Kansas Tax-Free Intermediate Bond Fund
Overview
Objective
Seeks current income exempt from federal and, to the extent possible, from Kansas income taxes, as is consistent with the preservation of capital.Strategy
Focuses primarily on investing in municipal obligations issued by the State of Kansas and its political subdivisions.Fund Manager
Brian P. Musielak, CFA- Joined Commerce in 1995
- 26 years of experience
- Fund manager since Fund inception
Risk/Return
LOW - • - - - - - HIGHIn general, greater returns are associated with greater risks.
Fund Statistics
| Inception Date | 12/26/00 |
|---|---|
| Ticker Symbol | KTXIX |
| Cusip | 200626786 |
| Minimum Initial Investment | $1,000 |
Commentary
| Total Fund Assets as of 6/30/2022 | $154,389,161 |
|---|---|
| Net Asset Value1 | $18.29 |
| Effective Duration2 | 5.42 Yrs |
1. The Net Asset Value represents the assets of the fund (ex dividend) by the total number of shares.
2. Duration is the method determining a bond's price sensitivity, given changes in interest rates.
3. The composition of the portfolio is subject to change in the future.
4. The Fund's investments may subject shareholders to federal alternative minimum tax.
Portfolio Holdings
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.
The hope of peak inflation was pushed out further on the horizon as the second quarter Consumer Price Index (CPI) print came in at 8.6%, slightly higher than the first quarter. The Federal Reserve (The Fed) raised their benchmark interest rate by 75 basis points (bps) in June as expected with another move of 75bps higher in July on the table. Despite the tight labor market, inflation woes and negative first quarter Gross Domestic Product (GDP) growth have ignited recession expectations. The US Treasury curve flattened while the municipal curve steepened, and yields continued their march higher across the curves in both markets. Municipal bonds outperformed US Treasuries in 2Q. The 10-year Treasury yield increased 68 bps (basis points) from 2.34% to 3.02% while the 10-year municipal yield increased 54 bps from 2.18% to 2.72% during the quarter Longer bonds underperformed shorter bonds while GO (General Obligation) bonds outperformed revenue sectors.
For the second quarter, The Commerce Kansas Tax-Free Fund’s return of -2.85% underperformed the Bloomberg 3-15 Year Blend benchmark of -1.75%. Shorter maturities were the most additive. Pre-refunded, power, and transportation sectors enhanced returns as did high-grade issues. The Fund’s exposures to the higher education, limited tax, and hospital detracted.