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Missouri Tax-Free Intermediate Bond Fund

Overview

Objective Seeks current income exempt from federal and, to the extent possible, from Missouri income taxes, as is consistent with the preservation of capital.
Strategy Focuses primarily on investing in municipal obligations issued by the State of Missouri and its political subdivisions.
Fund Manager The Fund is managed by the Fixed Income Team, a group of senior-level investment professionals who average 27 years of experience.
Risk/Return ico_risk_3
In general, greater returns are associated with greater risks.
 
 

Fund Statistics

Inception Date 02/21/95
Ticker Symbol CFMOX
Cusip 200626802
Minimum Initial Investment $1,000
 

Commentary

Market conditions during the first quarter reflected heightened geopolitical risk tied to Iran and the Strait of Hormuz, which contributed to higher energy prices and renewed inflation concerns. In response to mixed economic indicators, the Federal Reserve held its policy rate steady at 3.50% to 3.75%, noting gradual labor market cooling alongside persistent inflation. Inflation and gross domestic product projections were revised higher, while the policy stance remained data dependent.

The fixed income environment was marked by rising yields, with a modest flattening of the Treasury yield curve and a steepening of the municipal yield curve. The ten‑year Treasury yield ended the quarter at 4.32%, while the ten‑year municipal yield rose to 3.12%. Municipal bond technicals remained supportive, with continued fund inflows and elevated issuance, including a meaningful share of refunding activity.

The Commerce Missouri Tax‑Free Fund posted a return of -0.48% for the quarter, underperforming the -0.34% return for the Bloomberg 3–15 Year Blend Benchmark. Shorter duration exposure contributed positively, while allocations to the limited tax sector, cash holdings, and pre‑refunded securities performed relatively well. Housing, general obligation, and power sectors detracted from relative performance.

 
 
Total Fund Assets as of 12/31/2025 $219,804,936
Net Asset Value1 $18.56
Effective Duration2 5.97 Yrs
Investments in fixed income securities are subject to the risks associated with debt securities including credit and interest rate risk. When interest rates rise, the prices of bonds and therefore the value of fixed income mutual fund shares can decrease and an investor can lose principal value. The Fund is non-diversified. Due to the small number of bonds generally held in the portfolio, the Fund may be subject to greater risks than a more diversified fund. A change in the value of any single holding may affect the overall value more than it would affect a diversified fund that holds more investments. In addition, the Fund's investments may subject shareholders to federal alternative minimum tax. The investment income from this Fund may be subject to state income taxes.

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 Missouri Tax-Free Intermediate Bond Holdings

 

Footnotes:

  1. The Net Asset Value represents the assets of the fund (ex dividend) by the total number of shares.
  2. Duration is the method determining a bond's price sensitivity, given changes in interest rates.
  3. The composition of the portfolio is subject to change in the future.
  4. The Fund's investments may subject shareholders to federal alternative minimum tax. The investment income from this Fund may be subject to state income taxes.
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