TWENTIETH CENTURY
Capital Portfolios
Semiannual Report
SEPTEMBER 30, 1995
[company logo]
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September 30, 1995 (Unaudited)
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TABLE OF CONTENTS
Our Message to You......................................................1
Investment Philosophy...................................................2
Period Overview.........................................................3
Investment Review
Twentieth Century Value Fund........................................4
Twentieth Century Equity Income Fund................................7
Statements of Assets and Liabilities...................................10
Statements of Operations...............................................11
Statements of Changes in Net Assets....................................12
Notes to Financial Statements..........................................13
Schedules of Investments...............................................16
Financial Highlights...................................................20
Proxy Voting Results...................................................21
IMPORTANT NOTICE FOR ALL IRA AND 403(B) SHAREHOLDERS
As required by law, any distributions you receive from an IRA and certain
403(b) distributions [not eligible for rollover to an IRA or to another 403(b)]
are subject to federal income tax withholding at the rate of 10% of the total
amount withdrawn, unless you elect not to have withholding apply. If you don't
want us to withhold on this amount, you may send us a written notice not to have
the federal income tax withheld. Your written notice is valid for six months
from the date of receipt at Twentieth Century. Even if you plan to roll over the
amount you withdraw to another tax-deferred account, the withholding rate still
applies to the withdrawn amount, unless we have received a written notice not to
withhold federal income tax within six months prior to the withdrawal.
When you plan to withdraw, you may make your election by completing our
Conversions/Redemptions form or an IRS Form W-4P. Call Twentieth Century for
either form. Your written election is valid for only six months from the date of
receipt at Twentieth Century. You may revoke your election at any time by
sending a written notice to us.
Remember, even if you elect not to have income tax withheld, you are liable
for paying income tax on the taxable portion of your withdrawal. If you elect
not to have income tax withheld or you don't have enough income tax withheld,
you may be responsible for payment of estimated tax. You may incur penalties
under the estimated tax rules if your withholding and estimated tax payments are
not sufficient.
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TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
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OUR MESSAGE TO YOU
[photo of James E. Stowers and James E. Stowers III in the left margin]
Many investors will remember 1995 for its powerful market gains, and
especially for the success of technology stocks. It is easy to forget that,
earlier in the year, the story was quite different. At the time of the last
Capital Portfolios report six months ago, technology stocks had sagged, and the
conservatively managed Twentieth Century Value and Twentieth Century Equity
Income funds were well ahead of their benchmarks for the year.
Market fortunes can be highly unpredictable. That is why the Capital
Portfolios funds attempt to provide shareholders with steady gains in a variety
of market climates. In accordance with this goal, both Value and Equity Income
posted strong, double-digit total returns over the six-month reporting period
ended September 30, 1995 - one of the best periods in either funds' history.
While strong, the funds' performances lagged the fast-paced broader market
over the period. Yet neither Twentieth Century Value nor Twentieth Century
Equity Income is designed to be a performance leader when relatively high-priced
growth stocks command the market's attention. Both funds give preference to
established, quality businesses that typically do not provide explosive gains
over short periods, but rather steady results over longer time frames. This is
one reason you may see these funds outperform during periods of market weakness
and underperform during market rallies.
The long-term effect of management's approach becomes apparent when you
look at the funds' total returns since inception. Since its inception on
September 1, 1993, Twentieth Century Value has experienced a harsh broad-market
climate in 1994 and a major market rally so far in 1995. Its average annual
return since that date is 14.75%. That compares with a 12.73% average annual
return over the period for the fund's benchmark, the S&P/BARRA Value Index.
Twentieth Century Equity Income began on August 1, 1994, and the fund has
witnessed significant market volatility over its short life. Its average
annualized return since inception has been 19.90%, compared with an 18.51%
average annualized return for the Lipper Equity Income Fund Index over the
period.
One-year returns for Twentieth Century Value are 23.88%; one-year returns
for Twentieth Century Equity Income are 20.48%.*
The Capital Portfolios funds continue to provide Twentieth Century
shareholders with an opportunity to invest in the equity markets with less
volatility than in our more aggressive growth funds. We appreciate your
confidence in the Twentieth Century family of funds and remain committed to
providing you with high-quality investment management and service, along with a
wide selection of funds designed to help you pursue your investment objectives.
Sincerely,
/s/James E. Stowers /s/James E. Stowers III
James E. Stowers James E. Stowers III
Chairman of the Board and Founder President
*Investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than the original value.
Past performance is no guarantee of future results.
1
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September 30, 1995 (Unaudited)
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INVESTMENT PHILOSOPHY
Conservative management is a staple of Twentieth Century Value and
Twentieth Century Equity Income. The funds' management team seeks out good,
quality businesses with sound balance sheets. The team also looks for dividend
yield when making purchases, since regular income can help offset the impact of
market downturns on fund returns. Finally, broad diversification across many
industries is stressed to prevent the performance of one sector from dominating
fund returns.
Twentieth Century Value seeks the equity securities of seasoned,
established businesses that management believes are statistically inexpensive.
This is determined by comparing a stock's share price with key financial
measures, including earnings, book value, cash flow and dividend yield. If the
ratio of price to these measures is low and the business' balance sheet is
strong, its securities are candidates for purchase. The management team may
secondarily look for income when making portfolio selections.
Twentieth Century Equity Income purchases seasoned firms that pay out
steady income, with the goal of providing shareholders a higher yield than the
S&P 500's. The team may secondarily search out stocks whose share prices are
undervalued or fairly valued. The team maintains a relatively large percentage
of assets in convertible bonds and convertible-preferred stocks. These are
income-paying issues that may, at some later date, be converted into equity
securities at favorable prices. The prices of convertibles usually do not
fluctuate as much as those of equity securities, but they generally pay higher
interest and dividends than common stocks. Under normal circumstances, Twentieth
Century Equity Income can be expected to have less share-price volatility than
Twentieth Century Value.
Portfolio Managers
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Peter Zuger, Portfolio Manager
Phil Davidson, Portfolio Manager
2
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TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
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PERIOD OVERVIEW
A strong economic and market climate provided the backdrop for steady,
positive performance for both Twentieth Century Value and Twentieth Century
Equity Income over the six months ended September 30. Both funds provided
shareholders with a modest gain in each month of the period, despite intervals
of considerable volatility in the overall market. This performance resulted in
double-digit total returns for each fund over the period.
The funds did not, however, equal the performance of the broad market over
the period. The six months ended September 30, 1995, were not as favorable for
conservative equity investing as they were for more aggressive strategies, in
particular strategies that emphasize technology stocks. The market clearly
favored technology issues during the period, pushing the prices of stocks in the
various technology sectors to relatively high levels. There are also very few
fast-growing technology stocks in today's markets that pay a regular dividend.
Because of these circumstances, both Equity Income and Value held few stocks in
technology-related businesses.
Falling interest rates throughout the period boosted the performance of the
convertible securities in each fund's portfolio. Lower rates also supported
stocks in interest rate-sensitive sectors, such as utilities, finance and
insurance. The funds' best gains, however, came not from the performance of
particular sectors but from the good performance of many individual stocks in a
variety of sectors. Slow but steady economic growth, low inflation and
relatively low interest rates allowed many domestic companies to improve their
business operations. The funds made numerous gains from firms engaged in
acquisitions, restructurings or other favorable changes.
So far, 1995's bull market has proved to be highly rewarding for funds that
take an aggressive approach to the market. Value and Equity Income did not
perform as well as some peers, which may have taken more concentrated positions
in interest rate-sensitive or higher-priced companies that don't meet the funds'
price or income requirements. Nonetheless, we believe that the funds'
conservative investment approach provides a good opportunity for steady returns
over time with less downside risk than many other funds display.
3
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September 30, 1995 (Unaudited)
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INVESTMENT REVIEW - VALUE FUND
TWENTIETH CENTURY
VALUE FUND
Management Q & A
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An interview with Peter Zuger and Phil Davidson, portfolio managers responsible
for the Twentieth Century Value fund
Q: HOW HAS THE VALUE FUND PERFORMED SO FAR IN 1995?
A: The fund got off to a fast start in 1995, rising nearly 9% in the first two
months of the year, compared with only a 6% gain for the S&P 500. Positions in
energy and banking, for example, helped propel the fund forward at that time, as
technology and other growth-oriented stocks struggled. The remainder of the
year has seen fewer distinguishable themes favorable to value investing. Over
the six-month period ended September 30, 1995, Twentieth Century Value posted a
total return of 11.31%. During the same period, the fund's benchmark, the
S&P/BARRA Value Index, posted a 17.36% gain.
Q: WHY DID THE FUND UNDERPERFORM ITS BENCHMARK OVER THE PERIOD?
A: One major reason is that the fund's largest sector weighting was in
energy stocks. While we still see considerable potential and inexpensive prices
in this sector, falling energy prices over the period dampened investor interest
in these shares, and their performance was relatively weak. The fund also was
not as concentrated in some better-performing sectors. For example, rapidly
falling interest rates this year have lifted the prices of utilities,
financials, insurance stocks and other issues that benefit when rates fall. The
fund did have significant stakes in these investments, and was able to benefit
from this trend. Yet our policy of being broadly diversified discouraged us from
concentrating assets too aggressively in just a few sectors.
Quick Fund Facts - Value Fund
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Objective: Long-term capital growth with income as a secondary objective through
investing in equity securities that management believes are
undervalued at the time of purchase.
Inception date: September 1, 1993
Size: $566.7 million (as of September 30, 1995)
Q: WHAT HAVE BEEN SOME OF THE MORE POSITIVE FACTORS AFFECTING FUND PERFORMANCE?
A: Falling interest rates were clearly beneficial to the fund. But there were
many case-by-case success stories as well. Over the period, we were able to
identify a number of high-quality but lesser-known firms that benefited from
such events as restructurings, consolidations, acquisitions or earnings
recoveries. Interstate Bakeries, for example, made a strong gain this year after
acquiring Continental Baking Company, maker of well-known Hostess and Wonder
baked goods.
Management Q & A continued on page 6.
4
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TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
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INVESTMENT REVIEW - VALUE FUND
Average Annual Total Returns - Value Fund
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Value Fund S&P 500 Index* S&P/BARRA Value Index**
------------ ------------- ---------------------
Year ended 9/30/95 23.88% 29.64% 27.70%
Inception 9/1/93
to 9/30/95 14.75% 15.20% 12.73%
$10,000 Over Life of Fund - Value Fund [mountain graph]
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$10,000 Value on 9/30/95:
investment $13,307 Value Fund
made 9/1/93 $13,417 S&P 500 Index*
(Inception date) $12,835 S&P/BARRA Value Index**
[graph data] S & P BARRA S & P 500
VALUE VALUE INDEX* INDEX
9/1/93 $10,000 $10,000 $10,000
9/30/93 $10,000 $ 9,996 $ 9,978
10/31/93 $10,120 $10,050 $10,171
11/30/93 $10,000 $ 9,870 $10,040
12/31/93 $10,307 $10,038 $10,209
1/31/94 $10,649 $10,506 $10,540
2/28/94 $10,448 $10,125 $10,224
3/31/94 $10,083 $ 9,709 $ 9,825
4/30/94 $10,265 $ 9,914 $ 9,938
5/30/94 $10,407 $10,079 $10,061
6/30/94 $10,270 $ 9,799 $ 9,867
7/31/94 $10,657 $10,131 $10,178
8/31/94 $10,983 $10,417 $10,560
9/30/94 $10,741 $10,051 $10,349
10/31/94 $10,844 $10,270 $10,565
11/30/94 $10,542 $ 9,854 $10,148
12/31/94 $10,718 $ 9,975 $10,347
1/31/95 $11,198 $10,245 $10,598
2/28/95 $11,677 $10,643 $10,981
3/31/95 $11,955 $10,937 $11,352
4/30/95 $12,283 $11,296 $11,669
5/31/95 $12,611 $11,799 $12,093
6/30/95 $12,744 $11,889 $12,432
7/31/95 $12,987 $12,299 $12,827
8/31/95 $13,075 $12,404 $12,823
9/30/95 $13,307 $12,835 $13,417
Top Ten Holdings+ (as of September 30, 1995)
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% of fund's
investments in
% of fund these industries
investments 6 months ago
Allied Domecq plc,
6.75%, 7-7-08 2.9% 2.5%
Minnesota Mining
& Manufacturing Co. 2.9% 1.4%
Universal Foods Corp. 2.9% 1.7%
Unocal Corp. $3.50 2.7% 2.3%
Northern States
Power Co. (Minn.) 2.7% ---
Dean Foods Co. 2.7% 0.8%
Central Newspapers, Inc. 2.6% 1.7%
Giant Food Inc. 2.6% 2.1%
MAPCO Inc. 2.4% 2.3%
Ashland Inc. 2.4% 2.4%
Past performance is not predictive of future performance.
Source: Lipper Analytical Services, Inc.
* The S&P 500 Index is an index created by Standard &Poor's Corporation that is
considered to represent the performance of the stock market generally. It is
not an investment product available for purchase.
** The S&P/BARRA Value Index for 8/31/93, the closest date to the inception of
the fund for which the index is available, has been used as the starting
point for the index in the graph and the average annual total return. The
S&P/BARRA Value Index is a capitalization-weighted index consisting of S&P
500 stocks that have lower price-to-book ratios and in general share other
characteristics associated with "value" stocks.
+ The composition of the fund's holdings is subject to change.
Top Five Industries (as of September 30, 1995)
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% of fund's
investments in
% of fund these industries
investments 6 months ago
Energy
(Production & Marketing) 20.0% 14.7%
Food & Beverage 14.4% 6.9%
Utilities 11.9% 5.4%
Chemicals & Resins 7.9% 6.4%
Publishing 7.2% 1.7%
5
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September 30, 1995 (Unaudited)
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INVESTMENT REVIEW - VALUE FUND
TWENTIETH CENTURY
VALUE FUND
Management Q & A continued from page 4.
Q: OVER THE PERIOD, THE FUND MORE THAN DOUBLED ITS STAKE IN THREE TOP SECTORS:
FOOD AND BEVERAGE, UTILITIES, AND PUBLISHING. WHAT MAKES THESE SECTORS
ATTRACTIVE?
A: We have been adding to our stake in utilities for most of this year.
Utilities - especially higher-yielding electric utilities - lost a lot of value
in 1994 when interest rates spiked up. They are finally beginning to rally from
their lows, but they have been very slow to recover, despite the fact that
interest rates have fallen. Mainly, that's because people are concerned about
the deregulation of the industry and increasing price competition. We have tried
to focus on low-cost producers of power that are well-financed and that we
believe can prosper in a changing environment. Among food and beverage stocks,
we are avoiding the big firms with well-known brand names, which tend to sell at
premium prices. Rather, we've focused on smaller, lesser-known companies. Hudson
Foods, for example, may not be a household word, but it has a very good
business; it supplies the chickens for Boston Chicken, which has now changed its
name to Boston Market. Finally, we are attracted to publishing because many
firms in that industry were severely hurt by a sharp rise in newsprint prices in
early 1995. We expect that problem to be only temporary.
Q: WHAT PLANS DO YOU HAVE FOR THE NEXT SIX MONTHS?
A: We continue to be excited about many of our energy holdings - we believe the
market will eventually recognize that they have strong potential even if oil
prices stay weak. We also are looking at many other businesses, including some
intermediate chemical producers and environmental firms, that have suffered
sharp price declines due to what we believe are temporary market factors.
Overall, we will continue to seek inexpensive companies that have good potential
for a positive total return.
[company logo]
6
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TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
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INVESTMENT REVIEW - EQUITY INCOME FUND
TWENTIETH CENTURY
EQUITY INCOME FUND
Management Q & A
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An interview with Peter Zuger and Phil Davidson, portfolio managers responsible
for the Twentieth Century Equity Income fund
Q: HOW HAS THE FUND PERFORMED SO FAR IN 1995?
A: To date, 1995 has been marked by a lot of volatility in both the equity and
the fixed income markets. During the six-month period ended September 30, 1995,
the markets enjoyed an extended bull run that favored aggressive investment
strategies. The fund's total return of 11.55% over the period modestly trailed
that of its benchmark; the Lipper Equity Income Fund Index posted a gain of
14.66% over the same time frame. In less favorable periods, such as the
beginning of the year, the fund posted somewhat higher returns. For the one-year
period ended September 30, the fund's 20.48% total return exceeded its
benchmark's gain of 20.26%.
Q: WHAT FACTORS HAVE AFFECTED THE FUND'S PERFORMANCE IN 1995?
A: The popularity of expensive and volatile growth stocks was a negative factor
in the fund's performance this year. Because the fund emphasizes generally
modest-priced securities with relatively high yields, it is unlikely to keep up
when aggressive, growth-oriented investment styles are more successful. However,
the fund was aided by rapidly falling interest rates in 1995, which increased
the value of many higher-yielding securities in the fund's portfolio. Many of
our individual holdings also turned an earnings recovery, business
restructuring, or other event into share-price gains; an outstanding earnings
improvement at Giant Foods, Inc., for example, greatly benefited the fund.
Quick Fund Facts - Equity Income Fund
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Objective: Current income with capital appreciation as a secondary objective.
Seeks a yield that exceeds the yield of securities in the S&P 500
Index.
Inception date: August 1, 1994
Size: $83.1 million (as of September 30, 1995)
Q: WHY DOES THE FUND OWN SUCH A LARGE PROPORTION OF ASSETS IN CONVERTIBLE
BONDS AND CONVERTIBLE-PREFERREDS?
A: Convertible securities allow an investor to give up some of a stock's
uncertain capital gains potential in return for a steady income stream. Our
ownership of these securities helps mute the volatility of common stocks, while
contributing to the fund's goal of providing shareholders with a yield above the
S&P 500's. With a 30-day SEC yield of 3.73% as of September 30, 1995, the fund
has been achieving this goal. However, unlike other fixed income instruments,
convertibles are priced in relation to the performance of the underlying common
stock. When that stock appreciates, the convertible gains in price as well.
Management Q & A continued on page 8
7
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September 30, 1995 (Unaudited)
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INVESTMENT REVIEW - EQUITY INCOME FUND
TWENTIETH CENTURY
EQUITY INCOME FUND
Management Q & A continued from page 7.
Q: HOW DID THE FUND'S CONVERTIBLES PERFORM OVER THE PERIOD?
A: This year has provided an excellent environment in which many of our
convertible investments have flourished. They have benefited from both a strong
stock market and lower interest rates. For example, our Federal Mogul
convertible-preferred performed well as its underlying common stock appreciated,
whereas our Hanson convertible bond performed well due to the decline in
interest rates. Convertibles did well even in sectors that were not particularly
popular in the stock market. The performance posted by convertibles in the
energy field were far more beneficial to the fund than were the common shares of
these same firms.
Q: HOW IS THE FUND POSITIONED FOR THE NEXT SIX MONTHS?
A: There is no way to predict the future of any particular stock, fund or
market. We continually search for what we believe are the highest-yielding
securities of good, quality businesses, and we are especially pleased when we
believe the prices of these firms are below what their businesses may be worth.
Right now, we see a lot of relatively high yields, as well as what we perceive
to be good value, in many natural resources sectors, utilities and a variety of
food and beverage stocks, all of which have been left behind in 1995's
fast-paced market. We are also maintaining our stake in convertible securities,
focusing on a few higher-quality issues that have relatively good yields. The
portfolio remains conservatively postured in its continuing quest for
consistent, above-average dividend yields and moderate price appreciation.
[company logo]
8
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TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
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INVESTMENT REVIEW - EQUITY INCOME FUND
<TABLE>
<CAPTION>
Average Annual Total Returns - Equity Income Fund
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Equity Income Fund S&P 500 Index* Lipper Equity Income Fund Index**
------------------ ------------- -------------------------------
<S> <C> <C> <C>
Year ended 9/30/95 0.48% 29.64% 20.26%
Inception 8/1/94
to 9/30/95 19.90% 26.20% 18.51%
</TABLE>
$10,000 Over Life of Fund - Equity Income Fund [mountain graph]
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$10,000 Value on 9/30/95:
investment $12,347 Equity Income Fund
made 8/1/94 $13,104 S&P 500 Index*
(Inception date) $12,191 Lipper Equity
Income Fund Index**
LIPPER
EQUITY EQUITY INCOME S & P 500
INCOME FUND INDEX* INDEX
8/1/94 $10,000 $10,000 $10,000
8/31/94 $10,360 $10,333 $10,314
9/30/94 $10,248 $10,137 $10,108
10/31/94 $10,349 $10,192 $10,319
11/30/94 $10,038 $ 9,810 $ 9,911
12/31/94 $10,053 $ 9,888 $10,106
1/31/95 $10,449 $10,064 $10,351
2/28/95 $11,884 $10,388 $11,725
3/31/95 $11,069 $10,632 $11,087
4/30/95 $11,417 $10,886 $11,397
5/31/95 $11,641 $11,220 $11,811
6/30/95 $11,809 $11,369 $12,142
7/31/95 $12,056 $11,680 $12,528
8/31/95 $12,097 $11,824 $12,524
9/30/95 $12,347 $12,191 $13,104
Top Ten Holdings+ (as of September 30, 1995)
- - - - - - --------------------------------------------------------------------------------
% of fund's
investments in
% of fund these industries
investments 6 months ago
Browning-Ferris Industries, Inc.,
6.75%, 7-18-05 4.7% 2.2%
Unocal Corp. $3.50 4.0% 3.2%
Cooper Industries, Inc.,
7.05%, 1-1-15 3.9% 2.0%
Allied Domecq plc, 6.75%, 7-7-08 3.7% 3.0%
Horace Mann Educators Corp.,
6.50%, 12-1-99 3.3% --
Universal Foods Corp. 3.2% 1.2%
Seafield Capital Corp. 3.2% 3.4%
Minnesota Mining
&Manufacturing Co. 3.1% 1.4%
Giant Food Inc. 3.1% 2.2%
Northern States Power Co. (Minn.) 2.8% --
Past performance is not predictive of future performance.
Source: Lipper Analytical Services, Inc.
* The S&P 500 Index is an index created by Standard &Poor's Corporation that is
considered to represent the performance of the stock market generally. It is
not an investment product available for purchase.
**The Lipper Equity Income Fund Index for 7/31/93, the closest date to the
inception of the fund for which the index is available, has been used as the
starting point for the index in the graph and the average annual total
return.The Lipper Equity Income Fund Index is a non-weighted index of the 30
largest equity income mutual funds.
+ The composition of the fund's holdings is subject to change.
Top Five Industries (as of September 30, 1995)
- - - - - - --------------------------------------------------------------------------------
% of fund's
investments in
% of fund these industries
investments 6 months ago
Energy (Production &Marketing) 18.5% 14.7%
Utilities 14.4% 5.6%
Food & Beverage 11.8% 6.1%
Insurance 7.9% 5.0%
Diversified Companies 7.7% 7.8%
9
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September 30, 1995 (Unaudited)
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STATEMENTS OF ASSETS AND LIABILITIES
Equity
Value Income
- - - - - - --------------------------------------------------------------------------------
Assets
Investment securities, at value
(identified cost
of $533,548,802 and $79,095,020,
respectively)................................ $553,309,296 $81,843,220
Cash........................................... 462,795 59,688
Receivable for forward foreign currency
exchange contracts held (Note 4).............. 38,291 5,912
Receivable for investments sold................ 23,830,397 3,147,851
Dividends and interest receivable.............. 1,873,273 459,989
----------- ----------
579,514,052 85,516,660
----------- ----------
Liabilities
Disbursements in excess of demand deposit cash. 359,219 50,709
Payable for forward foreign currency
contracts held (Note 4)....................... 143,674 24,984
Payable for investments purchased.............. 11,006,662 2,215,005
Payable for capital shares redeemed............ 202,981 22,204
Accrued management fees (Note 2)............... 443,827 64,097
Other liabilities.............................. 7,313 5,092
----------- ----------
12,163,676 2,382,091
----------- ----------
Net Assets Applicable to
Outstanding Shares............................... $567,350,376 $83,134,569
=========== ==========
Capital Shares, $0.01 par value
Authorized..................................... 130,000,000 20,000,000
=========== ==========
Outstanding.................................... 94,495,173 13,996,861
=========== ==========
Net Asset Value Per Share......................... $6.00 $5.94
=========== ==========
Net assets consist of:
Capital (par value and paid-in surplus)........ $504,003,790 $74,741,925
Distributions in excess of net
investment income............................. (152,839) (4,029)
Accumulated undistributed net realized gain
from security transactions.................... 43,844,314 5,667,545
Net unrealized appreciation on
investments and translation of assets
and liabilities in foreign currencies (Note 3) 19,655,111 2,729,128
---------- ---------
$567,350,376 $83,134,569
============ ===========
See Notes to Financial Statements
10
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Six Months Ended September 30, 1995 (Unaudited) TWENTIETH CENTURY CAPITAL
PORTFOLIOS, INC.
- - - - - - --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
Equity
Value Income
- - - - - - --------------------------------------------------------------------------------
Investment Income
Income:
Dividends (net of foreign taxes withheld
of $50,097 and $7,336, respectively).......... $7,305,466 $ 1,071,093
Interest....................................... 1,839,451 638,338
---------- ---------
9,144,917 1,709,431
---------- ---------
Expenses:
Management fees (Note 2)....................... 2,451,933 349,659
Directors' fees and expenses...................... 3,472 497
---------- ---------
2,455,405 350,156
---------- ---------
Net investment income............................. 6,689,512 1,359,275
---------- ---------
Realized and Unrealized Gain on Investments
and Foreign Currency (Notes 3 and 4)
Net realized gain during the period on:
Investments.................................... 40,323,167 5,277,987
Foreign currency transactions.................. 312,000 33,742
---------- ---------
40,635,167 5,311,729
---------- ---------
Change in net unrealized appreciation
during the period on:
Investments.................................... 4,479,257 772,027
Translation of assets and liabilities
in foreign currencies......................... 37,079 3,299
---------- ---------
4,516,336 775,326
---------- ---------
Net realized and unrealized gain on
investments and foreign currency 45,151,503 6,087,055
---------- ---------
Net Increase in Net Assets
Resulting from Operations $51,841,015 $7,446,330
========== =========
See Notes to Financial Statements
11
<PAGE>
<TABLE>
<CAPTION>
Six Months Ended September 30, 1995 (Unaudited) and Year Ended March 31, 1995
- - - - - - -----------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Equity
Value Income
- - - - - - -----------------------------------------------------------------------------------------------------
September 30, March 31, September 30, March 31,
Increase in Net Assets 1995 1995 1995 1995*
<S> <C> <C> <C> <C>
Operations
Net investment income......................... $ 6,689,512 $ 4,012,652 $ 1,359,275 $ 587,229
Net realized gain on investments
and foreign currency transactions........... 40,635,167 8,280,849 5,311,729 425,930
Change in net unrealized appreciation
on investments and translation of assets
and liabilities in foreign currencies....... 4,516,336 19,619,779 775,326 1,953,802
___________ ___________ ___________ ___________
Net increase in net assets
resulting from operations................... 51,841,015 31,913,280 7,446,330 2,966,961
___________ ___________ ___________ ___________
Distributions to Shareholders
From net investment income.................... (6,671,614) (4,048,823) (1,344,438) (579,336)
Distributions in excess of net
investment income............................ (312,000) (26,182) (33,742) -
From net realized gains from
security transactions........................ - (7,543,028) - (63,131)
___________ ___________ ___________ ___________
Decrease in net assets from distributions..... (6,983,614) (11,618,033) (1,378,180) (642,467)
___________ ___________ ___________ ___________
Capital Share Transactions
Proceeds from shares sold .................... 306,685,878 285,615,107 41,060,789 54,711,178
Proceeds from reinvestment of distributions... 6,895,061 11,471,041 1,324,547 616,818
Payments for shares redeemed..................(139,369,015) (56,898,648) (17,531,757) (5,439,650)
___________ ___________ ___________ ___________
Net increase in net assets from
capital share transactions.................. 174,211,924 240,187,500 24,853,579 49,888,346
___________ ___________ ___________ ___________
Net increase in net assets ...................... 219,069,325 260,482,747 30,921,729 52,212,840
Net Assets
Beginning of period........................... 348,281,051 87,798,304 52,212,840 0
___________ ___________ ___________ ___________
End of period.................................$567,350,376 $348,281,051 $83,134,569 $ 52,212,840
=========== =========== =========== ===========
Distributions in excess of net investment
income........................................$ (152,839) $ (170,736) $ (4,029) $ (18,866)
=========== =========== =========== ===========
Transactions in shares of the Funds:
Sold.......................................... 53,440,673 54,767,393 7,182,620 10,551,588
Issued in reinvestment of distributions....... 1,166,540 2,317,309 227,264 118,631
Redeemed...................................... (23,847,884) (10,961,921) (3,040,820) (1,042,422)
----------- ----------- ----------- -----------
Net increase.................................. 30,759,329 46,122,781 4,369,064 9,627,797
=========== =========== =========== ===========
* Period August 1, 1994 (inception) through March 31, 1995
See Notes to Financial Statements
</TABLE>
12
<PAGE>
September 30, 1995 (Unaudited) TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
- - - - - - --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. Organization and Summary of Significant Accounting Policies
Organization -
Twentieth Century Capital Portfolios, Inc. (the Corporation) is registered
under the Investment Company Act of 1940 as an open-end diversified management
investment company. Two series of shares, investing primarily in equity
securities, are currently issued as Twentieth Century Value and Twentieth
Century Equity Income (the Funds). The following significant accounting policies
are in accordance with accounting policies generally accepted in the investment
company industry.
Security Valuations -
Portfolio securities traded primarily on a principal securities exchange
are valued at the last reported sales price, or the mean between the latest bid
and asked prices where no last sales price is available. Securities traded
over-the-counter are valued at the mean of the latest bid and asked prices or,
in the case of certain foreign securities, at the last reported sales price.
Debt securities not traded on a principal securities exchange are valued through
valuations obtained from a commercial pricing service or at the mean of the most
recent bid and asked prices. Short-term securities are valued at amortized cost
which approximates value. When valuations are not readily available, securities
are valued at fair value as determined in good faith by the board of directors.
Security Transactions -
Security transactions are accounted for on the date purchased or sold. Net
realized gains and losses are determined on the identified cost basis, which is
also used for federal income tax purposes.
Investment Income -
Dividend income less foreign taxes withheld (if any) is recorded as of the
ex-dividend date or upon receipt of ex-dividend notification in the case of
certain foreign securities. Interest income is recognized on the accrual basis
and includes amortization of discounts and premiums.
Foreign Currency Transactions -
The accounting records of the Funds are maintained in U.S. dollars. All
assets and liabilities initially expressed in foreign currencies are converted
into U.S. dollars at prevailing exchange rates. Purchases and sales of
investment securities, dividend and interest income, and certain expenses are
translated at the rates of exchange prevailing on the respective dates of such
transactions.
The Funds do not isolate that portion of the results of operations
resulting from changes in the foreign exchange rates on investments from the
fluctuations arising from changes in the market prices of securities held. Such
fluctuations are included with the net realized and unrealized gain or loss on
investments.
Net realized foreign exchange gains or losses arise from sales of portfolio
securities, sales of foreign currencies, and the difference between asset and
liability amounts initially stated in foreign currencies and the U.S. dollar
value of the amounts actually received or paid. Net unrealized foreign exchange
gains or losses arise from changes in the value of portfolio securities and
other assets and liabilities at the end of the reporting period, resulting from
changes in the exchange rates.
13
<PAGE>
September 30, 1995 (Unaudited)
- - - - - - --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
1. Organization and Summary of Significant Accounting Policies (continued)
Forward Foreign Currency Exchange Contracts -
The Funds may enter into forward foreign currency exchange contracts for
the purpose of settling specific purchases or sales of securities denominated in
a foreign currency or to hedge the Funds' exposure to foreign currency exchange
rate fluctuations. The net U.S. dollar value of foreign currency underlying all
contractual commitments held by the Funds and the resulting unrealized
appreciation or depreciation are determined using prevailing exchange rates.
Repurchase Agreements -
Securities pledged as collateral for repurchase agreements are held by the
Federal Reserve Bank and are designated as being held on the Fund's behalf by
its custodian under a book-entry system. The Funds monitor the adequacy of the
collateral daily and can require the seller to provide additional collateral in
the event the market value of the securities pledged falls below the carrying
value of the repurchase agreement.
Income Tax Status
It is the policy of the Funds to distribute all taxable income and capital
gains to shareholders and to otherwise qualify as a regulated investment company
under provisions of the Internal Revenue Code. Accordingly, no provision has
been made for federal or state taxes.
Distributions to Shareholders -
Distributions to shareholders are recorded on the ex-dividend date.
Distributions from net investment income are declared and paid quarterly.
Distributions from net realized gains are declared and paid annually.
The character of distributions made during the year from net investment
income or net realized gains may differ from their ultimate characterization for
federal income tax purposes. These differences are primarily due to differing
treatments for foreign currency transactions and wash sales.
Supplementary Information -
Certain officers and directors of the Corporation are also officers and/or
directors, and, as a group, controlling stockholders of Twentieth Century
Companies, Inc., the parent of the Corporation's investment manager, Investors
Research Corporation (IRC).
2. Management Agreement
The Management Agreement with IRC provides for a monthly management fee
computed by multiplying the applicable fee for each Fund by the average daily
closing value of such Fund's net assets during the previous month. The Agreement
further provides that all expenses of the Funds, except brokerage commissions,
taxes, interest, expenses of those directors who are not considered "interested
persons" as defined in the Investment Company Act of 1940 (including counsel
fees) and extraordinary expenses, will be paid by IRC. The agreement may be
terminated by either party upon 60 days' written notice.
The current annual management fee for each Fund is 1%.
14
<PAGE>
<TABLE>
<CAPTION>
September 30, 1995 (Unaudited) TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
- - - - - - ------------------------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. Investment Transactions
Investment transactions (excluding short-term investments) for the six months ended September 30, 1995, were as follows:
Purchases Proceeds From Sales
------------------------------------------ ------------------------------------------
Common Preferred Other Debt Common Preferred Other Debt
Stocks Stocks Obligations Stocks Stocks Obligations
------------ ----------- ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Value $521,798,719 $10,510,349 $25,071,182 $344,612,527 $14,471,367 $18,956,215
Equity Income $ 53,033,976 $ 7,978,633 $16,517,067 $ 32,566,117 $ 5,587,295 $15,325,495
On September 30, 1995, the composition of unrealized appreciation and (depreciation) of investment securities based on
the aggregate cost of investments for federal income tax purposes was as follows:
Appreciation (Depreciation) Net Federal Tax Cost
------------ ------------ ---------- ----------------
Value $27,958,062 $(8,444,700) $19,513,362 $533,795,934
Equity Income $ 3,532,129 $ (807,110) $ 2,725,019 $ 79,118,201
4. Commitments
Forward foreign currency exchange contracts obligate a Fund to deliver currencies at specified future dates. Forward
contracts involve elements of market risk in excess of the amount reflected in the Statement of Assets and Liabilities. The
Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward contract. Additionally,
losses may arise if the counterparties do not perform under the contracts' terms. Outstanding contracts at September 30,
1995 were as follows:
U.S. Dollar U.S Dollar
Currency to Value as of Currency to Value as of Unrealized
Fund Settlement Date be Delivered 9/30/95 be Received 9/30/95 Gain/(Loss)
------------ --------------- -------------- ------------ ------------ ------------ ------------
Value October 31, 1995 13,205,394 $20,870,861 20,727,187 $20,727,187 $(143,674)
British Pounds U.S. Dollar
Sterling
October 31, 1995 56,167,173 11,397,791 11,436,082 11,436,082 38,291
French Franc U.S. Dollar
------------ ----------- -----------
$32,268,652 $32,163,269 $(105,383)
============ =========== ===========
Equity Income October 31, 1995 2,296,350 $3,629,335 3,604,351 $3,604,351 $ (24,984)
British Pounds U.S. Dollar
Sterling
October 31, 1995 8,671,744 1,759,724 1,765,636 1,765,636 5,912
French Franc U.S. Dollar
------------ ----------- ----------
$ 5,389,059 $ 5,369,987 $ (19,072)
============ =========== ==========
15
</TABLE>
<PAGE>
September 30, 1995 (Unaudited)
- - - - - - --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS
VALUE
- - - - - - --------------------------------------------------------------------------------
Shares Value
- - - - - - --------------------------------------------------------------------------------
COMMON STOCKS
Banking-2.7%
203,500 First Bell Bancorp, Inc.1 $2,620,063
35,000 Hawkeye Bancorporation 888,125
117,400 Industrial Bancorp, Inc.1 1,496,850
221,200 Mercantile Bancorporation Inc. 9,898,700
----------
14,903,738
----------
Building & Home Improvements-1.8%
225,200 Stanley Works 9,768,050
----------
Chemicals & Resins-7.9%
100,000 Albemarle Corp. 1,875,000
178,000 Du Pont (E.I.)
De Nemours & Co. 12,237,500
1,078,200 Ethyl Corp. 11,994,975
500,000 Methanex Corp. ORD1 3,445,707
336,800 Petrolite Corporation 9,009,400
90,000 Rohm & Haas Co. 5,433,750
----------
43,996,332
----------
Consumer Products-2.7%
470,000 Dial Corp. (The) 11,632,500
225,000 Sunbeam-Oster Co., Inc. 3,346,875
----------
14,979,375
----------
Control & Measurement-2.3%
425,000 Beckman Instruments, Inc. 12,856,250
----------
Diversified Companies-4.8%
280,000 Minnesota Mining
& Manufacturing Co. 15,820,000
360,000 National Service Industries, Inc. 10,530,000
----------
26,350,000
----------
Electrical & Electronic
Equipment-0.8%
144,000 General Signal Corp. 4,212,000
----------
Energy (Production & Marketing)-17.3%
428,000 Apache Corp. 11,235,000
396,800 Ashland Inc. 13,243,200
616,000 Baker Hughes Inc. 12,551,000
335,000 Diamond Shamrock, Inc. 8,249,375
258,000 MAPCO Inc. 13,287,000
328,300 Murphy Oil Corp. 13,132,000
379,279 Societe Nationale
Elf Aquitaine ADR 12,753,256
175,000 Texaco Inc. 11,309,375
----------
95,760,206
----------
Environmental Services-3.9%
342,000 Browning-Ferris Industries, Inc. $10,388,250
400,000 WMX Technologies, Inc. 11,400,000
-----------
21,788,250
-----------
Food & Beverage-11.5%
485,000 Archer-Daniels-Midland Co. 7,456,875
263,400 Coors (Adolph) Co. 4,724,737
520,200 Dean Foods Co. 14,825,700
640,000 Hudson Foods, Inc. 8,880,000
200,000 Interstate Bakeries Corp. 4,225,000
1,769,000 United Biscuits
(Holdings) plc ORD 7,749,556
453,200 Universal Foods Corp. 15,805,350
----------
63,667,218
----------
Healthcare-2.1%
308,600 Seafield Capital Corp. 11,572,500
----------
Industrial Equipment
& Machinery-1.9%
300,000 Cooper Industries, Inc. 10,575,000
----------
Insurance-4.6%
417,000 Argonaut Group, Inc. 12,822,750
370,800 Home Beneficial Corp. 8,667,450
212,000 Paul Revere Corp. 4,001,500
----------
25,491,700
----------
Paper & Forest Products-0.5%
64,600 Westvaco Corp. 2,947,375
----------
Publishing-7.2%
285,000 American Greetings Corp. Cl. A 8,728,125
469,700 Central Newspapers, Inc. 14,325,850
80,000 Dun & Bradstreet Corp. 4,630,000
549,300 McClatchy Newspapers, Inc. 12,015,938
----------
39,699,913
----------
Restaurants-0.6%
152,700 Luby's Cafeterias, Inc. 3,283,050
----------
Retail (Food & Drug)-2.6%
454,900 Giant Food Inc. 14,272,487
----------
Retail (General Merchandise)-3.1%
400,000 Dillard Department Stores, Inc. 12,750,000
97,100 Mercantile Stores Co., Inc. 4,369,500
----------
17,119,500
----------
Transportation-1.8%
421,600 Alexander & Baldwin, Inc. 10,118,400
----------
See Notes to Financial Statements
16
<PAGE>
September 30, 1995 (Unaudited) TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
- - - - - - --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS
VALUE (CONTINUED)
- - - - - - --------------------------------------------------------------------------------
Shares/Principal Amount Value
- - - - - - --------------------------------------------------------------------------------
Utilities-11.9%
244,600 El Paso Natural Gas Co. $ 6,726,500
372,000 Florida Progress Corp. 12,043,500
562,000 Montana Power Co. 12,996,250
329,000 Northern States
Power Co. (Minn.) 14,928,375
271,500 Sierra Pacific Resources 6,210,562
345,500 Union Electric Co. 12,913,062
___________
65,818,249
___________
Total Common Stocks-92.0% 509,179,593
(Cost $490,161,426) -----------
CONVERTIBLE PREFERRED STOCK
Energy (Production & Marketing)
281,000 Unocal Corp. $3.50+
(Cost $14,814,299) 15,103,750
-----------
Total Convertible
Preferred Stock-2.7% 15,103,750
-----------
CONVERTIBLE BONDS
Food & Beverage-2.9%
(british lb.)10,235,000 Allied Domecq plc, 6.75%, 7-7-08 15,822,453
-----------
Industrial Equipment
& Machinery-1.7%
$9,200,000 Cooper Industries, Inc.,
7.05%, 1-1-15 9,303,500
-----------
Total Convertible Bonds-4.6% 25,125,953
(Cost $24,673,077) -----------
TEMPORARY CASH INVESTMENTS
Repurchase Agreement (Goldman
Sachs & Co., Inc.), 6.30%, due 10-2-95;
collateralized by $2,860,000 par value
U.S. Treasury Bonds, 10.00%-13.875%,
5-15-10 through 5-15-11
(Delivery Value $3,902,048)
(Cost $3,900,000) 3,900,000
-----------
Total Temporary
Cash Investments-0.7% 3,900,000
-----------
Total Investment Securities-100.0% $ 553,309,296
(Cost $533,548,802) ============
EQUITY INCOME
- - - - - - --------------------------------------------------------------------------------
Share Value
- - - - - - --------------------------------------------------------------------------------
COMMON STOCKS
Banking-3.3%
58,000 First Bell Bancorp, Inc.1 $ 746,750
7,000 Hawkeye Bancorporation 177,625
32,600 Industrial Bancorp, Inc.1 415,650
31,000 Mercantile Bancorporation Inc. 1,387,250
----------
2,727,275
----------
Building & Home Improvements-1.5%
28,400 Stanley Works 1,231,850
----------
Chemicals & Resins-6.9%
24,500 Du Pont (E.I.)
De Nemours & Co. 1,684,375
187,000 Ethyl Corp. 2,080,375
71,000 Petrolite Corporation 1,899,250
----------
5,664,000
----------
Consumer Products-0.6%
10,000 National Presto Industries, Inc. 448,750
----------
Diversified Companies-5.1%
45,500 Minnesota Mining
& Manufacturing Co. 2,570,750
55,800 National Service Industries, Inc. 1,632,150
----------
4,202,900
----------
Electrical & Electronic
Equipment-0.5%
15,000 General Signal Corp. 438,750
----------
Energy (Production & Marketing)-9.2%
40,000 Baker Hughes Inc. 815,000
16,000 MAPCO Inc. 824,000
46,000 Murphy Oil Corp. 1,840,000
58,168 Societe Nationale
Elf Aquitaine ADR 1,955,899
32,300 Texaco Inc. 2,087,388
----------
7,522,287
----------
Food & Beverage-8.1%
46,300 Coors (Adolph) Co. 830,506
51,500 Dean Foods Co. 1,467,750
29,000 Interstate Bakeries Corp. 612,625
255,000 United Biscuits
(Holdings) plc ORD 1,117,093
75,300 Universal Foods Corp. 2,626,087
----------
6,654,061
----------
Healthcare-3.2%
68,800 Seafield Capital Corp. 2,580,000
----------
See Notes to Financial Statements
17
<PAGE>
September 30, 1995 (Unaudited)
- - - - - - --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS
EQUITY INCOME (CONTINUED)
- - - - - - --------------------------------------------------------------------------------
Shares Value
- - - - - - --------------------------------------------------------------------------------
Industrial Equipment
& Machinery-0.4%
10,000 Cooper Industries, Inc. $352,500
----------
Insurance-4.6%
60,300 Argonaut Group, Inc. 1,854,225
63,300 Home Beneficial Corp. 1,479,638
12,500 Ohio Casualty Corp. 442,187
----------
3,776,050
----------
Publishing-3.3%
27,900 Central Newspapers, Inc. 850,950
14,000 Dun & Bradstreet Corp. 810,250
46,000 McClatchy Newspapers, Inc. 1,006,250
----------
2,667,450
----------
Restaurants-1.0%
39,600 Luby's Cafeterias, Inc. 851,400
----------
Retail (Food & Drug)-3.1%
79,800 Giant Food Inc. 2,503,725
----------
Retail (General Merchandise)-0.8%
13,900 Mercantile Stores Co., Inc. 625,500
----------
Transportation-1.7%
57,200 Alexander & Baldwin, Inc. 1,372,800
----------
Utilities-14.4%
55,100 El Paso Natural Gas Co. 1,515,250
66,700 Florida Progress Corp. 2,159,413
86,600 Montana Power Co. 2,002,625
51,000 Northern States
Power Co. (Minn.) 2,314,125
81,000 Sierra Pacific Resources 1,852,875
52,000 Union Electric Co. 1,943,500
----------
11,787,788
----------
Total Common Stocks-67.7% 55,407,086
(Cost $53,021,030) ----------
CONVERTIBLE PREFERRED STOCK
Energy (Production & Marketing)
37,500 Ashland Inc. $3.125 2,081,250
43,000 Diamond Shamrock, Inc. $2.50+ 2,268,250
61,000 Unocal Corp. $3.50+ 3,278,750
(Cost $7,634,381) ----------
Total Convertible
Preferred Stocks-9.3% 7,628,250
----------
- - - - - - --------------------------------------------------------------------------------
Principal Amount Value
- - - - - - --------------------------------------------------------------------------------
CONVERTIBLE BONDS
Diversified Companies-2.6%
$2,687,000 Hanson PLC, 2.39%, 3-1-01+ $2,154,638
----------
Electrical & Electronic
Equipment-2.5%
2,000,000 General Signal Corp.,
5.75%, 6-1-02 2,050,000
----------
Environmental Services-4.7%
3,833,000 Browning-Ferris Industries, Inc.,
6.75%, 7-18-05 3,797,066
----------
Food & Beverage-3.7%
(British lb.)1,930,000 Allied Domecq plc,
6.75%, 7-7-08 2,983,618
----------
Industrial Equipment
& Machinery-3.9%
$3,150,000 Cooper Industries, Inc.,
7.05%, 1-1-15 3,185,437
----------
Insurance-3.3%
2,700,000 Horace Mann Educators Corp.,
6.50%, 12-1-99 2,737,125
----------
Total Convertible Bonds-20.7% 16,907,884
(Cost $16,539,609) ----------
TEMPORARY CASH INVESTMENTS
Repurchase Agreement (Goldman
Sachs & Co., Inc.), 6.30%, due 10-2-95;
collateralized by $1,415,000 par value
U.S. Treasury Bonds, 11.125%-11.875%,
8-15-03 through 11-15-03
(Delivery Value $1,900,998)
(Cost $1,900,000) 1,900,000
----------
Total Temporary
Cash Investments-2.3% 1,900,000
----------
Total Investment Securities-100.0% $81,843,220
(Cost $79,095,020) ==========
See Notes to Financial Statements
18
<PAGE>
September 30, 1995 (Unaudited) TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
- - - - - - --------------------------------------------------------------------------------
SCHEDULES OF INVESTMENTS
NOTES TO SCHEDULES OF INVESTMENTS
ADR = American Depositary Receipt
ORD = Foreign Ordinary Shares
1Non-income producing
+The following securities were purchased under Rule 144A of the Securities Act
and, unless registered under the Act or exempted from registration, may only be
sold to qualified institutional investors.
<TABLE>
<CAPTION>
Average
Fund/ Acquisition Cost Per Share/ Market Percentage of
Issuer Date Principal Unit Value Net Assets
- - - - - - ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Value
Unocal Corp. $3.50 7-26-94 to
Convertible Preferred Stock 9-11-95 $58.58 $15,103,750 2.7%
=========== ====
Equity Income
Diamond Shamrock, Inc. $2.50 5-17-95 to
Convertible Preferred Stock 9-21-95 $54.72 $ 2,268,250 2.7%
Hanson PLC Convertible 1-18-95 to
Debenture, 2.39%, 3-1-01 5-24-95 $74.77 2,154,638 2.6%
Unocal Corp. $3.50 Convertible 8-1-94 to
Preferred Stock 9-26-95 $52.61 3,278,750 4.0%
---------- ----
$ 7,701,638 9.3%
========== ====
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
September 30, 1995 (Unaudited)
- - - - - - ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (For a Share Outstanding Throughout the Period)
INCOME FROM
INVESTMENT OPERATIONS DISTRIBUTIONS
-------------------------------- --------------------------
Net Realized Distributions
and from Net
Net Asset Unrealized Total Distributions Realized Net Asset [table cont.
Value, Net Gain from from Net Gains on Value, below]
Beginning Investment (Loss) on Investment Investment Security Total End of Total
of Period Income* Investments Operations Income Transactions Distributions Period Return1
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Value
September 1, 1993
(inception)through
March 31, 1994 $5.01 $0.08 $(0.04) $0.04 $(0.07) -- $(0.07) $4.98 0.83%
Year ended
March 31, 1995 4.98 0.12 0.75 0.87 (0.12) $(0.27) (0.39) 5.46 18.56%
Six Months ended
September 30, 1995
(Unaudited) 5.46 0.07 0.55 0.62 (0.08) -- (0.08) 6.00 11.31%
Equity Income
August 1, 1994
(inception) through
March 31, 1995 $5.00 $0.09 $0.44 $0.53 $(0.09) $(0.02) $(0.11) $5.42 10.69%
Six Months ended
September 30, 1995
(Unaudited) 5.42 0.10 0.52 0.62 (0.10) -- (0.10) 5.94 11.55%
[table continued] RATIOS/SUPPLEMENTAL DATA
-------------------------------
Ratio of Ratio of Net
Operating Investment Net
Expenses Income to Portfolio Assets,
to Average Average Turnover End of
Net Assets Net Assets Rate Period
<S> <C> <C> <C> <C>
Value
September 1, 1993
(inception)through
March 31, 1994 1.00%** 3.37%** 79% $ 87,798,304
Year ended
March 31, 1995 1.00% 2.65% 94% 348,281,051
Six Months ended
September 30, 1995
(Unaudited) 1.00%** 2.71%** 81% 567,350,376
Equity Income
August 1, 1994
(inception) through
March 31, 1995 1.00%** 4.04%** 45% $52,212,840
Six Months ended
September 30, 1995
(Unaudited) 0.99%** 3.84%** 79% 83,134,569
1Actual total return for period indicated
*Computed using average shares outstanding throughout the period
**Annualized
</TABLE>
See Notes to Financial Statements
20
<PAGE>
TWENTIETH CENTURY CAPITAL PORTFOLIOS, INC.
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PROXY VOTING RESULTS
An annual meeting of shareholders was held on July 31, 1995, to vote on the
following proposals. All of the proposals received the required majority of
votes and were adopted.
A summary of voting results is listed below each proposal.
Proposal I -
To elect a Board of Directors of nine members to hold office for the
ensuing year or until their successors are elected and qualified.
Equity Income Value
--------------------------------------------------
James E. Stowers Jr. For 32,785,905 For 215,422,259
Withheld 4,407,801 Withheld 53,522,190
James E. Stowers III For 32,872,191 For 215,422,255
Withheld 4,321,515 Withheld 53,522,194
Thomas A. Brown For 32,895,253 For 215,852,049
Withheld 4,298,453 Withheld 53,092,400
Robert W. Doering MD For 32,810,106 For 215,273,446
Withheld 4,383,600 Withheld 53,671,003
Linsley L. Lundgaard For 32,716,115 For 214,926,088
Withheld 4,477,591 Withheld 54,018,361
Donald H. Pratt For 32,844,892 For 215,718,562
Withheld 4,348,814 Withheld 53,225,887
Lloyd T. Silver Jr. For 32,647,153 For 215,382,341
Withheld 4,546,553 Withheld 53,562,108
M. Jeannine Strandjord For 32,880,223 For 215,747,680
Withheld 4,313,483 Withheld 53,196,769
John M. Urie For 32,689,193 For 214,751,314
Withheld 4,504,513 Withheld 54,193,136
Proposal II -
To vote on the continuation of a management agreement with Investors
Research Corporation.
Equity Income Value
--------------------------------------------------
For 31,629,271 For 208,019,641
Against 362,154 Against 3,089,460
Abstain 5,202,281 Abstain 57,835,348
Proposal III -
To vote on the selection by the Board of Directors of Ernst & Young LLP as
independent auditors for the Corporation.
Equity Income Value
---------------------- ----------------------
For 32,302,425 For 211,049,844
Against 321,112 Against 2,910,582
Abstain 4,570,169 Abstain 54,984,023
21
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Twentieth Century Capital Portfolios, Inc. TWENTIETH CENTURY
Capital Portfolios
Investment Manager
Investors Research Corporation
Kansas City, Missouri
This report and the financial
statements contained herein
are submitted for the general Semiannual Report
information of the shareholders
of the corporation. The report September 30, 1995
is not authorized for distribution
to prospective investors in the
corporation unless preceded
or accompanied by an effective
prospectus.
[company logo]
Investments That Work(tm)
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P.O. Box 419200
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Kansas City, Missouri
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64141-6200
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Person-to-person assistance:
1-800-345-2021 or 816-531-5575
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Automated information line:
1-800-345-8765
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Telecommunications Device for the Deaf:
1-800-634-4113 or 816-753-1865
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Fax: 816-340-7962
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[company logo]
SH-BKT-3513
9511
(c) 1995 Twentieth Century Services, Inc.
