Growth Fund

Overview

Objective

Seeks capital appreciation.

Strategy

Primarily focuses on the stocks of companies that have shown and are expected to show above-average growth in earnings.

The Management Team

The Fund is managed by the Equity Strategy Team, a group of senior-level investment professionals who average 31 years of experience.

Risk/Return

LOW - - - - - • - HIGH

In general, greater returns are associated with greater risks.

Fund Statistics

Inception Date 12/12/94
Ticker Symbol CFGRX
Cusip 200626406
Minimum Initial Investment $1,000

Commentary

In the first quarter, the US’s longest economic expansion abruptly ended when economic activity screeched to a halt causing equity prices to collapse as policy makers attempted to blunt the impact and spread of the COVID-19 pandemic.For the first quarter, The Commerce Growth Fund’s return of -15.23% underperformed the Russell 1000 Growth Index of -14.10%.

Stock selection was the main detractor from the Fund’s relative performance. The funds weakest stocks were Live Nation Entertainment (0.00%), Marriott International (0.68%), and Middleby Corporation (0.00%) were down -53% -52%,and 47%, respectively. The Fund’s strongest stocks were Citrix Systems (1.16%), Zynga Inc (1.17%), and Rollins (1.10%), up 28%, 12%, and 9% respectively.

The Fund’s sector allocations slightly detracted from relative performance as well. The Fund’s 4% overweight to the Industrials sector (down 26%) hurt performance. However, the 0% allocation to the Energy sector (down 53%), helped performance.

During the quarter the Fund’s position in the Information Technology sector increased from 36.5% to 38.3%, as the Fund’s holdings in this sector held up better than the broader market. The Fund’s position in the Industrials sector was reduced from 12.7% to 11.7% with the sale of Middleby Corporation (0.00%), reducing the sector’s overweight to the sector.

Total Fund Assets as of 3/31/2020 $154,379,548
Net Asset Value1 $31.77
Asset Allocation  
Equities 100.0%
Cash 0.0%
Weighted Average Market Capitalization $350.3 Billion

Holdings

Top Ten Equity Holdings2 as of 3/31/2020

Microsoft Corporation 8.4%
Apple Inc 7.5%
Amazon.com, Inc 5.7%
Alphabet Inc, Class A 5.0%
Facebook, Inc. Class A 2.9%
Visa Inc. Class A 2.0%
UnitedHealth Group Incorporated 1.7%
Mastercard Incorporated Class A 1.6%
Intercontinental Exchange 1.3%
Dollar General Corp. 1.3%

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. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 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 Growth Holdings

April 2020*
May 2020*
June 2020*

A prospectus for the Commerce Funds containing more complete information may be obtained by calling 1-800-995-6365 or by downloading 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.

The mutual funds referred to in this Web site are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectus contains more complete information about the funds, including charges and expenses, and should be read carefully before investing.