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

U.S. equity markets continued the post-election rally through the 1st quarter as prospects of lower corporate taxes, less regulation and a stronger economy gave investors hope that earnings growth will begin to accelerate over the coming years. However, investors rotated out of the value stocks, and into growth stocks in the Technology and Health Care sectors. The Commerce Growth Fund was up 8.89%, performing in line with the Russell 1000 Growth Index return of 8.91%.

Stock selection was the main contributor to the Fund's performance. The Fund's strongest stocks for the period were Panera Bread Company (1.06%), Philip Morris International (1.17%), and Mead Johnson Nutrition (0.00%), up 28%, 26%, and 24%, respectively. The weakest stocks were Kroger Co (1.19%), T. Rowe Price Group (1.04%), and Autozone Inc (0.00%), down 14%, 9%, and 8%, respectively.

Sector allocation had a negative impact on the Fund's performance. The Fund's 2.5% overweight to Consumer Non-Durables sector (up 6%) detracted from the Fund's performance. However, the Fund's 0% allocation to Energy sector (down 11%), benefitted the Fund's performance.

During the quarter the Fund decreased its position in the Retail sector from 9.7% to 8.6%, with the sale of Autozone Inc. (0.00%).

Total Fund Assets as of 3/31/2017 $100,989,529
Net Asset Value1 $29.41
Asset Allocation  
Equities 99.5%
Cash 0.5%
Weighted Average Market Capitalization $157.8 Billion

Holdings

Top Ten Equity Holdings2 as of 03/31/2017

Apple Inc 5.6%
Microsoft Corporation 3.8%
Alphabet Inc, Class A 3.5%
Amazon.com, Inc. 2.7%
Facebook, Inc. Class A 2.4%
iShare Russell 1000 Growth ETF 1.8%
Walt Disney Company 1.4%
Home Depot, Inc. 1.4%
Johnson Controls International PLC 1.3%
Visa Inc 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 Fund Holdings

March, 2017*
April, 2017*
May, 2017*

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.