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

Following a strong rebound in equity markets last year, the first quarter would continue the advance, posting new all-time highs for the Russell MidCap Value Index. Current economic releases still indicate moderate economic growth for 2024 and the prospects for a recession are pushed further into the future. The Commerce MidCap Value Fund’s return of 7.05% trailed the Russell MidCap Value Index return of 8.23%.

Stock selection detracted from the Fund’s performance. The Fund’s strongest contributors were Allison Transmission Holdings, Inc. (1.19%), Valero Energy Corporation (1.18%), and MKS Instruments, Inc. (1.23%), returning 40.03%, 32.31%, and 29.53%, respectively. The Fund’s top detractors were Archer-Daniels-Midland Company (0.00%), C.H. Robinson Worldwide, Inc. (0.00%), and Air Products and Chemicals, Inc. (1.18%), returning -12.21%, -11.14%, and -10.87%, respectively.

The Fund’s sector allocation performed in line for the quarter. The Fund’s 0.62% underweight in the Communication Services sector, which returned -5.06%, added to performance as it was the weakest sector. The Index had an 3.08% weight in the Communication Services sector. However, the Fund’s 1.49% underweight position in the Industrials sector hurt performance as it was the strongest sector, gaining 14.83% for the quarter. The Index had an 19.85% weight in the Industrials sector.

Total Fund Assets as of 3/31/2024 $38,575,316
Net Asset Value1 $24.09
Asset Allocation  
Equities 98.9%
Cash 1.1%
Weighted Average Market Capitalization 26.0 Billion

Holdings

Top Ten Equity Holdings2 as of 3/31/2024

iShares Russell MidCap Value 3.6%
TD Synnex Corporation 1.3%
Thor Industries Inc 1.2%
MKS Instruments Inc 1.2%
Whirlpool Corporation 1.2%
Landstar Systems Inc
1.2%
Extra Space Storage Inc 1.2%
Digital Realty Trust Inc 1.2%
Huntington Bancshares Inc 1.2%
Littelfuse 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 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.

Commerce Midcap Value Holdings

March 2024*
April 2024*
May 2024*

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.