Bond Fund



Seeks total return through current income and, secondarily, capital appreciation.


Invests primarily in a broad range of government and investment-grade corporate bonds and other fixed-income securities.

Fund Manager

Scott Colbert, CFA

  • Joined Commerce in 1993
  • 30 years of experience
  • Fund manager since Fund inception


LOW - - • - - - - HIGH

In general, greater returns are associated with greater risks.

Fund Statistics

Inception Date 12/12/94
Ticker Symbol CFBNX
Cusip 200626208
Minimum Initial Investment $1,000


The U.S. economy grew at a solid 3.4% in the third quarter of 2018. Together with the second quarter’s 4.2% growth rate, this is the fastest consecutive quarter period of growth since 2014. However, we believe declining business investment, slowing housing activity, and decreasing consumer spending signify a slowdown of economic activity. Economists now project an overall Gross Domestic Product (GDP) rate of 3.1% for 2018 and between 2.0% - 2.4% in 2019.

The Federal Reserve (Fed) raised the federal funds rate 25 basis points (bps) to the current 2.25%-2.50% target at the December 2018 meeting. A strong labor market and an inflation rate near its 2% target has allowed the Fed to continue its gradual approach to raising rates. The Fed’s official statement was initially interpreted by the financial markets as supporting continued rate hikes in the face of worsening economic news and stock market performance. Subsequent statements from Chairman Jerome Powell assuring policy flexibility and a move from three to two projected rate hikes in 2019 calmed financial markets. Market forecasts currently call for few, if any, rate hikes in 2019.

U.S. Treasury rates moved lower over the fourth quarter. The 10 year Treasury declined to 2.68% from 3.08% at the beginning of the quarter. Returns across bond sectors were mixed for the quarter but turned positive for most major sectors year to date, with Corporate bonds being the exception.

The Bond Fund underperformed the Bloomberg Barclays Aggregate Bond Index in the fourth quarter. An overweight to corporates and a shorter duration relative to the benchmark detracted from performance. The Fund’s underweight to mortgage-backed securities added to performance.

A slowing economy is projected for 2019 as the boost from tax cuts fades and tensions surrounding China trade/ tariff concerns remain.
Total Fund Assets as of 12/31/2018 $1,061,317,373
Net Asset Value1 $19.26
Effective Duration2 5.62 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, which may result in greater share price volatility. Asset-backed securities may be less liquid than other securities and therefore more difficult to value and liquidate, if necessary. Foreign investments may be more volatile than investment in U.S. securities and will be subject to the risks of currency fluctuations and political developments.

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 Bond Holdings

January 2019*
February 2019*
March 2019*

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.