelihood has been sullied by poor
judgment and a lack of fiduciary responsibility. Shareholders' interest must be
first and foremost in all our minds. As a result of misconduct throughout the
industry, we believe it is even more important to share with you the Century
Funds Investment Principles. These principles are included on page 5. All of us
at Century seek to adhere to these principles on a daily basis.
CENTURY SHARES TRUST
PERFORMANCE
The Trust delivered 16.99% total return for the fiscal year ended October 31,
2003. This compares with total returns of a 20.80% for the S&P 500 Index and
20.29% for the Lipper Growth and Income Fund Index. The chart shows that the
Trust continues to outperform its benchmarks over longer time periods.
In general, we expect the Trust to outperform during normal and nervous market
conditions but underperform during periods of strong bullish sentiment, such as
the last 9 months. We caution investors that equity markets can produce volatile
returns in any given year.
We are keenly aware of fund expenses and are happy to report that the Trust's
overall expense ratio has declined slighty to 1.17% and remains in the bottom
half of all equity funds, according to Lipper Analytics.
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Average Annual Total Returns through 10/31/03
1 Year 5 Years 10 Years
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Century Shares Trust 16.99% 5.45% 10.97%
S&P 500 Index 20.80% 0.53% 10.43%
Lipper G&I Fund Index 20.29% 1.97% 8.81%
Past performance is no guarantee of future results. For information about these
indices and additional performance - related information, please refer to page
6. The Trust's average annual returns as of the most recent calendar quarter
(9/30/03) were 17.99%, 6.34%, and 10.11% for the 1-, 5-, and 10-year periods,
respectively. The performance information shown does not reflect the deduction
of taxes that shareholders would pay on fund distributions or the redemption of
fund shares.
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Over the last year, the Trust's best performers included Progressive Corp. (auto
insurer), MBIA, Inc. (guaranty insurer), J.P. Morgan Chase (multi-line
financial), Caremark Rx, Inc. (pharmaceutical benefit manager) and United Health
Group (managed care provider). The Trust's worst performers included American
International Group (multi-line financial), Marsh McLennan (insurance broker)
and XL Capital (specialty reinsurer). As interest rates remain near forty year
lows, we continue to move some financial services holdings into the consumer and
business services sectors which we expect to perform better during an economic
rebound.
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CENTURY SHARES TRUST
FUND COMPOSITION 10/31/03
---------------------------------------------
PROPERTY & CASUALTY INSURERS 29%
HEALTH CARE 14%
BANKS 11%
LIFE INSURERS 10%
CONSUMER DISCRETIONARY 8%
INFORMATION TECHNOLOGY 7%
CASH EQUIVALENTS 6%
GUARANTY INSURERS 5%
INSURANCE BROKERS 4%
CONSUMER STAPLES 2%
PROCESSING 2%
ASSET MANAGERS 1%
MATERIALS AND PROCESSING 1%
During the past year, we made a number of changes to the Trust's portfolio. We
sold several stocks that had appreciated beyond our price targets, such as Barr
Laboratories (pharmaceuticals), C.R. Bard (medical products), Fiserv
(transaction processing), Waters (technology) and Everest Re (reinsurer). We
also sold a few positions where we ran out of patience on the investment thesis,
such as Bisys Group (transaction processing), FleetBoston Financial (banking)
and Cardinal Health (medical distributor).
We also added consumer and technology companies to the portfolio, believing they
will benefit from the early stages of an economic rebound. These stocks exhibit
the attributes we look for in companies, such as 15% compounded growth in book
value and a 15% return on equity (ROE) over rolling 3 and 5 year periods.
Examples include Jacobs Engineering (mechanical engineering), General Dynamics
(government contractor), Moody's (information services), Staples (office
supplies), TJX Companies (discount retailing) and Walgreens (pharmacy).
CENTURY SMALL CAP SELECT FUND
PERFORMANCE
The Fund delivered positive returns for the fiscal year ended October 31, 2003.
The Investor Shares and Institutional Shares gained 43.12% and 43.76%
respectively, versus a 43.37% return for the Russell 2000 Index. The chart below
shows that the Fund continues to outperform its benchmarks over longer term
periods.
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Average Annual Total Returns through 10/31/03
Since
1 Year 2 Years 3 Years Inception
------ ------- ------- ---------
CSCS Inv 43.12% 22.78% 16.05% 24.32%
CSCS Inst 43.76% 23.37% 16.40% 23.83%
Russell 2000 43.37% 12.60% 3.44% 4.73%
(Institutional Inception Date)
Past performance is no guarantee of future results. For information about this
index and additional performance - related information please refer to page 7.
The Fund's average annual returns as of the most recent calendar quarter
(9/30/03) were 39.54%, 14.77% and 22.46% for the 1-, 3- year and since inception
period (2/24/00) for Investor Shares and 40.22%, 15.11% and 22.06% for the 1-,
3- year and since inception period (12/9/99) for Institutional Shares. The since
inception date for the Russell 2000 Index is 12/9/99, the date on which
Institutional Shares commenced operations. The performance information shown
does not reflect the deduction of taxes that shareholders would pay on fund
distributions or the redemption of fund shares.
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We caution investors that small cap stocks performed exceedingly well in 2003,
and we do not expect the Fund to repeat this performance in 2004. In general, we
expect the Fund to outperform during normal and nervous market conditions but
underperform during periods of strong bullish sentiment, such as the last nine
months. As we write this report, the Fund has reached $150 million in combined
assets. We have been able to reduce the overall expense ratio to 1.26% and 1.61%
for the Institutional and Investor shares, accordingly.
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CENTURY SMALL CAP SELECT FUND
FUND COMPOSITION 10/31/03
---------------------------------------------
INFORMATION TECHNOLOGY 21%
HEALTH CARE 20%
CONSUMER DISCRETIONARY 15%
BANKS 9%
BUSINESS SERVICES 7%
CASH EQUIVALENTS 5%
ASSET MANAGERS 5%
LIFE AND HEALTH INSURERS 4%
PROPERTY & CASUALTY INSURERS 4%
CONSUMER STAPLES 4%
MATERIALS AND PROCESSING 2%
FINANCIAL TECHNOLOGY 2%
OTHER 2%
Over the last year, the Fund's best performers included CoStar Group (real
estate services), Firstfed American Bancorp (regional bank), Stericycle, Inc.
(medical waste management) and Rogers Corp. (specialty chemicals and materials).
The worst performers included Investment Technology Group (electronic trade
execution) and Advanced Marketing Services (publishing distribution).
With small cap stocks rebounding strongly in 2003, we sold several stocks that
appreciated beyond our price targets, such as IDEXX Laboratories (veterinarian
products), Boston Private Financial (wealth management) and Odyssey Healthcare
(hospice care). We also sold a few positions where we ran out of patience, such
as Itron (utility technology), Max Re (specialty reinsurer) and National
Processing (transaction processing).
As interest rates remain near 40 year lows, we have reduced our weightings in
health care and financial services. We redeployed these assets into technology
and consumer discretionary companies, which we expect to perform well during an
economic rebound. Examples include Cato (women's apparel), Speedway Motorsports
(racetracks), Gildan (clothing manufacturer), Seamark (Canadian asset manager),
Apria Healthcare (home care services) and Flir Technologies (thermal imaging).
MARKET COMMENTARY
The stock market generated some very attractive returns during 2003 after three
years of negative results. The S&P 500 Index and Russell 2000 Index rose 20.80%
and 43.37%, respectively. It was very encouraging to see a sharp rebound in both
the economy and stock market. Like most rebounds, the timing and speed of
improvement generally surprises investors. As a result, we encourage investors
to maintain a long-term investment horizon because `timing the market' is very
difficult. Finally, small cap stocks dramatically outperformed large cap stocks,
as they tend to do during the early stages of an economic recovery.
The market reacted positively to a series of pleasant surprises in 2003: (1) a
quick Iraqi invasion, (2) a strong rebound in economic growth, (3) a large
income tax cut package, (4) corporate earnings exceeding most expectations and
(5) the long awaited passage of a Medicare drug benefit. Interest rates remained
near historic lows while inflation was under control. In terms of sector
performance, industrial demand began to pick up in mid-2003 while technological
and services-based demand experienced improvement during the third quarter. More
recently, the dollar began to experience weakness, especially versus the Euro.
This shift lowers the cost of US goods versus foreign competitors, thereby
enabling US firms to compete more effectively both domestically and abroad.
THE ROAD AHEAD
The third year of a presidential cycle often provides the best returns in terms
of stock market appreciation and this past year was no exception. Political
debates tend to make the fourth year of the election cycle much harder to
predict. In our view the outlook for 2004 is encouraging but remains uncertain.
GDP growth continues to accelerate, corporate investment is beginning to awaken
from its fragile state over the last couple of years, and consumer spending has
defied the skeptics again.
As of the date of this letter, 2004 corporate earnings are forecasted to grow
12% (based on Wall Street consensus estimates for the S&P 500 Index) versus 5%
consensus earnings growth over the last ten years. We expect economic growth to
continue through the November 2004 election but the growth rate should moderate
in mid-2004. The major risks to our forecast include erosion in geopolitical
stability or a dramatic spike in inflationary forces.
The overall equity market appears fairly valued based on historical valuations.
We are optimistic that earnings appear to be accelerating from a low base, but
we also foresee interest rates beginning to move up later in 2004 as increased
demand for labor and products puts pressure on supply.
In addition to changes in the composition of the portfolio, we are managing the
Fund's to take advantage of changes in tax rates for dividends and capital
gains, resulting from the passage of tax legislation in May 2003. For instance,
we are looking at ways to increase our dividend income while preserving our
emphasis on high quality, long-term growth.
RANDOM REFLECTIONS
I want to be careful not to overstate an analogy here, but I went to Kodiak
Island in Alaska for a week in August. I was struck by its spectacular beauty. I
mention it here because this unspoiled and hard-to-find National Wildlife Refuge
exemplifies the simple purity and stimulating qualities we seek in the companies
we analyze and invest in each day at work, as well as some of the natural
qualities we strive for in our own lives.
While the salmon fishing, hiking and unusual wildlife created many "Kodak
Moments," it was the group activities of cooking, building driftwood bridges
across streams, looking for fossils, playing at the beach and avoiding a pesky
herd of buffalo that we still talk about three months later. The experience made
me appreciate that the best attributes in people and institutions are more
natural than technological. Hopefully, we seek the same simplicity and
transparency in the companies in which we invest. We hope to run our business in
the same spirit.
We thank you for your continued support and wish you and your family a Happy New
Year from all of us at Century Funds. We hope that you will visit our website,
www.centuryfunds.com, for updates on the funds. We always welcome your questions
and comments by phone or mail as well.
Sincerely,
/s/ Alexander L. Thorndike
Alexander L. Thorndike
Vice Chairman and
Chief Investment Officer
December 16, 2003
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CENTURY FUNDS INVESTMENT PRINCIPLES
GOALS:
> We strive to deliver exceptional risk-adjusted performance over time
> We seek to develop long-term relationships with our shareholders and
clients
> We aim to be an ethical leader in the investment industry
OBJECTIVES:
o Performance is our primary goal
- We pursue a research-intensive process, resulting in a disciplined
- investment strategy
o Hire the best people
- We seek curious individuals who challenge consensus, thrive on
- adversity and possess a competitive spirit
- We value a sense of humor and humility
o Continuous improvement is a high priority
o Maintain a culture of teamwork and mutual respect
CORE VALUES: Create a culture of excellence and integrity
o Think long term...always do the "right" thing
o Remember why people entrust us with their money
o Value our independence, entrepreneurial spirit and flexibility
o Know our weaknesses and learn from our mistakes
o Encourage innovation and creativity
o Leverage our talent, resources and contacts
o Reward excellence
INVESTMENT PHILOSOPHY: Growth Investors in Value Industries
WE BELIEVE:
o Capital markets are semi-efficient
o In-depth original research is a competitive advantage
o Reassessing each investment's risks and rewards will benefit performance
WE SEEK:
o Credible, capable management with a history of success
o Franchises with high recurring revenues, barriers to entry and improving
fundamentals
o Firms with expanding profit margins and ROE's
o Companies growing consistently faster than the overall market and peers
o Attractively valued stocks relative to the overall market and peers
o Firms operating in favorable competitive environments
o Companies with shareholder orientation and transparent accounting
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PERFORMANCE OF A $10,000 INVESTMENT
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CENTURY SHARES TRUST, LIPPER G&I FUND INDEX AND S&P 500 INDEX
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CST S&P 500 Lipper G&I
10/31/1993 $10,000 $10,000 $10,000
10/31/1994 $ 8,981 $10,384 $10,316
10/31/1995 $11,321 $13,123 $12,408
10/31/1996 $13,436 $16,281 $15,063
10/31/1997 $19,316 $21,509 $19,285
10/31/1998 $21,718 $26,240 $21,108
10/31/1999 $21,207 $32,975 $24,491
10/31/2000 $26,568 $34,980 $26,192
10/31/2001 $25,673 $26,271 $21,972
10/31/2002 $24,205 $22,300 $19,347
10/31/2003 $28,317 $26,969 $23,272
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. The performance graph and
returns table do not reflect the deduction of taxes that a shareholder would pay
on Trust distributions or the redemption of Trust shares.
This chart compares the performance over the past ten years, through October 31,
2003, of a hypothetical $10,000 investment in Century Shares Trust, including
reinvested dividends and distributions, with that of a broad-based securities
market index and an industry focused index. The S&P 500 Index is a well known
gauge of how large capitalization U.S. equities are doing. On the other hand,
its results are not adjusted for the costs to manage and trade a portfolio of
securities, so they are not directly comparable to an actual investor's results,
and it is not available for investment. The Lipper Growth and Income Fund Index
tracks the results of 30 large mutual funds that seek growth of capital and
income. These mutual funds' strategies and portfolios differ from each other and
from the Trust's focus on investments in the financial services and related
business services sectors; moreover, they are substantially larger than the
Trust. However, they are real managed investment accounts with all the
associated requirements and costs.
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TEN LARGEST HOLDINGS
AMERICAN INTERNATIONAL 6.4%
Global insurance and financial services.
BERKSHIRE HATHAWAY, INC. 4.9%
Financial investment and insurance.
MBIA, INC. 4.6%
Financial guaranty and credit enhancement
products worldwide.
TORCHMARK CORP. 3.8%
Life insurance and distribution.
CHUBB CORP. 3.7%
Specialty commercial and personal insurance.
RENAISSANCE RE HOLDINGS 3.7%
Provides reinsurance and insurance coverage that is
subject to the risk of natural and man-made catastrophes.
PROGRESSIVE CORP. 3.6%
Personal automobile insurance.
PROTECTIVE LIFE CORP. 2.8%
A holding company whose subsidiaries provide financial
services through the production, distribution, and
administration of insurance and investment products.
AFLAC, INC. 2.8%
Supplemental health and life insurance business.
UNITEDHEALTH GROUP, INC. 2.8%
Forms and operates markets for the exchange of health
and well being services.
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CENTURY SHARES TRUST
AVERAGE ANNUAL TOTAL RETURNS
AS OF OCTOBER 31, 2003
1 YEAR 16.99%
5 YEARS 5.45%
10 YEARS 10.97%
20 YEARS 13.68%
PERFORMANCE OF A $10,000 INVESTMENT
The following charts compare the performance through October 31, 2003 of a
hypothetical $10,000 investment in Century Small Cap Select Fund's Institutional
Shares (12/9/99 inception date) and the Fund's Investor Shares (2/24/00
inception date) and the Russell 2000 Index. The Russell 2000 Index is widely
regarded in the industry as the premier measure of small cap stocks. On the
other hand, its results are not adjusted for the costs to manage and trade a
portfolio of securities, so that they are not directly comparable to an actual
investors' results. The index is not available for investment.
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CENTURY SMALL CAP SELECT FUND
INSTITUTIONAL SHARES & Russell 2000
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CSCS Institutional Russell 2000
12/09/1999 $10,000 $10,000
1/31/2000 $10,100 $10,696
4/30/2000 $11,150 $10,940
7/31/2000 $12,390 $10,840
10/31/2000 $14,570 $10,819
1/31/2001 $15,304 $11,091
4/30/2001 $14,862 $10,627
7/31/2001 $16,024 $10,654
10/31/2001 $15,099 $ 9,445
1/31/2002 $16,337 $10,691
4/30/2002 $17,592 $11,337
7/31/2002 $15,767 $ 8,741
10/31/2002 $15,985 $ 8,352
1/31/2003 $16,309 $10,691
4/30/2003 $17,376 $11,337
7/31/2003 $20,477 $10,761
10/31/2003 $22,979 $11,974
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CENTURY SMALL CAP SELECT FUND
INVESTOR SHARES & RUSSELL 2000
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CSCS Investor Russell 2000
2/24/2000 $10,000 $10,000
4/30/2000 $10,920 $ 9,155
7/31/2000 $12,130 $ 9,071
10/31/2000 $14,260 $ 9,053
1/31/2001 $14,978 $ 9,281
4/30/2001 $14,593 $ 8,893
7/31/2001 $15,727 $ 8,916
10/31/2001 $14,785 $ 7,904
1/31/2002 $15,990 $ 8,947
4/30/2002 $17,208 $ 9,487
7/31/2002 $15,412 $ 7,315
10/31/2002 $15,574 $ 6,989
1/31/2003 $15,871 $ 6,990
4/30/2003 $16,904 $ 7,517
7/31/2003 $19,884 $ 9,005
10/31/2003 $22,292 $10,020
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. The performance graph and
returns table do not reflect the deductions for taxes that a shareholder would
pay on Fund distributions or redemption of Fund shares.
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TEN LARGEST HOLDINGS
PLATINUM RE 4.0%
A reinsurance holding company that provides casualty and
finite reinsurance coverages to a diverse clientele on a
worldwide basis.
STANDARD PACIFIC 3.4%
A geographically diversified builder of single-family
homes.
REDWOOD TRUST, INC. 3.3%
Invests in real estate loans, both in whole loan form and in
securitized form
ASCENTIAL 3.2%
A global provider of enterprise integration software and
services.
CATO 3.1%
Operates women's fashion specialty stores, in 26 states,
principally in Southeast United States.
FLIR SYSTEMS INC. 2.9%
Designs, manufactures and markets thermal imaging and
stabilized airborne camera systems for commercial,
industrial and government markets.
FIRST NIAGARA 2.7%
Is the holding company for First Niagara Bank, a federally
chartered savings bank.
EDWARDS LIFESCIENCES 2.4%
Is engaged in the development of products and
technologies designed to treat advanced cardiovascular
disease.
RPM INTERNATIONAL 2.4%
Manufactures and markets specialty paints, protective
coatings and roofing systems, sealants and adhesives,
in the industrial and consumer markets.
TEXAS CAPITAL 2.3%
Serves as the holding company for Texas Capital Bank, N.A.
- ---------------------------------------------------------------------
CENTURY SMALL CAP
SELECT FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF OCTOBER 31, 2003
INVESTOR SHARES
1 YEAR 43.12%
3 YEARS 16.05%
SINCE INCEPT. (02/24/00) 24.32%
INSTITUTIONAL SHARES
1 YEAR 43.76%
3 YEARS 16.40%
SINCE INCEPT. (12/09/99) 23.83%
CENTURY SHARES TRUST
PORTFOLIO OF INVESTMENTS - OCTOBER 31, 2003
COMMON STOCK - 94.1%
SHARES VALUE
- ------ -----
ASSET MANAGERS - 1.4%
80,000 Alliance Capital Management Holding LP $2,685,600
87,666 Waddell & Reed Fin'l, Inc. CL A 1,944,432
------------
4,630,032
------------
BANKS - 11.2%
190,000 American Capital Strategies, Ltd. 5,130,000
150,000 Banknorth Group, Inc. 4,698,000
98,335 Citigroup, Inc. 4,661,079
106,700 First Tennessee National Corp. 4,839,912
260,000 J.P. Morgan Chase & Co. 9,334,000
140,000 SouthTrust Corp. 4,459,000
90,000 Wells Fargo & Co. 5,068,800
------------
38,190,791
------------
CONSUMER DISCRETIONARY - 8.2%
121,500 ChoicePoint, Inc. * 4,257,360
170,000 Iron Mountain, Inc. * 6,500,800
60,000 Kohl's Corp. * 3,364,200
236,400 Mattel, Inc. 4,576,704
150,000 Staples, Inc. * 4,023,000
250,000 TJX Companies, Inc. 5,247,500
------------
27,969,564
------------
CONSUMER STAPLES - 2.0%
200,000 Walgreen Co. 6,964,000
------------
GUARANTY INSURERS - 4.6%
263,750 MBIA, Inc. 15,722,138
------------
HEALTH CARE - 13.7%
140,000 Abbott Laboratories 5,966,800
75,000 Anthem, Inc. * 5,132,250
220,000 Caremark Rx, Inc. * 5,511,000
35,000 Charles River Laboratories Int'l, Inc. * 1,128,400
125,000 HCA, Inc. 4,781,250
50,000 Henry Schein, Inc. * 3,102,500
235,000 Pfizer, Inc. 7,426,000
11,600 Stericycle, Inc. * 535,688
190,000 UnitedHealth Group, Inc. 9,667,200
81,000 Universal Health Services, Inc. * 3,811,050
------------
47,062,138
------------
INFORMATION TECHNOLOGY - 7.4%
100,000 CDW Corp. 6,005,000
300,000 Check Point Software * 5,097,000
220,000 Citrix Systems, Inc. * 5,561,600
60,000 General Dymanics Corp. 5,022,000
160,000 Thermo Electron Corp. * 3,516,800
------------
25,202,400
------------
SHARES/FACE AMOUNT VALUE
- ------------------ -----
INSURANCE BROKERS - 4.5%
125,000 Aon Corp. 2,737,500
206,200 Gallagher (Arthur J.) & Co. 6,018,978
155,000 Marsh & McLennan Cos., Inc. 6,626,250
------------
15,382,728
------------
LIFE INSURERS - 9.5%
265,000 AFLAC, Inc. 9,667,200
300,000 Protective Life Corp. 9,741,000
298,300 Torchmark Corp. 13,089,404
------------
32,497,604
------------
PROCESSING - 1.8%
105,000 Moody's Corp. 6,072,150
------------
MATERIALS & PROCESSING - 1.2%
88,000 Jacobs Engineering Group, Inc. 4,076,160
------------
PROPERTY & CASUALTY INSURERS - 28.7%
191,394 Allstate Corp. 7,560,063
359,016 American International Gr., Inc. 21,838,943
215 Berkshire Hathaway, Inc. CL A * 16,729,150
190,000 The Chubb Corp. 12,693,900
203,000 Cincinnati Financial Corp. 8,306,760
8,000 Ohio Casualty Corp. * 122,400
169,000 The Progressive Corp. 12,472,200
280,100 RenaissanceRe Holdings Ltd. 12,598,898
71,500 SAFECO Corp. 2,624,050
50,000 XL Capital Ltd. CL A 3,475,000
------------
98,421,364
------------
TOTAL INVESTMENT IN COMMON STOCKS - 94.1%
(Identified cost, $149,627,404) 322,191,069
------------
CASH EQUIVALENTS - 5.9%
$20,357,000 State Street Bank and Trust Eurodollar
Time Deposit, at cost approximating value,
maturity 11/03/03 20,357,000
TOTAL INVESTMENTS - 100%
(Identified cost, $169,984,404) $342,548,069
============
* Non-income producing security
See notes to financial statements.
CENTURY SMALL CAP SELECT FUND
PORTFOLIO OF INVESTMENTS - OCTOBER 31, 2003
COMMON STOCK - 94.7%
SHARES VALUE
- ------ -----
ASSET MANAGERS - 4.7%
14,500 Eaton Vance Corp. $505,760
95,300 Hanover Capital Mtge Holdings, Inc. 1,162,660
80,800 Redwood Trust, Inc. 4,007,680
------------
5,676,100
------------
BANKS - 8.7%
88,300 Bancorp Rhode Island, Inc. 2,816,770
226,600 First Niagara Financial Group 3,238,114
111,700 HPSC, Inc. * 999,715
43,500 SEAMARK Asset Managament Ltd. * 725,550
208,300 Texas Capital Bancshares, Inc. * 2,832,880
------------
10,613,029
------------
BUSINESS SERVICES - 6.7%
66,600 American Capital Strategies, Ltd. 1,798,200
39,700 Arbitron, Inc. * 1,568,150
22,500 Bright Horizons Family Solutions, Inc. * 966,600
372,300 Century Business Services, Inc. * 1,545,045
950 CoStar Group, Inc. * 35,768
950 First Marblehead * 21,043
68,600 NDCHealth Corp. 1,810,353
42,600 OneSource Information Services, Inc. * 430,260
------------
8,175,419
------------
CONSUMER DISCRETIONARY - 15.1%
67,600 Applebee's International Inc. 2,535,676
177,600 Cato Corp. 3,747,360
20,000 Gildan Activewear, Inc. * 547,800
40,900 Lee Enterprises, Inc. 1,724,344
72,900 Scholastic Corp. * 2,254,797
62,600 Speedway Motorsports, Inc. 1,809,140
87,700 Standard Pacific Corp. 4,196,445
65,300 Watson Wyatt & Company Holdings * 1,570,465
------------
18,386,027
------------
CONSUMER STAPLES - 3.8%
72,800 Houston Exploration Co. * 2,548,000
241,700 Magnum Hunter Resources, Inc. * 2,090,705
------------
4,638,705
------------
FINANCIAL TECHNOLOGY - 1.9%
362,200 Online Resources Corp. * 2,336,190
------------
HEALTH CARE - 19.8%
88,400 Apria Healthcare Group, Inc. * 2,563,600
30,000 Charles River Laboratories, Inc. * 967,200
40,355 CorVel Corp. * 1,456,412
69,400 Covance, Inc. * 1,806,482
101,600 Edwards Lifesciences Corp. * 2,946,400
21,500 Henry Schein, Inc. * 1,334,075
145,600 Providence Service Corp. * 2,329,600
68,900 Renal Care Group, Inc. * 2,584,439
67,700 ResMed, Inc. * 2,827,829
38,500 Stericycle, Inc. * 1,777,930
88,200 Sunrise Assisted Living, Inc. * 2,548,980
30,000 Triad Hospitals, Inc. * 921,900
------------
24,064,847
------------
INFORMATION TECHNOLOGY - 20.6%
41,000 ANSYS, Inc. * $1,461,240
177,100 Ascential Software Corp. * 3,929,849
52,700 Black Box Corp. 2,269,262
84,500 Diodes, Inc. * 1,997,580
231,600 Ducocorp, Inc. * 1,922,743
111,500 FLIR Systems, Inc. * 3,485,490
179,100 Lawson Software, Inc. * 1,493,694
185,000 Retek, Inc. * 1,855,550
67,100 Rogers Corp. * 2,682,658
126,600 SERENA Software, Inc. * 2,183,850
100,000 Sonic Solutions * 1,780,000
------------
25,061,916
------------
INSURANCE BROKERS - 1.2%
9,000 Gallagher (Arthur J.) & Co. 262,710
75,000 Hub International Ltd. 1,155,000
------------
1,417,710
------------
LIFE & HEALTH INSURERS - 4.3%
13,000 Delphi Financial Group, Inc. 654,810
55,900 Scottish Annuity & Life Holdings, Ltd. 1,219,179
37,600 StanCorp Financial Group, Inc. 2,370,680
104,200 Universal American Financial Corp. * 1,047,210
------------
5,291,879
------------
MATERIALS & PROCESSING - 2.4%
202,500 RPM International, Inc. 2,926,125
------------
OTHER - 1.5%
15,000 iShares Trust/Russell 200 Growth 857,250
12,000 iShares Trust/S&P Smallcap 600 Barra 1,025,400
------------
1,882,650
------------
PROPERTY & CASUALTY INSURERS - 4.0%
168,700 Platinum Underwriters Holding, Ltd. * 4,848,438
------------
TOTAL INVESTMENTS IN COMMON STOCKS - 94.7%
(Identified cost, $101,759,999) 115,319,035
------------
CASH EQUIVALENTS - 5.3%
$6,420,000 State Street Bank and Trust Eurodollar
Time Deposit, at cost approximating value,
maturity 11/03/03 6,420,000
------------
TOTAL INVESTMENTS - 100%
(Identified cost, $108,179,999) $121,739,035
============
* Non-income producing security
See notes to financial statements.
STATEMENT OF ASSETS AND LIABILITIES - OCTOBER 31, 2003
Century Shares Century Small Cap
Trust Select Fund
ASSETS:
Investments, at value (Note 1A) (Identified
cost, $169,984,404 and $108,179,999,
respectively) ............................ $342,548,069 $121,739,035
Cash ..................................... 380 829,935
Dividends and interest receivable ........ 171,450 34,518
Receivable for investments sold .......... 987,294 722,774
Receivable for Fund shares sold .......... 80,830 1,493,485
Receivable from investment adviser ....... -- 6,972
------------ ------------
Total Assets ............................. 343,788,023 124,826,719
------------ ------------
LIABILITIES:
Accrued expenses and other liabilities ... 70,022 59,419
Payable to affiliates:
Management Fee ......................... 230,119 81,080
Administration Fee ..................... 43,147 --
Distribution Fees ...................... -- 21,121
Payable for investments purchased ........ 735,481 2,769,978
Payable for Fund shares repurchased ...... 30,726 21
------------ ------------
Total Liabilities ........................ 1,109,495 2,931,619
------------ ------------
Net Assets ............................... $342,678,528 $121,895,100
============ ============
At October 31, 2003, net assets consisted of:
Capital paid-in .......................... $140,618,713 $100,849,403
Accumulated distributions in excess of
net investment income .................. (247,376) --
Accumulated undistributed net realized
gains on investments ................... 29,743,526 7,486,661
Unrealized appreciation in value of
investments ............................ 172,563,665 13,559,036
------------ ------------
Net assets applicable to outstanding
capital stock .......................... $342,678,528 $121,895,100
============ ============
Net Assets consist of:
Investor Class ......................... $78,958,918
Institutional Class .................... $42,936,182
Shares Outstanding consist of:
Century Shares Trust ................... 9,609,571
Investor Class ......................... 3,692,116
Institutional Class .................... 1,994,127
NET ASSET VALUE PER SHARE (Represents
both the offering and redemption price):
Century Shares Trust ................... $35.66
Investor Class ......................... $21.39
Institutional Class .................... $21.53
See notes to financial statements.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2003
Century Shares Century Small Cap
Trust Select Fund
Investment Income/(Loss):
Dividends (net of witholding tax of $0
and $2,336 respectively) ............. $ 4,035,838 $ 335,038
Interest ............................... 96,087 35,323
------------ ------------
Total income ........................... 4,131,925 370,361
------------ ------------
Expenses:
Investment adviser fee (Note 4) ........ 2,384,968 463,757
Non-interested trustees' remuneration .. 82,220 8,789
Transfer agent ......................... 201,340 --
Transfer agent - institutional ......... -- 6,422
Transfer agent - investor .............. -- 65,700
Custodian .............................. 60,150 56,700
Administration ......................... 447,182 --
Audit .................................. 43,890 31,070
Legal .................................. 113,700 29,750
Insurance .............................. 28,862 5,557
Registration ........................... 20,555 31,385
Printing and other ..................... 107,480 21,435
Distribution fee - Investor Shares ..... -- 72,235
------------ ------------
Total expenses ......................... 3,490,347 792,800
Advisor reimbursement (Note 6) ......... -- (70,828)
------------ ------------
Net expenses ........................... 3,490,347 721,972
------------ ------------
Net investment income/(loss) ........... 641,578 (351,611)
------------ ------------
Realized and Unrealized Gain (Loss) on
Investments:
Net realized gain from investment
transactions ......................... 30,261,077 7,903,111
Decrease in unrealized appreciation on
investments .......................... 17,391,799 13,734,820
------------ ------------
Net realized and unrealized gain on
investments .......................... 47,652,876 21,637,931
------------ ------------
Net increase in net assets resulting from
operations ............................. $ 48,294,454 $ 21,286,320
============ ============
See notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
Century Small Cap
Century Shares Trust Select Fund
INCREASE (DECREASE) Year Ended Period Ended Year Ended Year Ended Year Ended
IN NET ASSETS: October 31, 2003 October 31, 2002 December 31, 2001 October 31, 2003 October 31, 2002
Operations:
Net investment income/(loss) $641,578 $708,468 $1,492,941 $(351,611) $(197,665)
Net realized gain on
investment transactions 30,261,077 28,395,323 34,170,401 7,903,111 872,674
Increase/(decrease) in net
unrealized appreciation
of investments 17,391,799 (65,168,490) (49,630,190) 13,734,820 (652,230)
------------ ------------ ------------ ------------ ------------
Net increase/(decrease)
in net assets
resulting from operations 48,294,454 (36,064,699) (13,966,848) 21,286,320 22,779
Net Equalization (Note 1C) 11,162 (1,890) (11,850) -- --
Distributions to
shareholders from:
Net investment income:
Century Shares Trust (902,700) (437,544) (1,488,873) -- --
Century Small Cap Select Fund
Institutional Shares -- -- -- (95,347) --
Investor Shares -- -- -- (50,154) --
Realized gain from investment
transactions:
Century Shares Trust (27,700,185) -- (30,463,614) -- --
Century Small Cap Select Fund
Institutional Shares -- -- -- (317,824) (71,314)
Investor Shares -- -- -- (270,197) (20,118)
Trust share transactions - net 31,656,322 (18,060,849) (25,921,627) 78,245,834 7,683,159
Redemption fees 8,216 27,639 103,436 39,811 47,973
------------ ------------ ------------ ------------ ------------
Total increase/decrease 51,367,269 (54,537,343) (71,749,376) 98,838,443 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 $342,678,528 $291,311,259 $345,848,602 $121,895,100 $ 23,056,657
============ ============ ============ ============ ============
Accumulated distributions in
excess of net investment
income at end of period $247,376 $92,770 $361,804
============ ============ ============
See notes to financial statements.
FINANCIAL HIGHLIGHTS
Year Ended Year Ended
October 31, December 31,
CENTURY SHARES TRUST 2003 2002(a) 2001 2000 1999 1998
Net Asset Value, beginning of period $ 33.95 $ 38.12 $ 42.97 $ 34.32 $ 44.66 $ 44.66
Income (loss) from Investment Operations:
Net investment income 0.07 0.08 0.17 0.39 0.42 0.41
Net realized and unrealized gain
on investments 5.03 (4.20) (1.26) 12.39 (6.05) 2.71
------- ------- ------- ------- ------- -------
Total income (loss) from
investment operations 5.10 (4.12) (1.09) 12.78 (5.63) 3.12
------- ------- ------- ------- ------- -------
Less Distributions From:
Net investment income (0.10) (0.05) (0.17) (0.38) (0.40) (0.40)
In excess of net investment income -- -- -- -- (0.01) --
Net realized gain on investment
transactions (3.29) -- (3.60) (3.75) (4.30) (2.72)
------- ------- ------- ------- ------- -------
Total distributions (3.39) (0.05) (3.77) (4.13) (4.71) (3.12)
------- ------- ------- ------- ------- -------
Redemption fees -- -- 0.01 -- -- --
------- ------- ------- ------- ------- -------
Net Asset Value, end of period $ 35.66 $ 33.95 $ 38.12 $ 42.97 $ 34.32 $ 44.66
======= ======= ======= ======= ======= =======
Total Return 16.99% -10.82%** -2.52% 37.44% -12.38% 7.00%
Ratios and supplemental data
Net assets, end of period (000 omitted) $342,679 $291,311 $345,849 $417,598 $309,644 $415,129
Ratio of expenses to average
net assets 1.17% 1.19%* 1.05% 0.83% 0.82% 0.78%
Ratio of net investment
income to average net assets 0.21% 0.26%* 0.41% 1.05% 1.00% 0.88%
Portfolio Turnover Rate 37% 22% 17% 17% 11% 6%
(a) For the period from January 1, 2002 to October 31, 2002. Effective September 5, 2002 Century Shares Trust changed its fiscal
year end from December 31 to October 31.
* Annualized
** Not Annualized
CENTURY SMALL CAP SELECT FUND
YEAR ENDED OCTOBER 31,
2003 2002 2001 2000 2003 2002 2001 2000
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INVESTOR INVESTOR INVESTOR INVESTOR
CLASS CLASS CLASS CLASS(B) CLASS CLASS CLASS CLASS (C)
Net Asset Value,
beginning of
period $ 15.42 $ 14.68 $ 14.57 $10.00 $ 15.35 $ 14.60 $ 14.26 $ 10.00
------- ------- ------- ------ ------- -------- ------- --------
Income from
Investment
Operations:
Net investment
loss (0.09) (0.10) -- 0.04 (0.15) (0.18) (0.03) (0.01)
Net realized
and unrealized
gain on
investments 6.64 0.93 0.52(a) 4.53 6.60 0.94 0.53(a) 4.27
------- ------- ------- ------ ------- -------- ------- --------
Total income
from investment
operations 6.55 0.83 0.52 4.57 6.45 0.76 0.50 4.26
------- ------- ------- ------ ------- -------- ------- --------
Less Distributions
From:
Net investment
income (0.11) -- (0.02) -- (0.07) -- -- --
Net realized
gain on
investment
transactions (0.35) (0.13) (0.41) -- (0.35) (0.03) (0.19) --
------- ------- ------- ------ ------- -------- ------- --------
Total
distributions (0.46) (0.13) (0.43) -- (0.42) (0.03) (0.19) --
------- ------- ------- ------ ------- -------- ------- --------
Redemption fees 0.02 0.04 0.02 -- 0.01 0.02 0.03 --
------- ------- ------- ------ ------- -------- ------- --------
Net Asset Value,
end of period $ 21.53 $ 15.42 $ 14.68 $14.57 $ 21.39 $ 15.35 $ 14.60 $ 14.26
======= ======= ======= ====== ======= ======== ======= ========
Total Return 43.76% 5.87% 3.63% 45.70%** 43.12% 5.34% 3.68% 42.60%**
Ratios and
supplemental
data
Net assets,
end of period
(000 omitted) $42,936 $12,938 $ 6,093 $2,253 $78,959 $ 10,119 $ 9,302 $ 690
Ratio of
expenses
to average
net assets 1.26% 1.45% 1.45% 1.45%* 1.61% 1.80% 1.80% 1.80%*
Ratio of
expenses to
average net
assets without
giving effect
to voluntary
expense
agreement 1.40% 1.87% 4.04% 11.58%* 1.76% 2.53% 4.38% 14.73%*
Ratio of net
investment
income (loss)
to average
net assets -0.50% -0.70% -0.02% 0.38%* -0.86% -1.05% -0.48% -0.14%*
Portfolio
Turnover
Rate 88% 123% 48% 24% 88% 123% 48% 24%
(a) 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.
(b) From the commencement date of investment operations, December 9, 1999 to October 31,2000.
(c) From the commencement date of investment operations, February 24, 2000 to October 31,2000.
* Annualized
** Not Annualized
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES -- Century Capital Management Trust (the
"Master Trust") is registered under the Investment Company Act of 1940, as
amended, as an open-end management investment company. Century Shares Trust (the
"Trust") and Century Small Cap Select Fund (the "Fund") 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.
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. Transfer
agent fees for each Fund class are based on a per shareholder account charge.
All shareholders bear the common expenses of the Fund based upon daily net
assets of each class, without distinction between share classes.
G. Redemption Fees -- In general, shares of the Trust and Fund may be redeemed
at net asset value. However, upon the redemption of shares held less than 180
days, a fee of 1% of the current net asset value of the shares 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:
YEAR ENDED PERIOD ENDED YEAR ENDED
OCTOBER 31, 2003 OCTOBER 31, 2002(A) DECEMBER 31, 2001
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------ ------ ------
Sold .................................... 1,387,152 $ 45,313,276 227,051 $ 8,402,719 630,308 $ 25,647,948
--------- ------------ ------- ------------ --------- ------------
Issued to shareholders in reinvestment of
distributions from:
Net investment income ............... 20,924 660,462 8,211 311,411 24,977 1,039,151
Realized gain on investment
transactions ...................... 730,060 21,745,807 -- -- 619,893 23,630,306
--------- ------------ ------- ------------ --------- ------------
2,138,136 67,719,545 235,262 8,714,130 1,275,178 50,317,405
Repurchased ............................. (1,108,500) (36,063,223) (727,746) (26,774,979) (1,920,512) (76,239,032)
--------- ------------ ------- ------------ --------- ------------
Net increase (decrease) ............. 1,029,636 $ 31,656,322 (492,484) $(18,060,849) (645,334) $(25,921,627)
========= ============ ======= ============ ========= ============
(a) For the period from January 1, 2002 to October 31, 2002.
Effective September 5, 2002 Century Shares Trust changed its fiscal year end from December 31 to October 31.
(2) TRANSACTIONS IN SHARES (continued)
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:
YEAR ENDED OCTOBER 31, 2003
INSTITUTIONAL CLASS INVESTOR CLASS
SHARES AMOUNT SHARES AMOUNT
Sold ......................................... 1,389,691 $26,066,642 3,340,426 $61,478,782
Issued to shareholders in reinvestment of
distributions from:
Net investment income .................... 5,436 83,552 2,704 41,455
Realized gain on investment transactions . 18,120 278,505 14,678 225,007
--------- ----------- --------- -----------
1,413,247 26,428,699 3,357,808 61,745,244
Repurchased .................................. (258,129) (4,203,907) (324,990) (5,724,202)
--------- ----------- --------- -----------
Net Increase ................................. 1,155,118 $22,224,792 3,032,818 $56,021,042
========= =========== ========= ===========
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:
Net investment income .................... - - - -
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) INVESTMENT SECURITY TRANSACTIONS
FOR THE TRUST, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated $100,012,212
and $98,837,543, respectively, during the period ended October 31, 2003. At
October 31, 2003, the cost of investments for federal tax purposes was
$169,984,404. Net unrealized appreciation for all securities at that date was
$172,563,665. This consisted of aggregate gross unrealized appreciation for all
securities in which there was an excess of market value over tax cost of
$173,330,382 and aggregate gross unrealized depreciation for all securities in
which there was an excess tax cost over market value of $766,717.
FOR THE FUND, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated
$109,445,286 and $40,518,731, respectively, during the year ended October 31,
2003. At October 31, 2003, the cost of investments for federal tax purposes was
$108,179,999. Net unrealized appreciation for all securities at that date was
$13,559,036. This consisted of aggregate gross unrealized appreciation for all
securities in which there was an excess of market value over tax cost of
$13,845,426 and aggregate gross unrealized depreciation for all securities in
which there was an excess tax cost over market value of $286,390.
(4) 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 net asset value. For the year
ended October 31, 2003, the fee amounted to $2,384,968. Officers and Trustees
of the Master Trust who are employed by CCM receive remuneration for their
services out of such investment adviser fee. The Trust has guaranteed
retirement benefits to be paid to a former and a current Trustee. Under the
terms of the Trust's Investment Advisory and Management Agreement with CCM, CCM
will make all such payments during the term of the advisory agreement. The
amount of potential future payments cannot be estimated due to the variability
of amounts used to determine the payment. Retirement benefits are payable over
various periods.
FOR THE FUND, the investment adviser fee is earned by CCM as compensation for
providing investment advisory, management and administrative services to the
Fund. CCM receives a monthly fee equal on an annualized basis to 0.95% of the
Fund's net asset value. For the year ended October 31, 2003, the fee amounted
to $463,757. Officers and Trustees of the Master Trust who are employed by CCM
receive remuneration for their services out of such investment adviser fee.
(5) ADMINISTRATION FEES -- The Trust has an Administration Agreement with CCM.
Under the agreement CCM shall provide or procure, at its expense, non-investment
advisory services to the Trust. CCM will receive a monthly fee equal on an
annualized basis to 0.15% of the Trust's net asset value. The fee was $447,182
for the year ended October 31, 2003.
(6) ADVISER REIMBURSEMENT -- CCM has voluntarily waived a portion of its
management fee for both classes of the Fund and reimbursed certain other
expenses to the extent necessary so that net fund annual operating expenses
(exclusive of brokerage commissions, taxes, interest and litigation,
indemnification and other extraordinary expenses) will not exceed certain
expense limitations through at least February 28, 2004. The expense limitations
for the Investor and Institutional Class are 1.80% and 1.45%, respectively.
During the year ended October 31, 2003, the adviser made a voluntary
reimbursement of $70,828.
(7) 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 year ended October 31,
2003, $72,235 was paid under the distribution and service plan. The plan may be
terminated at any time by the vote of a majority of the independent Trustees or
by the vote of the holders of a majority of the outstanding shares of the
Investor class.
INDEPENDENT AUDITORS' REPORT
To the Trustees of Century Capital Management Trust "Master Trust" and
Shareholders of Century Shares Trust and Century Small Cap Select Fund:
We have audited the accompanying statement of assets and liabilities, including
the portfolios of investments, of Century Shares Trust and Century Small Cap
Select Fund (separate series of Century Capital Management Trust) as of October
31, 2003, and the related statement of operations for the year then ended, and
the statement of changes in net assets and the financial highlights for the
periods presented. These financial statements are the responsibility of the
Master Trusts' management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures, included confirmation of securities owned as of
October 31, 2003, by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other auditing procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Century Shares Trust and
Century Small Cap Select Fund as of October 31, 2003, the results of their
operations, the changes in their net assets, and the financial highlights for
the respective stated periods, in conformity with accounting principles
generally accepted in the United States of America.
Deloitte & Touche
Boston, Massachusetts
December 16, 2003
MANAGEMENT OF THE MASTER TRUST
The Trustees named below are responsible for setting policy and overseeing the
activities of Century Capital Management Trust (the "Master Trust"). The
Trustees hire and supervise the performance of the companies that provide
services to Century Shares Trust and Century Small Cap Select Fund (the
"Funds"), such as the investment adviser, the independent accountants, and the
custodian. The Trustees elect their successors.
The following table provides information regarding each Trustee and officer of the Master Trust:
INDEPENDENT TRUSTEES
NUMBER OF
PORTFOLIOS
TERM OF IN FUND OTHER
NAME POSITION(S) OFFICE AND COMPLEX DIRECTORSHIPS
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
AGE FUND TIME SERVED DURING PAST 5 YEARS BY TRUSTEE TRUSTEE
JOHN E. BEARD Trustee 7/83 to Present Ropes & Gray, Partner 2 The Timberland Company;
194 Glezen Lane (20 yrs) (until 12/31/00; of Counsel BTU International, Inc.
Wayland, MA thereafter) (attorneys)
Age: 71
ERNEST E. MONRAD Trustee 4/76 to Present Northeast Investors Trust, 2 New America High
50 Congress Street (27 yrs) Trustee (Chairman until 5/01) Income Fund; Northeast
Suite 1000 (investment company); Investors Growth Fund;
Boston, MA Northeast Investors Growth Fund, Northeast Investors Trust
Age: 73 Chairman, Trustee and Assistant
Treasurer (investment company);
Northeast Investment Management,
Inc., Vice President and
Director (investment adviser)
MICHAEL J. POULOS Trustee 6/98 to Present Retired 2 Technical Olympic
2121 Kirby Drive, #73 (5 yrs) USA, Inc.
Houston, TX
Age: 72
JERRY S. ROSENBLOOM Trustee 4/98 to Present The Wharton School, University 2 Harleysville Group, Inc.;
308 Colonial Penn Ctr. (5 yrs) of Pennsylvania, Frederick H. Annuity & Life Re
3641 Locust Walk Ecker, Emeritus Professor of (Holdings), Ltd.
Philadelphia, PA Insurance and Risk Management MBIA Municpal
Age: 64 Bond Fund
INSIDE TRUSTEES AND OFFICERS
NUMBER OF
PORTFOLIOS
TERM OF IN FUND OTHER
NAME POSITION(S) OFFICE AND COMPLEX DIRECTORSHIPS
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
AGE FUND TIME SERVED(+) DURING PAST 5 YEARS BY TRUSTEE TRUSTEE
ALLAN W. FULKERSON*+ Trustee and 01/69 to Present Century Capital Management, Inc., 2 HCC Insurance
100 Federal St. Chairman of President and Director Holdings, Inc.
Boston, MA 02110 the Trustees (investment adviser)#; Montpelier Re
Age: 70 CCP Capital, Inc., President and Holdings Inc.
Director (management services)#;
CCP Capital II, LLC, Managing
Member (management services)#;
CCP Capital III, Inc., Director
(management services)#;
Massachusetts Fiduciary
Advisors, Inc., President and
Director (investment adviser
until 12/00)#
DAVIS R. FULKERSON*+ Trustee 9/00 to Present Century Capital Management, Inc., 2
100 Federal St. Managing Director (investment
Boston, MA 02110 adviser)#; CCP Capital II, LLC,
Age: 38 Managing Member (management
services)#; CCP Capital III,
Inc., Director (management
services)#; Massachusetts
Fiduciary Advisors, Inc., Vice
President (since 3/99)
(investment adviser until
12/00)#
ALEXANDER L. THORNDIKE* Trustee, Vice 12/99 to Present Century Capital Management, Inc., 2
100 Federal St. Chairman of 05/03 to Present Managing Director (since 1/99)
Boston, MA 02110 the Trustees, and (investment adviser)#; CCP
Age: 37 and Chief 12/99 to Present Capital II, LLC, Managing Member
Investment respectively (management services)#;
Officer Sachem Partners, LLC, Manager
(management services)#; William
Blair and Company LLC, Analyst
(until 1/99) (broker-dealer)
STEVEN ALFANO Secretary, 09/01 to Present Century Capital Management, Inc.,
100 Federal St. Principal and and Managing Director (since 9/00),
Boston, MA 02110 Accounting 11/02 to Present, Treasurer and Clerk (since 6/02),
Age: 45 Officer Respectively Vice President (3/99-9/00)
Assistant Vice President
(10/98-3/99) (investment
adviser)#; CCP Capital II, LLC,
Managing Member (management
services)#; CCP Capital III,
Inc., Secretary and Treasurer
(since 10/01) (management
services)#; Massachusetts
Fiduciary Advisors, Inc.,
Assistant Vice President (until
3/99) Vice President (since
3/99) (investment adviser until
12/00)#
* Indicates that the Trustee is an interested person of the Funds by virtue of being an officer or employee of the Funds'
investment adviser. Each of Messrs. Allan W. Fulkerson and Alexander L. Thorndike also are interested persons of the Funds by
virtue of being officers of the Master Trust.
+ Davis R. Fulkerson is Allan W. Fulkerson's son.
# Indicates a position with an entity that may be deemed an "affiliated person" of the Funds.
(+) Our current independent Trustees may continue to serve only until the month of July after he reaches the age of 72 years.
Independent Trustees first elected after September 8, 2000, may continue to serve only until the month of July after such
independent Trustee reaches the age of 75 years. For interested Trustees or officers, however, there is no stated term of
office. All Trustees otherwise continue to serve after election either until their resignation or their removal in accordance
with the Agreement and Declaration of Trust of the Master Trust or until a meeting of shareholders for the election of
Trustees is required by the Investment Company Act of 1940. The Chairman of the Trustees and the Secretary are elected
annually by the Trustees.
[Logo] CENTURY FUNDS
September 30, 2003
Dear Fellow Shareholders,
On behalf of the Century Funds team and the Trustees, we take this opportunity
to share results of the shareholder questionnaire sent out in late June. As a
small, independent mutual fund family, our success depends on how well we serve
you. Your responses are important.
We thank you for the excellent response rate and honest feedback. Almost 8% of
our fellow shareholders have replied to date, a significant return for this
type of survey. Your comments were insightful, occasionally pointed, but always
helpful. Please keep in mind that these results are still preliminary and could
change with additional feedback.
[ ] In terms of overall impressions, 86% of respondents would invest with the
Century Funds again, while 92% thought that being a small, independent fund
family was an advantage. Your satisfaction with the Century Funds and our
annual and semi-annual reports scored about 4 on a scale of 1 to 5. Your
descriptions or views of Century varied from "old fashioned", "prudent",
and "long-term investors" to "conservative" and "too narrow". The comment
in which we all took the most pride was simply, "I trust you".
[ ] A majority of respondents voted against a shareholder forum, and so, we
will not conduct a forum. Your comments, however, are always welcome in
writing or by telephone.
[ ] This might be one for the record books - we had the pleasure of receiving
a hand written letter from an investor who has been a Century Shares Trust
shareholder since 1936! He was very generous in his praise for the Trust,
and noted that it represents a significant portion of his retirement
savings. Furthermore, he and his wife greatly appreciate the systematic
withdrawal option which augments their retirement income.
[ ] Regarding our investment funds, the majority of respondents owned Century
Shares Trust and 17% hold Century Small Cap Select Fund. Most of the
responses in this section indicated shareholders were pleased in terms of
investment performance, but Century Shares Trust received lower scores for
meeting income needs. We have been looking at opportunities to increase
the dividend income of this fund following the passage of lower tax rates
on dividends in May 2003.
[ ] In terms of new investment products, there was no clear mandate for any
one product. Shareholders did express interest in the following: 17% for a
balanced/income fund, 15% for a high-yield bond fund and 9% for a mid-cap
fund. At this time, we do not plan to launch a new fund and will continue
to focus on delivering value through our existing funds, while keeping in
mind your preferences for the future.
[ ] We are proud that you gave our shareholder services a high grade (above 4
on a scale of 1 to 5) in each of the four questions. We hope to expand and
improve our online capabilities over time, based on your interest in
accessing more web-based services. In the meantime, please visit our
website (www.centuryfunds.com) and give us your feedback on our updated
content.
Update on Century Funds'expense ratios
While we are always focused on improving our investment research and portfolio
management, we are also keenly aware of fund expenses. Importantly, as assets in
Century Small Cap Fund have risen, the fund's overall expense ratio has declined
over the last year. Century Shares Trust continues to feature a low expense
ratio. According to Lipper Analytics, Century Shares Trust remains in the bottom
half of all equity funds for its expense ratio; one time we don't mind being
below average.
Thank you again for taking the time to give us your feedback. We look forward to
the years ahead with confidence and remain committed to serving your investment
needs.
Sincerely,
/s/ Alexander L. Thorndike /s/ Allan W. Fulkerson
Alexander L. Thorndike Allan W. Fulkerson
Vice Chairman and Chairman of the Trustees
Chief Investment Officer
If you have not participated in our shareholder survey and would like to do so,
please complete the enclosed copy and return it to us in the enclosed postage
paid envelope.
- -------------------------------------------------------------------------------
For more information about the Century Funds, including risks, fees and
expenses, please refer to your prospectus. Forum Fund Services, LLC,
distributor (09/03)
[Logo] CENTURY FUNDS
100 Federal Street Boston, Massachusetts 02110
GROWTH INVESTORS IN
VALUE INDUSTRIES
Item 2. Code of Ethics.
(a) The registrant has, as of the end of the period covered by this
report, adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by the
registrant or a third party.
(b) During the period covered by this report, there were not any
amendments to a provision of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, there were not any waivers
or implicit waivers to a provision of the code of ethics adopted in
2(a) above.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Trustees has determined that Ernest Monrad,
who is a member of the registrant's Board of Trustees and Audit
Committee, qualifies as an audit committee financial expert. Mr.
Monrad 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.
Not applicable at this time.
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-3(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 that occurred during the registrant's last fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Items 10. Exhibits.
(a) Fund's Code of Ethics. The registrant's code of ethics required to
be disclosed under Item 2 of Form N-CSR attacheded hereto as Exhibit 99.CODE
ETH.
(b) Attached hereto.
Exhibit 99.CERT A separate certification for each principal
executive officer and principal financial
officer of the registrant as required by Rule
30a-2 of the Investment Company Act of 1940.
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: January 9, 2004
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: January 9, 2004
By: /s/ Steven Alfano
----------------------------
Steven Alfano, Secretary (Principal Financial Officer)
Date: January 9, 2004