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

In the second quarter, the markets experienced a swift and persistent rally after massive fiscal and monetary stimulus were injected into the US economy and financial markets. The economy showed signs of recovering as we emerged from COVID-19 lock downs in the last half of the quarter. For the second quarter, the Commerce Growth Fund’s return of24.05% under performed the Russell 1000 Growth Index return of 27.84%.

Security selection was the main detractor from the Fund’s relative performance. The Fund’s top detractors were Public Storage (1.07%), Armstrong World Industries, Inc. (0.0%), Becton, Dickinson and Company (0.0%), and Citrix Systems, Inc. (0.92%) returning -2.40%, -1.57%, 3.73%, and 4.75%, respectively. The Fund’s top contributors were Cadence Design Systems, Inc. (1.00%) and PayPal Holdings Inc. (1.25%) returning 45.31% and 81.98%, respectively.

The Fund’s sector allocations detracted from relative performance as well. The Fund’s 4.25% overweight to the Industrials sector (only up 16.14%) hurt performance. In addition, the Fund’s 3.37% position versus the Index weight of 1.11% to the Materials (only up 20.57%) sector also detracted from performance. However, the 1.21% underweight to the Consumer Staples sector (only up 10.54%), helped performance. The Index had a 4.61% position to Consumer Staples.

Total Fund Assets as of 6/30/2020 $206,057,635
Net Asset Value1 $39.41
Asset Allocation  
Equities 99.0%
Cash 1.0%
Weighted Average Market Capitalization 492.77 Billion

Holdings

Top Ten Equity Holdings2 as of 6/30/2020

Microsoft Corporation 8.9%
Apple Inc 8.5%
Amazon.com, Inc 6.6%
Alphabet Inc, Class A 4.3%
Facebook, Inc. Class A 3.1%
Visa Inc. Class A 1.9%
Mastercard Incorporated Class A 1.5%
iShares Russell 1000 Growth ETF 1.5%
UnitedHealth Group Incorporated 1.4%
Nvidia Corporation 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 2020*
July 2020*
August 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.