Growth Fund

Overview

Objective

Seeks capital appreciation.

Strategy

Primarily focuses on the stocks of companies that have shown and are expected to show above-average growth in earnings.

The Management Team

The Fund is managed by the Equity Strategy Team, a group of senior-level investment professionals who average 31 years of experience.

Risk/Return

LOW - - - - - • - HIGH

In general, greater returns are associated with greater risks.

Fund Statistics

Inception Date 12/12/94
Ticker Symbol CFGRX
Cusip 200626406
Minimum Initial Investment $1,000

Commentary

The Russell Large Cap Growth Index fell from its all-time high in September to levels not seen since Summer of 2017. We believe the sharp selloff resulted from signs of a slowing global economy paired with concerns that the US Federal Reserve was tightening policy too fast. The Commerce Growth Fund fnished the quarter down -13.76%, outperforming the Russell 1000 Growth Index return of -15.89%

Stock selection contributed to the Fund’s positive relative performance. The strongest stocks were Starbucks Corporation (1.22%), McDonald’s Corporation (1.21%), and Yum Brands (1.28%), up 14%, 7%, and 1%, respectively. The Fund’s weakest stocks for the period were BWX Technologies (0.00%), Bio-Techne Corporation (0.96%), and FLIR Systems, Inc. (1.03%), down -31%, -29%, and -29%, respectively.

The Fund’s sector allocations also contributed to the Fund’s relative performance. The Fund’s 3% underweight to the Electronic Technology sector (down 25%) beneftted the Fund’s performance. However, the Fund’s 1.5% underweight to the REIT stocks in the Finance sector (down 10.5%), hurt the Fund’s performance.

During the quarter the Fund increased its position in the Finance sector from 7.1% to 9.9%, with the purchase of Charles Schwab Corp (1.02%) and CBOE Global Markets (1.00%), which eliminated the Fund’s underweight to the sector. The Fund decreased its position in the Electronic Technology sector from 14.9% to 12.4% through the sale of BWX Technologies (0.00%), and Cadence Design Systems (0.00%) increasing the Fund’s underweight
Total Fund Assets as of 12/31/2018 $115,980,456
Net Asset Value1 $29.32
Asset Allocation  
Equities 99.1%
Cash 0.9%
Weighted Average Market Capitalization 205.8 Billion

Holdings

Top Ten Equity Holdings2 as of 12/31/2018

Apple Inc 5.2%
Microsoft Corporation 5.1%
Alphabet Inc, Class A 4.5%
Amazon.com, Inc 4.2%
Facebook, Inc 2.2%
Visa Inc. 1.7%
UnitedHealth Group Inc. 1.6%
Home Depot, Inc 1.4%
Dollar General Corporation 1.3%
Dollar General Corporation 1.3%

Footnotes:
1. The Net Asset Value represents the assets of the fund (ex dividend) by the total number of shares.
2. The composition of the portfolio is subject to change in the future.
3. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Index figures do not reflect any fees or expenses.

Portfolio Holdings

The Fund invests in mid-capitalization securities. The securities of mid-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements.

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 Growth 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.