Commerce Missouri Tax-Free Intermediate Bond Fund

Overview Objective Seeks current income exempt from federal and, to the extent possible, from Missouri income taxes, as is consistent with the preservation of capital. Strategy Focuses primarily on investing in municipal obligations issued by the State of Missouri and its political subdivisions. Commentary Portfolio Fund Holdings Portfolio Composition Fund Manager - Brian P. Musielak, CFA Joined Commerce in 1995 Fund Manager since January, 1999 15 years of experience Risk/Return In general, greater returns are associated with greater risks. Fund Statistics: Inception Date 02/21/95 Ticker Symbol CFMOX Cusip 200626802 Minimum Initial Investment $1,000 Commentary as of 3/31/2010 The great bear flattener of 2010 has officially arrived!  The short and intermediate portions of the municipal (“muni”) yield curve experienced the biggest pullback, with rates jumping 0.10% to 0.30%.    This upward pressure on yields (downward pressure on prices) should continue throughout the year based on our view of an improving domestic economy.   Long muni bond yields so far have held remarkably steady despite the increases in shorter-term munis and long-term treasury yields. This is purely the result of a supply/demand imbalance created from an overall lack of tax-exempt supply.  The Build America Bond (BAB) program, through which the Federal Government encourages municipalities to issue taxable bonds by subsidizing their interest cost, siphoned over $30 billion in new issuance away from the tax-exempt market during the first quarter.  Much of this taxable issuance is concentrated in long-term maturities where the federal subsidy provides the greatest savings to the issuer.  From a credit perspective, we feel the overwhelming negative media reports, some predicting Armageddon for the muni bond market, is incredibly overblown.  In fact, we believe all the attention has created some great buying opportunities.   Many of the positions we added to the Fund during the quarter have been lower rated or even non-rated.  The difference in yield on these issues versus the highest quality issues more than compensates investors for the added credit risks, in our opinion. For the first quarter, the Fund underperformed its benchmark, but outperformed its peers as measured by the Lipper Other States Intermediate Municipal Debt Funds Category 2nd Quartile Total Return Ranking.   Our holdings in high grade short bonds were a drag on performance, while our holdings in longer, lower-rated bonds helped to offset that underperformance.       Performance Report Total Fund Assets as of 3/31/2010 $244,761,657 Net Asset Value1 $19.30    Effective Duration 2 6.02 years

Footnotes: 1. The Net Asset Value represents the assets of the fund (ex dividend) by the total number of shares. 2. Duration is the method of determining a bond's price sensitivity, given changes in interest rates. 3. The composition of the portfolio is subject to change in the future. 4. The Fund's investments may subject shareholders to federal alternative minimum tax. The investment income from this Fund may be subject to state income taxes.

Portfolio Holdings Investments in fixed income securities are subject to the risks associated with debt securities including credit and interest rate risk. When interest rates rise, the prices of bonds and therefore the value of fixed income mutual fund shares can decrease and an investor can lose principal value. The Fund is non-diversified. Due to the small number of bonds generally held in the portfolio, the Fund may be subject to greater risks than a more diversified fund. A change in the value of any single holding may affect the overall value more than it would affect a diversified fund that holds more investments. In addition, the Fund's investments may subject shareholders to federal alternative minimum tax. The investment income from this Fund may be subject to state income taxes. 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 MISSOURI TAX-FREE INTERMEDIATE BOND FUND HOLDINGS April, 2010* May, 2010* June, 2010*   *Adobe Acrobat 6.0® or above required. Download now for free.

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