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 first quarter, market volatility continued, fueled by rising interest rates, however, with additional fiscal stimulus and better than anticipated COVID-19 vaccine rollout the equity markets climbed higher.

For the first quarter, The Commerce Growth Fund’s return of 1.90% outperformed the Russell 1000 Growth Index of 0.94%.

Stock selection was the largest contributor to the Fund’s outperformance. The Fund’s strongest stocks were Generac Holdings Inc. (0.00%), Alphabet Inc. Class A (4.51%), eBay Inc. (1.13%) and Best Buy Co., Inc. (0.00%) returning 37.96%, 17.68%, 22.26%, and 21.97%, respectively. The Fund’s top detractors were Copart, Inc. (0.93%) and Rollins, Inc. (0.94%) returning -14.65% and -11.72%, respectively.

The Fund’s sector allocation had little impact on the Fund’s outperformance. The Fund’s 4.09% overweight to the Industrials sector (up 3.41%) helped performance. The Index had a 4.56% weight to the Industrials sector. However, the 1.48% underweight to the Communicated Services sector, which was one of the best performing sectors returning 8.43%, hurt performance. The Index had a 11.44% weight in Communicated Services.

Total Fund Assets as of 3/31/2021 $218,353,932
Net Asset Value1 $47.25
Asset Allocation  
Equities 99.1%
Cash 0.9%
Weighted Average Market Capitalization 655.49 Billion

Holdings

Top Ten Equity Holdings2 as of 3/31/2021

Apple Inc 10.1%
Microsoft Corporation 9.2%
Amazon.com, Inc 6.7%
Alphabet Inc, Class A 4.4%
Sherwin Williams Company 3.3%
Facebook Inc Class A 3.1%
Tesla Inc 2.3%
iShares Russell 1000 Growth ETF 2.0%
Visa Inc. Class A 1.7%
NVIDIA Corporation 1.5%

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 2021*
March 2021*
April 2021*

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.