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 37 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

After a weak beginning to the quarter, equity prices found their footing in November supported with continued positive economic news. The rally was provided a further lift in December with unanticipated comments from the Federal Reserve regarding a potential pivot from increasing to decreasing short interest rates in 2024. As we closed the quarter, most equity indexes were posting 52-week highs. The Commerce Growth Fund’s return of 13.57% slightly lagged the Russell 1000 Growth Index return of 14.16%.

Stock selection was a slight detractor from the Fund’s performance. The Fund’s strongest stocks were GoDaddy, Inc. Class A (0.83%), Lululemon Athletica Inc. (1.03%), and Gen Digital Inc. (0.84%), returning 42.53%, 32.59%, and 29.85%, respectively. The Fund’s top detractors were Arch Capital Group Ltd. (0.74%), Mettler-Toledo International Inc. (0.00%), and eBay Inc. (0.86%), returning -6.82%, -2.36%, and -0.46%, respectively.

The Fund’s sector allocation slightly added to the Fund’s performance. The Fund’s 0.56% overweight in the Real Estate sector, which returned 23.93%, added to performance as it was the best returning sector. The Index has a 0.90% weight in the Real Estate sector. However, The Fund’s 0.67% overweight in the Energy sector, which returned -2.46%, detracted from performance as it was the worst performing sector. The Index had a 0.55% weight in the Energy sector.

Total Fund Assets as of 12/31/2023 $225,183,886
Net Asset Value1 $43.02
Asset Allocation  
Equities 99.1%
Cash 0.9%
Weighted Average Market Capitalization 1,006.2 Billion

Holdings

Top Ten Equity Holdings2 as of 12/31/2023

Microsoft Corporation 11.2%
Apple Inc 11.1%
Alphabet Inc, Class A 5.9%
Amazon.com, Inc 5.1%
NVIDIA Corporation 4.2%
Meta Platforms Inc 2.8%
Tesla Motors Inc 2.4%
iShares Russell 1000 Growth ETF 2.4%
Eli Lilly and Company 1.7%
Broadcom Inc 1.6%

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

January 2024*
February 2024*
March 2024*

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.