State Farm Investment Management Corp. is a privately owned investment manager. The firm also provides financial planning services. It also acts as a transfer agent and dividend disbursing agent for the State Farm Mutual Funds. The firm primarily provides its services to individuals. It also caters to high net worth individuals and investment companies. The firm launches and manages equity, fixed income, and balanced mutual funds for its clients. It invests in public equity markets across the globe, and fixed income markets of the United States. The firm was founded in 1967, and is based in Bloomington, Illinois. State Farm Investment Management Corp. operates as a subsidiary of State Farm M...
Three State Farm Plaza
Bloomington, IL 61791-0001
Founded in 1967
Amy L. Ingenhutt and Teresa L. Odell Files Lawsuit Against State Farm Investment Management Corporation for Charging Excessive Fees for Target Date Retirement Funds
Aug 10 15
Plaintiffs Amy L. Ingenhutt and Teresa L. Odell filed a lawsuit in the US District Court for the Central District of Illinois against State Farm Investment Management Corporation (SFIMC) for charging excessive management fees in the mutual funds known as the LifePath Funds. The LifePath Funds are target date retirement funds typically sold through State Farm Individual Retirement Accounts (IRAs) and include the State Farm LifePath Retirement Fund, the State Farm LifePath 2020 Fund, the State Farm LifePath 2030 Fund, the State Farm LifePath 2040 Fund, and the State Farm LifePath 2050 Fund. Suing on behalf of investors, Plaintiffs charge that SFIMC, as investment advisor, has violated Section 36(b) of the Investment Company Act of 1940. The LifePath Funds, issued by the State Farm Mutual Fund Trust, do not invest directly in securities. Instead, each LifePath Fund invests in a corresponding separate portfolio called a 'Master Portfolio'. The Master Portfolios, in turn, are part of a fund known as the Master Investment Portfolio. SFIMC does not manage the Master Investment Portfolio or the Master Portfolios but instead relies on another investment management company, BlackRock Fund Advisors, to do so. According to the complaint, State Farm Investment Management Corporation does not provide any day-to-day investment services to the LifePath Funds. Nor does it provide any investment guidance or policy direction in connection with daily portfolio management. Nonetheless, it receives approximately half of the net management fees collected from the LifePath funds.