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
  • 28 years of experience
  • Fund manager since 1999


LOW - - • - - - - HIGH

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


With market volatility characterizing the remainder of the year, the Federal Reserve (The Fed) maintained the current pause in rate hikes while offering a touch of dovishness to its higher for longer mantra. The Treasury curve inversion continued as both bond and equity markets rallied strongly to end the year. The Consumer Price Index (CPI) year-overyear measure declined from 6.5% at the end of 2022 to just above 3% to close out 2023. The latest Gross Domestic Product (GDP) figure showed resilient economic growth at 4.9% annualized with a persistently tight labor market. Both the US Treasury curve and the municipal (muni curve steepened during 4Q; yields decreased substantially across the curve for Treasuries and munis, but to a larger degree for municipals. Municipal bonds outperformed US Treasuries in 4Q. The 10-year Treasury yield decreased 69 bps from 4.57% to 3.88% while the 10-year municipal yield decreased 117 bps from 3.45% to 2.28% during the quarter. The 10-year muni/treasury ratio dropped to 59%. New issuance supply decreased roughly 3% year-over-year, ending the quarter at nearly $380 billion. Refunding deals made up 22% of new supply and taxable supply comprised 10%. Credit spreads ended tighter quarter over quarter. Lower quality bonds outperformed their higher quality counterparts. Bloomberg’s high yield muni index outperformed their investment grade index by 132 bps for the quarter. Longer bonds outperformed shorter bonds while General Obligation (GO )bonds underperformed revenue sectors.

For the fourth quarter, The Commerce Missouri Tax-Free Fund’s return of +7.18% outperformed the Bloomberg 3-15 Year Blend benchmark of +6.79%. Longer maturities were the most additive. Limited tax, transportation, and lease sectors performed the best. The Fund’s exposures to the higher education, utilities and housing sectors detracted.

Total Fund Assets as of 12/31/2023 $244,308,571
Net Asset Value1 $18.78
Effective Duration2 5.20 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

January 2024*
February 2024*
March 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.