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 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 CFAGX
Cusip 200626505
Minimum Initial Investment $1,000

Commentary

The mid cap growth market continued its rally in July and August, however, retraced some of the gains in September due to continued uncertainty regarding COVID-19 and an increased focus on the upcoming presidential election. For the third quarter, The Commerce Mid Cap Growth Fund’s return of 9.09% underperformed the Russell Mid Cap Growth Index of 9.37%. The Fund’s allocation detracted from performance while the Fund’s security selection contributed to performance.

Strong security selection with Varian Medical Systems, Inc. (0.0%), Guardant Health, Inc. (1.25%) and C.H. Robinson Worldwide, Inc. (1.19%) returning 42.16%, 37.78% and 29.93%, respectively, helped performance. The Fund’s top detractors were Reynolds Consumer Products Inc (1.15%) and Lumentum Holdings, Inc. (1.22%) returning -11.27% and -7.74%, respectively.

The Fund’s sector allocation slightly detracted from relative performance. The Fund’s 4.67% underweight to Consumer Discretionary, one of the best performing sectors up 14.79% for the quarter, hurt performance. Consumer Discretionary represents 11.19% of the Index. The Fund’s 1.05% overweight to Financials which was up only 2.14% for the quarter also hurt performance. The Financials sector represents 3.77% of the Index. Energy was one of the worst performing sectors returning -4.03% for the quarter. The Fund had a 0.0% weight to the Energy sector, although, the Energy sector only represents 0.45% of the Index.

Total Fund Assets as of 9/30/2020 $297,413,942
Net Asset Value1 $46.93
Asset Allocation  
Equities 99.6%
Cash 0.4%
Weighted Average Market Capitalization 17.26 Billion

Holdings

Top Ten Equity Holdings2 as of 9/30/2020

iShares Russell Mid-Cap Growth 1.3%
Alnylam Pharmaceuticals, Inc
1.3%
Seattle Genetics Inc
1.3%
Entegris Inc
1.3%
CDW Corporation
1.3%
Pool Corporation
1.3%
Monolithic Power Systems, Inc
1.3%
ANSYS, Inc.
1.3%
Cerner Corporation
1.3%
Match Group, 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 MidCap Growth Holdings

August 2020*
September 2020*
October 2020*

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.

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