Home / Fund Information / Mutual Funds / Kansas Tax-Free Intermediate Bond Fund

 

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 The Fund is managed by the Fixed Income Team, a group of senior-level investment professionals who average 27 years of experience.
Risk/Return ico_risk_2
In 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

Geopolitical developments early in the year, particularly involving Iran and the Strait of Hormuz, disrupted oil markets and led to renewed inflation concerns. In this environment, the Federal Reserve maintained its policy rate at 3.50% to 3.75%, citing mixed economic data that included cooling labor conditions and ongoing inflation pressures. The Federal Reserve reiterated a patient, data‑driven policy approach while raising its inflation and gross domestic product outlooks.

Yield movements during the quarter reflected pressure across fixed income markets, with the Treasury yield curve flattening modestly and the municipal yield curve steepening. The ten‑year Treasury yield increased to 4.32%, while the ten‑year municipal yield rose to 3.12%. Demand for municipal bonds remained steady, supported by fund inflows and sustained levels of new issuance.

For the first quarter, The Commerce Kansas Tax‑Free Fund returned -0.67%, underperforming the -0.34% return for the Bloomberg 3–15 Year Blend Benchmark. Shorter duration exposure contributed positively. Cash holdings and allocations to housing and power sectors performed relatively well, while water and sewer, general obligation, and limited tax sectors lagged overall market performance.

 

 
 
Total Fund Assets as of 12/31/2025 $101,849,734
Net Asset Value1 $18.32
Effective Duration2 6.02 Yrs
Investments in fixed income securities are subject to the risks associated with debt securities including credit and interest rate risk. When interest rates rise, the prices of bonds and therefore the value of fixed income mutual fund shares can decrease and an investor can lose principal value. The Fund is non-diversified. Due to the smaller number of bonds generally held in the portfolio, the Fund may be subject to greater risks than a more diversified fund. A change in the value of any single holding may affect the overall value more than it would affect a diversified fund that holds more investments. In addition, the Fund's investments may subject shareholders to federal alternative minimum tax. The investment income from this Fund may be subject to state income taxes. 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 Kansas Tax-Free Intermediate Bond Holdings

 

Footnotes:

  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.
  5. Please click the links for additional disclosures.