Tax Advantaged Bond Fund
The State Farm® Tax Advantaged Bond Fund seeks as high a rate of income exempt from federal income taxes as is consistent with prudent investment management.
For additional information about Tax Advantaged Bond Funds, please contact your State Farm agent.
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- Investing involves risk, including potential for loss.
- Bonds are subject to interest rate risk and may decline in value due to an increase in interest rates.
- Income may be subject to state and local taxes and (if applicable) the Alternative Minimum Tax.
Seeks as high a rate of income exempt from federal income taxes as is consistent with prudent investment management.
Who Should Invest?
You may want to invest in the Tax Advantaged Bond Fund if you want regular tax-free dividends or to reduce taxes on your investment income.
Types of risk:
The risk that when interest rates increase, securities held by an Underlying Investment will decline in value. Long-term fixed income securities will normally have more price volatility than short-term securities because of the risk.
The risk that the income from a fund's investments will decline because of falling market interest rates.
The risk that an issuer of a debt security might not make interest and principal payments on the security as they become due. If the issuer fails to pay interest, the income of an Underlying Investment investing in such debt security might be reduced, and if the issuer fails to repay the principal, the value of that security and of the Underlying Investment's shares might be reduced.
The risk that the fund manager's assessment of companies whose securities are held in the fund may prove incorrect, resulting in losses or poor performance, even in a rising market.
The risk that the fund manager may have difficulty selling securities the fund holds at the time it would like to sell and at the value the fund has placed on those securities.
The risk that the value of a municipal security may fluctuate due to political, taxation, and legislative changes. It also involves the risk exposure to the conditions of economic sectors that municipal securities are normally issued to finance (such as education, health care, and transportation).
The risk that homeowners or consumers may repay loans before they are due, which may affect the yield of mortgage- or asset-backed securities related to such loans.
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Total returns are the compounded rate of change in value during a period of investment, including the value of shares acquired through reinvestment of all dividends and of all capital gain distributions for the period. They include all applicable fees and expenses, including: A maximum sales charge of 3.00% for Class A and Premier shares and maximum contingent deferred sales charges on Class B and Legacy Class B shares of 3.00% during year one, 2.75% in years two and three, 2.50% in year four, 2.00% in year five, 1.00% in year six, and 0.00% in year seven. Class B and Legacy Class B shares convert to Class A shares after 8 full years, unless the total value of a shareholder's account(s) is $100,000 or more, then these shares convert to Premier shares. Ten-year returns for Class B and Legacy Class B reflect the applicable conversion to Class A with no additional sales charge. NAV Total Return does not include any initial sales charge or contingent deferred sales charge for any shares and, if reflected, would reduce the performance quoted.
Class B shares and Legacy Class B shares are not available for purchase by any investor after 5/1/2015.
State 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.
1 The 30-day SEC yield is calculated based on the standardized formula set forth by the Securities and Exchange Commission for bond funds. The yield is calculated by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. Subsidized yield figures reflect the dividends and interest earned during the 30-day period, after the deduction of the fund's expenses and includes any applicable waiver or reimbursement. Unsubsidized yield reflects what the SEC yield would be if the investment company were not waiving a portion of the Fund's expense ratio.
Fund Composition as of: 12/31/2016
The fund data below is as of quarter end unless otherwise noted.
Fund Fees, Expenses, and Charges
Below you will find the fees associated with this fund, as well as the Maximum Sales Charge and Total Annual Expenses.
Maximum Account Fee
(For certain accounts with balances below $5,000, a quarterly account fee of $10 may be charged.)
Minimum Initial Investment
(does not apply to Tax Qualified Transfer or Rollover money)
| Minimum Additional Investment
(per Fund, per Transaction)
|Maximum Sales Charge||3.00%|
|Capital Gains Distribution||May be Annually|
|Dividend Distribution||May be Monthly|
|Gross Expense Ratio||0.66%|
|Net Expense Ratio||0.66%|
Our main objective is to make each of our 15 State Farm Mutual Funds® a highly competitive and rewarding long-term investment for our shareholders.
State Farm Mutual Funds shareholders can feel confident that their investments are being managed in a responsible, conservative, and cost-effective manner consistent with a long-term perspective.
Our Investment Advisors
We use an investment management structure that capitalizes on the unique strengths, focused attention, and knowledge of seasoned investment professionals in our internal investment department. Because we offer a wide variety of funds, some outside the core knowledge of our internal investment department, we also have seven other highly respected asset management organizations working for you.
State Farm Investment Management Corp. (SFIMC) — Bond Portfolio
Since 1968, State Farm Investment Management Corporation (SFIMC) has managed mutual funds made available only to State Farm employees and Agents. These same services became available to the public in 2001.
Our fund managers' investment philosophy is based on time-tested conservative investment principles that do not change in response to changing market conditions or short-term fluctuations.
- SFIMC manages $21.6 billion in assets (as of 12/31/2016).
- Investing has been a fundamental component of the State Farm organization. Since 1922, the State Farm Insurance Companies' investment department has managed investments that today total approximately:
- $157 billion in fixed income assets, $62 billion of which are in municipal bonds (as of 12/31/2016)
- $74 billion in equity assets (as of 12/31/2016)
Investing involves risk, including potential for loss.
Diversification and Asset allocation do not assure a profit or protect against a loss.
Bonds are subject to interest rate risk and may decline in value due to an increase in interest rates.
Income may be subject to state and local taxes and (if applicable) the Alternative Minimum Tax.
Mutual Funds Disclosure
Automatic investment plans do not assure a profit or protect against loss.
Neither State Farm nor its agents provide investment, tax, or legal advice.
It is not possible to invest directly in an index.
State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.
As of June 2, 2010, additional fees may apply to certain accounts with balances less than $5000.
Each State Farm LifePath Fund invests its assets in a combination of equity (including real estate investment trusts) and bond exchange traded funds and a money market fund (the "Underlying Funds") in proportion to the Fund's own comprehensive investment strategy. BlackRock Fund Advisors ("BFA") serves as the sub-advisor to the LifePath Funds and selects investments for the Fund. 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 nor SFVPMC are affiliated with BFA or its affiliates.
BFA is a wholly owned subsidiary of BlackRock Institutional Trust Company, N.A. ("BTC"). Neither BTC nor its affiliates are affiliated with SFIMC or SFVPMC.
BlackRock Fund Advisors ("BFA") is the investment sub-advisor to the S&P 500® Index Fund, the Small Cap Index Fund, and the International Index Fund.
Ascensus provides recordkeeping and administrative services for 401(k) retirement plans offered by State Farm Investment Management Corp.
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.
The Russell 2000® Index tracks the common stock performance of the 2,000 smallest U.S. companies in the Russell 3000 Index.
The Russell 2500 Index measures the performance of the 2,500 smallest securities in the Russell 3000 Index.
The Russell 1000 Index is a market-capitalization weighted index that tracks the largest 1,000 companies in the Russell 3000 Index.
The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity market and is a subset of the Russell 1000 Index.
The Dow Jones Industrial Average is an unmanaged average of 30 actively traded stocks.
The NASDAQ Composite is an unmanaged market capitalization weighted index that is designed to represent the performance of the National Market System.
The S&P 500® Index tracks the common stock performance of 500 large U.S. companies.
The Barclays 1-5 Year U.S. Treasury Index measures the performance of short-term U.S. Treasury Securities maturing within one to five years.
The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate taxable bond market.
The Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.
The Barclays High-Yield Bond Index covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.
The Barclays U.S. TIPS Index is an unmanaged index composed of inflation protected securities issued by the U.S. Treasury.
The Citigroup 3-Month Treasury Bill Index is an unmanaged index of three-month Treasury bills.
The FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index is designed to measure the stock performance of companies engaged in specific real estate activities of the real estate markets outside of the United States.
The FTSE EPRA/NAREIT Developed Real Estate Index is designed to measure the stock performance of companies engaged in specific real estate activities of the North American, European, and Asian real estate markets.
The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE® Free) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East.
The MSCI All Country World Index (ACWI) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The MSCI All Country World Index (ex-U.S.) (MSCI ACWI ex-U.S. Index) is a free float-adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the United States.
The MSCI Emerging Markets Index is a float-adjusted market capitalization index designed to measure equity market performance in global emerging markets.
The New York Stock Exchange is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities.
The Blended Benchmark for the Equity and Bond Fund is a combination of 60% of the S&P 500 Index and 40% of the Barclays U.S. Aggregate Bond Index, rebalanced monthly.
The blended benchmark for the LifePath Funds is a hypothetical representation of the performance of each of the underlying asset classes according to their weightings as of the most recent month end. For a list of the indexes used to calculate the blended benchmark, please refer to the Prospectus.
iShares, LifePath and LifePath followed by 2020, 2030, 2040 and 2050 are all registered trademarks of BlackRock Institutional Trust Company, N.A.
"S&P 500®" is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by the State Farm Mutual Fund Trust. The State Farm S&P 500 Index Fund (the "Fund") is not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in the Fund.
Russell Investment Group ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell 2000® Index. Russell® is a trademark of Russell. The State Farm Small Cap Index Fund (the "Fund") is not sponsored, endorsed, sold or promoted by, nor in any way affiliated with Russell. Russell is not responsible for and has not reviewed the Fund nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.
The EAFE® Free Index is a trademark, service mark and the exclusive property of Morgan Stanley Capital International, Inc. ("MSCI") and its affiliates and has been licensed for use by the State Farm Mutual Fund Trust (the "Trust"). The State Farm International Index Fund (the "Fund"), based on the EAFE® Free Index, has not been passed on by MSCI as to its legality or suitability, and is not issued, sponsored, endorsed, sold or promoted by MSCI. MSCI makes no warranties and bears no liability with respect to the Fund. MSCI has no responsibility for and does not participate in the management of the Fund assets or sale of the Fund shares. The Trust's Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with the Trust and the Fund.
Each of the investment products and services referred to on the State Farm Mutual Funds web site is intended to be made available to customers or prospective customers residing in the United States. The customer's U.S. permanent residence address must be a street address. This web site shall not be considered a solicitation or offering for any investment product or service to any person in any jurisdiction where such solicitation or offer would be unlawful.
Business Continuity Plan
State Farm VP Management Corp. has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, download this information on our business continuity plan [PDF-19.5KB].
800-447-4930 Mutual Funds
888-702-2307 Variable Products
Not FDIC Insured
- No Bank Guarantee
- May Lose Value