National Tax-Free Intermediate Bond Fund



Seeks current income exempt from federal income tax consistent with the preservation of capital.


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

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 CFNLX
Cusip 200626703
Minimum Initial Investment $1,000


Supply constrained markets and the Russian invasion of Ukraine pushed consumer prices higher still during the first quarter. A tight labor market and continued rising oil prices added fuel to the inflation fire. The Federal Reserve (the Fed) began addressing inflation by raising their benchmark interest rate by 25 bps (basis points) in March and markets are anticipating the Fed to be aggressive in its future policy decisions with a potential 50 bps increase in May. The US Treasury and municipal curves flattened significantly as yields spiked across the curves in both markets. Historic demand from municipal investors over the previous calendar year evaporated in response to the new interest rate environment. Municipal bond funds have experienced outflows of $21.9 billion year-to-date, according to JP Morgan. Municipal bonds underperformed US Treasuries in 1Q. The 10-year Treasury yield increased 83 bps (basis points) from 1.51% to 2.34% while the 10-year municipal yield increased 115 bps from 1.03% to 2.18% during the quarter. The 10-year muni/treasury ratio spiked to 93%. 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 30 bps for the quarter. Longer bonds underperformed shorter bonds while GO (General Obligation) bonds outperformed revenue sectors.

For the first quarter, The Commerce National Tax-Free Fund’s return of -5.43% outperformed the Bloomberg 3-15 Year Blend benchmark of -5.71%. Shorter maturities were the most additive. Pre-refunded, higher education and water/sewer sectors performed the best. The Fund’s exposures to the housing, lease and hospital sectors lagged.

Total Fund Assets as of 3/31/2022 $423,577,706
Net Asset Value1 $19.01
Effective Duration2 4.71 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, and investment income 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 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

February 2022*
March 2022*
April 2022*

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.