Changes to Your Mutual Funds Account
We’re enhancing customers' investment options and State Farm® agents’ ability to help them meet their investment planning goals. During the weekend of November 16 through 18, we are merging State Farm retail funds with BlackRock® funds.
We’re also forming a relationship with RBC Correspondent Services* (RBC) that expands both the services we provide and the variety of available mutual funds. State Farm accounts will become RBC brokerage accounts holding the new BlackRock funds.
With these changes, authorized State Farm registered representative agents will service accounts and offer new funds on the RBC platform. RBC will administer accounts, providing services such as recordkeeping, executing transactions, and issuing statements.
These changes apply to mutual fund accounts that were opened prior to September 18, 2018. Accounts opened after September 18 are already serviced by Registered State Farm agents on the RBC platform. For more information on these changes, please review the information below.
All Retail Accounts
Most accounts are moving to RBC. However, there are some accounts that are moving to BlackRock, including:
- Education savings accounts (ESAs) and medical savings accounts (MSAs), because RBC doesn't support those account types.
- Accounts where we needed but did not receive customers’ consent to transfer to RBC. If you didn’t give consent but want your account to transfer to RBC, contact your agent for help. Once your account is transferred to RBC, your agent will be able to service it.
RBC or BlackRock
We communicated with customers over the summer about whether their accounts would move to RBC or BlackRock. If you’re having trouble locating that information, please contact your Registered State Farm agent for help and information about your account.
Blackout period and account access
So that we can merge the funds and transfer the accounts, customers won't be able to make any purchases or exchanges from 3 p.m. CT on November 13 until 8 a.m. CT on November 21. However, you can still redeem shares during that time, as well as access your account through the My Accounts login.
As accounts transfer to RBC and BlackRock, beginning November 20, mutual fund account balances on My Accounts will show as $0 (zero dollars). Around that same time, customers will be able to access their new RBC or BlackRock account.
*RBC Correspondent Services is a division of RBC Capital Markets, LLC.
Beginning November 19, both RBC and BlackRock accounts will become BlackRock funds. Please see the Fund Offering table below that shows the State Farm retail funds and the corresponding BlackRock funds into which they are merging.
Soon after the fund mergers and account transfer, customers will receive their closing account statement for their State Farm mutual fund account. This statement will reflect the closing account balance as of November 16, 2018. The next mutual fund account statement customers will receive will come from RBC or BlackRock.
Accounts Moving to RBC
RBC account access
Beginning November 21 you will access your new RBC account through statefarm.com:
- Log in to My Accounts.
- Within the Resources section (on the lower half of the page), select Additional Account Logins.
- Select “State Farm Investment Accounts”, which will open up the new customer portal.
- Within the customer portal, you can view your account information including balances, fund positions, performance and transaction history.
Account information will not be available through the State Farm Mobile App, but we’re working on making that happen.
After November 16 your agent will serve as the primary contact for your account. You will work with your agent to:
- Perform transactions (e.g. contributions, redemptions, exchanges).
- Update account information (e.g. beneficiaries).
- Open new accounts.
You’ll receive your first monthly account statement in early December. It will include information similar to what you usually see in your State Farm statement, but you'll receive it in an RBC envelope.
The amount in your State Farm closing account statement (as of November 16, 2018) will be moved to your new account and will be shown in your first account statement from RBC. The RBC statement will also show any account activity (e.g. transactions, market impact) from November 17 to November 30, 2018.
Benefits of an RBC Account
Moving accounts to the RBC platform allows us to offer a larger variety of mutual fund options. On the RBC platform we’ll initially offer more than 140 investment options from BlackRock and American Funds, and we’ll be able to add more funds from those firms and other fund families. In addition, a Registered State Farm agent will be able to service your account.
Accounts Moving to BlackRock
BlackRock account access
BlackRock sent a welcome letter to impacted customers in early November. It provided instructions on how to set up accounts on the BlackRock web site at blackrock.com. If you need help, please call BlackRock at 800-441-7762, Monday through Friday 7 a.m. to 5 p.m. CT.
State Farm agents cannot service BlackRock accounts. Customers will need to self-service those accounts through BlackRock.
Shortly following the fund mergers, you’ll receive a statement confirming the transition to BlackRock. In January 2019, BlackRock will issue fourth quarter statements. Because your BlackRock account opened mid-quarter, your quarterly statement will only include account information for November 17 through December 31, 2018.
Screen reader users: the table below has been altered from the original table view to fit on mobile devices and is not fully accessible. To access a fully accessible, screen reader only version of this table, please select the "switch to screen reader table" link below. It will create an accessible table that is only readable using a screen reader. Select "switch to the visible table" to return to the visible table view.switch to screen reader table
|Mutual Fund Trust funds||BlackRock funds|
|Equity Fund||BlackRock Advantage Large Cap Core fund|
|Small/Mid Cap Equity Fund||BlackRock Advantage Small Cap Core Fund|
|International Equity Fund||BlackRock Advantage International Fund|
|S&P 500 Index Fund||iShares S&P 500 Index Fund|
|Small Cap Index Fund||iShares Russell 2000 Small-Cap Index Fund|
|International Index Fund||iShares MSCI EAFE International Index Fund|
|Equity & Bond Fund||BlackRock 60/40 Target Allocation Fund|
|Bond Fund||BlackRock CoreAlpha Bond Fund|
|Money Market Fund||BlackRock Summit Cash Reserves Fund|
|LifePath® Retirement Fund||BlackRock LifePath® Index Retirement Fund|
|LifePath 2020® Fund||BlackRock LifePath® Index 2020 Fund|
|LifePath 2030® Fund||BlackRock LifePath® Index 2030 Fund|
|LifePath 2040® Fund||BlackRock LifePath® Index 2040 Fund|
|LifePath 2050® Fund||BlackRock LifePath® Index 2050 Fund|
Investors should carefully consider investment objectives, risk, charge and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses which can be obtained by visiting statefarm.com. Read it carefully.
Neither State Farm® nor its agents provide tax or legal advice.
If you have questions about your potential tax consequences, you may wish to consult with your tax advisor.
Securities, insurance and annuity products are not FDIC insured, are not bank guaranteed, and are subject to investment risk, including possible loss of principal.
BlackRock mutual funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). BlackRock is not affiliated with SFVPMC or any other entity mentioned herein. BlackRock is a registered trademark of BlackRock, Inc.
SFVPMC is a separate entity from Capital Research and Management Company (CRMC) which is the investment adviser for the American Funds. RBC Capital Markets, LLC, is a member of NYSE/SIPC/FINRA.
The stocks of small companies are more volatile than the stocks of larger, more established companies.
Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations.
Target Date Funds are portfolios whose investment objectives are adjusted over time to be more conservative as the target date (date the investor plans to start withdrawing their funds) approaches. The principal value of the fund(s) is not guaranteed at any time, including at the target date.
Bonds are subject to interest rate risk and may decline in value due to an increase in interest rates.
State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.
Our firm has a contractual agreement with RBC Correspondent Services (RBC CS) to serve as our clearing firm. This fully disclosed agreement states the responsibilities of each party. Prior to the agreement becoming effective, RBC CS is responsible for making all disclosures to our firm’s designated examining authority as required by FINRA Rule 4311. Each client of our firm is notified of the relationship via a disclosure letter. The disclosure letter details the responsibilities that our firm (the introducing broker-dealer) and RBC CS (the clearing firm) have to the client. Although client assets are held by RBC Capital Markets, LLC, Neither RBC Capital Markets, LLC, nor RBC CS has responsibility for the financial condition or performance of our firm or our Financial Advisors.
RBC Correspondent Services is a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC.
You could lose money by investing in the Money Market Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.