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 9/30/2024 | $214,884,977 |
|---|---|
| Net Asset Value1 | $47.64 |
| Asset Allocation | |
| Equities | 99.0% |
| Cash | 1.0% |
| Weighted Average Market Capitalization | 26.5 Billion |
Holdings
Top Ten Equity Holdings2 as of 9/30/2024
| iShares Russell MidCap Growth | 3.4% |
|---|---|
| Apollo Global Management Inc | 1.3% |
| Blue Owl Capital Inc | 1.3% |
| NRG Energy Inc | 1.3% |
| Eagle Materials Inc | 1.3% |
| Crocs Inc
|
1.3% |
| Carlisle Companies Inc | 1.3% |
| Texas Pacific Land Corporation | 1.3% |
| Emcor Group Inc | 1.3% |
| Waters 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.
Despite typical late summer volatility, growth stocks were able to extend the year’s gains by posting a positive third quarter. The growth indexes experienced positive momentum when the Federal Reserve suggested in July that interest rate cuts were on the horizon. In September, the Fed funds rate was lowered 0.50% for the first time since March of 2020. The growth indexes experienced volatility caused by the anticipation of the presidential election and continued slowing economic growth, although company earnings proved supportive enough to still have a positive quarter. The Commerce MidCap Growth Fund’s return of 5.43% underperformed the Russell Mid Cap Growth Index return of 6.54%.
Stock selection detracted from the Fund’s performance. The Fund’s strongest stocks were Eagle Materials Inc. (1.32%), Howmet Aerospace Inc. (1.23%), and Texas Pacific Land Corporation (1.30%), returning 32.39%, 29.2%, and 22.33%, respectively. The Fund’s top detractors were Core & Main, Inc. Class A (0.00%), MKS Instruments, Inc. (1.12%), and Ionis Pharmaceuticals, Inc. (1.09%), returning -18.43%, -16.59%, and -15.95%, respectively.
The Fund’s sector allocations underperformed for the quarter. The Fund’s 0.94% overweight to the Real Estate sector, returning 20.08%, added to performance as it was a stronger sector. The Index had a 1.50% weight in the Real Estate sector. The Fund’s 2.97% underweight to the Industrial sector, returning 12.14%, detracted from performance as it was a stronger sector. The Index had a 18.76% weight in the Industrials sector.