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 38 years of experience.
Risk/Return
LOW - - - - - • - HIGH
In general, greater returns are associated with greater risks.
Fund Statistics
Inception Date | 12/12/94 |
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Ticker Symbol | CFGRX |
Cusip | 200626406 |
Minimum Initial Investment | $1,000 |
Commentary
Total Fund Assets as of 6/30/2024 | $240,350,426 |
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Net Asset Value1 | $50.89 |
Asset Allocation | |
Equities | 99.2% |
Cash | 0.8% |
Weighted Average Market Capitalization | 1,438.9 Billion |
Holdings
Top Ten Equity Holdings2 as of 6/30/2024
Microsoft Corporation | 11.3% |
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Apple Inc | 10.9% |
NVIDIA Corporation | 9.9% |
Alphabet Inc Class A | 6.5% |
Amazon.com Inc | 5.6% |
Meta Platforms Inc | 3.4% |
Eli Lilly and Company | 2.2% |
Broadcom Inc | 2.1% |
iShares Russell 1000 Growth ETF | 2.0% |
Tesla Motors Inc | 1.7% |
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.
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.
The Russell 1000 Growth index extended its strong performance during the second quarter led by strong returns from only a handful of the largest technology and communication companies. While expectations for cuts in the Federal Reserve (Fed) Funds rate continue to evolve, recent commentary and inflation data continue to support the idea of a downward trend in interest rates providing a favorable backdrop for equity prices. The Commerce Growth Fund’s return of 7.43% lagged the Russell 1000 Growth Index return of 8.33%.
Stock selection was a detractor from the Fund’s performance. The Fund’s strongest stocks were NetApp Inc. (0.87%), Alphabet Inc. Class A (6.48%), and Palo Alto Networks, Inc (1.01%), returning 23.29%, 20.82%, and 19.32%, respectively. The Fund’s top detractors were Lincoln Electric Holdings Inc. (0.00%), lululemon athletica inc. (0.00%), and Vontier Corp (0.85%), returning -27.60%, -21.29%, and -15.73%, respectively.
The Fund’s sector allocation slightly detracted from the Fund’s performance. The Fund’s 0.77% underweight in the Health Care sector, which returned 2.94%, added to performance as it was one of the weaker performing sectors. The Index has a 10.30% weight in the Health Care sector. However, The Fund’s 1.18% overweight in the Industrials sector, which returned -5.29%, detracted from performance as it was one of the worst performing sectors. The Index had a 5.51% weight in the Industrials sector.