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

In the first quarter, the US’s longest economic expansion abruptly ended when economic activity screeched to a halt causing equity prices to collapse as policy makers attempted to blunt the impact and spread of the COVID-19 pandemic.For the first quarter, The Commerce Mid Cap Growth Fund’s return of -19.35% outperformed the Russell Mid Cap Growth Index of -20-04%.

Stock selection benefited the Fund’s relative performance. The funds strongest stocks were Citrix Systems (1.20%),Zynga Inc. (1.19%), and Domino’s Pizza (1.12%) were up 27%, 10%, and 9%, respectively. The Fund’s weakest stocks were ViacomCBS Inc. (0.00%), United Airlines Holdings (0.00%), and Comerica Inc. (0.58%), down 70%, 67%, and 59% respectively.

The Fund’s sector allocations benefited relative performance as well. The Fund’s 1% underweight to the Energy sector (down 53%) helped performance. However, the 4% underweight to the Information Technology sector (down 17%), hurt performance.

During the quarter the Fund’s position in the Information Technology sector increased from 30.4% to 33.3%, with the purchase of PTC Inc. (1.29%), SolarWinds (1.32%), and Zebra Technologies (1.21%). The Fund’s position in the Communication Services sector was reduced from 3.6% to 1.3% with the sale of ViacomCBS (0.00%) and Live Nation Entertainment (0.00%), increasing the sector’s underweight.

Total Fund Assets as of 3/31/2020 $187,989,102
Net Asset Value1 $34.77
Asset Allocation  
Equities 100.0%
Cash 0.0%
Weighted Average Market Capitalization $13.3 Billion

Holdings

Top Ten Equity Holdings2 as of 3/31/2020

iShares Russell Mid-Cap Growth 2.2%
IDEX Corporation 1.4%
Dollar General Corporation 1.3%
Rollins, Inc. 1.3%
McCormick & Company, Inc. 1.3%
Fortive Corp 1.3%
SolarWinds Corp. 1.3%
Pool Corporation 1.3%
Campbell Soup Company 1.3%
IDEXX Laboratories 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

April 2020*
May 2020*
June 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.

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.