LifePath 2040® Fund
The LifePath 2040 Fund from State Farm® is managed for investors who are planning to retire around the year 2040 and begin withdrawing their investments.
Seeking to maximize assets for retirement or other purposes, the State Farm LifePath 2040 Fund is managed for investors planning to retire (or planning to begin to withdraw a substantial portion of their investment) approximately in the year 2040.
Who Should Invest?
Based strictly on statistical considerations, you would want to invest in the LifePath Fund corresponding to the year when you expect to begin withdrawing your investment (2020, 2030, etc.). If you are willing to assume greater risk in exchange for the possibility of higher returns, you might direct some or all of your assets to a LifePath Fund with a longer time horizon. If you desire a more conservative investment, and are willing to forego some potential returns, you might direct some or all of your assets to a LifePath Fund with a shorter time horizon.
Types of risk:
Stock prices may fluctuate widely over short or even extended periods in response to company, market, or economic news. Stock markets also tend to move in cycles, with periods of rising stock prices and periods of falling stock prices.
The risk of fixed-income investing. Although these risks include short-term and prolonged price declines such price declines in the bond market have historically been less severe than stock declines.
Investing in foreign securities involves higher trading and custody costs than investing in U.S. companies. Accounting, legal, and reporting practices may be different than in the U.S., and regulation is often less stringent. Potential political or economic instability presents risks, as does the fluctuation in currency exchange rates and the possible imposition of exchange control regulation or currency restrictions that could prevent the conversion of local currencies into U.S. dollars.
Although a model used to manage a fund's assets has been developed and refined over many years, there is no assurance that the recommended allocation will either maximize returns or minimize risks. There is no assurance that a recommended allocation will prove the ideal allocation in all circumstances for every investor with a particular time horizon.
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Investment return and principal value will fluctuate and your investment, when redeemed, may be worth more or less than its original cost. Past performance is no guarantee of future results. Recent performance may be less than the figures shown. Obtain total returns current to the most recent month-end by calling our Mutual Funds Response Center at 800-447-4930.
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 5.00% for Class A and Premier shares and maximum contingent deferred sales charges on Class B shares of 5% during year one, 4.25% in year two, 3.50% in year three, 2.75% in year four, 2.00% in year five, 1.00% in year six, and 0% in year seven. A maximum contingent deferred sales charges on 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.
There is no sales charge or 12b-1 fee associated with Institutional Class shares. Class R-1, R-2, and R-3 shares may only be purchased for certain qualified retirement plans as set forth in the prospectus.
Class B shares and Legacy Class B shares are not available for purchase by any investor after 5/1/2015.
Effective for transactions occurring on or after April 1, 2017, State Farm VP Management Corp. will waive receipt of all sales charges disclosed in the Prospectus, and no sales charges disclosed in the Prospectus will apply to transactions occurring on or after April 1, 2017.
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.
Fund Composition as of: 6/30/2018
The fund data below is as of quarter end unless otherwise noted.
|Asset Class||Underlying Funds||Fund Holdings|
|Large Cap Stocks||iShares Russell 1000 ETF||45.84%|
|Small Cap Stocks||iShares Russell 2000 ETF||0.77%|
|International Stocks||iShares Core MSCI EAFE ETF||21.21%|
|Emerging Markets Stocks||iShares Core MSCI Emerging Markets ETF||7.46%|
|Canadian Stocks||iShares MSCI Canada ETF||2.02%|
|U.S. Real Estate||iShares Cohen & Steers REIT ETF||11.65%|
|U.S. Bonds||iShares Core U.S. Aggregate Bond ETF||9.74%|
|U.S. Inflation-Linked Bonds||iShares TIPS Bond ETF||1.19%|
|Money Markets||State Street Government Money Market Fund||0.12%|
Note: Percentages do not include securities lending.
Fund Fees, Expenses, and Charges
Below you will find the fees associated with this fund.
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||5.00%|
|Capital Gains Distribution||May be Annually|
|Dividend Distribution||May be Annually|
|Gross Expense Ratio||0.95%|
|Net Expense Ratio||0.95%|
Our main objective is to make each of our 15 State Farm Mutual Funds® a competitive and rewarding long-term investment for our shareholders.
Our Investment Advisors
Our investment management structure capitalizes on the strengths, focused attention and knowledge of investment professionals in the internal Investment Department of State Farm. Because we offer a variety of funds, we have chosen to partner with five other asset management organizations.
State Farm LifePath® Funds are advised by State Farm Investment Management Corp. (SFIMC). 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.
BlackRock Fund Advisors (BFA)
Since 1988, BFA has been one of the world's preeminent asset management firms and a premier provider of global investment management, risk management, and advisory services to institutional, intermediary, and individual investors around the world.
- BlackRock has $6.3 trillion in assets as of 6/30/2018.
- The firm employs some 100 investment teams in 27 countries around the world, including North and South America, Europe, Asia, Australia, the Middle East, and Africa.
Investing involves risk, including potential for loss.
LifePath Funds are target-date 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.
An investment in the 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.
Diversification does not assure a profit or protect against loss.
Income may be subject to state and local taxes and (if applicable) the Alternative Minimum Tax.
Mutual Funds Disclosures
Automatic investment plans do not assure a profit or protect against loss.
Neither State Farm® nor its agents provide 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.
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.
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 NYSE Rule 382. 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.
Ascensus provides recordkeeping for retirement plans offered by State Farm Investment Management Corp.
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 Bloomberg 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 Bloomberg Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate taxable bond market.
The Bloomberg Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.
The Bloomberg Barclays High-Yield Bond Index covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.
The Bloomberg 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 MSCI Japan Index is designed to measure the performance of the large and mid-cap segments of the Japan market.
The Credit Suisse High Yield Index is designed to mirror the investible universe of the U.S. dollar-denominated high yield debt market.
The Nikkei 225 Index is a price-weighted index comprised of Japan’s top 225 blue-chip companies on the Tokyo Stock Exchange.
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.
"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 Disclosure for State Farm VP Management Corp.
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.
Contacting Us – After a significant business disruption contact your registered State Farm agent or go to our website at statefarm.com®.
Our Business Continuity Plan – We plan to quickly recover and resume business operations as soon as possible after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption. Our business continuity plan addresses: data back-up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and procedures to help ensure that our customers have prompt access to their funds and securities if we are unable to continue our business. Our business continuity plan may be revised or amended. If changes are made, an updated summary will be promptly posted on our website (statefarm.com) or you may obtain an updated summary by contacting your registered State Farm agent and requesting that a written copy be mailed to you.
Varying Disruptions – Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we may transfer our operations to a local site when needed and expect to recover and resume business within 1 business day. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and expect to recover and resume business within 3 business days. In either situation, we plan to continue in business, transfer operations if necessary, and notify you through our website statefarm.com or your registered State Farm agent. In the unlikely event that the significant business disruption is so severe that it prevents us from remaining in business, our plan provides procedures to help ensure that our customers have prompt access to their funds and securities.
In all of the situations described above, in light of the various types of disruptions that could take place and that every emergency poses unique problems, it may take longer to resume operations during any particular disruption. If you have questions about our business continuity planning, you can contact your registered State Farm agent or by visiting our website at statefarm.com.
Important Information about Procedures for Opening a New Account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account.
What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.
Not FDIC Insured
- No Bank Guarantee
- May Lose Value