UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-09561
Century Capital Management Trust
(Exact name of registrant as specified in charter)
c/o Century Capital Management, LLC
100 Federal Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Steven Alfano
Century Capital Management, LLC
100 Federal Street, Boston, Massachusetts 02110
(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 482-3060
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Date of fiscal year end: October 31
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Date of reporting period: October 31, 2004
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ITEM 1. REPORT TO STOCKHOLDERS.
CENTURY CAPITAL MANAGEMENT
[graphic omitted]
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SEVENTY-SIX
YEARS OF
INVESTING
1928 - 2004
[logo]
CENTURY
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CENTURY
FUNDS
CENTURY
SHARES
TRUST
AND
CENTURY
SMALL CAP
SELECT FUND
ANNUAL REPORTS
OCTOBER 31, 2004
[graphic omitted]
Companies can be evaluated from many perspectives. One measurement that we look
for when investing is excellent management. We expect management to build
shareholder value. We seek businesses capable of delivering 15% return on equity
and growing book value 15% per year compounded over rolling five-year periods.
TRUSTEES AND OFFICERS
Alexander L.Thorndike, Chairman
and Chief Investment Officer
John E. Beard, Trustee
Davis R. Fulkerson, Trustee
Jerrold Mitchell, Trustee
Ernest E. Monrad, Trustee
Michael J. Poulos, Trustee
Jerry S. Rosenbloom, Trustee
David D. Tripple, Trustee
Steven Alfano, Secretary and
Chief Compliance Officer
INVESTMENT ADVISOR
Century Capital Management, LLC
100 Federal Street
Boston, Massachusetts 02110
SHAREHOLDER HOTLINE
800-303-1928
www.centuryfunds.com
[logo] CENTURY FUNDS
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Average Annual Total Returns
For the Period ended 9/30/04
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
Century Shares Trust 14.27% 5.76% 10.40% 13.03%
S&P 500(R)Index 13.87% 4.05% -1.31% 11.08%
Since
1 Year 2 Years 3 Years Inception
------ ------- ------- --------
Century Small Cap Select Fund 15.96% 27.21% 16.87% 21.00%
Investors Shares (2/24/00)
Century Small Cap Select Fund 16.33% 27.72% 17.42% 20.84%
Institutional Shares (12/9/99)
Russell 2000(R)Index 18.77% 27.33% 13.71% 5.81%
(Institutional Inception Date)
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PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NO GUARANTEE OF
FUTURE RESULTS. Current performance may be lower or higher than the performance
data quoted. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost.
For the most recent month end performance, please call 1-800-321-1928 or visit
the Funds' website at www.centuryfunds.com. Shares held less than 180 days maybe
subject to a 1.0% redemption fee.
Century Small Cap Select Fund invests in smaller companies which pose greater
risks than those associated with larger, more established companies.
Concentration or focus, as the case may be, 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 concentrated portfolios.
Performance returns shown herein include the reinvestment of dividends and
capital gains. Performance for the Century Small Cap Select Fund would have been
lower during the period if certain fees had not been waived or expenses
reimbursed. For a description of the S&P 500 and Russell 2000 Indices refer to
pages seven and eight, respectively. Forum Fund Services, LLC, Distributor.
Before investing, you should carefully consider the Century Funds' investment
objectives, risks, fees and expenses. This and other information is in the
prospectus, a copy of which may be obtained by calling 1-800-321-1928 or
visiting the Funds' website. Please read the prospectus carefully before you
invest. (12/04)
DEAR FELLOW SHAREHOLDERS
We would like to take this opportunity to discuss some pertinent issues as we
look to continually earn your trust and confidence. While addressing other
issues below, we recognize the importance of generating above average
risk-adjusted returns over the long term.
What is our job at Century Funds?
Our most important job is acting as fiduciaries, who are entrusted with
safeguarding and enhancing your hard-earned assets. Everything we do should be
geared toward generating value for our shareholders. We believe that a small,
employee-owned investment advisor is the best means to protect and deliver value
to our fellow shareholders.
Are there any new Developments at Century?
We continue to strengthen our organization. Steven Alfano has been appointed
Chief Compliance Officer by the independent Century Funds Trustees. We are
excited that Maureen Kane has joined our legal and administrative team as
General Counsel. Our investment research has been enhanced by the addition of
David Borah and C.J. Young as equity analysts. In addition, we are committed to
investing in the portfolio accounting, trading and proxy tracking systems
necessary to monitor our compliance.
I would like to highlight some of the changes we have seen over the last five
years. The equity markets entered and exited from a speculative bubble, and it
appears that we are returning to a period of stronger corporate governance and
back-to-basics fundamental analysis. We welcome this heightened investor
scrutiny and believe it will benefit companies with higher earnings quality and
consistency. We believe the Century Funds are well-positioned in this
environment, with Century Shares Trust considered a larger cap core holding and
Century Small Cap Select Fund established as a small cap growth fund that is
less aggressive than its peers.
Fundamentals and Chemistry: Red Sox and Investing
From the agony of prior defeats, this year featured an exhilarating
come-from-behind World Series win by the Boston Red Sox. Why has it taken 86
years to complete this quest? With a team that was very similar to the prior
year, management put together a great roster but made important adjustments
during the season. These fundamentals also required good team chemistry and
execution at key moments in order to succeed in the October journey. The
investing journey mirrors sports in this regard. It begins with a company's
roster of good fundamentals (financials, competitive position, etc.), but
management also needs to maximize its talent and adapt to changing market
conditions.Finally, culture and chemistry help manufacture the final bit of
luck and timing that bring victory in the postseason.
Finally, I want to highlight the Century Funds' Investment Principles, which are
included in this report for the third consecutive year. We believe that these
core values should guide our work ethic and the companies in which we invest.
Our Funds are long-term oriented, and we view ourselves as long-term investors.
We judge our own performance over 5-year periods and hope that you share our
investment horizon. We are optimistic about the outlook for your Funds over the
next year. We also hope you find the Annual Report informative and helpful in
understanding our investment process.
We appreciate your support and hope to earn your "trust" again during the next
year.
Respectfully Submitted,
/s/ Alexander L.Thorndike
Alexander L.Thorndike
Chairman of the Trustees
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 Learn from our weaknesses
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
DEAR FELLOW SHAREHOLDERS
MARKET COMMENTARY
Over the past fiscal year ending October 31, 2004, the S&P 500 and Russell 2000
generated very respectable total returns of 9.4% and 11.7%, respectively. These
returns followed a stellar 2003 fiscal year, when returns for the S&P 500 and
Russell 2000 were up 20.8% and 43.4%, respectively. Needless to say, 2003 and
2004 were two strong years that recouped much of the stock market losses
generated in 2000-2002. As of our fiscal year end, the Russell 2000 had
rebounded close to its prior peak reached in March 2000. The S&P 500 was up
about 35% from its low in October 2002, but remained about 25% below its peak.
Given the ups and downs of the past five years, it is important to maintain a
long-term time horizon and remember that timing the market is extremely
difficult.
During the past year, the stock market started off strongly, but lost strength
owing to economic and political uncertainty. A year ago, crude oil cost less
than $30 per barrel. Oil traded up more than 50% in the past year. Higher energy
costs acted as a drag on the economy, just as job growth began to improve.
Earnings growth is one of the main drivers of stock market performance and is
projected to increase in 2005, but at a slower rate of growth than in 2004. We
expect the economy will continue to improve steadily and stabilize as the
recovery enters a mature phase.
TWO CASE STUDIES
We thought it might be valuable to share a couple of case studies of holdings
that were owned in both Funds at different stages of their evolution. These
examples highlight our investment criteria and how we can leverage our research
across two funds with separate risk/reward and investment mandates. As companies
mature, they can often provide different results for investors. Century Small
Cap Select Fund has an investment objective of long term capital growth, while
Century Shares Trust seeks long term growth of principal and income.
In early 2000, the Century Small Cap Select Fund began buying shares of
Banknorth (BNK), formerly Peoples Bancorp. The bank possessed many of the
attributes Century looks for in companies, such as a strong management team,
return on equity greater than 15% and a very attractive valuation. In addition,
this bank was establishing itself as the dominant northern New England
franchise, which we believed would result in above average returns over time.
Later in 2000, Century Shares Trust also purchased BNK. At that point, our
initial thesis was still very much intact;but the size of the company and its
developing track record matched the Trust's more conservative risk/return
profile. Century Small Cap Select fund sold BNK in early 2002, as the size of
the company approached the upper limits of what qualifies as a small cap stock.
Finally, after enjoying strong returns, Century Shares Trust sold BNK during
2004 for valuation and fundamental reasons.
Century's ownership of Iron Mountain is very similar to that of Banknorth. Iron
Mountain (IRM), which provides document storage for businesses, was bought in
the Century Small Cap Select Fund in early 2001. IRM was an attractive
investment due to a strong management team, its operating model (over 100%
recurring revenues) and market dominant position following the acquisition of
its largest competitor. Also, IRM seemed to be less affected by the economic
downturn, which was occurring at the time. Similar to Banknorth, IRM stock was
purchased by Century Shares Trust in 2002 when the company's growing size and
strong execution convinced us it was an appropriate investment for the Trust.
IRM was subsequently sold from the Small Cap Select fund when IRM's market value
reached the high end of what qualifies as a small cap stock. Finally, Century
SharesTrust sold our remaining shares of Iron Mountain during 2004 for valuation
reasons (reaching our price target).
MANAGEMENT'S DISCUSSION ON FUND PERFORMANCE
This is the 77th annual report of Century Shares Trust and the 5th 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. We begin this report with
1) a review of Century Shares Trust, 2) a review of Century Small Cap Select
Fund, followed by 3) a discussion of current market conditions and our
perspective on the road ahead.
CENTURY SHARES TRUST
PERFORMANCE
The Trust delivered a 9.06% return for the fiscal year ended October 31, 2004.
This compares with a 9.42% return for the S&P 500 Index. The chart below shows
that the Trust continues to outperform its benchmark over longer time periods.
In general, we expect the Trust to outperform in normal and nervous market
conditions but underperform during periods of strong bullish sentiment.
PERFORMANCE COMPARISON
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Average Annual Total Return 10/31/04
CENTURY SHARES TRUST S&P 500(R) Index
1 YEAR 9.06% 9.42%
3 YEARS 6.35% 3.92%
5 YEARS 7.81% -2.22%
10 YEARS 13.15% 11.01%
Performance data quoted represents past performance and is no guarantee of
future results. Current performance may be lower or higher than the performance
data quoted. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost.
For the most recent month-end performance, please call 1-800-321-1928 or visit
the Fund's website. Shares held less than 180 days may be subject to a 1.0%
redemption fee.
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Over the last year, the Trust's best performers included Checkpoint Software,
Iron Mountain, Torchmark and United Health Group. The Trust's worst performers
included AIG, Citigroup, Jacobs Engineering, Marsh & McLennan and Pfizer. As
interest rates continue to rise from their historic lows, we continue to
redeploy some of our financial services holdings into consumer, health care,
producer durables and technology services holdings, that we expect to perform
well during this maturing phase of the economic cycle.
CENTURY SHARES TRUST
FUND COMPOSITION 10/31/04
FINANCIAL SERVICES 49%
HEALTH CARE 20%
CONSUMER DISCRETIONARY 10%
TECHNOLOGY 9%
CASH EQUIVALENTS 5%
PRODUCER DURABLES 4%
CONSUMER STAPLES 3%
Over the last three years, corporate America has been hit with several scandals
involving fraud and greed, including such companies as Enron, HealthSouth and
WorldCom. Approximately 24% of the S&P 500 is currently under government
investigation, including the insurance, tobacco and pharmaceutical
industries. AIG, Marsh & McLennan and Pfizer have each been impacted by these
recent events. Over the last three years, we diversified the Trust considerably
and reduced its exposure to the current inquiries.
We thought you might want some specific examples of some of the portfolio
decisions we made during the year. We sold several stocks that appreciated to
our price targets, such as Choicepoint (information services), Iron Mountain
(records storage), Moody's (financial ratings and information) and Thermo
Electron (technology manufacturing). We also sold out of a few positions where
we ran out of patience or the company's fundamentals changed, such as Family
Dollar Stores (discount retailer), Jacobs Engineering (engineering contractor)
and Universal Health Services (health provider).
We increased our exposure to health care, retail and technology stocks which we
believe will benefit from the maturing stage of an economic rebound. These
industries also exhibit the attributes we look for in companies, such as 15%
compounded growth in book value and return on equity (ROE), defined as the rate
of return a company earns on shareholders' equity over rolling 3 and 5 year
periods. Examples include Home Depot (home improvement retailer), Johnson &
Johnson (consumer and health products), Microsoft (software), Sysco (food
distribution) and United Technologies (technology manufacturing).
CENTURY SMALL CAP SELECT FUND
FUND PERFORMANCE
The Fund delivered positive returns for the fiscal year ended October 31,
2004. The Institutional Shares and the Investor Shares gained 9.83% and 9.45%
respectively, versus a 11.73% return for the Russell 2000 Index. Although the
Fund was in positive territory for the fifth consecutive year, we were
disappointed to lag the broad Russell 2000 Index for the year. The chart below
shows that the Fund continues to outperform its benchmarks over periods longer
than two years. In retrospect, we were underrepresented in favorable sectors,
like technology and energy where we did not find enough firms which met our
investment criteria. In general, we expect the Fund to outperform in normal and
nervous market conditions but underperform during periods of strong bullish
sentiment.
PERFORMANCE COMPARISON
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Average Annual Total Return 10/31/04
CSCS INVESTOR SHARES RUSSELL 2000(R) INDEX
1 YEAR 9.45% 11.73%
2 YEARS 25.16% 26.56%
3 YEARS 18.17% 12.31%
SINCE INCEPT 20.97% 2.39%
Investor Inception Date used for Russell 2000 Index.
Performance data quoted represents past performance and is no guarantee of
future results. Current performance may be lower or higher than the performance
data quoted. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than original cost.
For the most recent month end performance, please call 1-800-321-1928 or visit
the Fund's website. Shares held less than 180 days may be subject to a 1.0%
redemption fee.
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Over the last year, the Fund's best performers included American Healthways
(disease management), Flir Systems (thermal imaging), Jones Lang LaSalle (real
estate services) and Magnum Hunter (natural gas). The Fund's worst performers
included Ascential Software (software development), Retek (retail software) and
Vistacare (hospice provider). As the economic rebound matures, we have reduced
our weightings in health care and financial services and redeployed these assets
into technology and consumer discretionary companies, which we expect to perform
well in 2005.
CENTURY SMALL CAP SELECT FUND
FUND COMPOSITION 10/31/04
FINANCIAL SERVICES 22%
HEALTH CARE 22%
CONSUMER DISCRETIONARY 21%
INFORMATION TECHNOLOGY 12%
CASH EQUIVALENTS 8%
MATERIALS & PROCESSING 6%
OTHER ENERGY 5%
PRODUCER DURABLES 4%
With small cap stocks continuing to outperform larger cap stocks, we sold out of
several stocks that appreciated beyond our price targets, such as Ansys
(technology), Charles River Associates (litigation consulting), Credit
Acceptance (debt services) and Odyssey Healthcare (hospice care). We also sold
out of a few positions where we ran out of patience or the company's
fundamentals changed, such as GTSI (government IT distribution), Taro
Pharmaceuticals (generic drugs) and United Online (online access provider).
THE ROAD AHEAD IN A SECOND TERM
We would define the current investment climate as encouraging but uncertain. The
domestic economy continues to grow and productivity remains strong. The
Presidential election yielded no significant changes to the balance of political
power, and corporate earnings are expected to deliver consistent growth in
2005. However, we continue to face geopolitical unrest and military involvement
in the Middle East, as well as potential domestic concerns about rising interest
rates, inflation, the federal budget deficit and the declining dollar.
We remain optimistic that equities look attractive over both near-term and
long-term horizons. The quality of earnings, balance sheets and cash flows
continue to improve. Profitability: corporate profit margins and balance sheets
are at stronger levels than previous cycles, which indicates higher earnings
quality and less business stress on investors' stake in the shareholders'
equity. Growth: 2005 earnings estimates for large cap stocks (represented by the
S&P 500 Index) are currently forecasting 8%-10% earnings growth, while small cap
stocks (represented by the Russell 2000 Index) are expecting to produce 25%
earnings growth in 2005. Valuation: Valuations seem fair and reasonable (not too
hot and not too cold). Although several industries are under government
investigation (i.e insurance, pharmaceuticals, and tobacco), corporate
governance and disclosure appear to be improving. However, the cost of this
compliance has increased significantly for investors and investment firms.
Structurally, there are a few trends which we believe will shape the outlook for
equities over the next four years.
1. The Baby Boomer generation and their offspring will continue to shape the
size and direction of our economy
2. Global tension is rising for the first time since the Cold War ended over a
decade ago
3. China and the developing world will establish themselves as beneficiaries
(not just suppliers) of global expansion
4. Investors may have a lower appetite for risk and a higher appreciation for
earnings consistency rather than the rapid growth that defined the
technology bubble over the last several years.
HOW MIGHT THESE TRENDS AFFECT OUR INVESTMENT PROCESS?
We think our emphasis on investing in companies that can potentially deliver
consistent 15% ROE over rolling 3-5 year periods is a quality hurdle, which
leads us to predictable businesses, rather than rapidly growing, "momentum"
companies. We also believe that the new dividend tax rates will lead many of our
holdings to increase their dividends at a faster rate than their overall
earnings' growth, especially those firms with relatively low payout ratios and
strong balance sheets. We expect that our investment focus on high quality,
consistently growing companies will result in our overweighting the financial,
consumer, health care and technology sectors within the Funds.
WHAT IS OUR INVESTMENT PHILOSOPHY?
When considering an investment, we believe that there are three main elements to
the investment decision: PROFITABILITY, GROWTH and VALUATION. First, we place a
premium on the quality and consistency of a company's profitability before we
assess its growth prospects. Earnings are the lifeblood of a company's ability
to deliver returns for its investors, and we like to see several years of
consistent earnings growth as evidence that management can deliver in the
future. Second, any company's growth prospects are difficult to forecast
accurately, especially in rapidly changing industries.We are growth "skeptics,"
tending to discount earnings expectations above 20% annual growth and gravitate
to those companies with more conservative accounting policies. Third, valuation
is the final leg of our investment stool, and I would characterize it as our
risk management tool. Once we are comfortable with a company's profitability and
growth prospects, we look to find an entry price into a stock when we believe it
is attractively valued relative to its peer group, the overall market and its
historical valuation. Exiting a stock is usually determined by our "sell"
discipline. We sell stocks that reach our price targets, exhibit deteriorating
fundamentals or experience sudden "catalyst" events.
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, and we always welcome your
questions and comments by phone or mail.
Sincerely,
/s/ Alexander L. Thorndike /s/ Kevin W. Callahan
Alexander L. Thorndike Kevin W. Callahan
Chairman and Director of Research
Chief Investment Officer
The views expressed in this report reflect those of the portfolio managers as of
the end of the period covered by this report. These views are subject to change
at any time based on market and other conditions and should not be construed as
a recommendation with respect to any security.
SHAREHOLDER EXPENSE EXAMPLE
As a shareholder of a Fund, you incur two types of costs:(1) transaction costs
including redemption fees, and (2) ongoing costs, including management fees,
distribution and service fees (in the case of Investor Shares of Century Small
Cap Select Fund) and other Fund expenses.This Example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare those costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period (May 1, 2004 to October 31, 2004).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000.00 (for example, an $8,600
account value divided by $1,000.00=8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period. An annual
maintenance fee of $10.00 that is charged once a year may apply for certain IRA
accounts. This fee is not included in the table below. If it was, the estimate
of expenses you paid during the period would be higher, and your ending account
value lower, by this amount.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs such as redemption
fees. Therefore, the second line of the table is useful in comparing ongoing
cost only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transactional costs were included, your
costs would have been higher.
CENTURY SHARES TRUST EXPENSES PAID
DURING PERIOD*
BEGINNING ENDING SIX MONTHS
ACCOUNT VALUE ACCOUNT VALUE ENDING
MAY 1, 2004 OCTOBER 31, 2004 OCTOBER 31, 2004
Based on Actual Fund Return $1,000.00 $ 991.90 $5.66
Based on Hypothetical 5% Yearly Return before expenses $1,000.00 $1,019.15 $5.74
* These calculations are based on expenses incurred in the most recent fiscal half-year. Century Shares Trust's annual expense ratio
is 1.15%.The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account
value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 366.
CENTURY SMALL CAP EXPENSES PAID
SELECT FUND DURING PERIOD*
BEGINNING ENDING SIX MONTHS
ACCOUNT VALUE ACCOUNT VALUE ENDING
MAY 1, 2004 OCTOBER 31, 2004 OCTOBER 31, 2004
Based on Actual Fund Return
Institutional Class $1,000.00 $1,033.59 $5.62
Investor Class $1,000.00 $1,031.51 $7.40
Based on Hypothetical 5% Yearly Return before expenses
Institutional Class $1,000.00 $1,019.31 $5.58
Investor Class $1,000.00 $1,017.60 $7.35
* These calculations are based on expenses incurred in the most recent fiscal half-year. The Fund's annual expense ratios are
1.13% for Institutional Class and 1.52% for Investor Class. The dollar amounts shown as "Expenses Paid" are equal to the
annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most
recent fiscal half-year, then divided by 366.
PERFORMANCE OF A $10,000 INVESTMENT
CENTURY SHARES TRUST INDEX AND S&P 500(R) Index
CST S&P 500
10/31/1994 $10,000 $10,000
10/31/1995 $12,606 $12,644
10/31/1996 $10,960 $15,691
10/31/1997 $21,508 $20,729
10/31/1998 $24,182 $25,288
10/31/1999 $23,613 $31,779
10/31/2000 $29,582 $33,715
10/31/2001 $28,586 $25,319
10/31/2002 $26,951 $21,494
10/31/2003 $31,529 $25,965
10/31/2004 $34,385 $28,411
This chart compares the performance over the past ten years, through October 31,
2004, of a hypothetical $10,000 investment in Century Shares Trust, including
reinvested dividends and distributions, with that of a broad-based securities
market index. The S&P 500(R) 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. This differs from the Trust's focus on investments in
the financial services and related business services sectors.
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.
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TEN LARGEST HOLDINGS
AMERICAN INTERNATIONAL GROUP, INC. 4.09%
Global insurance and financial services.
BERKSHIRE HATHAWAY - A 4.07%
Financial investment and insurance.
MBIA, INC. 3.89%
Financial guaranty and credit enhancement
products worldwide.
CHUBB CORP. 3.78%
Specialty commercial and personal insurance.
RENAISSANCE RE HOLDINGS LTD. 3.55%
Provides reinsurance and insurance.
UNITEDHEALTH GROUP, INC. 3.44%
Health benefits provider.
TORCHMARK CORP. 3.40%
Life insurance and distribution.
PROGRESSIVE CORP. 3.33%
Personal automobile insurance.
PROTECTIVE LIFE CORP. 3.25%
Insurance and investment products.
MICROSOFT CORP. 2.94%
Computer hardware, software and services.
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CENTURY SHARES TRUST
AVERAGE ANNUAL TOTAL RETURNS
AS OF OCTOBER 31, 2004
1 YEAR 9.06%
5 YEARS 7.81%
10 YEARS 13.15%
20 YEARS 13.48%
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PERFORMANCE OF A $10,000 INVESTMENT
The following charts compare the performance through October 31, 2004 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(R)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.
- ----------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND
INSTITUTIONAL SHARES & RUSSELL 2000(R)
CSCS INSTITUTIONAL RUSSELL 2000
12/09/99 $10,000 $10,000
04/30/00 $11,150 $10,940
10/31/2000 $14,570 $10,819
4/30/2001 $14,862 $10,627
10/31/2001 $15,099 $ 9,445
4/30/2002 $17,592 $11,337
10/31/2002 $15,985 $ 8,352
4/30/2003 $17,376 $11,337
10/31/2003 $22,980 $11,974
4/30/2004 $24,419 $12,757
10/31/2004 $25,239 $13,378
- ----------------------------------------------------------------
- ----------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND
INVESTOR SHARES & RUSSELL 2000(R)
CSCS INVESTOR RUSSELL 2000
02/24/00 $10,000 $10,000
04/30/00 $10,920 $ 9,154
10/31/2000 $14,260 $ 9,053
4/30/2001 $14,593 $ 8,892
10/31/2001 $14,785 $ 7,903
4/30/2002 $17,208 $ 9,486
10/31/2002 $15,574 $ 6,989
4/30/2003 $16,902 $ 7,517
10/31/2003 $22,290 $10,019
4/30/2004 $23,652 $10,675
10/31/2004 $24,397 $11,195
- ----------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
RPM INTERNATIONAL, INC. 3.90%
Manufactures and markets specialty paints, coatings, roofing
systems, sealants and adhesives.
PLATINUM UNDERWRITERS HOLDING LTD. 3.22%
Reinsurance provider worldwide.
STERICYCLE, INC. 2.94%
Medical waste disposal and recycling.
PROVIDENCE SERVICES CORP. 2.89%
A provider of government-sponsored social services.
AMERICAN HEALTHWAYS, INC. 2.83%
Disease management services provider.
MARLIN BUSINESS SERVICES CORP. 2.64%
Small business leasing
VARIAN SEMICONDUCTOR EQUIP. ASSOC. 2.60%
Designs and manufactures implantation systems.
OPEN SOLUTIONS, INC. 2.45%
Customer service software for financial services.
RITCHIE BROS. AUCTIONEERS, INC. 2.44%
Industrial equipment auctioneer.
THE HOUSTON EXPLORATION CO. 2.38%
Natural gas and oil and development services.
- --------------------------------------------------------------------------------
- ---------------------------------------------------
CENTURY SMALL CAP
SELECT FUND
AVERAGE ANNUAL TOTAL RETURNS
AS OF OCTOBER 31, 2004
INVESTOR SHARES
1 YEAR 9.45%
3 YEARS 18.17%
SINCE INCEPT. (02/24/00) 20.97%
INSTITUTIONAL SHARES
1 YEAR 9.83%
3 YEARS 18.68%
SINCE INCEPT. (12/09/99) 20.82%
- ---------------------------------------------------
CENTURY SHARES TRUST
PORTFOLIO OF INVESTMENTS - OCTOBER 31, 2004
COMMON STOCK - 95.5%
SHARES VALUE
- ------ -----
CONSUMER DISCRETIONARY - 10.3%
144,020 CDW Corp. $ 8,933,561
136,690 Family Dollar Stores, Inc. 4,039,189
45,320 Home Depot, Inc. 1,861,746
107,870 Iron Mountain, Inc.* 3,565,103
187,360 Staples, Inc. 5,572,086
176,220 TJX Companies, Inc. 4,225,756
167,530 Wal-Mart Stores, Inc. 9,033,218
------------
37,230,659
------------
CONSUMER STAPLES - 2.7%
67,930 Sysco Corp. 2,192,101
213,820 Walgreen Co. 7,674,000
------------
9,866,101
------------
FINANCIAL SERVICES - 49.2%
BANKS - 5.8%
32,600 Bank of America Corp. 1,460,154
155,335 Citigroup, Inc. 6,892,214
260,000 J.P. Morgan Chase & Co. 10,036,000
61,880 SouthTrust Corp. 2,696,112
LIFE INSURERS - 9.7%
255,000 AFLAC, Inc. 9,149,400
68,110 Assurant, Inc. 1,837,608
300,000 Protective Life Corp. 11,790,000
228,300 Torchmark Corp. 12,332,766
P-C INSURERS - 27.5%
125,000 Aon Corp. 2,551,250
191,394 Allstate Corp. 9,204,137
244,016 American International Gr., Inc. 14,814,211
175 Berkshire Hathaway, Inc. CL A* 14,743,750
190,000 The Chubb Corp. 13,704,700
192,150 Cincinnati Financial Corp. 8,022,262
139,430 Gallagher (Arthur J.) & Co. 3,917,983
155,000 Marsh & McLennan Cos., Inc. 4,287,300
8,000 Ohio Casualty Corp.* 167,040
129,000 The Progressive Corp. 12,067,950
275,100 RenaissanceRe Holdings Ltd. 12,880,182
71,500 SAFECO Corp. 3,306,160
DIVERSIFIED FINANCIAL/OTHER - 6.2%
99,310 Automatic Data Processing, Inc. 4,309,061
243,750 MBIA, Inc. 14,103,375
44,530 State Street Corp. 2,006,076
87,666 Waddell & Reed Fin'l, Inc. CL A 1,841,863
------------
178,121,554
------------
HEALTH CARE - 20.4%
208,170 Abbott Laboratories 8,874,287
89,860 Anthem, Inc.* 7,224,744
58,920 Beckman Coulter, Inc. 3,505,740
192,170 Caremark Rx, Inc.* 5,759,335
227,830 Health Management Associates, Inc. 4,706,968
117,940 Henry Schein, Inc.* 7,457,346
159,950 Johnson & Johnson, Inc. 9,337,881
58,220 McKesson Corp. 1,552,145
354,930 Pfizer, Inc. 10, 275,223
172,410 UnitedHealth Group, Inc. 12,482,484
71,880 Varian Medical Systems, Inc.* 2,885,982
------------
74,062,135
------------
PRODUCER DURABLES - 3.9%
203,630 Donaldson Co., Inc. 6,047,811
87,930 United Technologies Corp. 8,161,663
------------
14,209,474
------------
TECHNOLOGY - 9.0%
349,470 Check Point Software Tech.Ltd.* 7,905,361
234,820 Citrix Systems, Inc.* 5,666,207
21,610 General Dynamics Corp. 2,206,813
380,540 Microsoft Corp. 10,651,315
246,080 Texas Instruments, Inc. 6,016,656
------------
32,446,352
------------
TOTAL INVESTMENT IN COMMON STOCK - 95.5%
(Identified cost, $179,306,868) 345,936,275
------------
CASH EQUIVALENTS - 4.6%
$16,722,000 State Street Bank and Trust Eurodollar
Time Deposit, at cost approximating
value, maturity 11/01/04, 1.25% 16,722,000
------------
TOTAL INVESTMENTS - 100.1%
(Identified cost, $196,028,868) 362,658,275
------------
OTHER ASSETS AND LIABILITIES - (0.1%)
Other Assets 377,822
Liabilities (644,422)
------------
(266,600)
------------
NET ASSETS - 100% $362,391,675
============
* Non-income producing security
See notes to financial statements.
CENTURY SMALL CAP SELECT FUND
PORTFOLIO OF INVESTMENTS - OCTOBER 31, 2004
Common Stock - 91.6%
SHARES VALUE
- ------ -----
CONSUMER DISCRETIONARY - 21.1%
107,440 America's Car-Mart, Inc.* $ 3,709,903
171,820 Beacon Roofing Supply, Inc.* 3,221,625
49,160 Bright Horizons Family Solutions, Inc.* 3,111,828
198,310 Cato Corp. 4,553,198
245,230 Digital Theater Systems, Inc.* 4,171,362
260,480 Fred's, Inc. 4,566,214
171,260 Gildan Activewear, Inc.* 4,913,449
185,500 Lifeline Systems, Inc.* 4,461,275
233,870 Princeton Review, Inc.* 1,357,615
454,670 Providence Service Corp.* 8,402,302
232,320 Ritchie Bros. Auctioneers, Inc. 7,088,083
178,440 Schawk, Inc. 2,965,673
270,360 Standard Parking Corp.* 3,484,940
143,970 Tractor Supply Co. 5,223,232
------------
61,230,699
------------
CONSUMER STAPLES - 0.5%
50,000 Church & Dwight Co., Inc. 1,361,000
------------
FINANCIAL SERVICES - 21.7%
126,480 Bancorp Rhode Island, Inc. 4,837,860
263,610 BISYS Group, Inc.* 3,848,706
128,710 Blackbaud, Inc.* 1,601,152
164,880 Capital Trust, Inc. 4,826,038
62,660 First Community Bancorp, Inc. 2,629,840
309,890 First Niagara Financial Group, Inc. 4,319,867
150,580 Jones Lang LaSalle, Inc.* 4,818,560
435,000 Marlin Business Services Corp.* 7,666,875
319,440 Platinum Underwriters Holding, Ltd. 9,343,620
180,490 Portfolio Recovery Associates, Inc.* 6,086,123
71,430 Primus Guaranty, Ltd.* 939,305
63,500 Redwood Trust, Inc. 3,820,160
156,310 Scottish Re Group Limited 3,516,975
246,340 Texas Capital Bancshares, Inc.* 4,870,142
------------
63,125,223
------------
HEALTH CARE - 21.5%
113,320 American Service Group, Inc.* 4,053,456
272,040 American Healthways, Inc.* 8,210,167
84,720 American Medical Security Group, Inc.* 2,689,860
191,410 Amsurg Corp.* 4,477,080
149,430 Apria Healthcare Group, Inc.* 4,088,405
44,420 Bradley Pharmaceuticals, Inc.* 735,595
139,540 eResearch Technology, Inc. 1,631,223
118,940 Exactech, Inc. 2,048,147
283,830 Merit Medical Systems, Inc.* 2,937,640
92,800 Millipore Corp.* 4,267,872
121,750 Molina Healthcare, Inc.* 4,482,835
94,720 ResMed, Inc.* 4,451,840
188,220 Stericycle, Inc.* 8,532,013
157,850 Sunrise Senior Living, Inc.* 6,015,664
58,330 SurModics, Inc.* 1,566,161
62,700 United Surgical Partners Int'l, Inc.* 2,195,127
------------
62,383,085
------------
MATERIALS & PROCESSING - 5.8%
130,790 Rogers Corp.* 5,613,507
643,150 RPM International, Inc. 11,338,734
------------
16,952,241
------------
OTHER ENERGY - 4.6%
117,800 Houston Exploration Co.* 6,903,080
531,180 Magnum Hunter Resources, Inc.* 6,427,278
------------
13,330, 358
------------
PRODUCER DURABLES - 4.1%
97,230 Plantronics, Inc. 4,229,505
218,128 Varian Semiconductor Equip. Assoc.* 7,549,410
------------
11,778,915
------------
TECHNOLOGY - 12.3%
80,170 ANSYS, Inc.* 2,212,692
147,200 Diodes, Inc.* 4,302,656
51,320 FLIR Systems, Inc.* 2,730,737
12,810 II-VI, Inc.* 438,614
383,267 Ixia* 4,894,320
483,300 Lawson Software, Inc.* 2,764,476
189,430 OmniVision Technologies, Inc.* 3,011,937
651,590 Online Resources Corp.* 4,730,543
252,740 Open Solutions, Inc.* 7,118,422
278,950 Ultimate Software Group, Inc.* 3,588,692
------------
35,793,089
------------
TOTAL INVESTMENT IN COMMON STOCK - 91.6%
(Identified cost, $243,498,114) 265,954,610
------------
CASH EQUIVALENTS - 8.0%
$23,369,000 State Street Bank and Trust Eurodollar
Time Deposit, at cost approximating
value, maturity 11/01/04, 1.25% 23,369,000
------------
TOTAL INVESTMENTS - 99.6%
(Identified cost, $266,867,114) 289,323,610
------------
CASH AND RECEIVABLES LESS LIABILITIES - 0.4%
Other Assets 3,503,074
Liabilities (2,200,368)
------------
1,302,706
------------
NET ASSETS - 100% $290,626,316
============
*Non-income producing security
See notes to financial statements.
STATEMENT OF ASSETS AND LIABILITIES - OCTOBER 31, 2004
CENTURY SHARES CENTURY SMALL CAP
TRUST SELECT FUND
ASSETS:
Investments, at value (Note 1A) (Identified cost of, $196,028,868 and
$266,867,114, respectively) .......................................... $362,658,275 $289,323,610
Cash .......................................................................... 116 839
Dividends and interest receivable ............................................. 345,585 27,225
Receivable for investments sold ............................................... -- 1,588,868
Receivable for Trust/Fund shares sold ......................................... 32,121 1,886,142
------------ ------------
Total Assets ......................................................... 363,036,097 292,826,684
------------ ------------
LIABILITIES:
Payable to Affiliates:
Management fee (Note 4) .............................................. 207,963 222,402
Administration fee (Note 5) .......................................... 90,799 --
Distribution fees (Note 7) ........................................... -- 69,734
Accrued expenses and other liabilities ........................................ 146,233 98,629
Payable for investments purchased ............................................. -- 1,759,795
Payable for Trust/Fund shares repurchased ..................................... 199,427 49,808
------------ ------------
Total Liabilities .................................................... 644,422 2,200,368
------------ ------------
NET ASSETS .................................................................... $362,391,675 $290,626,316
============ ============
At October 31, 2004, net assets consisted of:
Capital paid-in ............................................................... $159,772,113 $261,810,568
Accumulated distributions in excess of net investment income .................. (247,377) --
Accumulated undistributed net realized gains on investments ................... 36,237,532 6,359,252
Unrealized appreciation in value of investments ............................... 166,629,407 22,456,496
------------ ------------
Net assets applicable to outstanding capital stock ............................ $362,391,675 $290,626,316
============ ============
Net Assets consist of:
Century Small Cap Select Fund
Investor Class ...................................................................... $150,418,085
Institutional Class ................................................................. $140,208,231
Shares Outstanding consist of (Note 2):
Century Shares Trust ................................................. 10,173,980
Century Small Cap Select Fund
Investor Class ...................................................................... 6,757,000
Institutional Class ................................................................. 6,242,601
NET ASSET VALUE PER SHARE (Represents both the offering and redemption price*):
Century Shares Trust ................................................. $35.62
Century Small Cap Select Fund
Investor Class ....................................................... $22.26
Institutional Class .................................................. $22.46
* 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 redemption fee of 1% of the current net asset value of the shares may be assessed and retained by each for
the benefit of their respective remaining shareholders. The redemption fee is accounted for as an addition to paid-in-capital.
See notes to financial statements.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2004
CENTURY SHARES CENTURY SMALL CAP
TRUST SELECT FUND
Investment Income/(Loss):
Dividends (net of withholding tax of $0 and $12,086,respectively) ........... $ 4,376,028 $ 1,490,085
Interest .................................................................... 190,061 174,748
----------- -----------
Total income ................................................................. 4,566,089 1,664,833
----------- -----------
Expenses:
Investment adviser fee (Note 4) .............................................. 2,989,073 1,973,596
Administration (Note 5) ...................................................... 560,451 --
Distribution fee (Note 7) .................................................... -- 312,411
Non-interested trustees' remuneration ........................................ 80,520 43,855
Transfer agent ............................................................... 304,750 --
Transfer agent - institutional ............................................... -- 18,900
Transfer agent - investor .................................................... -- 199,207
Custodian .................................................................... 67,300 118,575
Insurance .................................................................... 25,382 13,778
Professional fees ............................................................ 127,530 67,545
Registration ................................................................. 27,450 36,695
Printing and other ........................................................... 123,200 71,650
----------- -----------
Total expenses ............................................................... 4,305,656 2,856,212
Advisor reimbursement (Note 6) ............................................... -- (24,110)
----------- -----------
Net expenses ................................................................. 4,305,656 2,832,102
----------- -----------
Net investment income/(loss) ................................................. 260,433 (1,167,269)
----------- -----------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain from investment transactions ................................ 36,864,445 6,580,251
Change in unrealized appreciation (depreciation) on investments ............... (5,934,258) 8,897,460
----------- -----------
Net realized and unrealized gain on investments ............................... 30,930,187 15,477,711
----------- -----------
Net increase in net assets resulting from operations .......................... $31,190,620 $14,310,442
=========== ===========
See notes to financial statements
STATEMENT OF CHANGES IN NET ASSETS
Century Small Cap
Century Shares Trust Select Fund
INCREASE (DECREASE) Year Ended Year Ended Year Ended Year Ended
IN NET ASSETS: October 31,2004 October 31, 2003 October 31, 2004 October 31, 2003
Operations:
Net investment income/(loss) $260, 433 $ 641,578 $ (1,167,269) $ (351,611)
Net realized gain on investment transactions 36,864,445 30,261,077 6,580,251 7,903,111
Change in net unrealized appreciation (depreciation) (5,934,258) 17,391,799 8,897,460 13,734,820
------------- ------------- ------------ -------------
Net increase in net assets
resulting from operations 31,190,620 48,294,454 14,310,442 21,286,320
Net Equalization (Note 1C) -- 11,162 -- --
Distributions to shareholders from:
Net Investment Income
Century Shares Trust (3,399,416) (902,700)
Century Small Cap Select Fund
Institutional Class (2,292,188) (95,347)
Investor Class (4,127,025) (50,154)
Realized gain from investment transactions
Century Shares Trust (27,153,654) (27,700,185)
Century Small Cap Select Fund
Institutional Class (463,307) (317,824)
Investor Class (861,677) (270,197)
Trust/Fund share transactions - net 19,063,442 31,656,322 161,980,295 78,245,834
Redemption fees 12,155 8,216 184,676 39,811
------------- ------------- ------------ -------------
Total increase 19,713,147 51,367,269 168,731,216 98,838,443
NET ASSETS:
Beginning of year 342,678,528 291,311,259 121,895,100 23,056,657
------------- ------------- ------------ -------------
End of year $ 362,391,675 $ 342,678,528 $290,626,316 $ 121,895,100
============= ============= ============ =============
Distributions in excess of net investment
income at end of year $ 247,377 $ 247,376
============= =============
See notes to financial statements.
FINANCIAL HIGHLIGHTS
Year Ended Period Ended Year Ended
October 31, October 31, December 31,
CENTURY SHARES TRUST 2004 2003 2002 (A) 2001 2000 1999
Net Asset Value, beginning of period $ 35.66 $ 33.95 $ 38.12 $ 42.97 $ 34.32 $ 44.66
-------- -------- ----------- ----------- ----------- -----------
Income/(loss) from Investment
Operations:
Net investment income (b) 0.03 0.07 0.08 0.17 0.39 0.42
Net realized and unrealized gain/
(loss) on investments 3.02 5.03 (4.20) (1.26) 12.39 (6.05)
-------- -------- ----------- ----------- ----------- -----------
Total income/(loss) from investment
operations 3.05 5.10 (4.12) (1.09) 12.78 (5.63)
-------- -------- ----------- ----------- ----------- -----------
Less Distributions From:
Net investment income (0.34) (0.10) (0.05) (0.17) (0.38) (0.40)
In excess of net investment income -- -- -- -- -- (0.01)
Net realized gain on investment
transactions (2.75) (3.29) -- (3.60) (3.75) (4.30)
-------- -------- ----------- ----------- ----------- -----------
Total distributions (3.09) (3.39) (0.05) (3.77) (4.13) (4.71)
-------- -------- ----------- ----------- ----------- -----------
Redemption fees --+ --+ --+ 0.01 -- --
-------- -------- ----------- ----------- ----------- -----------
Net Asset Value, end of period $ 35.62 $ 35.66 $ 33.95 $ 38.12 $ 42.97 $ 34.32
======== ======== =========== =========== =========== ===========
Total Return 9.06% 16.99% -10.82%** -2.52% 37.44% -12.38%
Ratios and supplemental data
Net assets, end of period
(000 omitted) $362,392 $342,679 $ 291,311 $ 345,849 $ 417,598 $ 309,644
Ratio of expenses to average net
assets 1.15% 1.17% 1.19%* 1.05% 0.83% 0.82%
Ratio of net investment income to
average net assets 0.07% 0.21% 0.26%* 0.41% 1.05% 1.00%
Portfolio Turnover Rate 43% 37% 22% 17% 17% 11%
CENTURY SMALL CAP SELECT FUND
Year Ended October 31,
Institutional Class 2004 2003 2002 2001 2000 (c)
Net Asset Value, beginning of period $ 21.53 $ 15.42 $ 14.68 $ 14.57 $ 10.00
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment (loss)/income (b) (0.08) (0.09) (0.10) -- 0.04
Net realized and unrealized gain on
investments 2.14 6.64 0.93 0.52(d) 4.53
-------- -------- -------- -------- --------
Total income from investment
operations 2.06 6.55 0.83 0.52 4.57
-------- -------- -------- -------- --------
Less Distributions From:
Net investment income (0.94) (0.11) -- (0.02) --
Net realized gain on investment
transactions (0.19) (0.35) (0.13) (0.41) --
-------- -------- -------- -------- --------
Total distributions (1.13) (0.46) (0.13) (0.43) --
-------- -------- -------- -------- --------
Redemption fees --+ 0.02 0.04 0.02 --
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 22.46 $ 21.53 $ 15.42 $ 14.68 $ 14.57
======== ======== ======== ======== ========
Total Return 9.83% 43.76% 5.87% 3.63% 45.70%**
Ratios and supplemental data
Net assets, end of period
(000 omitted) $140,208 $ 42,936 $ 12,938 $ 6,093 $ 2,253
Ratio of expenses to average
net assets 1.13% 1.26% 1.45% 1.45% 1.45%*
Ratio of expenses to average
net assets without giving effect to
voluntary expense reimbursement 1.13% 1.40% 1.87% 4.04% 11.58%*
Ratio of net investment (loss)/income
to average net assets -0.36% -0.50% -0.70% -0.02% 0.38%*
Portfolio Turnover Rate 103% 88% 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) Calculated based on average shares outstanding during the period.
(c) From the commencement date of investment operations, December 9, 1999 to October 31, 2000.
(d) 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.
+ Amount represents less than $0.01 per share.
* Annualized
** Not annualized
See notes to financial statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
CENTURY SMALL CAP SELECT FUND
Year Ended October 31,
Investor Class 2004 2003 2002 2001 2000(a)
Net Asset Value, beginning of period $ 21.39 $ 15.35 $ 14.60 $ 14.26 $ 10.00
-------- -------- -------- -------- --------
Income from Investment Operations:
Net investment (loss)/income (c) (0.15) (0.15) (0.18) (0.03) (0.01)
Net realized and unrealized gain on
investments 2.12 6.60 0.94 0.53(b) 4.27
-------- -------- -------- -------- --------
Total income from investment
operations 1.97 6.45 0.76 0.50 4.26
-------- -------- -------- -------- --------
Less Distributions From:
Net investment income (0.91) (0.07) -- -- --
Net realized gain on investment
transactions (0.19) (0.35) (0.03) (0.19) --
-------- -------- -------- -------- --------
Total distributions (1.10) (0.42) (0.03) (0.19) --
-------- -------- -------- -------- --------
Redemption fees --+ 0.01 0.02 0.03 --
-------- -------- -------- -------- --------
Net Asset Value, end of period $ 22.26 $ 21.39 $ 15.35 $ 14.60 $ 14.26
======== ======== ======== ======== ========
Total Return 9.45% 43.12% 5.34% 3.68% 42.60%**
Ratios and supplemental data
Net assets, end of period
(000 omitted) $150,418 $ 78,959 $ 10,119 $ 9,302 $ 690
Ratio of expenses to average net
assets 1.50% 1.61% 1.80% 1.80% 1.80%*
Ratio of expenses to average net
assets without giving effect to
voluntary expense reimbursement 1.50% 1.76% 2.53% 4.38% 14.73%*
Ratio of net investment (loss)/income to
average net assets -0.69% -0.86% -1.05% -0.48% -0.14%*
Portfolio Turnover Rate 103% 88% 123% 48% 24%
(a) From the commencement date of investment operations, February 24, 2000 to October 31, 2000.
(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) Calculated based on average shares outstanding during the period.
* 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" and together with the
Trust, the "Funds") are diversified series of the Master Trust. The following is
a summary of significant accounting policies consistently followed by both the
Trust and the Fund in the preparation of their financial statements. The
policies are in conformity with accounting principles generally accepted in the
United States of America.
A. Investment Security Valuations -- Securities listed on national securities
exchanges are valued at closing prices. Unlisted securities or listed securities
for which closing prices are not available generally are valued at the latest
bid prices. Short-term obligations, maturing in 60 days or less, are valued at
amortized cost, which approximates value.
B. Equalization -- The Master Trust follows the accounting practice known as
equalization by which a portion of the proceeds from sales and costs of
repurchases of Master 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.
C. 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.
D. Use of Estimates -- The preparation of these financial statements in
accordance with accounting principles generally accepted in the United States of
America incorporates estimates made by management in determining the reported
amounts of assets, liabilities, revenues and expenses of the Trust and Fund.
Actual results could differ from those estimates.
E. Risks and Uncertainty -- Concentration in the financial services field will
subject the Trust 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 concentrated portfolios. A focus in this field will subject
the Trust to similar risks. In addition, the Century Small Cap Select Fund
invests in smaller companies which pose greater risks than those associated with
larger, more established companies.
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 may be assessed
and retained by each for the benefit of their respective remaining shareholders.
The redemption fee is accounted for as an addition to paid-in-capital.
H. Income Tax Information and Distributions to Shareholders -- Each year the
fund intends to qualify as a regulated investment company by distributing all of
its taxable income and realized gains under Subchapter M of the Internal Revenue
Code. As a result, no provision for income taxes is required in the accompanying
financial statements. Foreign taxes are provided for based on each fund's
understanding of the tax rules and rates that exist in the foreign markets in
which it invests. Income dividends and capital gain distributions are declared
separately for each class. Distributions are recorded on the ex-dividend
date. Income and capital gain distributions are determined in accordance with
income tax regulations, which may differ from generally accepted accounting
principles. In order to present undistributed (distribution in excess of) net
investment income ("UNII") and accumulated net realized gain ("Accumulated
Gain") more closely to its tax character, the following accounts for each Fund
were increased (decreased):
PAID-IN
CAPITAL UNII ACCUMULATED GAIN
Century Shares Trust $ 77,803 $3,138,982 ($3,216,785)
Century Small Cap Select Fund ($1,203,805) $7,586,481 ($6,382,676)
Capital accounts within the financial statements are adjusted for permanent and
temporary book and tax differences. These adjustments have no impact on net
assets or the results of operations. Temporary differences will reverse in a
subsequent period. These differences are primarily due to equalization,
partnership income, net operating losses and losses deferred due to wash sales
and excise tax regulations.
The tax-basis components of distributable earnings and the federal tax cost as
of period end were as follows:
For the Trust
- -------------
UNREALIZED APPRECIATION $168,747,999
UNREALIZED DEPRECIATION 2,131,896
------------
NET UNREALIZED APPRECIATION (DEPRECIATION) 166,616,103
ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME (247,377)
ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS ON INVESTMENTS 36,237,532
COST FOR FEDERAL INCOME TAX PURPOSES $196,042,172
The tax character of distributions paid was as follows:
OCTOBER 31, 2004 OCTOBER 31,2003
ORDINARY INCOME ............................................................... $ 3,399,416 $ 902,700
LONG-TERM CAPITAL GAIN ........................................................ $ 27,153,654 $ 27,700,185
For the Fund
UNREALIZED APPRECIATION ....................................................... $ 27,740,749
UNREALIZED DEPRECIATION ....................................................... 5,284,505
-------------
NET UNREALIZED APPRECIATION (DEPRECIATION) .................................... 22,456,244
ACCUMULATED UNDISTRIBUTED NET REALIZED GAINS ON INVESTMENTS ................... 6,359,252
COST FOR FEDERAL INCOME TAX PURPOSES .......................................... $ 266,867,366
The tax character of distributions paid was as follows:
OCTOBER 31, 2004 OCTOBER 31,2003
ORDINARY INCOME
Investor class .............................................................. $ 4,127,025 $ 50,154
Institutional class ......................................................... $ 2,292,188 $ 95,347
LONG-TERM CAPITAL GAIN
Investor class .............................................................. $ 861,677 $ 270,197
Institutional class ......................................................... $ 463,307 $ 317,824
(2) TRANSACTIONS IN SHARES
A.TRUST SHARES-- The number of authorized shares is unlimited. Transactions in Trust shares were as follows:
YEAR ENDED YEAR ENDED
OCTOBER 31, 2004 OCTOBER 31,2003
SHARES AMOUNT SHARES AMOUNT
Sold .................................... 1,204,333 $ 43,119,845 1,387,152 $ 45,313,276
Issued to shareholders in reinvestment of
distributions from:
Net investment income ................. 75,256 2,566,092 20,924 660,462
Realized gain on investment transactions 657,481 22,130,823 730,060 21,745,807
---------- ------------ ---------- ------------
1,937,070 67,816,760 2,138,136 67,719,545
Repurchased ............................. (1,372,661) (48,753,319) (1,108,500) (36,063,223)
---------- ------------ ---------- ------------
Net increase ............................ 564,409 $ 19,063,441 1,029,636 $ 31,656,322
========== ============ ========== ============
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, 2004
INSTITUTIONAL CLASS INVESTOR CLASS
SHARES AMOUNT SHARES AMOUNT
Sold .................................... 5,191,629 $113,979,347 5,625,370 $123,936,410
Issued to shareholders in reinvestment of
distributions from:
Net investment income ................. 96,665 2,066,697 174,258 3,702,975
Realized gain on investment transactions 20,693 442,409 36,415 773,818
------------ ------------ ------------ ------------
5,308,987 116,488,453 5,836,043 128,413,203
Repurchased ............................. (1,060,514) (23,004,896) (2,771,158) (59,916,466)
------------ ------------ ------------ ------------
Net increase ............................ 4,248,473 $ 93,483,557 3,064,885 $ 68,496,737
============ ============ ============ ============
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
============ ============ ============ ============
(3) INVESTMENT SECURITY TRANSACTIONS
FOR THE TRUST, other than U.S. Government obligations and certificates of
deposit, purchases and sales of investment securities aggregated $161,506,892
and $168,691,872,respectively, during the period ended October 31, 2004.
FOR THE FUND, other than U.S.Government obligations and certificates of deposit,
purchases and sales of investment securities aggregated $350,442,914 and
$215,286,759,respectively, during the year ended October 31, 2004.
(4) INVESTMENT ADVISER FEE FOR THE TRUST, the investment adviser fee is earned
by Century Capital Management, LLC ("CCM"), as compensation for providing
investment advisory, 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, 2004,the fee amounted to $2,989,073. The
portion ofthe adviser fee that was paid to Century Capital Management, Inc.
prior to January 29, 2004,the change of control is $716,517. 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 two former Trustees.
Under the terms of the Trust's Investment Advisory and Management Agreement with
CCM, CCM has assumed the obligation to make all such payments on behalf of the
Trust during the term of the agreement. The amount of potential future payments
owed by theTrust cannot be estimated with certainty due to the variability of
amounts used to determine the payment and therefore are not reflected in the
Trust's financial statements. Retirement benefits are payable over various
periods.
FOR THE FUND, the investment adviser fee is earned by CCM as compensation for
providing investment advisory, management and administrative services to the
Fund. CCM receives a monthly fee equal on an annualized basis to 0.95% of the
Fund's net asset value. For the year ended October 31, 2004, the fee amounted to
$1,973,596. The portion of the adviser fee that was paid to Century Capital
Management, Inc. prior to January 29,2004, the change of control is $366,475.
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 $560,451
for the year ended October 31, 2004. The portion of the administration fee that
was paid to Century Capital Management, Inc. prior to January 29, 2004, the
change of control is $134,347.
(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, 2005. The expense limitations
for the Investor and Institutional Class are 1.80% and 1.45%, respectively.
During the year ended October 31, 2004, the Century Capital Management LLC made
a voluntary reimbursement of $24,110.
(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,
2004, $312,411 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.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustees and Shareholders of
Century Capital Management Trust:
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Century Shares Trust and Century Small Cap
Select Fund (each a separate series of Century Capital Management Trust ("Master
Trust")) as of October 31, 2004, the related statements of operations for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Master Trust's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. 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, 2004, 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 and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of Century Shares Trust and Century Small Cap Select Fund as of October 31,
2004, the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and the
financial highlights for each of the periods presented, in conformity with
accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
December 21, 2004
MANAGEMENT OF THE TRUST
The following table provides certain information regarding the Trustees and officers of Century Capital Management Trust
(the Master "Trust") as of October 31, 2004. Unless otherwise noted, (i) each Trustee and officer has engaged in the
principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same
capacity, and (ii) the address of each Trustee and officer is 100 Federal Street, 29th Floor, Boston, Massachusetts
02110. Each Trustee's term of office continues until the Trustee retires, resigns or is removed in accordance with the
Master Trust's Declaration of Trust.
INDEPENDENT TRUSTEES
NUMBER OF
PORTFOLIOS
NAME, AGE, POSITION(S) IN FUND OTHER
HELD WITH MASTER TRUST PRINCIPAL OCCUPATION(S) COMPLEX DIRECTORSHIPS
AND LENGTH OF TIME SERVED DURING PAST 5 YEARS OVERSEEN HELD
JOHN E. BEARD (72) Ropes & Gray LLP, Partner (until 12/31/00), 2 The Timberland Company;
Trustee, 1999 to present(1) of Counsel (thereafter) (law firm). BTU International, Inc.
JERROLD MITCHELL (65) Massachusetts Pension Reserves Investment 2 None.
Trustee, January 2004 to present Management Board, Chief Investment Officer
(April 2001 to October 2004); Independent
Investment Adviser (since 1995).
ERNEST E. MONRAD (74) Northeast Investors Trust, Trustee (Chairman 2 Northeast Investors Funds
Trustee, 1999 to present (1) until 05/00) (investment company); Northeast (2 registered investment
Investors Growth Fund, Chairman, Trustee companies overseen);
and Assistant Treasurer (investment company); New American High
Northeast Investment Management, Inc., Income Fund.
Vice President and Director (investment
adviser).
MICHAEL J. POULOS (73) Retired. 2 Technical Olympic, USA, Inc.
Trustee, 1999 to present(1)
JERRY S. ROSENBLOOM (65) The Wharton School, University of Pennsylvania, 2 Harleysville Group, Inc.;
Trustee, 1999 to present(1) Professor of Insurance and Risk Management and MBIA Municipal Bond Fund.
Academic Director. Certified Employee Benefit
Specialist Program
DAVID D. TRIPPLE (60) Pioneer Investment Management, a subsidiary 2 None.
Trustee, January 2004 to present of UniCredito Italiano (investment adviser),
Chief Executive Officer and Trustee of
all U.S. Pioneer mutual funds (10/00 to
09/01); prior thereto, The Pioneer
Group, Inc. (asset management), Executive
Vice President and Director (09/98 to
10/00).
- -------------------
(1) On July 31,2001, Century Shares Trust was reorganized from a separate stand-alone trust into a series of the
Trust. Prior to the reorganization, the following Trustees had served as Trustees of Century Shares Trust since the
year indicated: Mr.Beard - since 1983; Mr.Monrad - since 1976; Mr.Poulos - since 1998; and Mr.Rosenbloom - since 1998.
INTERESTED TRUSTEES AND OFFICERS 2
NUMBER OF
PORTFOLIOS
NAME, AGE, POSITION(S) IN FUND OTHER
HELD WITH MASTER TRUST PRINCIPAL OCCUPATION(S) COMPLEX DIRECTORSHIPS
AND LENGTH OF TIME SERVED DURING PAST 5 YEARS OVERSEEN HELD
ALEXANDER L. THORNDIKE (38) Century Capital Management, LLC, Managing 2 None
Chairman, January 2004 to present; Partner, Managing Director and Executive
Trustee and Chief Investment Committee Member; CCP Capital II, LLC,
Officer, 1999 to present Managing Member (since 1999) (investment
management services); Sachem Partners,
LLC, manager (since 2003) (investment
management services)
DAVIS R. FULKERSON (39) Century Capital Management, LLC, Managing 2 None
Trustee, 2000 to present Partner, Managing Director and Executive
Committee Member; CCP Capital II, LLC,
Managing Member (since 1999) (investment
management services); CCP Capital III, Inc.,
Director (since 2001) (investment management
services);Massachusetts Fiduciary Advisors,
Inc., Vice President (03/99 to 12/00)
(investment adviser)
STEVEN ALFANO (46) Century Capital Management, LLC, Managing N/A N/A
Secretary, 2001 to present, Director; CCP Capital II, LLC, Managing
Principal Accounting Officer, Member (since 1999) (investment management
2002 to present and Chief services); CCP Capital III, Inc., Secretary and
Compliance Officer Treasurer (since 2001) (investment management
services); Massachusetts Fiduciary Advisors,
Inc., Vice President (03/99 to 12/00)
(investment adviser)
The Funds' Statement of Additional Information ("SAI") includes additional information about the Trustees. The SAI is
available, without charge, upon request. If you would like to request a copy of the SAI, you may do so by calling the
following toll-free number:1-800-321-1928.
Quarterly Portfolio Schedule and Proxy Voting Policies and Procedures. The Funds file their complete schedule of
portfolio holdings with the Securities and Exchange Commission (the "SEC") for the first and third quarters of each
fiscal year on Form N-Q. A description of the policies and procedures that each Fund uses to determine how to vote
proxies relating to portfolio securities and each Fund's proxy voting record for the 12-month period ended June 30 is
available, without charge, upon request, by calling 1-800-321-1928. The Funds' Form N-Q, a description of the Funds'
proxy voting policies and procedures and proxy voting record are available on the SEC's website at http://www.sec.gov.
These materials may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on
the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
- -------------------
(2) Each person listed is considered an "interested person" of the Funds within the meaning of the 1940 Act by virtue of
being an officer or employee of the Adviser.
[logo] CENTURY FUNDS
100 Federal Street Boston, Massachusetts 02110
GROWTH INVESTORS IN
VALUE INDUSTRIES
- --------------------------------------------------------------------------------
CCMT AR 45
OCT 2004
- --------------------------------------------------------------------------------
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 referenced in 2(a)
above. However, on December 16, 2004, the Board of Trustees adopted a
new, more comprehensive 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. The new code of ethics superceded the previous code
of ethics, effective December 16, 2004. It is filed as an exhibit
hereto.
(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.
(a) Audit Fees. The aggregate fees billed to the Trust for each of the
last two fiscal years for professional services rendered by the
principal accountant for the audit of the financial statements of
Century Capital Management Trust (the "Trust") or services that are
normally provided by the accountant in connection with statutory and
regulatory filings or engagements for these fiscal years were as
follows:
FYE Audit Fees
--- ----------
10/31/04 $55,200
10/31/03 $58,400
(b) Audit-Related Fees. For each of the last two fiscal years, there were
no fees billed to the Trust for assurance and related services by the
principal accountant that are reasonably related to the performance of
the audit of the Trust's financial statements and are not reported
under Audit Fees. For each of the last two fiscal years of the Trust,
there were no audit-related fees billed by the Fund's principal
accountant to the Trust's investment adviser and any entity
controlling, controlled by, or under common control with the adviser
that provides ongoing services to the Fund (together, "Accounting
Affiliates") for services that were related directly to the operations
and financial reporting of the Trust.
(c) Tax Fees. The aggregate fees billed to the Trust for each of the last
two fiscal years for professional services provided by the Trust's
principal accountant for tax compliance, tax advice and tax planning
were as follows:
FYE Audit Fees
10/31/04 None
10/31/03 $3,800
For the last two fiscal years of the Trust, there were no tax fees
billed by the Fund's principal accountant to the Trust's Accounting
Affiliates for services that were related directly to the operations
and financial reporting of the Trust.
(d) All Other Fees. All Other Fees are fees related to services other than
those reported above under "Audit Fees," "Audit-Related Fees," and
"Tax Fees." For each of the Trust's last two fiscal years, no such
fees were billed by the Trust's principal accountant to the Trust or
to the Accounting Affiliates for services related directly to the
operations and financial reporting of the Trust.
(e) (1) The Audit Committee's pre-approval policies and procedures are as
follows:
The Charter of the Audit Committee of the Board requires that the
Committee approve (a) all audit and permissible non-audit services to
be provided to the Funds and (b) all permissible non-audit services to
be provided by the Funds' independent auditors to the Funds'
investment adviser or any entity controlling, controlled by, or under
common control with the investment adviser that provides ongoing
services to the Funds, if the engagement relates directly to the
operations and financial reporting of the Funds.
(2) No services described in each of paragraphs (b) through (d) of
this Item were approved by the Audit Committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable
(g) The aggregate non-audit fees billed by the Trust's accountant, for the
Trust's last two fiscal years, for services rendered to the Trust and
the Trust's Accounting Affiliates are shown in the table below:
Non-Audit Fees
Non-Audit Fees for Accounting Aggregate
for Trust Affiliates Non-Audit Fees
FYE
October 31, 2004 None None None
October 31, 2003 $3,800 None $3,800
(h) The Audit Committee of the Board of Trustees has considered whether
the provision of services other than audit services performed by the
auditors to the Registrant is compatible with maintaining the
auditors' independence in performing audit services.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end investment companies.
Item 6. Schedule of Investments.
Schedule of Investments is included as part of the report to
shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable to open-end investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchases.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
No changes.
Item 11. Controls and Procedures.
(a) The registrant's principal executive officer and principal
financial officer, after evaluating the effectiveness of the registrant's
"disclosure controls and procedures" (as defined in the Investment Company Act
of 1940 Rule 30-a-2(c) under the Act (17 CFR 270.30a-2(c))) as of a date (the
"Evaluation Date") within 90 days of the filing date of this report, have
concluded that, as of the Evaluation Date, the registrant's disclosure controls
and procedures were adequately designed to ensure that the information required
to be disclosed by the registrant in this Form N-CSR is recorded, processed,
summarized and reported within the time periods specified in the Commission's
rules and forms.
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d))) that occurred during the registrant's second fiscal quarter of
the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
Items 12. Exhibits.
(a) Fund's Code of Ethics. The registrant's code of ethics required to
be disclosed under Item 2 of Form N-CSR attacheded hereto as Exhibit 99.CODE
ETH.
(b) Attached hereto.
Exhibit 99.CERT A separate certification for each principal
executive officer and principal financial
officer of the registrant as required by Rule
30a-2 of the Investment Company Act of 1940.
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/ Alexander L. Thorndike
--------------------------------
Alexander L. Thorndike, Chairman
Date: July 12, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed below by
the following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By: /s/ Alexander L. Thorndike
--------------------------------
Alexander L. Thorndike, Chairman (Principal Executive Officer)
Date: July 12, 2005
By: /s/ Steven Alfano
--------------------------------
Steven Alfano, Secretary (Principal Financial Officer)
Date: July 12, 2005