<PAGE>
For Over
Seventy Years
Uniquely
Positioned
to Capitalize
on Change
[graphic omitted]
[logo]
CENTURY
Century
Small Cap
Select Fund
ANNUAL REPORT
OCTOBER 31, 2000
<PAGE>
[logo] CENTURY FUNDS
CENTURY SMALL CAP
SELECT FUND
TRUSTEES
Allan W. Fulkerson, Chairman and Trustee
William O. Bailey, Trustee
John E. Beard, Trustee
William W. Dyer, Jr., Trustee
Davis R. Fulkerson, Trustee
Ernest E. Monrad, Trustee
Michael J. Poulos, Trustee
Jerry S. Rosenbloom, Trustee
Alexander L. Thorndike, Trustee
AUDITORS
Deloitte & Touche LLP
CUSTODIAN
State Street Bank & Trust Co.
TRANSFER AGENT
Boston Financial Data Services, Inc.
State Street Bank & Trust Co.
DISTRIBUTOR
Forum Fund Services, LLC
LEGAL COUNSEL
Palmer & Dodge LLP
INVESTMENT ADVISER
Century Capital Management, Inc.
TELEPHONE
617-482-3060
800-321-1928
Shareholder Hotline
800-303-1928
www.centuryfunds.com
TEN LARGEST HOLDINGS
10/31/00
NEUBERGER BERMAN, INC. 5.6%
An independent investment adviser that also
provides institutional and wealthy clients with
investment strategies and products.
CONCORD EFS, INC. 4.9%
A supplier of infrastructure for e-commerce and
electronic payment/verification that also processes
credit and debit transactions from retailers to
truck drivers.
ALLIED CAPITAL, CORP. 4.9%
A closed-end management investment company
that provides specialized financing to small and
medium sized companies.
BISYS GROUP, INC. 4.8%
A provider of outsourcing solutions to
financial organizations.
SEI INVESTMENTS CO. 4.6%
An asset manager as well as technology provider
to banks and trust companies.
PROBUSINESS SERVICES, INC. 4.4%
A supplier of outsourced payroll processing,
payroll tax filing and benefits administration
services.
BANKNORTH GROUP, INC. 3.7%
A multi-bank and financial services holding
company.
NCO GROUP, INC. 3.4%
A provider of accounts receivable management and
collection services.
AFFILIATED MANAGERS GROUP, INC. 3.1%
Asset management holding company that acquires
majority interests in mid-sized investment
management firms.
WILMINGTON TRUST CORP. 3.0%
A bank and thrift holding company that is engaged
in commercial banking, savings, trust, and investment
management.
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors unless
preceeded or accompanied by a prospectus.
<PAGE>
DEAR FELLOW SHAREHOLDERS
In this first annual report of Century Small Cap Select Fund, we welcome our
shareholders and express appreciation for the confidence you have placed in us.
Your Fund has been able to deliver strong absolute and relative performance,
despite the recent turmoil in the financial markets. The Fund's Institutional
Shares (December 9, 1999 inception date) produced a +45.70% return during the
fiscal year ending October 31, 2000 versus +8.2% return for the Russell 2000
Index, while the Investor Shares produced a +42.60% return versus a decline of
-10.5% return for the Russell 2000 Index since the February 24, 2000 inception
date of the Investor Shares.
----------------------------------------------
PERFORMANCE COMPARISON
----------------------------------------------
10/31/00
INSTITUTIONAL SHARES 45.70%
(12/9/99)
Russell 2000 Index 8.18%
Investors Shares 42.60%
(2/24/00)
Russell 2000 Index -10.46%
SHIFTING MARKET ENVIRONMENT
The year 2000 has been marked by extreme market volatility and shifts in market
sentiment. Initially, investors continued their embrace of New Economy stocks,
but in the March-April period the tide turned abruptly with many of the rising
stars plummeting from their highs. At the same time healthcare, business
services, and financial services stocks lagged significantly before rebounding
upward just as sharply.
After several years of strong economic growth, the U.S. economy is beginning to
slow through a combination of higher interest rates, higher energy and labor
prices and a deceleration in technology spending. We are seeing a shift in
market sentiment away from the "momentum " (revenue growth at-any-cost) stocks
that performed so well until recently. The Presidential election turmoil has
added to the stock market's uncertainty, reducing investors' visibility and
their appetite for risk among higher-priced growth stocks. There is now renewed
emphasis on the sustainable quality of cash flows, predictability of earnings
and intrinsic value. We believe your Fund's portfolio is well positioned to take
advantage of these changes, as we shall discuss in this report.
Past performance is no guarantee of future results. Please see additional
performance information on page 7.
<PAGE>
PORTFOLIO REVIEW: GROWTH INVESTORS IN VALUE INDUSTRIES
The Fund's investment objective is long-term capital appreciation. From a
research and valuation standpoint, we adhere to Century's longheld strategy of
investing in perceived innovative business leaders with sustainable competitive
advantages. We seek companies whose stock prices do not adequately reflect our
expectations for a company's growth or its underlying value. The portfolio is
concentrated in "risk management" businesses - financial services, healthcare,
technology and business services companies. We believe these segments are
generally not well understood by investors and may benefit disproportionately
from the dramatic changes we are seeing in today's global commerce, technology
and demographic trends.
INVESTMENT PROCESS
Our investment philosophy continues to focus on industry leaders with superior
management teams and sustainable competitive advantages in their products,
services and/or distribution networks. Our investing process includes in-depth
fundamental research on each company, its rivals and the industry in which it
competes.
Our research analysts focus on analyzing the shifting trends in strategy,
innovation, pricing, margins and capital allocation in order to assess
risk-versus-reward tradeoffs in making our buy and sell decisions. We use this
industry knowledge to anticipate attractive investment entry points in each
company's growth cycle, and we expect to see tremendous market share changes
among the leaders in our "risk management" industries over the next 1-2 years.
WHAT DO WE LOOK FOR WHEN MAKING OUR INVESTMENT DECISIONS?
We start by looking for companies that exhibit "franchise" characteristics and
superior management teams that can potentially deliver faster growth at
attractive points in their valuation cycle. We define franchise as exhibiting a
sustainable combination of 1) strong market share, 2) high rates of client
retention, 3) proprietary distribution or products, 4) low operating expenses,
5) industry/brand recognition and 6) potential for operating leverage (the
ability to expand margins and grow earnings at a faster rate than revenues).
Analyzing management strategy and execution ability requires more subjective
analysis: we like to visit with senior and junior-level management as frequently
as possible, as well as to talk to our field contacts in order to ascertain
growth prospects and the challenges we expect the company to face going forward.
We try to know our companies and their industries better than other investors
through a combination of quantitative and qualitative due diligence; our
analysts follow up management meetings by developing detailed financial models
and competitive analyses that attempt to "stress test" a company's growth
prospects and evaluate the risk/reward tradeoff in order to help us determine an
appropriate valuation for the stock.
Our investment research methodology places a premium on the quality and
visibility of a company's growth potential, financial strength and underlying
inherent value. We place strong emphasis on recurring revenues, conservative
accounting practices, management's ownership of stock and its ability to recruit
and retain its employees. We tend to sell holdings which experience
deteriorating fundamentals, an abrupt change in strategy or an unjustifiable
valuation. We are long-term investors and believe that doing our own in-depth
research is critical in our efforts to offer competitive results to
shareholders.
CHANGES WITHIN THE SERVICES "SUPER SECTOR"
Over the last year, we have written about the fundamental forces driving growth
and change within the financial services, health care and business services
"supersector" - deregulation, globalization, shifting demographics and
technological innovation. With the 1999 passage of financial services reform
legislation and the recent acquisitions of several U.S. financial firms by
European competitors, these forces continue to lead to the convergence between
banks, brokers, insurers and other financial providers and intermediaries.
While few anticipated the wide valuation swings in the equity markets, we are
encouraged by recent trends that are consistent with our philosophy of investing
in companies that we believe can grow faster than the overall market. While also
trading at attractive valuation discounts to the overall market, catalysts
include:
o The competitive strengths and strategies of our portfolio companies.
o Major increases in pricing and profitability at many of our core holdings.
o Attractive valuation and growth prospects from portfolio companies.
o Emphasis by other investors on earnings quality and predictability which is
likely to benefit our holdings.
PORTFOLIO COMPOSITION
Reported third quarter results reflect accelerating growth in revenue and
earnings for many of our portfolio companies. We believe a continuation could
translate into major earnings growth through 2002. Looking at specific
contributors to the positive performance this past last year, the Funds best
performers included SEI Investments (asset management), Concord EFS (transaction
processing), Neuberger Berman (asset management), Universal Health Services
(health care provider), Banknorth Group (regional bank), DeVry (continuing
education services), BISYS Group (outsourcing services) and A.J. Gallagher (risk
management services). The Fund's underperformers included companies that
continue to work through competitive pressures and new product launches: S1 Corp
(eFinance), WebMD (health care processing) and Diamond Technology Partners
(strategic consulting).
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
--------------------------------------------------------------------------------
10/31/00
INSURANCE BROKERS 2%
OTHER 2%
FINANCIAL TECHNOLOGY 28%
ASSET MANAGERS 15%
SPECIALTY FINANCE 14%
REGIONAL BANKS 11%
CASH 11%
HEALTH CARE 9%
PROPERTY & CASUALTY INSURERS 5%
LIFE & HEALTH INSURERS 3%
Looking forward, we have positioned the portfolio seeking to take advantage of
many of these changes in the market as the pace of change accelerates. Our newer
positions include:
o Established technology companies positioned to capitalize on the continuing
evolution of financial services.
o Healthcare companies with strong franchises and above-average earnings
visibility.
o Fee-based financial firms with diversified revenues and less dependence on
the interest rate cycle.
o Outsourcing and other business services related companies which can deliver
value-added business services and technology solutions more efficiently than
in-house departments.
As we look at the Fund's portfolio, we see attractive growth and valuation
metrics on both an historic and prospective basis. In terms of seeking to create
shareholder value, the portfolio companies' weighted average growth rate in 2001
estimated earnings equals 30% compared to 22% for the Russell 2000. The 2001
price-to-earnings ratios for the Fund and the Russell 2000 are 18 times and 17
times, respectively. These last two ratios can be combined to create the
P/E-to-growth rate (PEG ratio) which stands at 0.65 for the Fund and 0.77 for
the Russell 2000. In effect, we can translate this PEG ratio to mean that the
Fund is trading at a significant discount (40%) to its underlying growth rate
while the Russell 2000 is trading at just a 9% discount.
ATTRACTIVE VALUATION POTENTIAL
--------------------------------------------------------------------------------
CSCSF Russell 2000
----- ------------
EARNINGS GROWTH AND VALUATION:
2001 Est. Price to earnings (P/E) ratio: 18x 17x
2001 Est. earnings growth: 30.0% 22.0%
2001 P/E Ratio to Growth Rate (PEG Ratio): 65.0% 77.0%
SOURCE: Bloomberg, StockVal and CCM Research.
--------------------------------------------------------------------------------
With this combination of growth and attractive relative value, we are positive
about our investments today and look forward to updating you on our progress
over the next year.
Please visit our website (www.centuryfunds.com) to read more about our
investment strategy and to receive updates on the Fund. We also welcome your
questions by phone, letter or e-mail ([email protected]).
Respectfully submitted,
/s/ Allan Fulkerson /s/ Lanny Thorndike
Allan Fulkerson Lanny Thorndike
Chairman Trustee and
Chief Investment Officer
November 30, 2000
<PAGE>
PERFORMANCE OF A $10,000 INVESTMENT
The following chart compares the performance during the Fund's first fiscal
year of a hypothetical $10,000 investment in Century Small Cap Select Fund,
Institutional Shares (12/9/99 inception date) and Investor Shares (2/24/00
inception date) and the Russell 2000 Index.
--------------------------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND
INSTITUTIONAL SHARES & RUSSELL 2000
--------------------------------------------------------------------------------
Russell 2000 CSCS Institutional
Date Value Date Value
12/9/99 10,000 12/9/99 10,000
12/31/99 10,870 12/31/99 10,010
1/31/00 10,695 1/31/00 10,100
2/29/00 12,462 2/29/00 10,160
3/31/00 11,640 3/31/00 11,160
4/28/00 10,939 4/28/00 11,150
5/31/00 10,302 5/31/00 11,410
6/30/00 11,200 6/30/00 11,610
7/31/00 10,840 7/31/00 12,390
8/31/00 11,667 8/31/00 13,280
9/29/00 11,324 9/29/00 14,010
10/31/00 10,818 10/31/00 14,570
--------------------------------------------------------------------------------
CENTURY SMALL CAP SELECT FUND
INVESTOR SHARES & RUSSELL 2000
--------------------------------------------------------------------------------
Russell 2000 CSCS Investor
Date Value Date Value
2/24/00 10,000 2/24/00 10,000
2/29/00 10,428 2/29/00 10,010
3/31/00 9,740 3/31/00 10,940
4/28/00 9,154 4/28/00 10,920
5/31/00 8,621 5/31/00 11,180
6/30/00 9,372 6/30/00 11,380
7/31/00 9,070 7/31/00 12,130
8/31/00 9,763 8/31/00 13,000
9/29/00 9,476 9/29/00 13,710
10/31/00 9,053 10/31/00 14,260
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Due to current market
volatility, the Fund's performance may be less than the figures presented. The
investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their original cost. Performance returns include the reinvestment of
dividends and capital gain distributions. The Fund's investment adviser has
voluntarily committed to waive a portion of its management fee for both classes
and to reimburse certain other expenses to the extent necessary that net total
fund annual operating expenses will not exceed 1.80% for the Investor class and
1.45% for the Institutional class through at least February 1, 2001. The Fund
will deduct a short term trading fee of .60% from a redemption in Investor
Shares and .50% from a redemption in Institutional Shares if you sell your
shares after holding them less than 180 days. For shares purchased after January
31, 2001 the redemption fee will be 1.0% for both classes of shares. 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 it is not directly
comparable to an actual investors' results. The index is not available for
investment. CENTURY SMALL CAP SELECT FUND PERFORMANCE (INCEPTION THROUGH OCTOBER
31, 2000) INSTITUTIONAL SHARES +45.70%, INVESTOR SHARES +42.60%.
Price to earnings ratio is the value of a company's stock price relative to
company earnings. The p/e ratio is determined by dividing the price of the stock
by company earnings per share.
Estimated earnings growth is the year over year growth in earnings per share
(2000-2001)
The PEG Ratio is the p/e ratio relative to the companies earnings growth rate.
<PAGE>
Portfolio of Investments - October 31, 2000
COMMON STOCKS:
FINANCIAL SERVICES - 42.4%
SHARES Value
------ -----------
500 ACE Ltd........................................ $ 19,625
1,500 Affiliated Managers Group, Inc.*............... 90,187
7,000 Allied Capital Corp............................ 144,375
1,000 AmerUs Life Holdings, Inc...................... 26,375
1,500 Annuity & Life Re Holdings Ltd................. 41,344
6,000 Banknorth Group, Inc........................... 108,750
1,000 Berkley, W.R. Corp............................. 34,063
2,000 Brookline Bancorp, Inc......................... 21,625
3,500 Concord EFS, Inc.*............................. 144,594
1,000 Eaton Vance Corp............................... 49,812
1,500 FleetBoston Financial Corp..................... 57,000
1,000 Intuit, Inc.*.................................. 61,438
500 Markel Corp.*.................................. 72,438
500 Metris Companies, Inc.......................... 16,187
2,500 Neuberger Berman, Inc.*........................ 164,375
1,000 Penn-America Group, Inc........................ 8,000
1,000 Protective Life Corp. ......................... 23,125
500 Renaissance Re Holdings Ltd.................... 36,281
1,500 SEI Investments Co............................. 136,125
500 Stilwell Financial, Inc........................ 22,406
1,000 UNUMProvident Corp............................. 28,250
1,700 Wilmington Trust Corp.......................... 89,462
-----------
1,395,837
OUTSOURCING/TECHNOLOGY - 30.2%
1,000 Affiliated Computer Services, Inc.*............ 55,688
3,000 BISYS Group, Inc............................... 141,375
1,000 Ceridian Corp.*................................ 25,000
500 CheckFree Corp.*............................... 24,875
1,000 ChoicePoint, Inc............................... 51,187
3,300 Core, Inc.*.................................... 10,725
1,000 CyberSource Corp.*............................. 5,500
1,000 DeVry, Inc.*................................... 36,937
1,000 Diamond Technology Partners, Inc.*............. 44,625
1,000 The First American Corp........................ 20,937
1,600 Fiserv, Inc.*.................................. 83,900
1,000 Forrester Research, Inc........................ 41,063
2,000 Fundtech Ltd................................... 34,000
1,000 Gartner Group, Inc.*........................... 8,750
1,000 Investment Technology Group, Inc.*............. 36,000
4,500 NCO Group, Inc.*............................... 98,437
1,000 Pre-Paid Legal Services, Inc.*................. 43,875
4,000 ProBusiness Services, Inc.*.................... 130,750
1,000 Proxicom, Inc.................................. 13,500
1,000 S1 Corp.*...................................... 12,063
500 Sapient Corp.*................................. 17,781
1,000 SunGard Data Systems, Inc.*.................... 51,125
400 Transaction Systems Architects, Inc.*.......... 5,400
-----------
993,494
HEALTHCARE - 6.8%
2,000 Alterra Healthcare Corp.*...................... 4,875
1,000 First Health Group Corp.*...................... 39,000
4,000 Health Management Associates, Inc.*............ 79,250
2,000 IMS Health, Inc................................ 47,250
100 Synavant, Inc.*................................ 456
500 Universal Health Services, Inc.*............... 41,938
1,000 WebMD Corp.*................................... 11,375
-----------
224,144
BROKER/OTHER - 4.7%
1,000 Gallagher (Arthur J.) & Co..................... 63,125
3,000 HCC Insurance Holdings, Inc.................... 57,187
1,000 Raymond James Financial, Inc................... 33,813
154,125
TOTAL INVESTMENTS IN COMMON STOCKS - 84.0%
(Identified cost, $2,055,948).............................. 2,767,600
-----------
CASH EQUIVALENTS - 16.0%
$527,000 State Street Bank and Trust Eurodollar
Time Deposit, at cost approximating value,
maturity 11/01/00.............................. 527,000
-----------
TOTAL INVESTMENTS - 100% (IDENTIFIED COST, $2,582,948).......... $ 3,294,600
===========
*Non-income producing security
See notes to financial statements.
<PAGE>
Statement of Assets and Liabilities - October 31, 2000
--------------------------------------------------------------------------------
ASSETS
Investments, at value (Note 1A) (Identified cost, $2,582,948)..... $3,294,600
Cash ...................................................... 791
Dividends and interest receivable................................. 1,487
Receivable for Fund shares sold................................... 1,000
Advisor reimbursement receivable.................................. 10,121
----------
Total Assets............................................ 3,307,999
LIABILITIES
Accrued Trustees' fees............................................ 2,526
Accrued expenses and other liabilities............................ 64,588
Payable for investments purchased................................. 298,148
----------
Total Liabilities....................................... 365,262
----------
NET ASSETS (Note 3)............................................... $2,942,737
==========
Net Assets consist of:
Investor Class................................................ $ 689,733
Institutional Class........................................... $2,253,004
Shares Outstanding consist of (Note 2):
Investor Class................................................ 48,374
Institutional Class........................................... 154,582
NET ASSET VALUE PER SHARE (Represents both the offering
and redemption price)
October 31, 2000
Investor Class................................................ $ 14.26
Institutional Class........................................... $ 14.57
See notes to financial statements.
<PAGE>
Statement of Operations - For the period ended October 31, 2000 (a)
--------------------------------------------------------------------------------
Investment Income
Dividends............................................... $ 17,766
Interest................................................ 10,593
---------
Total income........................................ 28,359
---------
Expenses:
Management advisory fee (Note 5)............ $15,026
Trustees' remuneration...................... 2,526
Transfer agent-institutional................ 7,957
Transfer agent-investor..................... 18,021
Custodian................................... 36,705
Audit....................................... 24,159
Legal....................................... 11,908
Insurance................................... 9,608
Registration................................ 51,318
Printing and other.......................... 15,125
12b-1 fee (Note 7).......................... 798
-------
Total expenses...................................... 193,151
Advisor reimbursement (Note 6).......................... (169,100)
---------
Net Expenses .................................................... 24,051
---------
Net investment income................................... 4,308
---------
Realized and Unrealized Gain on Investments:
Net realized gain from investment transactions.................... 108,479
Increase in unrealized appreciation on investments................ 711,652
---------
Net realized and unrealized gain on investments................. 820,131
---------
Net increase in net assets resulting from operations................ $ 824,439
=========
(a) From the commencement date of investment operations, December 9, 1999 to
October 31, 2000
See notes to financial statements.
<PAGE>
Statement of Changes in Net Assets
-------------------------------------------------------------------------------
PERIOD ENDED OCTOBER 31, 2000 (A)
INCREASE IN NET ASSETS:
Operations:
Net investment income ............................................... $ 4,308
Net realized gain on investment transactions ........................ 108,479
Increase in net unrealized appreciation ............................. 711,652
Net increase in net assets resulting from operations ................ 824,439
Distributions to shareholders from:
Net Investment Income -
Realized gain from investment transactions -
Fund share transactions - net ..................................... 2,118,298
Total increase .................................................... 2,942,737
Net Assets:
At beginning of period -
At end of period ................................................ $ 2,942,737
Financial Highlights
-------------------------------------------------------------------------------
PERIOD ENDED OCTOBER 31, 2000
Institutional Investor
Class (a) Class (b)
Net Asset Value, beginning of period ........... $ 10.00 $ 10.00
Income from Investment Operations:
Net investment income .......................... 0.04 (0.01)
Net realized and unrealized gain on investments 4.53 4.27
Total income from investment operations ........ 4.57 4.26
Less Distributions From:
Net investment income .......................... - -
Net realized gain on investment transactions ... - -
Total distributions ............................ - -
Net Asset Value, end of period ................. $ 14.57 $ 14.26
Total Return ................................... 45.7%** 42.6%**
Ratios/Supplemental Data:
Net assets, end of period (000 omitted) ........ $ 2,053 $ 690
Ratio of expenses to average net assets ........ 1.45%* 1.80%*
Ratio of expenses to average net assets
without giving effect to voluntary
expense agreement ............................ 11.58%* 14.73%*
Ratio of net investment income to average
net asset .................................... 0.38%* -0.14%*
Portfolio Turnover Rate ........................ 24% 24%
(a) From the commencement date of investment operations, December 9, 1999 to
October 31, 2000.
(b) From the commencement date of investment operations, February 24, 2000 to
October 31, 2000.
* Annualized
** Not annualized
See notes to financial statements.
<PAGE>
Notes to Financial Statements
-------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES - Century Capital Management Trust (the
"Trust") is registered under the Investment Company Act of 1940, as amended, as
a diversified, open-end management investment company. Century Small Cap Select
Fund (the "Fund") is a series of the Trust which issues shares in two classes:
an Institutional class and an Investor class. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in conformity with
accounting principles gener-ally 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 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 Fund's policy 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. 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 Fund. Actual
results could differ from those estimates.
E. Multiple Classes of Shares - The Fund offers multiple classes of shares,
which differ in their respective distribu-tion and transfer agent fees. All
shareholders bear the common expenses of the Fund based upon daily net assets of
each class, without distinction between share classes.
(2) FUND SHARES - The number of authorized shares is unlimited. Shares of the
Fund and are currently divided into an Investor class and an Institutional
class. Transactions in Fund shares were as follows:
Period Ended October 31, 2000
Institutional Investor
Class Class
Shares Amount Shares Amount
------- ---------- ------ --------
Sold 154,582 $1,605,100 48,562 $515,665
Repurchased - - (188) (2,467)
------- ---------- ------ --------
Net Increase 154,582 $1,605,100 48,374 $513,198
======= ========== ====== ========
(3) SOURCES OF NET ASSETS - At October 31, 2000, net assets consisted of:
Capital Paid-in $2,118,298
Unrealized appreciation on investments 711,652
Accumulated undistributed net realized gains on investments 108,479
Accumulated net investment income 4,308
----------
Net assets applicable to outstanding capital stock $2,942,737
==========
(4) INVESTMENT SECURITY TRANSACTIONS - Other than U.S. Government obligations
and certificates of deposit, purchases and sales of investment securities
aggregated $2,384,300 and $436,831 respectively, during the period ended October
31, 2000. At October 31, 2000, the cost of investments for federal tax purposes
was $2,582,948. Net unrealized appreciation for all securities at that date was
$711,652. This consisted of aggregate gross unrealized appreciation for all
securities in which there was an excess of market value over tax cost of
$827,425 and aggregate gross unrealized depreciation for all securities in which
there was an excess tax cost over market value of $115,773.
(5) INVESTMENT ADVISER FEE - The investment adviser fee is earned by Century
Capital Management, Inc. ("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 period ended October 31, 2000, the fee amounted to $15,026. Officers and
Trustees of the Fund who are employed by CCM receive remuneration for their
services out of such investment adviser fee.
(6) ADVISER REIMBURSEMENT - CCM has voluntarily waived a portion of its
management fee for both classes 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 1, 2001. The expense limitations for the Investor and
Institutional class are 1.80% and 1.45%, respectively. During the period ended
October 31, 2000, the adviser reimbursement amounted to $169,100.
(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 period ended October 31,
2000, $798 was accrued under the distribution and service plan. The plan may be
terminated at any time by the vote of a majority of the independent Trustees or
by the vote of the holders of a majority of the outstanding shares of the
Investor class.
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Shareholders and
Board of Trustees of
Century Small Cap Select Fund
We have audited the accompanying statement of assets and liabilities of Century
Small Cap Select Fund (the "Fund"), including the portfolio of investments, as
of October 31, 2000, and the related statements of operations, the statements of
changes in net assets and the financial highlights for the period from December
9, 1999, the commencement of investment operations, to October 31, 2000. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit 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 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, 2000, by correspondence with the custodian
and brokers; where replies were not received from broker, 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 audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Century Small Cap Select Fund as of October 31, 2000, the results of its
operations, the changes in its net assets and the financial highlights for the
period from December 9, 1999, the commencement date of investment operations, to
October 31, 2000, in conformity with accounting principles generally accepted in
the United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
December 8, 2000
