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Short-Term Government Fund

Overview

Objective Seeks current income consistent with preservation of principal.
Strategy Invests primarily in U.S. Government securities and government mortgage-backed securities.
Fund Manager The Fund is managed by the Fixed Income Team, a group of senior-level investment professionals who average 29 years of experience.
Risk/Return

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In general, greater returns are associated with greater risks.
The Short-Term Government Fund's net asset value and yield are not guaranteed by the U.S. Government or by its agencies, instrumentalities or sponsored enterprises.
 

Fund Statistics

Inception Date 12/12/94
Ticker Symbol CFSTX
Cusip 200626109
Minimum Initial Investment $1,000
 

Commentary

The year began with expectations for solid economic growth, supported by consumer spending and investment related to artificial intelligence. Late February geopolitical developments, including Operation Epic Fury and the subsequent closure of the Strait of Hormuz, disrupted global energy markets and increased uncertainty. As a result, consensus forecasts for United States gross domestic product growth were revised modestly lower during the quarter.

Throughout the quarter, the Federal Reserve maintained the federal funds target rate at 3.50% to 3.75%, citing persistent inflation pressures and elevated geopolitical risks. Market expectations shifted away from near-term policy rate reductions, reflecting a view that interest rates may remain at current levels for an extended period. Treasury yields moved higher, with increases across short- and intermediate-term maturities.

For the first quarter, The Commerce Short Term Government Fund returned 0.28%, outperforming the 0.16% return for the Bloomberg 1–5 Year Government Index. An overweight allocation to mortgage-backed securities contributed positively to performance, while additions to United States Treasury securities detracted modestly from relative results.

 

 
 
Total Fund Assets as of 12/31/2025 $29,897,618
Net Asset Value1 $16.42
Effective Duration2 2.39 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 Short-Term Government 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. Please click the links for additional disclosures.