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 35 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 fourth quarter, large cap growth equities began with a very volatile 2-month rally, followed by 80% of it being given back in December. Weekly swings in either direction were typically driven by an inflation print, employment data release, or the most recent tone by a Federal Reserve official. The general trend for each was that inflation is cooling, job growth is resilient, or how much higher do short term interest rates need to be raised to slow the economy? These three topics seemed to take priority over holiday consumer sales and a mixed congress election from mid-terms. The Commerce Growth Fund’s return of 2.08% performed in line with the Russell 1000 Growth Index return of 2.20%.

Stock selection was a positive contributor to the Fund’s performance. The Fund’s strongest stocks were Mettler-Toledo International Inc. (1.12%), Honeywell International Inc. (1.15%), and Agilent Technologies Inc. (1.11%), returning 33.33%, 28.98%, and 23.51%, respectively. The Fund’s top detractors were Palo Alto Networks, Inc. (1.00%) and Alphabet Inc. Class A (5.12%) returning -14.81% and -7.76% respectively.

The Fund’s sector allocation was a slight detractor to the Fund’s performance. The Fund’s 1.78% underweight in the Communication Services sector, which returned -6.47%, added to performance. The Index has a 7.12% weight in the Communication Services sector. However, the Fund’s 2.43% underweight in the Consumer Staples sector, which returned 10.01%, detracted from performance as it was a strong performing sector. The

Index had a 5.85% weight in the Consumer Staples Sector. Additionally, the Fund’s 0.95% overweight to the Consumer Discretionary sector, which returned -15.60%, the worst performing sector, took away from performance. The Index had a 15.33% weight in the Consumer Discretionary sector.

Total Fund Assets as of 12/31/2022 $160,053,841
Net Asset Value1 $33.03
Asset Allocation  
Equities 98.6%
Cash 1.4%
Weighted Average Market Capitalization 582.30 Billion

Holdings

Top Ten Equity Holdings2 as of 12/31/2022

Apple Inc 10.7%
Microsoft Corporation 9.6%
Alphabet Inc, Class A 5.2%
Amazon.com, Inc 4.1%
iShares Russell 1000 Growth ETF 3.2%
UnitedHealth Group Incorporated 2.1%
Visa Inc Class A Shares 1.7%
NVIDIA Corporation 1.6%
Tesla Motors Inc 1.6%
Mastercard Incorporated Class A 1.4%

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

October 2022*
November 2022*
December 2022*

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.

The method of calculation of the 30-Day Standardized Subsidized Yield is mandated by the Securities and Exchange Commission and is determined by dividing the net investment income per share earned during the last 30 days of the period by the maximum public offering price (“POP”) per share on the last day of the period. This number is then annualized. The 30-Day Standardized Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. This yield does not necessarily reflect income actually earned and distributed by the Fund and, therefore, may not be correlated with the dividends or other distributions paid to shareholders. The 30-Day Standardized Unsubsidized Yield does not adjust for any fee waivers and/ or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the 30-Day Standard Subsidized Yield and 30-Day Standardized Unsubsidized Yield will be identical.