Policy holders have been asking State Farm for mutual fund products, and the insurance giant responded by planting $410 million in seed money into ten new funds.

The new fund family, offered through subsidiary State Farm VP Management, is rolling out as planned, and will include three managed equity funds, three index funds, one balanced fund, two bond funds, and one money market fund.

After the success of the firm's January pilot program in Missouri, North Carolina, Kansas and Virginia, State Farm initiated a full-scale launch right on schedule.

DST will provide all the backoffice functions, with a suite of services that the Bloomington, Illinois-based firm was unable to find elsewhere.

"They were about the only company that will give a complete package of integrated products," said David Grimes, assistant vice president of mutual funds. "Their product integrates with our Internet site, call center, and mail operations."

Los Angeles-based Capital Guardian Trust Company sub-advises the small cap equity and international equity funds. The firm has managed sub-accounts for State Farm's insurance products. Barclays Global Investors sub-advises the index funds. 

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