Class B shares
Contingent deferred sales charge
Unlike an initial sales charge, which is paid when you purchase shares, a contingent deferred sales charge is only paid if you sell your shares during a certain period of time. Class B shares are offered at net asset value without an initial sales charge, but subject to a contingent deferred sales charge as set forth in the applicable schedule below.
Contingent Deferred Sales Charge Applicable
in the Year of Redemption After Purchase
(All Class B shares of funds except the State Farm Bond Fund,
Tax Advantaged Bond Fund, and State Farm Money Market Fund) |
| Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Year 6 |
Year 7 |
Year 8 |
Year 9 |
| 5.00% |
4.25 % |
3.50% |
2.75% |
2.00% |
1.00% |
0.00% |
0.00% |
Convert to Class A |
In determining whether or not you must pay a contingent deferred sales charge on the redemption of your Class B shares, the calculation will be made in a manner that results in the lowest possible charge. Contingent deferred sales charges are not paid when you exchange your shares for the shares of another fund, nor are they paid when you redeem shares you received as a reinvestment of dividends or capital gains distribution. Purchases of $25,000 or more are not accepted in Class B shares; instead, you will be issued Class A shares in these cases.
Distribution and shareholder servicing fees
Class B shares of each Fund are subject to a distribution fee, commonly known as a 12b-1 fee, of up to 0.95% (0.55% for the Money Market Fund) per year of the Fund's average daily net assets. The distribution fee is payable to State Farm VP Management Corp. to reimburse it for services and expenses incurred in connection with the distribution of Fund shares. In addition, Class B shares of each Fund pay a shareholder servicing fee of up to 0.25% per year of the Fund's average daily net assets. Please read the prospectus for complete information on the Funds' fees and expenses.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to 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 553 KB) .
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AP2009/01/2075 |
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