State Farm Investment Management

State Farm Investment Management Corp. provides discretionary investment management through centrally designed model portfolios and also serves as adviser and portfolio manager for the State Farm Funds. It operates a retail wrap-fee program that accepts individual and retirement accounts and is offered through its affiliated broker‑dealer, State Farm VP Management Corp., with custody services provided by Pershing LLC.

The firm’s home‑office investment team constructs target asset allocations using forward‑looking capital‑market assumptions and implements those allocations with a mix of low‑cost ETFs and select actively managed mutual funds; accounts are managed on a discretionary basis with automated rebalancing and periodic tax‑loss harvesting. Operational and trading support, billing and middle/back‑office functions are provided through third parties (including RedBlack), while the firm retains the authority to change portfolios, fund lineups and allocation methodologies.

Compared with many investment managers, SFIMC is uncommon in sponsoring its own wrap program while also being affiliated with an insurance company and an introducing broker‑dealer and in managing registered investment company clients, which produces multiple operational and compensation linkages described in the brochure. The firm also distributes advice through a large network of investment adviser representatives and offices, offers householding (fee‑aggregation) options and discloses specific conflicts of interest tied to affiliated broker‑dealer, insurance and compensation arrangements.