Commerce Growth Fund

Overview Objective Seeks capital appreciation and, secondarily, current income. Strategy Primarily focuses on the stocks of companies that have shown and are expected to show above-average growth in earnings. Commentary Portfolio Fund Holdings Top Ten Holdings Sector Diversification Fund Manager - Joseph C. Williams III, CFA Joined Commerce in 1975 Fund Manager since Fund inception 33 years of experience Risk/Return In general, greater returns are associated with greater risks. Fund Statistics: Inception Date 12/12/94 Ticker Symbol CFGRX Cusip 200626406 Minimum Initial Investment $1,000 Commentary as of 3/31/2010 Growth stocks continued their upward trend in the first quarter that began from the lows on March 7, 2009. The strongest sector, rising 10%, was producer manufacturing. Many of these industrial companies are benefiting from strong worldwide economic growth. Other strong sectors were consumer services and retailing as U.S. consumers continue to increase their spending levels from extremely low levels a year ago. Four of the top seven performing stocks were in consumer services. Phillips-Van Heusen (0.65%), Chipotle Mexican Grill Inc. (0.73%), ITT Educational Services Inc. (0.66%) and Panera Bread Co. (1.08%) rose 40%, 28%, 17% and 15%, respectfully.  Energy related stocks had a tough time in the first quarter. While the Fund is not overweighted in energy, stock selection hurt performance. The two worst performing stocks were energy related as CONSOL Energy Inc. (0.49%) and Diamond Offshore Drilling (0.67%) declined 19% and 15%. Over the quarter the Fund increased the exposure in health care stocks and we are now overweight the Index. Health care stocks are trading at attractive valuations and with the passage of the health care bill the outlook is less uncertain going forward.     Performance Report Total Fund Assets as of 3/31/2010 $117,815,095 Net Asset Value1 $24.18 Asset Allocation    Equities 99.5%    Cash 0.5% Average Market Capitalization $54.2 Billion

Holdings Top Ten Equity Holdings2 as of 3/31/2010 Microsoft Corp. 4.4% International Business Machines Corp. 4.4% Apple Inc. 3.6% Google Inc. 3.6% Cisco Systems Inc. 3.6% PepsiCo. Inc. 3.2% Oracle Corp. 3.1% Hewlett-Packard Co. 3.1% United Technologies Corp. 2.7% Texas Instruments Inc. 2.0%   Footnotes: 1. The Net Asset Value represents the assets of the fund (ex dividend) by the total number of shares. 2. The composition of the portfolio is subject to change in the future. 3. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Index figures do not reflect any fees or expenses.

Portfolio Holdings The Fund invests in mid-capitalization securities. The securities of mid-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements. Holdings and allocations shown are unaudited, and may not be representative of current or future investments. Holdings and allocations may not include the Fund's entire investment portfolio, which may change at any time. Fund holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities. COMMERCE GROWTH FUND HOLDINGS April, 2010* May, 2010* June, 2010*   *Adobe Acrobat 6.0® or above required. Download now for free.

A prospectus for the Commerce Funds containing more complete information may be obtained by calling 1-800-995-6365 or bydownloading it from this website. Please consider a Fund's objectives, risks, and charges and expenses, and read the prospectus carefully before investing. The prospectus contains this and other information about the Fund.

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