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 rallied to new highs in the 3rd quarter as synchronized global growth increased the prospects of better corporate earnings and overshadowed geopolitical tensions and hurricane events in the Gulf of Mexico. The Commerce Growth Fund was up 4.42%, underperforming the Russell 1000 Growth Index return of 5.90%.

The Fund’s stock selection detracted from relative performance. The weakest stocks were Newell Brands (1.17%), Kellogg Company (1.07%), and CBS Corporation (1.17%), down 20%, 9%, and 8%, respectively. The Fund’s strongest stocks for the period were Rockwell Collins (0.00%), T. Rowe Price Group (1.12%), and Cadence Design Systems (1.02%), up 25%, 23%, and 18%, respectively.

Sector allocation also detracted from the Fund’s relative performance. The Fund’s 3.5% underweight to the Electronic Technology sector (up 12%) hurt the Fund’s performance. However, the Fund’s 1.5% underweight to the Consumer Services sector(only up 0.83%), benefitted the Fund’s performance.

During the quarter the Fund increased its position in the Consumer Services sector from 6.9% to 8.2%, with the purchase of Rollins, Inc (1.04%), which eliminated the Fund’s underweight to the sector. The Fund decreased its position to Consumer Non-Durables sector from 10.0% to 9.0%, through the sale of Altria Group, Inc. (0.00%). This reduced the Fund’s underweight to the sector.

Total Fund Assets as of 9/30/2017 $112,877,647
Net Asset Value1 $32.16
Asset Allocation  
Equities 99.6%
Cash 0.4%
Weighted Average Market Capitalization $172.9 Billion

Holdings

Top Ten Equity Holdings2 as of 09/30/2017

Apple Inc 5.5%
Alphabet Inc, Class A 3.9%
Microsoft Corporation 3.8%
Facebook, Inc. 2.7%
Amazon.com, Inc. 2.5%
Verizon Communications 1.3%
Celegene Corporation 1.3%
Praxair, Inc. 1.3%
UnitedHealth Group Inc. 1.3%
United Parcel Service, 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

August, 2017*
September, 2017*
October, 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.