Short-Term Government Fund



Seeks current income consistent with preservation of principal.


Invests primarily in U.S. Government securities and government mortgage-backed securities.

Fund Manager

Scott Colbert, CFA
  • Joined Commerce in 1993
  • 36 years of experience
  • Fund manager since Fund inception


LOW - • - - - - - HIGH

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


Gross Domestic Product (GDP) grew at a surprising 3.3% annualized rate for the fourth quarter of 2023, versus initial consensus quarterly forecasts of 1.3 - 1.4%. Strong growth in consumption and exports carried the quarterly result, and the economy expanded 2.5% for the full year.

The Federal Reserve (Fed) surprised financial markets at its December 2023 meeting. Leaving the target federal funds rate range unchanged at 5.25%-5.50% was expected. Signaling up to three rate cuts throughout 2024 was entirely unexpected. However, continued diminishing inflation and consistent GDP growth over the coming quarters would reinforce the Fed’s measured approach to easing short-term interest rates.

Fed chairman Powell’s unexpected December meeting comments spurred a bond market rally, as Treasury bond yields fell dramatically during the fourth quarter. The 5-year Treasury yield decreased 76 basis points to 3.85% at year end. For the fourth quarter, the Commerce Short Term Government Fund’s return of 2.65% underperformed the Bloomberg 1-5 Year Government Index return of 3.19%. The Fund’s shorter duration relative to the benchmark detracted from performance. The Fund’s out-of-benchmark exposure to agency mortgages contributed to performance.

The solid economic growth of 2023 casts doubt on consensus forecasts for muted annualized 2024 GDP growth of 1.2% - 1.4%. While GDP growth slowed from the third quarter to the fourth, all major GDP components experienced some growth. For now, households and businesses are adjusting to tighter credit conditions, and recession predictions seem premature.

Total Fund Assets as of 12/31/2023 $32,175,013
Net Asset Value1 $15.79
Effective Duration2 2.15 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.

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 Short-Term Government Holdings

November 2023*
December 2023*
January 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.