Commerce Funds, Kansas Tax Free Intermediate Bond Fd Inst Shs

This fund primarily invests at least 80% of its net assets, including any borrowed capital for investment (assessed at the time of purchase), in municipal bonds issued by the state of Kansas. The income generated from these bonds is considered, by bond counsel, to be exempt from regular federal income tax, federal alternative minimum tax, and all Kansas state taxes. Up to 10% of the fund's total assets may also be allocated to unrated securities of this nature. It operates as a non-diversified investment portfolio.