How do LifePath® Funds work?

The LifePath Fund you choose is closely monitored and rebalanced by Barclays Global Fund Advisors (BGFA) in an effort to maximize returns for a given level of risk. You can invest your assets in a LifePath Fund and feel confident that you are invested in major asset classes to help manage market volatility and have the diversification you need.

How do LifePath Funds change over time? Follow each LifePath Fund -- over time, the investment mix changes to reflect the changing risk tolerance for each stage of your life.

For example, LifePath 2030. If the current year is 2005, and you have 25 years until you want to begin withdrawing from you retirement account, the LifePath 2030 Fund may be best suited to your investment needs. Follow the graphic below and see how over time, the LifePath 2030 Fund will gradually be rebalanced to reflect the asset allocation composition of the LifePath 2020 Fund, then continue to be rebalanced to reflect LifePath 2010, and finally result in the asset allocation composition for LifePath Income in the target year 2030 - the year when you plan to begin withdrawing your money.

The above chart is a hypothetical example for illustrative purposes only. The chart represents potential risk and return and does not reflect actual LifePath Portfolio allocations.

Barclays is a subsidiary of Barclays Global Investors, N.A.

LifePath ®, LifePath 2010®, LifePath 2020®, LifePath 2030®, LifePath 2040®, LifePath 2050® are all registered trademarks of Barclays Global Investors, N.A.

Each State Farm LifePath Fund invests all of its assets in a corresponding LifePath Master Portfolio under a master/feeder structure.  Barclays Global Fund Advisors (BGFA) is the investment advisor to the LifePath Master Portfolios.  State Farm Investment Management Corp. (SFIMC) is the investment advisor to the State Farm LifePath Funds.  State Farm VP Management Corp. (SFVPMC) is the distributor of the State Farm LifePath Funds.  Neither SFIMC or SFVPMC, or their affiliates, are affiliated with BGFA or its affiliates.

It is important to note that there is market risk involved when investing in mutual funds, including possible loss of principal. It is important to note that diversification does not assure a profit or protect against loss in a declining market.

State Farm VP Management Corp Risk/Important Disclosures. State Farm Mutual Funds Prospectus. The State Farm College Savings Plan Enrollment Handbook (PDF 390 KB) .

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AP2008/10/1416