Mutual Funds

Proxy: State Farm® Mutual Fund Trust and Variable Product Trust Special Shareholder Meeting

State Farm is working to enhance customers’ investment options and lower their costs. We’ve taken an important step by recommending a merger of State Farm mutual funds with BlackRock® funds. Once approved by shareholders, we expect the Variable Product Trust mergers to occur in late-October and the Mutual Fund Trust mergers to happen in mid-November.

Starting in July, shareholders will be mailed proxy statements and combined prospectus/proxy statements. Within these materials, customers will be asked to vote on proposals regarding the particular mutual funds in which they -- or in the case of Variable Product policyowners, their variable policy subaccounts – are invested. In order to help State Farm successfully complete these transactions, we encourage customers to carefully review the material and submit their proxy vote(s) as soon as possible ahead of the shareholder meeting on September 14.

A summary of the proposals:

VARIABLE PRODUCT TRUST

  • Large Cap Equity Fund, Small/Mid Cap Equity Fund, and International Equity Fund (the “Liquidating Funds”): Approve a Plan of Substitution to liquidate these three funds and move customers’ subaccount values into the Variable Product Money Market Fund* subaccount.
    • Since their launch, the Liquidating Funds have not attracted enough investment from policyowners to balance out the cost of managing them.
    • Before and after the liquidation, policyowners will have the ability to exchange into another of the six Variable Product Trust subaccounts.
    • Mailing to commence in late July

  • Large Cap Equity Index Fund, Small Cap Equity Index Fund, International Equity Index Fund, Stock and Bond Balanced Fund, Bond Fund, Money Market Fund*: Approve a Plan of Reorganization to merge these State Farm mutual funds with corresponding BlackRock funds.
    • After the mergers, policyowners’ variable policy subaccounts will be invested in BlackRock mutual fund shares instead of State Farm mutual fund shares.
    • Mailing to commence in August

MUTUAL FUND TRUST

  • All funds: Approve a Plan of Reorganization to merge these State Farm mutual funds with corresponding BlackRock funds. After the mergers, shareholders’ accounts will be invested in BlackRock mutual fund shares instead of State Farm mutual fund shares.
    • Mailing to commence in August

Questions about the proxy, the material you’re receiving, or lost your proxy card? Please contact us at 866-209-6472 Monday-Friday 9:00 a.m. – 11:00 p.m. ET and Saturday 12:00 p.m. – 6:00 p.m. ET.

Included below are links to the documents that describe the proposed liquidations, mergers, and other related transactions. Although we recommend that you carefully read the materials that describe these transactions in detail, there is a Questions & Answers section within the proxy statements to help explain the proposals.

Proposal: Plan of Substitution for Variable Product Trust

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Liquidating Funds Proxy Statement Q&A
  • State Farm Small/Mid Cap Equity Fund
  • State Farm International Equity Fund
  • State Farm Large Cap Equity Fund
VPT Plan of Substitution Proxy Statement [PDF-378.8KB] VPT Plan of Substitution Q&A [PDF-102.8KB]


 Proposal: Agreement and Plan of Reorganization for Variable Product Trust

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Target Funds Acquiring Funds Proxy Statements Q&A Acquiring Funds Prospectus
State Farm Bond Fund BlackRock Total Return VI Fund VPT Plan of Reorg Proxy Statement VPT Plan of Reorg Questions & Answers Prospectus for Class I
State Farm Stock and Bond Balanced Fund BlackRock iShares Dynamic Allocation VI Fund VPT Plan of Reorg Proxy Statement VPT Plan of Reorg Questions & Answers Prospectus for Class I
State Farm Money Market Fund BlackRock Government Money Market VI Fund VPT Plan of Reorg Proxy Statement VPT Plan of Reorg Questions & Answers Prospectus for Class I
State Farm Large Cap Equity Index Fund BlackRock S& P 500 index VI Fund VPT Plan of Reorg Proxy Statement VPT Plan of Reorg Questions & Answers Prospectus for Class I
State Farm Small Cap Equity Index Fund BlackRock Small Cap Index VI Fund (new) VPT Plan of Reorg Proxy Statement VPT Plan of Reorg Questions & Answers Prospectus for Variable Series Funds
State Farm International Equity Index Fund BlackRock International Index VI Fund (new) VPT Plan of Reorg Proxy Statement VPT Plan of Reorg Questions & Answers Prospectus for International Index VI Fund


 Proposal: Agreement and Plan of Reorganization for Mutual Fund Trust

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.

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Target Funds Acquiring Funds Proxy Statements Q&A Acquiring Funds Prospectus
State Farm Equity and Bond Fund BlackRock 60/40 Target Allocation Fund Equity and Bond Proxy Statement

Equity and Bond Supplement
Equity and Bond Questions and Answers Prospectus for Investor A, Investor C, Institutional and Class R
State Farm Money Market Fund BlackRock Summit Cash Reserves Fund Money Market Proxy Statement Money Market Questions and Answers Prospectus for Investor A and Investor B
State Farm LifePath Funds – 2020, 2030, 2040, 2050 and Retirement BlackRock LifePath Index Funds – 2020, 2030, 2040, 2050 and Retirement LifePath Proxy Statement LifePath Questions and Answers Prospectus for Investor A and Institutional

Prospectus for Investor P Shares
State Farm S&P 500 Index Fund iShares S&P 500 Index Fund Retail Proxy Statement Retail Questions and Answers Prospectus for Investor A Institutional

Prospectus iShares S&P 500
State Farm Small Cap Index Fund iShares Russell 2000 Small Cap Index Fund Retail Proxy Statement Retail Questions and Answers Prospectus for Investor A and Insitutional

Prospectus iShares Russell 2000
State Farm International Index Fund iShares MSCI EAFE International Index Fund Retail Proxy Statement Retail Questions and Answers Prospectus for Investor A and Insitutional

Prospectus iShares Russell 2000
State Farm Equity Fund BlackRock Advantage Large Cap Core Fund Retail Proxy Statement Retail Questions and Answers Prospectus for Investor A and Institutional
State Farm Small/Mid Cap Equity Fund BlackRock Advantage Small Cap Core Fund Retail Proxy Statement Retail Questions and Answers Prospectus for Investor A and Institutional
State Farm International Equity Fund BlackRock Advantage International Fund Retail Proxy Statement Retail Questions and Answers Prospectus for Investor A and Institutional
State Farm Bond Fund BlackRock CoreAlpha Bond Fund (new) Retail Proxy Statement Retail Questions and Answers N/A
State Farm Tax Advantaged Bond Fund iShares Municipal Bond Index Fund (new) Retail Proxy Statement Retail Questions and Answers Prospectus for iShares Municipal Bond Index Fund - Investor A and Institutional Shares

Prospectus for iShares Municipal Bond Index Fund- Investor P Shares

Disclosures

Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (Mutual Funds: 800-447-4930; Variable Products: 888-702-2307) for a prospectus or summary prospectus containing this and other information. Read it carefully.

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.

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.

Securities, insurance and annuity products are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.

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”). SFVPMC and its affiliates are not affiliated with BlackRock.

Neither State Farm nor its agents provide tax, or legal advice.

AP2018/08/0965