Missouri Tax-Free Intermediate Bond Fund



Seeks current income exempt from federal and, to the extent possible, from Missouri income taxes, as is consistent with the preservation of capital.


Focuses primarily on investing in municipal obligations issued by the State of Missouri and its political subdivisions.

Fund Manager

Brian P. Musielak, CFA
  • Joined Commerce in 1995
  • 26 years of experience
  • Fund manager since 1999


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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


The Federal Reserve (The Fed) continued to address inflation by increasing their benchmark interest rate by 25 basis points (bps) in July up to 5.50% and decided to pause in September while signaling rates may be higher for longer. We are beginning to see the effects of The Fed’s higher interest rate regime. Negative returns for global equity and bond markets during the third quarter is the most recent iteration of discomfort. Many consumers are feeling the pinch as mortgage applications declined 14% and consumer credit decreased almost $16 billion during the third quarter. Looming recession remains a primary talking point, however, Gross Domestic Product (GDP) prints remain positive at over 2% annualized while job openings and jobless claims continue to surprise to the upside. The tight labor market persists and fuels The Fed’s higher for longer interest rate guidance. Both the US Treasury curve and the municipal curve steepened during 3Q; yields increased notably in the intermediate to longer-end for Treasuries and munis. Municipal bond funds have experienced outflows of $12 billion year-to-date, according to JP Morgan. Municipal bonds underperformed US Treasuries in 3Q. The 10-year Treasury yield increased 73 bps from 3.84% to 4.57% while the 10-year municipal yield increased 89 bps from 2.56% to 3.45% during the quarter. The 10-year muni/treasury ratio increased to 75%. New issuance supply decreased over 23% year-over-year, ending the quarter at over $262 billion. Refunding deals made up 21% of new supply and taxable supply comprised 10%. Credit spreads ended the quarter wider. Lower quality bonds underperformed their higher quality counterparts. Bloomberg’s high yield muni index underperformed their investment grade index by 29 bps for the quarter. Longer bonds underperformed shorter bonds while GO (General Obligation) bonds underperformed revenue sectors.

For the third quarter, The Commerce Missouri Tax-Free Fund’s return of -3.82% underperformed the Bloomberg 3-15 Year Blend benchmark of -3.13%. Shorter maturities were the most additive. The cash position, higher education, and utilities sectors performed the best. The Fund’s exposures to the limited tax, transportation and lease sectors detracted.

Total Fund Assets as of 9/30/2023 $258,604,335
Net Asset Value1 $17.62
Effective Duration2 6.21 Yrs
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.

Portfolio Holdings

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

August 2023*
September 2023*
October 2023*

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.