Fund Description

State Farm Investment Management Corp manages the fund. The fund seeks as high a rate of income exempt from federal income taxes as is consistent with prudent investment management. The fund normally invests so that either (1) at least 80% of the fund's net investment income is exempt from regular federal income tax or (2) at least 80% of the fund's net assets are invested in securities that produce income exempt from regular federal income tax. The fund invests primarily in a diversified selection of municipal bonds (for example, general obligation bonds of a state or bonds financing a specific project) with maturities of one to seventeen years. The fund normally invests at least 70% of its total assets in municipal bonds rated A or better by Moody's or S&P. The fund declares investment income dividends daily and pays them monthly. The fund distributes capital gains annually.