Fund Evaluator:
State Farm Municipal Bond (SFBDX)
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Best Performing in Muni National Interm Over the Last Year
| 6.7% | Sit Tax-Free Income (SNTIX) |
| 4.6% | Goldman Sachs Dynamic Municipal Inc Inv (GUIRX) |
| 4.6% | Putnam Strategic Intermediate Muncpl Y (PAMYX) |
| 4.3% | Brown Advisory Tax Exempt Bond Investor (BIAEX) |
| 4.2% | Victory Tax Exempt Intermediate-Term (USATX) |
Fund Details
State Farm Municipal Bond Overview
State Farm Municipal Bond (SFBDX) is an actively managed Municipal Bond Muni National Interm fund. State Farm launched the fund in 1977.
The investment seeks as high rate of income exempt from federal income taxes as is consistent with prudent investment management. 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. A majority of the fund's investments are in issues with maturities longer than five years. It normally invests at least 70% of its total assets in municipal bonds rated A or better by Moody's or S&P, meaning that up to 30% of the fund's total assets may be invested in medium and lower-quality bonds.
About State Farm Municipal Bond (SFBDX)
There are 2 members of the management team with an average tenure of 4.29 years: Nathan Miller (2021), Adam Shane (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg Municipal 1-15 Yr TR USD index with a weighting of 100% and Bloomberg Municipal 7 Yr 6-8 TR USD index with a weighting of 100%. State Farm Municipal Bond has 405 securities in its portfolio. The top 10 holdings constitute 9.3% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
State Farm Municipal Bond is part of the Fixed Income global asset class and is within the Municipal Bond fund group. State Farm Municipal Bond has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.9% (97.9% domestic bond, 0.0% foreign bond and 0.0% convertible bond). State Farm Municipal Bond has 2.1% of the portfolio in cash.
Assets Under Management
The fund has $471 million in total assets, which is below the $1 billion average for the Muni National Interm category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
SFBDX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The State Farm Municipal Bond expense ratio is low compared to funds in the Muni National Interm category. State Farm Municipal Bond has an expense ratio of 0.16%, which is 77% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. State Farm Municipal Bond has a portfolio turnover rate of 26%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 38% for the Muni National Interm category.
Recently, in the month of August 2026, State Farm Municipal Bond returned 0.0%, which earned it a grade of A, as the Muni National Interm category had an average return of -0.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
State Farm Municipal Bond has a trailing yield of 3.43%, which is above the 3.27% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
State Farm Municipal Bond Grades
Year to date, the fund has returned -0.2%, 0.5 percentage points worse than the category, which translates into a grade of F. The fund has returned 2.9% over the past year (grade of F), 3.3% over the past three years (grade of D) and 0.9% per year over the past five years (grade of B) and 1.9% per year over the past 10 years (grade of B).
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SFBDX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| SFBDX Return (NAV) | 0.0% | -1.1% | 2.9% | 3.3% | 0.9% | 1.9% |
| SFBDX Grade | A | D | F | D | B | B |
| +/- Category | 0.1% | -0.1% | -0.8% | -0.2% | 0.2% | 0.2% |
| Muni National Interm Avg | -0.1% | -1.0% | 3.7% | 3.5% | 0.6% | 1.7% |
| SFBDX Tax Cost Ratio | na | na | -0.0% | 0.0% | 0.0% | 0.0% |
SFBDX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SFBDX Return (NAV) | -0.2% | 5.4% | 1.2% | 4.6% | -6.2% | 0.8% | 5.4% | 6.2% | 1.4% | 3.9% | 0.3% |
| SFBDX Grade | F | A | F | F | A | D | A | D | A | D | A |
| +/- Category | -0.5% | 1.2% | -0.8% | -1.1% | 2.0% | -0.9% | 1.2% | -0.5% | 0.6% | -0.8% | 0.5% |
| Muni National Interm Avg | 0.3% | 4.2% | 2.0% | 5.7% | -8.2% | 1.7% | 4.3% | 6.7% | 0.8% | 4.7% | -0.2% |
| Risk Measures | |
| Standard Deviation: | 4.8% |
| Total Risk Index: | 0.39 - Low |
| Category Risk Index: | 1.01 - Above Average |
| Category Risk Grade: | D (64% Rank) |
| Beta: | 0.83 |
| R-Squared: | 97% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 3.4% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $471 Mil |
| Fund Total Assets: | $ 472 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 26% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 5.4 years | |||
| Average Tenure: 4.3 years | |||
| Managers (Year): Miller Nathan (2021), Shane Adam (2023) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 405 |
| % in Top 10 Holdings: | 9.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 97.9% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 2.1% |
Purchase Information
| Fund Family: | State Farm |
| Phone Number: | 800-447-0740 |
| Website: | www.statefarm.com |
| Status: | Open |
| Inception Date: | November 1, 1977 |
| Min. Initial Purchase: | $ 250 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.16% ( Rating : Low ) |
| Category Average Expense Ratio (%): | 0.69% |
| Share Class: | State Farm Municipal Bond |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 0 |
