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 3/31/2023 | $222,070,604 |
|---|---|
| Net Asset Value1 | $41.56 |
| Asset Allocation | |
| Equities | 99.7% |
| Cash | 0.3% |
| Weighted Average Market Capitalization | 21.01 Billion |
Holdings
Top Ten Equity Holdings2 as of 3/31/2023
| iShares Russell MidCap Growth | 2.0% |
|---|---|
| Lululemon Athletica Inc | 1.4% |
| Paycom Software Inc | 1.3% |
| Zebra Technologies Corporation | 1.3% |
| Apollo Global Management Inc | 1.3% |
| Advance Auto Parts Inc
|
1.3% |
| Nexstar Media Group Inc | 1.3% |
| Tyler Technologies Inc | 1.3% |
| Cheniere Energy Inc | 1.3% |
| Hilton Worldwide Holdings 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.
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.
In the first quarter, growth markets rallied on the back of strong returns in the Information Technology sector, the index’s largest sector by weight. After reduced earnings projections in the back half of 2022, the first quarter had a strong earnings season and provided a tailwind for growth equities. The markets were still very reactive to Fed commentary, job reports, and inflation prints. The Commerce MidCap Growth Fund’s return of 5.06% underperformed the Russell Mid Cap Growth Index return of 9.14%.
Stock selection detracted from the Fund’s performance. The Fund’s strongest stocks were West Pharmaceutical Services, Inc. (1.21%) and ANSYS, Inc. (1.23%), returning 47.32% and 37.75%, respectively. The Fund’s top detractors were Texas Pacific Land Corporation (1.20%), Gen Digital Inc. (1.23%), and Advance Auto Parts, Inc. (1.28%), which returned -27.31%, -19.46%, and -17.29%, respectively.
The Fund’s sector allocations positively contributed to performance for the quarter. The Fund’s 1.25% underweight to the Energy sector, returning –9.57%, added to performance as it was the worst performing sector. The Index had a 4.51% weight in the Energy sector. However, the Fund’s 1.65% underweight to Communication Services, the best performing sector, returning 27.92%, detracted from performance. The Index had a 4.18% weight in the Health Care sector.