Equity and Bond Fund
The State Farm® Equity and Bond Fund seeks long-term growth of principal while providing some current income.
Seeks long-term growth of principal while providing some current income.
Who Should Invest?
You may want to invest in the Equity and Bond Fund if you are seeking long-term growth potential, some current income, and/or the convenience of a balanced portfolio of stocks and bonds in a single investment.
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.
Foreign securities are subject to special risks. Foreign issuers are usually not subject to the same accounting and disclosure requirements that U.S. companies are subject to, which may make it difficult for the Fund to evaluate a foreign company's operations of financial condition.
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.
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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. has agreed to waive certain fees for the Equity and Bond Fund. State Farm Investment Management Corp. has agreed to reimburse the Equity and Bond Fund for certain expenses incurred by the Fund. This expense reimbursement and waiver is voluntary and 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: 6/30/2018
The fund data below is as of quarter end unless otherwise noted.
Top 10 Holdings (Equity Fund)
|Company Name||Amount Held|
|Boeing Co., The||2.14%|
|Unitedhealth Group Inc.||1.82%|
|JP Morgan Chase & Co.||1.54%|
|Johnson & Johnson||1.52%|
|Lam Research Corp.||1.51%|
|Bank of America Corp.||1.49%|
|Honeywell International Inc.||1.47%|
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.)||$0|
| 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||1.04%|
|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 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 condition or short-term fluctuations.
- SFIMC manages $23 billion in assets (as of 6/30/2018).
- 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:
- $168 billion in fixed income assets, $62 billion of which are in municipal bonds (as of 6/30/2018)
- $78 billion in equity assets (as of 6/30/2018)
Bridgeway Capital Management, Inc. — Equity Portfolio (Growth Investment Style)
The fundamental premise that drives Bridgeway Capital Management Inc.'s investment philosophy is that long-term, market-beating performance can best be achieved through a strict adherence to quantitative methods in the selection of stocks and management of portfolios.
- Bridgeway Capital Management Inc. was founded in 1993.
- The firm ascribes to four business values: integrity, investment performance, cost efficiency, and service.
- Bridgeway manages $10.0 billion in assets (as of 6/30/2018).
Westwood Management Corp. — Equity Portfolio (Value Investment Style)
Westwood Management Corp. has followed a consistent investment philosophy to generate consistent and competitive long-term results for investors.
At the heart of Westwood's success has been its team-based, value-oriented investment strategy that includes the following distinguishing characteristics:
- Performance driven by bottom-up fundamental research.
- Buying high quality companies.
- Emphasizing risk control and protection of capital.
- Focused portfolio of "best ideas."
- Westwood Management Corp. is based in Dallas, TX, and was founded in 1983.
- Comprised of an 18-member investment team, Westwood provides investment advisory services to corporate pension funds, public retirement plans, endowments and foundations, mutual funds, and clients of Westwood Trust.
- Westwood manages $21.6 billion in assets (as of 6/30/2018).
Other Funds Managed
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.
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.
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