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

The Russell Large Cap Growth index reached new all-time highs late in the second quarter 2019. Despite a global economy that was losing steam, stocks were able to rally as it became more likely that the Federal Reserve will begin to cut interest rates in the back half of the year. We feel this calmed fears that tight monetary conditions would choke out growth. The Commerce Growth Fund fnished the quarter up 6.76%, outperforming the Russell 1000 Growth Index return of 4.64%.

Stock selection beneftted the Fund’s relative performance. The strongest stocks were Walt Disney Company (0.00%), Broadridge Financial Solutions (0.97%), and Armstrong World Industries (1.01%), returning 27%, 24% and 23%, respectively. The Fund’s weakest stocks were CDK Global Inc. (1.02%), Rollins, Inc. (0.94%), and Cognizant Technology (1.20%), down -16%, -14%, and -12% respectively.

The Fund’s sector allocations also helped relative performance. The Fund’s 1.5% underweight Transportation sector (down -1.7%) contributed to performance. However, the 3.5% overweight to Producer Manufacturing sector (only 1.4%), hurt performance.

During the quarter the Fund increased its position in the Health Technology sector from 8.1% to 10.6%, with the purchase of Agilent Technologies (1.05%) and Abbott Laboratories (1.21%), now overweighting the sector. The Fund went underweight Consumer Non-Durables with the sale of Constellation Brands, Inc (0.00%), Colgate-Palmolive Company (0.00%), and Kimberly-Clark Corp. (0.00%), reducing the sector’s weight from 8.6% to 4.9%.

Total Fund Assets as of 6/30/2019 $156,607,771
Net Asset Value1 $36.02
Asset Allocation  
Equities 100.0%
Cash 0.0%
Weighted Average Market Capitalization 274.5 Billion

Holdings

Top Ten Equity Holdings2 as of 6/30/2019

Microsoft Corporation 6.3%
Apple Inc 5.7%
Amazon.com, Inc 4.8%
Alphabet Inc, Class A 4.0%
Facebook, Inc. Class A 2.8%
Visa Inc. Class A 1.9%
Cisco Systems, Inc. 1.5%
Mastercard Incorporated Class A 1.5%
UnitedHealth Group Incorporated 1.4%
Becton, Dickinson and Company 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

June 2019*
July 2019*
August 2019*

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.