Fund Evaluator:
Commerce Bond (CFBNX)
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Best Performing in Intermediate Core Bond Over the Last Year
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Fund Details
Commerce Bond Overview
Commerce Bond (CFBNX) is an actively managed Taxable Bond Intermediate Core Bond fund. Commerce launched the fund in 1994.
The investment seeks total return through current income and, secondarily, capital appreciation. The fund invests at least 80% of its net assets plus any borrowings for investment purposes in debt securities. It may invest up to 80% of its total assets in mortgage-backed and asset-backed securities. The fund may invest up to 10% of its total assets in high yield securities known as junk bonds and up to 35% of its total assets in obligations rated BBB or Baa by one of the major credit rating agencies.
About Commerce Bond (CFBNX)
There are 3 members of the management team with an average tenure of 21.81 years: Brent Schowe (2012), Scott Colbert (1994), William Cody (2006). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg US Agg Bond TR USD index with a weighting of 100%. Commerce Bond has 461 securities in its portfolio. The top 10 holdings constitute 12.5% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Commerce Bond is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Commerce Bond has 6.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 98.7% (91.9% domestic bond, 6.8% foreign bond and 0.2% convertible bond). Commerce Bond has 1.1% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is below the $3 billion average for the Intermediate Core Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
CFBNX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Commerce Bond expense ratio is above average compared to funds in the Intermediate Core Bond category. Commerce Bond has an expense ratio of 0.64%, which is 13% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Commerce Bond has a portfolio turnover rate of 13%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 150% for the Intermediate Core Bond category.
Recently, in the month of June 2026, Commerce Bond returned 0.3%, which earned it a grade of C, as the Intermediate Core Bond category had an average return of 0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Commerce Bond has a trailing yield of 3.62%, which is below the 3.97% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Commerce Bond Grades
Year to date, the fund has returned 0.8%, 0.2 percentage points better than the category, which translates into a grade of B. The fund has returned 3.8% over the past year (grade of B), 4.6% over the past three years (grade of A) and 0.5% per year over the past five years (grade of A) and 2.0% per year over the past 10 years (grade of A).
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CFBNX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| CFBNX Return (NAV) | 0.3% | 0.8% | 3.8% | 4.6% | 0.5% | 2.0% |
| CFBNX Grade | C | B | B | A | A | A |
| +/- Category | 0.0% | 0.1% | 0.2% | 0.5% | 0.5% | 0.5% |
| Intermediate Core Bond Avg | 0.2% | 0.7% | 3.7% | 4.2% | -0.0% | 1.6% |
| CFBNX Tax Cost Ratio | na | na | 1.5% | 1.4% | 1.3% | 1.3% |
CFBNX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| CFBNX Return (NAV) | 0.8% | 7.1% | 2.0% | 6.6% | -12.8% | -0.6% | 7.1% | 9.0% | -0.6% | 4.5% | 4.0% |
| CFBNX Grade | B | C | B | A | B | A | D | B | D | A | A |
| +/- Category | 0.2% | 0.1% | 0.5% | 0.9% | 0.4% | 0.9% | -1.0% | 0.5% | -0.2% | 0.9% | 1.2% |
| Intermediate Core Bond Avg | 0.6% | 7.0% | 1.6% | 5.6% | -13.2% | -1.5% | 8.1% | 8.5% | -0.4% | 3.6% | 2.8% |
| Risk Measures | |
| Standard Deviation: | 5.3% |
| Total Risk Index: | 0.44 - Low |
| Category Risk Index: | 0.96 - Low |
| Category Risk Grade: | A (12% Rank) |
| Beta: | 0.95 |
| R-Squared: | 99% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 3.6% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1213 Mil |
| Fund Total Assets: | $1,214 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 13% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 31.6 years | |||
| Average Tenure: 21.8 years | |||
| Managers (Year): Colbert Scott (1994), Cody William (2006), Schowe Brent (2012) | |||
Portfolio Composition (as of 4/30/26)
| # of Holdings: | 461 |
| % in Top 10 Holdings: | 12.5% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 6.8% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 91.9% |
| Foreign Bond: | 6.8% |
| Convertible Bond: | 0.2% |
| Other: | 0.0% |
| Cash: | 1.1% |
Purchase Information
| Fund Family: | Commerce |
| Phone Number: | 800-995-6365 |
| Website: | www.commercefunds.com |
| Status: | Open |
| Inception Date: | December 12, 1994 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $1,000 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.64% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.57% |
| Share Class: | Commerce Bond |
| Min. Subsequent Purchase: | $ 250 |
| Min. Subsequent IRA Purchase: | $ 250 |
