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 23 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 12/31/2009 Mid cap growth stocks extended their positive returns to three quarters after the poor start in the first quarter of 2009. The MidCap Growth Fund returned 6.22% versus 6.69% for the Russell 1000 Midcap Growth Index (“Index”). In the quarter, electronic technology and technology services were strong rising 11.23% versus the 6.69% gain for the Index. The Fund had a 27.6% exposure to technology and was 2% overweighted the Index. Stock selection in the technology group hurt performance in the quarter as several holdings declined. Sohu.com Inc. (1.01%) and Commscope Inc. (0.55%) declined 13% and 6%, respectfully. While the future of health care is up in the air, the health care sector rose 7.44%. Stock selection was a positive for Fund performance with Varian Medical Systems Inc. (0.89%) gaining 15% in the quarter. While the consumer has been portrayed as over leveraged and some say spending will not rebound as much as in past recessions, some of the Fund’s best performing stocks were Priceline.com Inc. (0.71%), Wyndham Worldwide Corp. (0.58%) and Nordstrom Inc. (1.13%) increasing 28% to 35%.     Performance Report Total Fund Assets as of 12/31/2009 $52,712,748 Net Asset Value1 $26.55 Asset Allocation    Equities 98.8%    Cash 1.2% Average Market Capitalization $4.2 Billion

Holdings Top Equity Ten Holdings5 as of 12/31/2009 T. Rowe Price Group Inc. 1.9% Linear Technology Corp. 1.8% BMC Software Inc. 1.7% TJX Cos. 1.7% C.R. Bard Inc. 1.7% Cerner Corp. 1.6% Marvell Technology Group Ltd. 1.5% Coca-Cola Enterprises Inc. 1.5% CenturyTel Inc. 1.5% McAfee Inc. 1.5%   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 December, 2009* January, 2010* February, 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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