MidCap Growth Fund
Overview
Objective
Seeks capital appreciation.
Strategy
Invests in a diversified portfolio of equity securities of medium-sized companies that show the potential for 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 | CFAGX |
| Cusip | 200626505 |
| Minimum Initial Investment | $1,000 |
Commentary
| Total Fund Assets as of 9/30/2023 | $213,931,209 |
|---|---|
| Net Asset Value1 | $41.49 |
| Asset Allocation | |
| Equities | 97.9% |
| Cash | 2.1% |
| Weighted Average Market Capitalization | 19.15 Billion |
Holdings
Top Ten Equity Holdings2 as of 9/30/2023
| iShares Russell MidCap Growth | 2.8% |
|---|---|
| Five Below Inc | 1.3% |
| ResMed Inc | 1.3% |
| Ionis Pharmaceuticals Inc | 1.3% |
| Cheniere Energy Inc | 1.2% |
| Toro Company
|
1.2% |
| Brighthouse Financial Inc | 1.2% |
| Lincoln Electric Holdings Inc | 1.2% |
| Skechers U.S.A. Inc | 1.2% |
| BioMarin Pharmaceutical Inc | 1.2% |
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.
July started off strong, only to falter in August and September, producing negative returns for equities in the third quarter. The pickup in economic growth caught many investors off guard sending interest rates higher despite the Federal Reserve pausing and not hiking interest rates at both meetings during the quarter. With higher interest rates, investors feared the economy could fall into a recession in 2024, producing uncertainty for future earnings growth. The Commerce MidCap Growth Fund’s return of -3.78% outperformed the Russell Mid Cap Growth Index return of -5.22%.
Stock selection added to the Fund’s performance. The Fund’s strongest stocks were Texas Pacific Land Corporation (1.20%), Black Knight, Inc. (0.00%), and Tradeweb Markets Inc. Class A (1.19%), returning 38.75%, 26.84%, and 17.24%, respectively. The Fund’s top detractors were Insulet Corporation (0.00%), FMC Corporation (1.19%), and Keysight Technologies Inc. (1.23%), returning -46.00%, -35.25%, and -20.99% respectively.
The Fund’s sector allocations slightly detracted from performance for the quarter. The Fund’s 1.64% underweight to the Healthcare sector, returning -12.64%, added to performance as it was the worst performing sector. The Index had a 20.98% weight in the Healthcare sector. The Fund’s 2.32% underweight to the Financials sector, returning 2.51%, detracted from performance as it was a stronger sector. The Index had a 10.23% weight in the Financials sector.