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National Tax-Free Intermediate Bond Fund

Overview

Objective Seeks current income exempt from federal income tax consistent with the preservation of capital.
Strategy Focuses on a broad range of investment-grade municipal securities, typically issued by or on behalf of the states, territories and possessions of the United States, the District of Columbia, and their respective authorities, agencies, instrumentalities and 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 CFNLX
Cusip 200626703
Minimum Initial Investment $1,000
 

Commentary

During the first quarter, geopolitical tensions involving Iran and the Strait of Hormuz disrupted global oil flows, driving Brent crude prices sharply higher and renewing inflation concerns. As expectations for interest rate cuts in 2026 were removed, the Federal Reserve maintained its policy rate at 3.50% to 3.75%, citing mixed economic data that included moderating labor conditions and persistent inflation pressures. The Federal Reserve reiterated a patient, data‑dependent approach while revising its inflation and gross domestic product outlooks higher.

Interest rates moved higher across municipal and Treasury markets during the quarter. The United States Treasury yield curve flattened modestly, while the municipal yield curve steepened. The ten‑year Treasury yield rose to 4.32%, while the ten‑year municipal yield increased to 3.12%, resulting in a municipal‑to‑Treasury ratio of approximately 72%. Municipal bond demand remained strong, supported by notable year‑to‑date fund inflows and elevated new issuance activity.

For the quarter, The Commerce National Tax‑Free Fund returned -0.42%, underperforming the -0.34% return for the Bloomberg 3–15 Year Blend Benchmark. Shorter duration positioning contributed positively to relative results. Cash holdings and exposure to the not‑for‑profit and pre‑refunded sectors were supportive, while limited tax, power, and housing sectors lagged market performance. 

 
 
Total Fund Assets as of 12/31/2025 $344,549,775
Net Asset Value1 $18.76
Effective Duration2 5.96 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 guarantee on U.S. government securities applies only to the underlying securities of the Fund if held to maturity and not to the value of the Fund's shares. Mortgage-backed securities are subject to prepayment risks. These risks may result in greater share price volatility.

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 National 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, and investment income may be subject to state income taxes.
  5. Please click the links for additional disclosures.