Value Fund
Overview
Objective
Seeks capital appreciation and, secondarily, current income.Strategy
Invests in a diversified portfolio of equity securities of 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 | 03/03/97 |
|---|---|
| Ticker Symbol | CFVLX |
| Cusip | 200626828 |
| Minimum Initial Investment | $1,000 |
Commentary
| Total Fund Assets as of 9/30/2024 | $274,495,159 |
|---|---|
| Net Asset Value1 | $34.47 |
| Asset Allocation | |
| Equities | 99.4% |
| Cash | 0.6% |
| Weighted Average Market Capitalization | 171.9 Billion |
Holdings
Top Ten Equity Holdings2 as of 9/30/2024
| iShares Russell 1000 Value |
3.4% |
|---|---|
| Chevron Corporation
|
2.9% |
| JP Morgan Chase &; Company | 2.9% |
| Verizon Communications
|
2.4% |
| Duke Energy Corporation | 2.4% |
| Broadcom Inc
|
2.0% |
| Apollo Global Management Inc
|
2.0% |
| Eaton Corporation | 2.0% |
| Cisco Systems Inc | 2.0% |
| Morgan Stanley Dean Witter
|
2.0% |
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 Value 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 is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions.
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 Value Fund’s return of 8.28% underperformed the Russell 1000 Value Index return of 9.43%.
Stock selection was neutral for the Fund’s performance. The Fund’s strongest contributors were Stanley Black & Decker, Inc. (1.25%), Oracle Corporation (1.96%), and Home Depot, Inc. (1.97%), returning 38.98%, 21.02%, and 18.43%, respectively. The Fund’s top detractors were Charles Schwab Corp (0.00%), Microchip Technology Incorporated (1.24%), and Chevron Corporation (2.90%), returning -11.77%, -11.75%, and -4.80%, respectively.
The Fund’s sector allocation detracted from results for the quarter. The Fund’s 0.66% overweight in the Consumer Discretionary sector, which returned 12.94%, added to performance as it was a stronger sector. The Index had a 5.67% weight in the Consumer Discretionary sector. However, the Fund’s 1.29% underweight position in the Real Estate sector hurt performance as it was a stronger sector, gaining 17.03% for the quarter. The Index had an 4.81% weight in the Real Estate sector.