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THE COMMERCE FUNDS
THE SHORT-TERM GOVERNMENT FUND
THE BOND FUND
THE BALANCED FUND
THE GROWTH AND INCOME FUND
THE GROWTH FUND
THE MIDCAP FUND
THE INTERNATIONAL EQUITY FUND
INSTITUTIONAL SHARES
SERVICE SHARES
SUPPLEMENT DATED NOVEMBER 23, 1998
TO PROSPECTUSES
DATED MARCH 2, 1998
The following disclosure is added as the second full paragraph on Page 24 of
the Institutional Share Prospectus and as the last paragraph on Page 22 of the
Service Share Prospectus:
"Many European countries are about to adopt a single European currency, the
euro. On January 1, 1999, the euro will become legal tender for all countries
participating in the Economic and Monetary Union ("EMU"). A new European
Central Bank will be created to manage the monetary policy of the new unified
region. On the same date, the exchange rates will be irrevocably fixed between
EMU member countries. National currencies will continue to circulate until
they are replaced by euro coins and bank notes by the middle of 2002.
This change is likely to significantly impact the European capital markets
in which the Funds invest and may result in a Fund facing risks that are
different than the risks that it ordinarily faces in pursuing its investment
objectives. These risks, which include, but are not limited to, uncertainty as
to the proper tax treatment of the currency conversion, volatility of currency
exchange rates as a result of the conversion, uncertainty as to capital market
reaction, conversion costs that may affect issuer profitability and
creditworthiness, and lack of participation by some European countries, may
increase the volatility of the Funds' net asset values per share."
