Commerce Kansas Tax-Free Intermediate Bond Fund (KTXIX)

Overview

The company specializes in managing investments focused on Kansas municipal bonds. It dedicates a significant portion of its assets, at least 80%, to investments in municipal bonds that offer income exempt from federal and Kansas taxes. This strategic investment approach aims to benefit from the tax-exempt status of these bonds, providing an attractive option for investors looking for tax-efficient income sources. Additionally, the organization takes a cautious approach by allowing up to 10% of total assets in unrated securities, introducing a controlled level of risk to potentially enhance portfolio returns while maintaining a focus on tax-exempt income.

Products and Services

• Kansas Municipal Bonds Investment

  This service focuses on investing primarily in Kansas municipal bonds, which are selected for their tax-exempt status, both at a federal and state level. The fund looks for bonds that, in the opinion of bond counsel, offer exemptions from regular federal income taxes, federal alternative minimum taxes, and Kansas state taxes. By concentrating investments in these areas, the fund aims to provide tax-efficient income streams to its investors, leveraging the benefits of municipal bonds to achieve potentially lower taxable income.

• Investment in Unrated Securities

  While maintaining a conservative core focus on tax-exempt Kansas municipal bonds, the fund allows for a strategic allocation of up to 10% of its total assets in unrated securities. This approach enables the fund to diversify its investment portfolio and potentially tap into undervalued opportunities or higher yields that may not be available through rated securities. Investing in unrated securities entails a higher risk compared to investing in rated municipal bonds; however, it is managed carefully to maintain the fund's overall risk tolerance and investment objectives.