MidCap Value
Overview
Objective
Seeks capital appreciation and, secondarily, current income.Strategy
Invests in a diversified portfolio of equity securities of medium-sized companies that represent excellent value relative to their current price. The Fund seeks a higher return than the market index over time as the stocks it purchases rise in price to more normal valuations.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 | 11/13/23 |
|---|---|
| Ticker Symbol | CFMVX |
| Cusip | 200626711 |
| Minimum Initial Investment | $1,000 |
Commentary
| Total Fund Assets as of 9/30/2024 | $38,816,021 |
|---|---|
| Net Asset Value1 | $25.22 |
| Asset Allocation | |
| Equities | 99.7% |
| Cash | 0.3% |
| Weighted Average Market Capitalization | 27.5 Billion |
Holdings
Top Ten Equity Holdings2 as of 9/30/2024
| iShares Russell MidCap Value | 3.7% |
|---|---|
| Allison Transmission Holdings | 1.3% |
| Travel and Leisure Company | 1.3% |
| Celanse Corporation | 1.3% |
| Cummins Engine Inc | 1.3% |
| Stanley Black & Decker Inc
|
1.3% |
| Unum Group | 1.3% |
| MetLife Inc | 1.2% |
| Emerson Electric Company | 1.2% |
| Ralph Lauren Corporation | 1.2% |
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 Midcap Value Index is an unmanaged index that measures the performance of those Russell Midcap companies with lower priceto-book ratios and lower forecasted growth values. The Index figures do not reflect any deduction for Fees, expenses, or taxes. It is not possible to invest directly in an unmanaged index
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, value stocks were able to extend the year’s gains by posting a strong third quarter. The value 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. A rotation amongst styles was seen in the quarter as value indexes outperformed growth which broke recent trends, providing optimism to investors as a broadening of the market is viewed positively. Volatility in anticipation of the election and continued slowing economic growth was not enough to hamper returns for the quarter. The Commerce MidCap Value Fund’s return of 10.73% outperformed the Russell MidCap Value Index return of 10.08%.
Stock selection added to the Fund’s performance. The Fund’s strongest contributors were Kellanova (1.19%), Stanley Black & Decker, Inc. (1.27%), and Lazard Inc. (1.20%), returning 40.92%, 38.98%, and 33.50%, respectively. The Fund’s top detractors were MKS Instruments, inc. (1.18%), Valero Energy Corporation (1.18%), and Gentex Corporation (1.19%), returning -16.59%, -13.27%, and -11.61%, respectively.
The Fund’s sector allocation detracted from results for the quarter. The Fund’s 0.61% underweight in the Communication Services sector, which returned 7.01%, added to performance as it was a weaker sector. The Index had an 3.08% weight in the Communication Services sector. However, the Fund’s 1.11% overweight to the Information Technology sector, which returned 3.75%, detracted from performance as it was a weaker sector. The Index had an 8.94% weight in the Information Technology sector.