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
| Total Fund Assets as of 3/31/2023 | $201,501,020 |
|---|---|
| Net Asset Value1 | $37.23 |
| Asset Allocation | |
| Equities | 99.6% |
| Cash | 0.4% |
| Weighted Average Market Capitalization | 755.44 Billion |
Holdings
Top Ten Equity Holdings2 as of 3/31/2023
| Apple Inc | 11.9% |
|---|---|
| Microsoft Corporation | 10.3% |
| Alphabet Inc, Class A | 5.5% |
| Amazon.com, Inc | 4.2% |
| NVIDIA Corporation | 2.8% |
| Tesla Motors Inc | 2.5% |
| iShares Russell 1000 Growth ETF | 2.4% |
| UnitedHealth Group Incorporated | 1.8% |
| Visa Inc Class A Shares | 1.6% |
| Mastercard Incorporated Class A | 1.4% |
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.
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.
In the first quarter, growth stocks had a nice rally, after a dismal performance last year. The Information Technology, Communication Services and Consumer Discretionary sectors, which account for 57% of the Fund, provided the bulk of the returns for the Index. Growth stock performance was relatively unaffected by the several banking failures in mid-March. Investors are still very reactive to updated Federal Reserve commentary, job reports, and inflation prints, trying to determine the path of the economy for the rest of the year. The Commerce Growth Fund’s return of 12.72% lagged the Russell 1000 Growth Index return of 14.37%.
Stock selection was a slight detractor to the Fund’s performance. The Fund’s strongest stocks were Palo Alto Networks, Inc. (1.17%), and Arista Networks, Inc. (1.25%), returning 43.13% and 38.33%, respectively. The Fund’s top detractors were Dollar General Corporation (1.08%), Jack Henry & Associates, Inc. (0.86%), and Raymond James Financial, Inc. (0.82%) returning -14.53%, -13.88%, and -12.32% respectively.
The Fund’s sector allocation was also a detractor to performance. The Fund’s 0.97% underweight in the Consumer Staples sector, which returned 1.95%, added to performance. The Index has a 6.24% weight in the Consumer Staples sector. However, the Fund’s 4.54% underweight in the Information Technology sector, which returned 24.86%, detracted from performance as it was the best performing sector. The Index had a 39.63% weight in the Information Technology Sector. Additionally, the Fund’s 1.75% overweight to the Financial sector, which returned 4.01%, also took away from performance. The Index had a 7.30% weight in the Financial sector.