Home / Fund Information / Mutual Funds / Bond Fund

 

Bond Fund

Overview

Objective Seeks total return through current income and, secondarily, capital appreciation.
Strategy Invests primarily in a broad range of government and investment-grade corporate bonds and other fixed-income securities.
Fund Manager The Fund is managed by the Fixed Income Team, a group of senior-level investment professionals who average 29 years of experience.
Risk/Return ico_risk_3
In general, greater returns are associated with greater risks.
 
 

Fund Statistics

Inception Date 12/12/94
Ticker Symbol CFBNX
Cusip 200626208
Minimum Initial Investment $1,000
 

Commentary

The year began with expectations for solid economic growth, supported by consumer spending and investment related to artificial intelligence. Late February geopolitical developments, including Operation Epic Fury and the subsequent closure of the Strait of Hormuz, disrupted global energy markets and introduced significant uncertainty. As a result, consensus forecasts for United States gross domestic product growth were revised modestly lower.

Throughout the quarter, the Federal Reserve maintained the federal funds target rate at 3.50% to 3.75%, citing persistent inflation pressures and heightened geopolitical risks. Market expectations shifted away from near‑term rate reductions, reflecting a view that policy rates may remain at current levels for an extended period. Treasury yields moved higher during the quarter, with increases across both short‑ and long‑term maturities.

The Commerce Bond Fund returned -0.05% for the first quarter, performing in line with the -0.05% return of the Bloomberg United States Aggregate Bond Index. An overweight allocation to corporate bonds detracted from relative performance amid spread widening during periods of market stress. Allocations to agency mortgage‑backed securities and asset‑backed securities contributed positively to overall results.

 

 
 
Total Fund Assets as of 12/31/2025 $1,222,334,234
Net Asset Value1 $18.04
Effective Duration2 5.99 Yrs.
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 guarantee on U.S. government securities applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund's shares. Mortgage-backed securities are subject to prepayment risks, which may result in greater share price volatility. Asset-backed securities may be less liquid than other securities and therefore more difficult to value and liquidate, if necessary. Foreign investments may be more volatile than investment in U.S. securities and will be subject to the risks of currency fluctuations and political developments.

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 Bond Holdings


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 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. Please click the links for additional disclosures.