MidCap Growth Fund
Overview
Objective
Seeks capital appreciation.
Strategy
Invests in a diversified portfolio of equity securities of medium-sized companies that show the potential for 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 |
|---|---|
| Ticker Symbol | CFAGX |
| Cusip | 200626505 |
| Minimum Initial Investment | $1,000 |
Commentary
| Total Fund Assets as of 12/31/2024 | $202,228,206 |
|---|---|
| Net Asset Value1 | $44.15 |
| Asset Allocation | |
| Equities | 99.2% |
| Cash | 0.8% |
| Weighted Average Market Capitalization | 35.6 Billion |
Holdings
Top Ten Equity Holdings2 as of 12/31/2024
| Palantir Technologies Inc | 3.8% |
|---|---|
| iShares Russell MidCap Growth | 3.2% |
| Applovin Corporation | 2.5% |
| The Trade Desk Inc | 1.4% |
| Teradyne Inc | 1.3% |
| Allstate Corporation
|
1.3% |
| Cheniere Energy Inc | 1.3% |
| Decks Outdoor Corporation | 1.3% |
| Paychex Inc | 1.3% |
| Incyte 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.
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 mid cap growth market continued it’s 2024 rally in the fourth quarter. Many investors focused on the positive implications of the two rate cuts in November and December by the Federal Reserve. Also, following the election, the tone for increased economic growth with less regulation in 2025 was viewed as a positive for forward earnings. The Commerce MidCap Growth Fund’s return of 1.46% underperformed the Russell Mid Cap Growth Index return of 8.14%.
Stock selection was the primary detractor from the Fund’s performance this quarter. The Fund’s strongest stocks were Apollo Global Management Inc (1.18%), Exelixis, Inc. (1.19%), and Texas Pacific Land Corporation (1.06%), returning 32.60%, 28.32%, and 25.14%, respectively. The Fund’s top detractors were Crocs, Inc. (0.00%), Universal Display Corporation (0.00%), and Mettler-Toledo Internation Inc (0.00%), returning -22.85%, -22.44%, and -14.85%, respectively.
The Fund’s sector allocation detracted from the Fund’s performance. The Fund’s 3.44% underweight in the Consumer Discretionary sector, which returned 3.77%, added to performance as it was one of the weaker performing sectors. The Index had a 14.82% weight in the Consumer Discretionary sector. However, The Fund’s 1.28% overweight in the Materials sector, which returned -11.21%, detracted from performance as it was the worst performing sector. The Index had a 1.26% weight in the Materials sector.