Commerce International Equity

Fund Liquidated May 30, 2008

Overview Objective Seeks total return with an emphasis on capital growth. Strategy Emphasizes the stocks of a broad range of companies that conduct their principal activities or are located outside the U.S. or whose securities are traded in foreign markets. Commentary Portfolio Fund Holdings Top Ten Holdings Sector Diversification Fund Manager AllianceBernstein L.P. Sub-adviser since September 19, 2005 Manage $800 billion in assets as of December 31, 2007. Risk/Return In general, greater returns are associated with greater risks. The Fund's foreign investments may be more volatile than an investment in U.S. securities and are subject to the risks of currency fluctuations and political developments. Fund Statistics: Institutional Shares Inception Date 12/12/94 Ticker Symbol CFIEX Cusip 200626604 Minimum Initial Investment $1,000 Commentary for Institutional Shares as of 3/31/2008 The MSCI EAFE Index fell 8.9%, in US dollar terms, during the first quarter, due to investor worries of slowing global economic growth and further repercussions from the subprime mortgage crisis, including a liquidity crunch. All sectors declined in the quarter, with the information technology sector underperforming most. Materials shares fared best. Growth stocks held up better than value shares, as the MSCI EAFE Growth Index decreased 8.2% and the MSCI EAFE Value Index moved 9.7% lower. During the quarter, the Fund underperformed the MSCI EAFE Index. Financials hurt relative returns amid continued turmoil. QBE Insurance reported full-year earnings that missed Wall Street estimates and guided lower for 2008. Financial exchange operator Deutsche Boerse AG (1.59%) fell on concerns of reduced trading volumes. Another key detractor was coal company China Shenhua Energy (0.22%), which pulled back with the broader Chinese market. Automakers Renault (0.86%) and Nissan Motor Co. (0.68%) declined after the latter reaffirmed its current business plan, which relies on US sales even as US consumer spending slows and the dollar continues to lose value against the yen. Renault holds a majority stake in Nissan. Meanwhile, negative investor sentiment within the telecom sector dragged down shares of Nokia (1.36%). Among materials shares, Xstrata (1.78%) rallied on rumors it would receive a bid from Brazilian miner Vale (0.88%). Similarly, mining firm Rio Tinto (1.95%) benefited from robust second-half earnings and an upwardly-revised offer from BHP Billiton Ltd. (0.23%). Lastly, UK-based hedge fund Man Group (1.49%) rose on higher assets under management and positive fund performance. Performance Report Institutional Shares Total Fund Assets as of 3/31/2008 $71,172,471 Net Asset Value, Institutional Shares1 $24.47 Asset Allocation    Equities 92.4%    Cash 7.6%

Holdings Top Equity Ten Holdings5 as of 3/31/2008 VODAFONE GROUP PLC 2.5% ROYAL DUTCH SHELL PLC 2.2% E. ON AG 2.1% MITSUI & CO LTD 2.1% RIO TINTO PLC 1.9% TOTAL SA 1.9% NESTLE SA 1.9% XSTRATA PLC 1.8% DEUTSCHE BOERSE AG 1.6% ABB 1.5%       Sector Diversification as Percentage of Equity as of 3/31/2008 Market Sectors as of 3/31/2008   Fund Index* Energy 10.4% 7.7% Materials 16.1% 10.6% Industrials 9.8% 12.2% Consumer Discretionary 7.9% 10.7% Consumer Staples 8.1% 8.9% Health Care 5.9% 6.5% Financials 22.8% 26.4% Technology 5.3% 5.2% Telecommunication 7.5% 5.8% Utilities 6.2% 6.0% Total 100% 100% *MSCI EAFE Index 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 MSCI EAFE (net) Index is a market capitalization-weighted composite of securities in 21 developed countries outside of North America, in Europe, Australia and the Far East. The Index includes the minimum possible dividend reinvestment. The Index figures do not reflect any deduction for fees, taxes or expenses. Inception date of the Index return is 12/30/94 as daily value was unavailable 12/12/94.

Portfolio Holdings The Fund's foreign investments may be more volatile than an investment in U.S. securities and are subject to the risks of currency fluctuation and political development. 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 INTERNATIONAL EQUITY FUND HOLDINGS February, 2008* March, 2008* April, 2008*   *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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