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 25 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 12/31/2011 Stocks finished the final quarter of the year on a very positive note. The volatility that was characteristic of 2011 carried into the fourth quarter as investors reacted to changing economic conditions in the U.S. and the ongoing European debt crisis. The MidCap Growth Fund had a return of 10.37% in the quarter, compared to the 11.24% return for the Russell MidCap Growth Index (Index). Over the course of the quarter the Fund benefitted the most from its stock selection in the consumer non-durables sector. While this sector posted a slight negative return for the period, each of the Fund’s holdings had a positive return. The best performer in the group was Coach (0.74%), up 18%. Alternatively, the Fund’s slight overweight to consumer durables proved detrimental. While this sector performed in-line with the Index, the Fund’s holdings underperformed with Tempur Pedic (1.29%) and Electronic Arts (1.05%) posting nearly flat returns. During the quarter the Fund added to its positions in the transportation sector to bring it closer to the Index weight. The Fund was still underweight however, and this worked to its benefit as the sector underperformed the Index. The addition of Kirby Corp (0.83%) helped and after a poor showing in the third quarter, Con-Way (0.31%) made a comeback gaining 32%. The Fund’s overweight to the technology services sector proved detrimental. While the Fund reduced its overweight during the period, it did have positions that negatively impacted stock selection. These include Teradata Corp (0.86%) and Rovi Corp (0.76%), which declined -9% and -43%, respectively. Meanwhile, electronic technology companies were particularly beneficial to the Fund’s return during the period, as Altera Corp (1.08%) gained 18%. Additionally, the Fund was able to take profits from its position in Novellus (0.00%) after it was announced the firm would be acquired. Performance Report Total Fund Assets as of 12/31/2011 $51,880,151 Net Asset Value1 $30.17 Asset Allocation    Equities 99.5%    Cash 0.5% Average Market Capitalization $3.9 Billion

Holdings Top Equity Ten Holdings5 as of 12/31/2011 iShares Russell MidCap Growth Index 3.9% T. Rowe Price Group Inc. 1.9% Wynn Resorts Ltd. 1.8% Sigma-Aldrich Corp. 1.8% Laboratory Corp. of America Holdings 1.7% Cliffs Natural Resources Inc. 1.7% C.R. Bard Inc. 1.7% Linear Technology Corp. 1.7% AutoZone Inc. 1.6% Core Laboratories N.V. 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 November, 2011* December, 2011* January, 2012* *Adobe Acrobat 6.0® or above required. Download now for free.

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