Commerce MidCap Growth Fund

Overview Objective Seeks capital appreciation and, secondarily, current income. Strategy Invests in a diversified portfolio of equity securities of medium-sized companies that show the potential for above-average growth in earnings. Commentary Portfolio Fund Holdings Top Ten Holdings Sector Diversification Management Team The Fund is managed by the Equity Strategy Team, a group of senior-level investment professionals who average 24 years of experience. Risk/Return In general, greater returns are associated with greater risks. Fund Statistics:   Inception Date 12/12/94 Ticker Symbol CFAGX Cusip 200626505 Minimum Initial Investment $1,000 Commentary as of 3/31/2010 Unlike 2009, MidCap growth stocks got off to a good start in the first quarter of 2010. This marks their fourth consecutive quarter of positive performance. The MidCap Growth Fund returned 6.21% versus 7.67% for the Russell Midcap Growth Index. For the quarter, consumer services and non-durables were the strongest, returning nearly 13%. The Fund had 13.5% exposure to this group compared to the Index at 13.9%. Stock selection in this group was beneficial to the Fund’s performance in the quarter. Holdings such as Smithfield Foods Inc. (1.05%) and Chipotle Mexican Grill Inc. (1.60%) increased 36% and 28%, respectively. While investors rewarded consumer-oriented names in the first quarter, they were less supportive of utilities. The Fund’s 0.7% underweight to utilities was beneficial as the sector declined 6.23%.  Also underperforming the Index were energy-related stocks. The Fund was underweight this group but stock selection had a negative impact. The poorest performers were Dresser-Rand Group Inc. (1.32%) and CONSOL Energy Inc. (0.84%), down 4% and 19%, respectively. Surprisingly, heath care was the second best performing sector, up 11.68%, despite uncertainty regarding health care legislation. The Fund experienced poor stock selection in this sector, returning 7.66%. Among the laggards were DENTSPLY International Inc. (1.00%), Cerner Corp. (1.63%), and Laboratory Corp. (1.54%), returning a decline of 1% to an increase of 1%.     Performance Report Total Fund Assets as of 3/31/2010 $53,601,707 Net Asset Value1 $28.20 Asset Allocation    Equities 2.7%    Cash 97.3% Average Market Capitalization $4.2 Billion

Holdings Top Equity Ten Holdings5 as of 3/31/2010 TJX Cos. 2.1% T. Rowe Price Group Inc. 2.0% C.R. Bard Inc. 1.9% Cerner Corp. 1.8% Linear Technology Corp. 1.8% BMC Software Inc. 1.7% Crown Holdings Inc. 1.7% Laboratory Corp. of America 1.7% Chipotle Mexican Grill Inc. 1.7% Marriott International Inc. 1.6%   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. Stocks of smaller companies are often more volatile and present greater risks than stocks of larger companies. At times the Fund may be unable to sell the securities it holds without a substantial drop in its price, if at all. 4. The Russell Midcap Growth Index measures the performance of those Russell Midcap 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 MIDCAP 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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