** Only available to shareholders with account registrations established prior to 5/01/06.

• Asset Type -- Bonds
• Rates Moderate on the Risk Chart
• Fund Fact Sheet - Class A&B (PDF 61 KB) and R1,R2,R3 (PDF 49 KB)

* The inception date for Class A&B is 5/01/06. The inception date for Class R1, R2, and R3 is 09/13/04. The inception date for Legacy Class A&B is 12/18/00.

View total returns current to the most recent month-end.

This performance data represents past performance and does not guarantee future results. There is no guarantee that the circumstances leading to this performance will be replicated in the future. Investment return and principal value will fluctuate and fund shares, when redeemed, may be worth less than their original cost. Recent performance may be less than the figures shown.

Year-to-date and since inception total return are the compounded rate of change in value during period of investment, including the value of shares acquired through reinvestment of all dividends and all capital gains distributions for the period. These figures are based on an investment at the beginning of the period through the end of the period and reflect all applicable fees and expenses, including a maximum sales charge of 3% for Legacy A shares and Class A shares and maximum contingent deferred sales charges on Legacy B shares and Class B shares of 3% during year one, 2.75% in year two. 2.75% in year three, 2.50% in year four, 2.00% in year five, 1.00% in year six, and 0% in year seven. NAV Total Return does not include any initial sales charge or contingent deferred sales charge. Class R shares do not include a sales charge.

Net Asset Value (NAV) is calculated by adding all of the assets of a fund, subtracting the fund’s liabilities, then dividing by the number of outstanding shares. A separate NAV is calculated for each class of each fund. NAV is calculated at the close of each business day.

The 30-day SEC Yield is the net investment income per share for the 30-day period as of the most recent calendar quarter ended divided by the maximum public offering price for A shares, including a maximum 3% sales charge, or by the net asset value for B shares at the end of the period and annualizing the result. B shares have a maximum contingent deferred sales charge (CDSC) of 3%. The 30-day SEC Yield quoted for B shares does not include the CDSC. If the CDSC were included, the 30-day SEC Yield quoted for B shares would have been lower.

¹ For the time period prior to May 1, 2006, the performance data quoted in this report for State Farm Class A shares is the performance for the Legacy Class A shares adjusted to include the maximum sales charge associated with Class A shares. Legacy Class A shares and Class A shares are comprised of the same underlying securities portfolio and have the same investment objectives and annual operating expenses. Legacy Class A shares have a maximum sales load of 3.00%. Class A shares have a maximum sales load of 5.00% except for the Bond Fund and the Tax Advantaged Bond Fund, which have a maximum sales load of 3.00%. Neither the Class A Money Market Fund nor the Legacy Class A Money Market Fund have a sales load. Class A shares have an inception date of May 1, 2006. Legacy Class A shares have an inception date of December 18, 2000, except for LifePath®  Funds, which have an inception date of May 9, 2003.

² For the time period prior to May 1, 2006, the performance data quoted in this report for State Farm Class B shares is the performance for the Legacy Class B shares adjusted to include the higher contingent deferred sales charges and the higher 12b-1 fees associated with Class B shares. Legacy Class B shares and Class B shares are comprised of the same underlying securities portfolio and have the same investment objectives and annual operating expenses, except for 12b-1 fees. The annual 12b-1 fee for Legacy Class B shares is .65% for all the funds except the Money Market Fund which is .55%.  The annual 12b-1 fee for Class B shares is .95% for all the funds except the Bond Fund and Tax Advantaged Bond Fund which are .65% and the Money Market Fund which is .55%.  Class B shares have an inception date of May 1, 2006. Legacy Class B shares have an inception date of December 18, 2000 except for LifePath® Funds, which have an inception date of May 9, 2003.

³For the time period prior to September 13, 2004, the performance data quoted in this report for State Farm Class R-1, R-2, and R-3 shares is the performance for the Legacy Class A shares adjusted for annual expenses associated with Class R-1, R-2, and R-3 shares. Class R-1, R-2, and R-3 shares are comprised of the same underlying securities portfolio and have the same investment objectives as Legacy Class A shares. Class R-1, R-2, and R-3 shares have an inception date of September 13, 2004. Legacy Class A shares have an inception date of December 18, 2000, except for the LifePath® Funds, which have an inception date of May 9, 2003.

⁴State Farm Investment Management Corp., the investment adviser for each fund, has voluntarily agreed to reimburse each fund for certain annual operating expenses. This agreement may be eliminated at any time.

Investor profile: You may want to invest in the Bond Fund if you are seeking higher potential returns than money market funds and are willing to accept the price volatility of bonds with longer maturities, want to diversify your investments, are seeking an income mutual fund for an asset allocation program, or are retired or nearing retirement. You can open an account in this fund with a minimum initial investment of $250 ($50 by automatic investment).

You may not want to invest in the Bond Fund if you are investing for maximum return over a long time horizon, want the greater growth potential of an investment in equity securities, or require stability of your principal.

Investment objective: Seeks to realize over a period of years the highest yield consistent with investing in investment grade bonds.

Investment strategy: The Bond Fund invests primarily in investment grade bonds issued by U.S. companies. Under normal circumstances, the Bond Fund invests at least 80% of its assets in investment grade bonds or in bonds that are not rated, but that the Manager has determined to be of comparable quality. A bond is investment grade if Moody's Investors Service, Inc. ("Moody's") or S&P have rated the bond in one of their respective four highest rating categories. Non-investment grade bonds are commonly referred to as "junk bonds." The Bond Fund may invest in the following instruments:

• Corporate debt securities: investment grade securities issued by domestic and foreign corporations and to a limited extent (up to 20% of its assets), in lower rated securities;
  
  
• U.S. Government debt securities: securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities;
  
  
• Foreign government debt securities: investment grade securities issued or guaranteed by a foreign government or its agencies or instrumentalities, payable in U.S. dollars;
  
  
• Asset backed and mortgage backed securities: investment grade securities backed by mortgages, consumer loans and other assets; or
  
  
• Other issuer debt securities: the Fund may invest up to 20% of its assets in debt securities and preferred stocks that are convertible into common stocks as well as nonconvertible preferred stocks or securities.

Please read the Prospectus for more detailed information on expenses.

Risks

• Interest rate risk
• Prepayment risk
• Credit risk
• Management risk
• Liquidity risk

An investment in the Bond Fund is not a deposit of any bank or other insured depository institution and is not insured or guaranteed by the FDIC or any other government agency. You can lose money by investing in the Fund.

State Farm VP Management Corp Risk/Important Disclosures. State Farm Mutual Funds Prospectus. The State Farm College Savings Plan Enrollment Handbook (PDF 260 KB) .

Need Assistance? 1-800-447-4930

AP2008/04/0256