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 large cap growth market continued its rally in July and August, however, retraced some of the gains in September due to continued uncertainty regarding COVID-19 and an increased focus on the upcoming presidential election. For the third quarter, The Commerce Growth Fund’s return of 10.73% underperformed the Russell 1000 Growth Index of 13.22%. The Fund’s security selection and asset allocation both detracted from performance.

Stock selection was the main detractor from the Fund’s relative performance. Not owning Tesla Inc. (1.24%) until the end of the quarter, which was up 98.65%, hurt performance. Weak stock selection in Jack Henry & Associates, Inc. (0.98%) and Armstrong World Industries, Inc. (0.0%) which were down -11.41% and -12.04% hurt performance. In addition, the Fund had a 1.58% underweight position in Apple Inc., (10.19%) up 27.22% for the quarter, while the Index had a 11.09% position which further detracted from performance. The Fund’s top contributors were Rollins, Inc. (0.97%) which was up 28.02% for the quarter and being underweight the Index position to Microsoft Corporation (8.69%) which was only up 3.60%.

The Fund’s sector allocations slightly detracted from relative performance as well. The Fund’s 2.41% underweight to the Consumer Discretionary sector, the best performing sector returning 20.64%, hurt performance. However, the 2.44% overweight to the second-best performing sector, Materials, up 15.04% for the quarter helped performance. The Materials sector represents 3.26% of the Index.

Total Fund Assets as of 9/30/2020 $218,940,519
Net Asset Value1 $43.64
Asset Allocation  
Equities 99.7%
Cash 0.3%
Weighted Average Market Capitalization 594.18 Billion

Holdings

Top Ten Equity Holdings2 as of 9/30/2020

Apple Inc 10.2%
Microsoft Corporation 8.7%
Amazon.com, Inc 7.1%
Alphabet Inc, Class A 3.6%
Facebook, Inc. Class A 3.5%
Visa Inc. Class A 1.8%
Nvidia Corporation 1.7%
Mastercard Incorporated Class A 1.6%
UnitedHealth Group Incorporated 1.3%
Tesla Inc 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

August 2020*
September 2020*
October 2020*

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.