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 general, equity markets declined sharply to start the quarter in response to ongoing supply chain issues and market expectations of aggressive central bank tightening to slow inflation. A further decline occurred with the invasion of Ukraine, but a strong rally to finish the last two weeks of March helped reduce some of the quarter’s decline. The 1st quarter drop was the largest since the pandemic lows, two years ago. The Commerce Growth Fund’s return of -8.40% outperformed the Russell 1000 Growth Index returned of -9.04%.

Stock selection was a positive contributor to the Fund’s performance. The Fund’s strongest stocks were Jack Henry & Associates (1.02%), Palo Alto Networks, Inc. (1.16%), and FLEETCOR Technologies, Inc. (1.00), returning 18.32%, 11.81%, and 11.27%, respectively. The Fund’s top detractors were Floor & Décor Holdings, Inc. Class A (0.00%) and Sherwin-Williams Company (1.16%) returning -32.30% and -28.96%, respectively.

The Fund’s sector allocations detracted from performance for the quarter. The Fund’s 2.72% overweight in the Materials sector, which returned -16.99%, detracted from performance. The Index had a 0.98% weight to the Materials sector. Also, the Fund’s 2.06% underweight in the Consumer Staples Sector, returning -2.49%, detracted from performance. The Index had a 4.23% weight to the Consumer Staples sector. For the first quarter, the Fund’s equal weight position in the Industrials sector helped performance as it was among the best performing sectors, declining only 3.35%.

Total Fund Assets as of 3/31/2022 $194,001,307
Net Asset Value1 $44.05
Asset Allocation  
Equities 99.8%
Cash 0.2%
Weighted Average Market Capitalization 950.87 Billion

Holdings

Top Ten Equity Holdings2 as of 3/31/2022

Apple Inc 12.2%
Microsoft Corporation 10.8%
Amazon.com, Inc 6.5%
Alphabet Inc, Class A 6.3%
Tesla Inc 3.2%
NVIDIA Corporation 2.9%
Meta Platforms Inc 2.0%
Visa Inc Class A Shares 1.5%
Home Depot Inc 1.3%
Public Storage 1.2%

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

February 2022*
March 2022*
April 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.