MidCap Value
Overview
Objective
Seeks capital appreciation and, secondarily, current income.Strategy
Invests in a diversified portfolio of equity securities of medium-sized companies that represent excellent value relative to their current price. The Fund seeks a higher return than the market index over time as the stocks it purchases rise in price to more normal valuations.The Management Team
The Fund is managed by the Equity Strategy Team, a group of senior-level investment professionals who average 38 years of experience.Risk/Return
LOW - - - - - • - HIGH
In general, greater returns are associated with greater risks.
Fund Statistics
| Inception Date | 11/13/23 |
|---|---|
| Ticker Symbol | CFMVX |
| Cusip | 200626711 |
| Minimum Initial Investment | $1,000 |
Commentary
| Total Fund Assets as of 6/30/2024 | $37,107,956 |
|---|---|
| Net Asset Value1 | $23.22 |
| Asset Allocation | |
| Equities | 99.7% |
| Cash | 0.3% |
| Weighted Average Market Capitalization | 25.3 Billion |
Holdings
Top Ten Equity Holdings2 as of 6/30/2024
| iShares Russell MidCap Value | 3.6% |
|---|---|
| Fedex Corporation | 1.4% |
| Nexstar Media Group Inc | 1.3% |
| Truist Financial Corporation | 1.3% |
| Bank OZK | 1.3% |
| Huntington Bancshares Inc
|
1.3% |
| Rockwell Automation Inc | 1.3% |
| CNA Financial Corporation | 1.3% |
| Omega Healthcare Corporation Inc | 1.3% |
| Keycorp | 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 Midcap Value Index is an unmanaged index that measures the performance of those Russell Midcap companies with lower priceto-book ratios and lower forecasted growth values. The Index figures do not reflect any deduction for Fees, expenses, or taxes. It is not possible to invest directly in an unmanaged index
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.
After the Russell MidCap Value Index hit an all-time high to end Q1, the index had a small pull-back during the second quarter. Value indices struggled to find footing amidst a slowing economy report and the prospects of interest rate cuts by the Federal Reserve pushed out to the latter part of the year. Recent commentary and inflation data continue to support the idea of a downward trend in interest rates historically providing a positive backdrop for equities. The Commerce MidCap Value Fund’s return of -3.08% outperformed the Russell MidCap Value Index return of -3.40%.
Stock selection added to the Fund’s performance. The Fund’s strongest contributors were Texas Pacific Land Corporation (1.15%), Universal Display Corporation (1.21%), and Corning Inc (1.19%), returning 27.17%, 25.06%, and 18.76%, respectively. The Fund’s top detractors were Whirlpool Corporation (0.00%), Celanese Corporation (1.15%), and Lear Corporation (0.00%), returning -24.09%, -21.16%, and -20.40%, respectively.
The Fund’s sector allocation outperformed for the quarter. The Fund’s 2.71% underweight in the Industrials sector, which returned -5.01%, added to performance as it was a weaker sector. The Index had an 20.46% weight in the Industrials sector. All other sector weights were very close to the index weight with minimal impact on performance from sector differences on the quarter.