Century Small Cap Select Fund

Investment Objective

Century Small Cap Select Fund seeks long-term capital growth.

Investment Philosophy

The key tenets of the Century Small Cap Select Fund investment philosophy are:

  • Small cap markets are inefficient, providing opportunities to utilize fundamental, bottom-up research to identify superior growth companies and misvaluations
  • A focus on quality growth franchises allows for capital appreciation, while potentially reducing the downside risk associated with higher volatility stocks
  • Valuation is a function of the level and direction of a company’s ability to deliver superior returns on capital
  • A disciplined process combined with an experienced and research intensive investment team allows for higher portfolio concentration relative to peers

Investment Universe

  • Market capitalization generally in range of $250 Million to $3.5 Billion
  • Benchmark: Russell 2000 Growth® Index

Fundamental Research

Century Small Cap Select Fund primarily invests in three types of investment opportunities:

  • “Core Growth” companies, which are market leaders with high levels of recurring revenue and durable growth franchises
  • “Emerging Growth” companies, which typically exhibit more rapid growth, are undercovered by Wall Street and have large market potential
  • “Opportunistic Growth” companies, which have low consensus expectations and improving industry dynamics

Valuation

  • Historical relative multiples (P/E, Price/Cash Flow, Enterprise Value (EV)/Sales, EV/EBITDA)
  • Comparable Companies Analysis
  • Discounted Cash Flow Analysis

Fund Performance

Standardized Returns

as of December 31, 2016 (updated quarterly)

Quarter 1 Year 3 Years 5 Years 10 Years
Institutional Shares (CSMCX) 2.40% 3.02% 1.02% 9.64% 5.54%
Investor Shares (CSMVX) 2.30% 2.67% 0.69% 9.29% 5.18%
Russell 2000 Growth Index 3.57% 11.32% 5.05% 13.74% 7.76%

Inception Dates:

Institutional Shares 12/9/99

Investor Shares 2/24/00

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. For the most recent month-end performance, please call (800) 303-1928. As stated in the current prospectus the gross operating expense ratio for the Institutional and Investor Share Classes are 1.16% and 1.46%, respectively. Shares held less than 90 days may be subject to a 1% redemption fee.

The recent growth rate in the stock market has helped to produce short-term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.

Investments in mutual funds involve risks. The Fund may invest a significant portion of assets in securities of companies within the same market sector. If the Fund’s portfolio is over weighted in a sector, any negative development affecting that sector will have a greater impact on the Fund than a fund that is not over weighted in that sector. In addition, the Fund invests in smaller companies which pose greater risks than those associated with larger, more established companies.

The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. One cannot invest directly in an index. Book Value is the total asset of a company minus total liability. ROE (return on equity) is a measure of a corporation’s profitability that reveals how much profit a company generates with the money shareholders have invested and is calculated as Net Income/Shareholder’s Equity. Performance returns include the reinvestment of dividend and capital gain distributions.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus, a copy of which may be obtained by calling 800-303-1928 or visiting the Fund’s website www.centuryfunds.com. Please read the prospectus carefully before you invest. Century Funds, 100 Federal Street, Boston, MA 02110. Century Funds are distributed by ALPS Distributors, Inc.

 

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Century Shares Trust

One of the oldest mutual funds in the United States, the Fund seeks long-term capital growth. more...

Century Small Cap Select Fund

The Fund operates under the philosophy that small capitalization markets are inefficient, which provides opportunities to utilize a disciplined, research intensive investment process to seek growth opportunities. more...