Commerce National Tax-Free Intermediate Bond Fund

Overview Objective Seeks current income exempt from federal income tax consistent with the preservation of capital. Strategy Focuses on a broad range of investment-grade municipal securities, typically issued by or on behalf of the states, territories and possessions of the United States, the District of Columbia, and their respective authorities, agencies, instrumentalities and political subdivisions. Commentary Portfolio Fund Holdings Portfolio Composition Fund Manager - Brian P. Musielak, CFA Joined Commerce in 1995 Fund Manager since January, 1999 17 years of experience Risk/Return In general, greater returns are associated with greater risks. Fund Statistics: Inception Date 02/21/95 Ticker Symbol CFNLX Cusip 200626703 Minimum Initial Investment $1,000 Commentary as of 03/31/2013 U.S. stocks rallied strongly to start the year while fixed income markets have not fared as well with the lone bright spot being high yield. Treasuries were down for the quarter on a total return basis mainly driven by yields rising in the longend of the curve. January experienced the bulk of this pain as February recovered and March had yields spiking again as markets turned to riskier assets. Municipals were able to post modest, positive returns, with this return mostly comprised of coupon income as prices declined during the quarter. Coupons were able to maintain the advantage through most of the quarter. Yields pushed higher and total returns for munis turned into negative territory for March. At quarter end, yields were higher, but returns still finished positive due to coupon income. Overall, longer dated issues suffered the most, the revenue sector outpaced General Obligations, and lower quality bonds beat higher quality bonds in general with high yield municipals posting the highest return. Issuance reached above $80 billion which is 2.4% higher year-over-year, but decreased substantially in February and March. New-money issuance represented about 40% of the total and fund flows are up over $7 billion. For the first quarter, the Fund outperformed its benchmark and peer category. Medium-grade quality holdings and high conviction revenue sectors performed well. Longer duration securities detracted from performance as did lower quality issues. Performance Report Total Fund Assets as of 03/31/2013 $261,397,726 Net Asset Value1 $20.30 Effective Duration 2 6.69

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, and investment income 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's investments may subject shareholders to the federal alternative minimum tax and 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 NATIONAL TAX-FREE INTERMEDIATE BOND FUND HOLDINGS February, 2013* March, 2013* April, 2013* *Adobe Acrobat 6.0® or above required. Download now for free.

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