<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 27, 1996
REGISTRATION NOS. 2-70162
811-3121
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM N-1A
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT NO. / /
POST-EFFECTIVE AMENDMENT NO. 16 /X/
AND/OR
REGISTRATION STATEMENT
UNDER THE INVESTMENT COMPANY ACT OF 1940 / /
AMENDMENT NO. 17 /X/
---------------------
FBL MONEY MARKET FUND, INC.
(Exact Name of Registrant as Specified in Charter)
5400 University Avenue (515) 225-5586
West Des Moines, Iowa 50266 (Registrant's Telephone
(Address of Principal Executive Number, including
Offices) (Zip Code) Area Code)
Stephen M. Morain, Esquire Copy to:
5400 University Avenue Charles F. Custer, Esquire
West Des Moines, Iowa 50266 Vedder, Price, Kaufman & Kammholz
(Name and Address of Agent for 222 North LaSalle Street
Service) Chicago, IL 60601
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, the Registrant
has registered an indefinite amount of shares under the Securities Act of 1933.
The Rule 24f-2 Notice for the year ended July 31, 1996 was filed with the
Securities and Exchange Commission on or about September 13, 1996.
It is proposed that this filing will become effective (check appropriate box)
/ / immediately upon filing pursuant to paragraph (b)
/X/ on December 1, 1996 pursuant to paragraph (b)
/ / 60 days after filing pursuant to paragraph (a)(1)
/ / on (date) pursuant to paragraph (a)(1)
/ / 75 days after filing pursuant to paragraph (a)(2)
/ / on (date) pursuant to paragraph (a)(2) of Rule 485
If appropriate, check the following box:
/ / This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
------------------------
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<PAGE>
FBL MONEY MARKET FUND, INC.
REGISTRATION STATEMENT ON FORM N-1A
CROSS REFERENCE SHEET
PURSUANT TO RULE 481(a)
<TABLE>
<CAPTION>
N-1A ITEM NO. CAPTION
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<C> <S> <C>
PART A INFORMATION REQUIRED IN PROSPECTUS
1. Cover Page........................................... Cover Page
2. Synopsis............................................. Summary of Expenses
3. Condensed Financial Information...................... Condensed Financial Information; Yield Information
4. General Description of Registrant.................... Investment Objective and Policies; Investment
Restrictions; General Information
5. Management of the Fund............................... Management of the Fund; Portfolio Transactions
5A. Management's Discussion of Fund Performance.......... Not Applicable
6. Capital Stock and Other Securities................... Taxes; Dividends; General Information
7. Purchase of Securities Being Offered................. Management of the Fund; How to Buy Shares; Net Asset
Value; Other Shareholder Services
8. Redemption or Repurchase............................. How to Redeem Shares; Other Shareholder Services
9. Pending Legal Proceedings............................ Not Applicable
PART B INFORMATION REQUIRED IN STATEMENT OF ADDITIONAL INFORMATION
10. Cover Page........................................... Cover Page
11. Table of Contents.................................... Table of Contents
12. General Information and History...................... Not Applicable
13. Investment Objectives and Policies................... Investment Restrictions; Investment Objective and
Policies
14. Management of the Fund............................... Officers and Directors
15. Control Persons and Principal Holders of
Securities.......................................... Officers and Directors
16. Investment Advisory and Other Services............... Investment Adviser and Manager; Officers and
Directors; Underwriting and Distribution Expense;
Other Information
17. Brokerage Allocation and Other Practices............. Investment Adviser
18. Capital Stock and Other Securities................... Not Applicable (see Part A)
19. Purchase, Redemption and Pricing of Securities Being
Offered............................................. Net Asset Value; Retirement Plans; Redemptions
20. Tax Status........................................... Not Applicable (see Part A)
21. Underwriters......................................... Underwriting and Distribution
22. Calculation of Performance Data...................... Calculation of Fund's Yield
23. Financial Statements................................. Financial Statements
</TABLE>
<PAGE>
[LOGO]
FARM BUREAU MUTUAL FUNDS
5400 University Avenue, West Des Moines, Iowa 50266
Yield and Purchase Information --
Call Toll Free (800) 247-4170 or in Iowa call Toll Free (800) 422-3175; in the
Des Moines metropolitan area call 225-5586.
- -------------------------------------------
TABLE OF CONTENTS Page No.
Summary of Expenses............................................................2
Condensed Financial Information................................................3
Yield Information..............................................................4
Investment Objective and Policies..............................................4
How to Buy Shares..............................................................8
How to Redeem Shares...........................................................9
Other Shareholder Services....................................................10
Net Asset Value...............................................................12
Management of the Fund........................................................12
Portfolio Transactions........................................................13
Dividends.....................................................................13
Taxes.........................................................................14
General Information...........................................................14
- -------------------------------------------
NO DEALER, SALESMAN, OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, IN CONNECTION WITH THE OFFER CONTAINED IN THIS PROSPECTUS, AND, IF
GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON
AS HAVING BEEN AUTHORIZED BY THE FUND, THE ADVISER, OR THE UNDERWRITER. THIS
PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER
TO BUY, THE SECURITIES OF THE FUND IN ANY JURISDICTION IN WHICH SUCH SALE, OFFER
TO SELL, OR SOLICITATION MAY NOT BE LAWFULLY MADE.
- ------------------------------------------------
PLEASE READ THIS PROSPECTUS CAREFULLY AND RETAIN IT FOR FUTURE REFERENCE.
FBL
MONEY MARKET
FUND, INC.
Prospectus dated December 1, 1996
FBL Money Market Fund, Inc. (the "Fund") is a no-load, open-end, diversified
management investment company with an investment objective of maximum current
income consistent with liquidity and stability of principal. The Fund pursues
its objective by investing in money market instruments maturing in thirteen
months or less, including securities issued or guaranteed by the United States
Government, its agencies or instrumentalities, certificates of deposit, bankers'
acceptances, high grade commercial paper and other corporate debt and repurchase
agreements. There can be no assurance that the objective of the Fund will be
realized.
Shares of the Fund may be purchased at their net asset value without any sales
charge. The minimum initial investment is $500 and subsequent investments may be
made in any amount. Shares may be redeemed at any time at net asset value as
described herein.
AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT. THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A
STABLE NET ASSET VALUE OF $1.00 PER SHARE.
This Prospectus contains information about the Fund that a prospective
investor should know before investing. Please read it carefully and retain it
for future reference. A Statement of Additional Information for the Fund, dated
December 1, 1996, has been filed with the Securities and Exchange Commission and
is incorporated herein by reference. The Statement of Additional Information is
available upon request and without charge from the Fund by writing or calling
the Fund at the address or telephone numbers set forth above.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
<PAGE>
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SUMMARY OF
EXPENSES
- ---------------
<TABLE>
<S> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases...................................... None
Maximum Sales Load Imposed on Reinvested Dividends........................... None
Deferred Sales Load.......................................................... None
Redemption Fee............................................................... None
Exchange Fee................................................................. None
ANNUAL FUND OPERATING EXPENSES
(As a percentage of net assets)
Management Fees.............................................................. 0.25%*
12b-1 Fees................................................................... None
Other Expenses............................................................... 1.00%
----------
Total Fund Operating Expenses........................................ 1.25%*
----------
----------
</TABLE>
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
EXAMPLE
You would pay the following expenses on a $1,000 investment, assuming (1)
5% annual return and (2) redemption at the end of each time period:..... $ 13 $ 40 $ 69 $ 151
</TABLE>
The purpose of the preceding table is to assist investors in understanding
the various costs and expenses that an investor in the Fund will bear directly
or indirectly. The example should not be considered a representation of past or
future expenses. Actual expenses may be greater or lesser than those shown. The
example assumes a 5% annual rate of return pursuant to the requirements of the
Securities and Exchange Commission and is not intended to be representative of
past or future performance of the Fund.
- ------------------------
* Total Fund operating expenses were 1.50% for the fiscal year ended July 31,
1996. The figures have been restated for the reduction in the management fees
from 0.50% to 0.25% effective December 1, 1996.
2
<PAGE>
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CONDENSED
FINANCIAL
INFORMATION
---------------
The condensed financial information set forth below has been derived from
the financial statements and financial highlights of the Fund, which have been
audited by independent auditors. This table should be read in conjunction with
the financial statements and notes thereto of the Fund included in the Annual
Report to Shareholders, which financial statements and notes are incorporated
herein by reference.
Selected data for a share of capital stock outstanding throughout each year:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-------------------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991 1990 1989 1988
--------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
year....................... $ 1.0000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income From Investment
Operations
Net investment income.... 0.040 0.041 0.020 0.019 0.036 0.064 0.077 0.083 0.061
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total from investment
operations............... 0.040 0.041 0.020 0.019 0.036 0.064 0.077 0.083 0.061
Less Distributions
Dividends (from net
investment income)..... (0.040) (0.041) (0.020) (0.019) (0.036) (0.064) (0.077) (0.083) (0.061)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total distributions........ (0.040) (0.041) (0.020) (0.019) (0.036) (0.064) (0.077) (0.083) (0.061)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net asset value, end of
year....................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------- --------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total Return:
Total investment return
based on net asset value
(1)...................... 4.05% 4.17% 1.95% 1.91% 3.69% 6.59% 7.92% 8.57% 6.23%
Ratios/Supplemental Data:
Net assets, end of year
(000's omitted).......... $ 24,574 $ 19,977 $ 18,927 $ 22,072 $ 33,511 $ 61,876 $ 67,784 $ 54,116 $ 23,868
Ratio of net expenses to
average net assets....... 1.50% 1.51% 1.50% 1.50% 1.25% 0.93% 0.93% 1.09% 1.15%
Ratio of net income to
average net assets....... 3.92% 4.06% 1.92% 1.89% 3.75% 6.40% 7.52% 8.58% 6.10%
Information assuming no
voluntary reimbursement by
FBL Investment Advisory
Services, Inc. of excess
operating expenses:
Per share net investment
income................. $ 0.038 $ 0.036 $ 0.019 $ 0.019
Ratio of expenses to
average net assets..... 1.72% 2.01% 1.57% 1.54%
Amount reimbursed........ $ 51,886 $ 96,398 $ 6,978 $ 5,116
<CAPTION>
1987
---------
<S> <C>
Net asset value, beginning of
year....................... $ 1.000
Income From Investment
Operations
Net investment income.... 0.052
---------
Total from investment
operations............... 0.052
Less Distributions
Dividends (from net
investment income)..... (0.052)
---------
Total distributions........ (0.052)
---------
Net asset value, end of
year....................... $ 1.000
---------
---------
Total Return:
Total investment return
based on net asset value
(1)...................... 5.38%
Ratios/Supplemental Data:
Net assets, end of year
(000's omitted).......... $ 22,966
Ratio of net expenses to
average net assets....... 1.16%
Ratio of net income to
average net assets....... 5.26%
Information assuming no
voluntary reimbursement by
FBL Investment Advisory
Services, Inc. of excess
operating expenses:
Per share net investment
income.................
Ratio of expenses to
average net assets.....
Amount reimbursed........
</TABLE>
- ------------
Note: Per share amounts have been calculated on the basis of monthly per share
amounts (using average monthly outstanding shares) accumulated for the
period.
(1) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the year, reinvestment of all
dividends and distributions at net asset value during the year, and
redemption on the last day of the year.
3
<PAGE>
- --------------------------------------------------------------------------------
YIELD
INFORMATION
- ---------------
From time to time, the Fund may advertise its yield and effective yield.
Each figure is based upon historical earnings and is not necessarily
representative of the future performance of the Fund. The yield of the Fund
refers to the net investment income generated by a hypothetical investment in
the Fund over a specific seven-day period. This net investment income is then
annualized, which means that the net investment income generated during the
seven-day period is assumed to be generated each week over an annual period and
is shown as a percentage of the investment. The effective yield is calculated
similarly, but the net investment income earned by the investment is assumed to
be compounded weekly when annualized. The effective yield will be slightly
higher than the yield due to this compounding effect.
The performance of the Fund may be compared to that of other money market
mutual funds tracked by Lipper Analytical Services, Inc., an independent
research firm which ranks mutual funds by overall performance, investment
objectives and assets, or by IBC/Donoghue's Money Fund Directory, a service
which reports on money market funds.
The Fund's yield and effective yield will fluctuate. Additional information
concerning the Fund's performance is described in the Statement of Additional
Information.
If you would like the yield or effective yield for the Fund, call toll free
1-800-247-4170 (in Iowa 1-800-422-3175, or in the Des Moines metropolitan area
call 225-5586), 24 hours a day, 7 days a week. The recorded message is updated
each weekday.
- --------------------------------------------------------------------------------
INVESTMENT
OBJECTIVE
AND POLICIES
- ---------------
The investment objective of the Fund is maximum current income consistent
with liquidity and stability of principal and may not be changed without
shareholder approval.
The Fund limits its investments to securities that meet the quality and
diversification requirements of Rule 2a-7 under the Investment Company Act of
1940 (the "Investment Company Act"). Under Rule 2a-7, the Fund may only purchase
United States denominated instruments that are determined to present minimal
credit risks and at the time of acquisition are rated in the top two rating
categories by the required number of nationally recognized statistical rating
organizations (at least two or, if only one such organization has rated the
security, that one organization) or, if unrated, are deemed comparable in
quality. The diversification requirements of Rule 2a-7 provide generally that
the Fund may not at the time of acquisition invest more than 5% of its assets in
securities of any one issuer or invest more than 5% of its assets in securities
that have not been rated in the highest category by the required number of
rating organizations or, if unrated, have not been deemed comparable, except
U.S. Government securities and repurchase agreements of such securities.
4
<PAGE>
The Fund seeks to achieve its objective by investing in the following money
market instruments maturing in thirteen months or less from the time of
investment, thereby allowing the Fund to maintain a dollar-weighted average
portfolio maturity of 90 days or less:
U.S. GOVERNMENT SECURITIES: Bills, notes, bonds and other debt
securities issued by the U.S. Treasury. These are direct obligations of the
U.S. Government and differ mainly in the length of their maturities.
U.S. GOVERNMENT AGENCY OR INSTRUMENTALITY SECURITIES: Debt securities
issued or guaranteed by agencies or instrumentalities of the U.S.
Government. Although these securities are not direct obligations of the U.S.
Government, some are supported by the full faith and credit of the U.S.
Treasury; others are supported only by the limited right of the issuer to
borrow from the U.S. Treasury; and others depend solely upon the credit of
the agency or instrumentality and not the U.S. Treasury.
OBLIGATIONS OF BANKS OR SAVINGS INSTITUTIONS: Certificates of deposit,
bankers' acceptances and other short-term debt obligations of commercial
banks or savings and loan associations. The Fund will not invest in any
instruments issued by a commercial bank unless it has total assets of at
least $100 million and has its deposits insured by the Federal Deposit
Insurance Corporation ("FDIC"). Similarly, the Fund will not invest in any
instrument issued by a savings and loan association unless it has total
assets of at least $100 million, has been issued a charter by the Office of
Thrift Supervision ("OTS") or was formerly a member of the Federal Home Loan
Bank System and is now subject to regulation by the OTS, and is insured by
the FDIC. However, the Fund may invest in an obligation of a bank or savings
and loan association with assets of less than $100 million if the principal
amount of such obligation is fully covered by FDIC insurance. The limit of
such coverage is currently $100,000.
COMMERCIAL PAPER: Short-term unsecured promissory notes issued by
corporations, primarily to finance short-term credit needs. The Fund will
only invest in commercial paper that is rated A-1 or A-2 by Standard &
Poor's Corporation ("S&P") or Prime-1 or Prime-2 by Moody's Investors
Service, Inc. ("Moody's") or, if unrated, issued by a corporation having an
outstanding debt issue rated at least AA/Aa by S&P or Moody's.
In addition, the Fund will invest in commercial paper issued by major
corporations in reliance on the so-called "private placement" exemption from
registration by Section 4(2) of the Securities Act of 1933 ("Section 4(2)
paper") subject to the above noted requirements with respect to ratings.
Section 4(2) paper is restricted as to disposition under the federal
securities laws, and generally is sold to institutional investors such as
the Fund, who agree that it is purchasing the paper for investment and not
with a view to public distribution. Any resale by the purchaser must be in
an exempt transaction. Section 4(2) paper normally is resold to other
institutional investors through or with the assistance of the issuer or
investment dealers who make a market in the Section 4(2) paper, thus
providing liquidity. The Fund's investment adviser considers the legally
restricted but readily saleable Section 4(2) paper to be liquid; however,
the paper will be treated as illiquid unless, pursuant to procedures
approved by the Board of Directors, a particular investment in Section 4(2)
paper is determined to be liquid. The investment adviser monitors the
liquidity of the Fund's investments in Section 4(2) paper on a continuing
basis.
OTHER CORPORATE DEBT SECURITIES: Outstanding nonconvertible corporate
debt securities (e.g., bonds and debentures) which were not issued as
short-term obligations but which have thirteen
5
<PAGE>
months or less remaining to maturity. The Fund will only invest in such
obligations that at the time of purchase are rated AA/Aa or better by S&P or
Moody's.
REPURCHASE AGREEMENTS: A repurchase agreement is an instrument under
which the Fund acquires a security from the seller who agrees, at the time
of the sale, to repurchase the security at a predetermined time and price,
thereby determining the yield during the Fund's holding period. That yield
is established by reference to current short-term rates and may be more or
less than the interest rate on the underlying security. The value of the
underlying security is marked-to-market daily. If the value of the
underlying security declines, the seller would be required to provide the
Fund with additional securities so that the aggregate value of the
underlying securities was at least equal to the repurchase price.
The Fund may also enter into a special type of repurchase agreement
known as an "open repurchase agreement." An open repurchase agreement varies
from the typical agreement in the following respects: (1) the agreement has
no set maturity, but instead matures upon 24 hours' notice to the seller;
and (2) the repurchase price is not determined at the time the agreement is
entered into, but instead is based on a variable interest rate and the
duration of the agreement.
Repurchase agreements maturing in more than seven days will not exceed
10% of the net assets of the Fund, and no more than 25% of the net assets of
the Fund may be invested in repurchase agreements in which the underlying
securities have maturities in excess of one year, although there is no limit
to the percentage of the Fund's assets which may be invested in repurchase
agreements that mature in seven days or less and have underlying securities
with maturities of one year or less. Net assets are taken at market value at
the time of purchase for purposes of the foregoing limitations. Open
repurchase agreements are considered to mature in one day.
If a seller of a repurchase agreement were to default, the Fund might
experience losses, including delays and expenses in enforcing its rights. To
minimize this risk, the investment adviser (under the review of the Board of
Directors) will review the creditworthiness of the seller, and must find
such creditworthiness satisfactory before the Fund may enter into the
repurchase agreement. Repurchase agreements may be entered into with banks
or securities dealers and the underlying securities will consist only of
securities issued or guaranteed by the U.S. Government, its agencies or
instrumentalities.
FLOATING AND VARIABLE RATE SECURITIES: The Fund may invest in
instruments having rates of interest that are adjusted periodically or that
float continuously or periodically according to formulas intended to
minimize fluctuation in the value of the instruments ("Variable Rate
Securities"). The interest rate on a Variable Rate Security is ordinarily
determined by reference to, or is a percentage of, a specified market rate
such as a bank's prime rate, the 90-day U.S. Treasury Bill rate, or the rate
of return on commercial paper or bank certificates of deposit. Generally,
the changes in the interest rate on Variable Rate Securities reduce the
fluctuation in the market value of such securities. Accordingly, as interest
rates decrease or increase, the potential for capital appreciation or
depreciation is less than for fixed rate obligations. Some Variable Rate
Securities have a demand feature ("Variable Rate Demand Securities")
entitling the purchaser to resell the securities at an amount approximately
equal to the principal amount thereof plus accrued interest. As in the case
for other Variable Rate Securities, the interest rate on Variable Rate
Demand Securities varies according to some specified market rate intended to
minimize fluctuation in the value of the instruments. Some of these Variable
Rate Demand Securities are unrated, their transfer is restricted by the
issuer and there is little, if any, secondary market for the securities.
Thus, any inability of the issuers of such securities to pay on demand could
adversely affect the liquidity of these securities. The Fund
6
<PAGE>
determines the maturity of Variable Rate Securities in accordance with
Securities and Exchange Commission rules which allow the Fund to consider
certain of such instruments as having maturities shorter than the maturity
date on the face of the instrument.
WHEN-ISSUED OR DELAYED DELIVERY TRANSACTIONS: From time to time, in the
ordinary course of business, the Fund may purchase newly-issued securities
on a "when-issued" basis and may purchase or sell securities on a "delayed
delivery" basis. When-issued or delayed delivery transactions involve a
commitment by the Fund to purchase or sell particular securities with
payment and delivery to take place at a future date. These transactions
allow the Fund to lock in an attractive purchase price or yield on a
security it intends to purchase or an attractive sale price on a security it
intends to sell. Normally, settlement occurs within one month of the
purchase or sale. During the period between purchase or sale and settlement,
no payment is made or received by the Fund and, for delayed delivery
purchases, no interest accrues to the Fund. The Fund will only make
commitments to purchase securities on a when-issued or delayed delivery
basis with the intention of actually acquiring the securities, but it
reserves the right to sell such securities before the settlement date if
deemed advisable.
At the time the Fund makes the commitment to purchase a security on a
when-issued or delayed delivery basis, it will record the transaction and
reflect the amount due and the value of the security in determining its net
asset value. Likewise, at the time the Fund makes the commitment to sell a
security on a delayed delivery basis, it will record the transaction and
include the proceeds to be received in determining its net asset value;
accordingly, any fluctuations in the value of the security sold pursuant to
a delayed delivery commitment are ignored in calculating net asset value so
long as the commitment remains in effect. The market value of the
when-issued or delayed delivery securities at any time may be more or less
than the purchase price to be paid or the sale price to be received at the
settlement date. To the extent that the Fund engages in when-issued or
delayed delivery transactions, it will do so for the purpose of acquiring or
selling securities consistent with its investment objectives and policies
and not for the purpose of investment leverage or to speculate on interest
rate changes.
The investment adviser does not believe that the Fund's net asset value
or income will be adversely affected overall by the purchase of securities
on a when-issued or delayed delivery basis. The Fund will establish a
segregated account with its custodian bank in which it will maintain cash or
U.S. Government securities or other high-grade debt obligations at least
equal in value to commitments to purchase securities on a when-issued or
delayed delivery basis; subject to this requirement, the Fund may purchase
securities on a when-issued or delayed delivery basis without limit. To the
extent that assets of the Fund are held in cash pending the settlement of a
purchase of securities, the Fund would earn no income. In the case of a
commitment to sell securities on a delayed delivery basis, the Fund will
instruct the custodian to hold the Fund securities themselves in a
segregated account while the commitment is outstanding.
Stability of principal is a primary investment objective of the Fund and,
while the types of money market securities in which the Fund invests generally
are considered to have low principal risk, such securities are not completely
risk free. There is some risk that issuers will fail to meet their principal and
interest obligations on a timely basis, therefore there can be no guarantee that
the Fund will achieve its objective or that it will maintain a net asset value
of $1.00 per share. The net asset value of $1.00 per share has, however, been
maintained by the Fund since its inception. Thus, no shareholder has ever lost
any principal from an investment in the Fund.
7
<PAGE>
The Fund has adopted a number of restrictions and policies relating to the
investment of its assets and its activities that are fundamental and may not be
changed without the approval of the holders of a "majority of the Fund's
outstanding voting securities" as such term is defined in the Investment Company
Act of 1940. A complete list of these investment restrictions and policies is
contained in the Fund's Statement of Additional Information.
- --------------------------------------------------------------------------------
HOW TO
BUY
SHARES
- ---------
The Fund's shares are sold at their net asset value next determined after an
order and payment are received in the form described below. Purchase orders in
proper form received by wire transfer will be effected at the next determined
net asset value. If you invest by mail, purchase orders in proper form will be
effected at the net asset value next determined after the funds have been
converted into Federal Funds, normally one full business day after receipt. The
Fund is generally open for business, and its net asset value is computed, on
each day the New York Stock Exchange is open for trading (except the Tuesday
before Christmas and the day after Thanksgiving). The Fund reserves the right to
reject any purchase order and to change the minimum purchase requirements at any
time.
INITIAL PURCHASE
The minimum initial purchase is $500, except there is no minimum initial
investment for retirement accounts and accounts opened under bona fide payroll
deduction plans. There is no sales charge. An Application may be obtained from
the Fund or from a registered representative of FBL Marketing Services, Inc. The
proper form for initial purchase orders is as follows:
By Mail:
Complete the Application and mail it with your check payable to "FBL Money
Market Fund, Inc." to: FBL Money Market Fund, Inc., 3820 109th Street, Des
Moines, Iowa 50391-7003.
By Wire:
Call our toll free number (800) 247-4170 (in Iowa call toll free (800)
422-3175, or in the Des Moines metropolitan area call 225-5586) to obtain an
Account Number and to provide the Fund with your name, address and social
security or tax identification number. Then, simply instruct your bank to "wire
transfer" funds to: BANKERS TRUST COMPANY, ABA #021001033, DDA ACCOUNT #00220644
FBL MONEY MARKET FUND, INC., FOR FURTHER CREDIT TO YOUR ACCOUNT REGISTRATION AND
ACCOUNT NUMBER. Finally, complete the Application and mail it to the Fund at the
address listed above under "Initial Purchase--By Mail."
SUBSEQUENT PURCHASES
The proper form for subsequent purchase orders is as follows:
By Mail (no minimum):
Send the Fund a check payable to the Fund accompanied by a letter indicating
the dollar value of the shares to be purchased, the account number and the
registered owner(s).
By Wire (no minimum):
Instruct your bank to "wire transfer" funds as outlined above under "Initial
Purchase--By Wire."
8
<PAGE>
- --------------------------------------------------------------------------------
HOW TO
REDEEM
SHARES
---------
Upon receipt of an executed redemption request in proper form as described
below, the Fund will redeem shares at their next determined net asset value. The
Fund intends to pay redemption proceeds within one business day after receipt of
an executed redemption request in proper form. If shares to be redeemed were
purchased by check, the Fund may delay transmittal of redemption proceeds until
such time, not to exceed 15 days after the redemption request, as it has assured
itself that good payment has been collected for the purchase of such shares.
SHAREHOLDERS MAY NOT USE EXPEDITED REDEMPTION PROCEDURES (DRAFT OR TELEPHONE
REDEMPTION) IF SHARES WERE PURCHASED BY CHECK UNTIL THE SHARES BEING REDEEMED
HAVE BEEN ON THE FUND'S BOOKS FOR AT LEAST 4 BUSINESS DAYS. There is no such
delay when redeeming shares that were purchased by wire.
Due to the high cost of maintaining small accounts, the Fund reserves the
right to redeem an account which an investor has reduced to a value of less than
$500. A shareholder will be notified accordingly and permitted 60 days to make
additional share purchases before the liquidating redemption is processed.
By Mail (no minimum):
Send a letter to the Fund, 3820 109th Street, Des Moines, Iowa 50391-7003,
requesting redemption of either the number or dollar value of shares to be
redeemed. The letter must be signed exactly as the account is registered. On a
jointly owned account, all owners must sign. SIGNATURES OF ACCOUNT OWNERS MUST
BE GUARANTEED BY A COMMERCIAL BANK, TRUST COMPANY, MEMBER OF A STOCK EXCHANGE,
SAVINGS AND LOAN ASSOCIATION OR SAVINGS BANK, OTHER ELIGIBLE FINANCIAL
INSTITUTION, OR A REGISTERED REPRESENTATIVE OF FBL MARKETING SERVICES, INC. OR
FBL INVESTMENT ADVISORY SERVICES, INC., and shall include such other
documentation of authority as the Fund deems necessary in the case of estates,
trusts, guardianships, corporations, unincorporated associations and pension and
profit sharing plans. THE FUND CANNOT ACCEPT GUARANTEES FROM NOTARIES PUBLIC.
By Draft (no minimum):
A shareholder may redeem shares by writing drafts drawn on Norwest Bank
Iowa, N.A., payable to the order of any person in any amount. A shareholder
wishing to use this method of redemption must complete the appropriate portion
of the Application including a signature card. Drafts can be ordered by the
shareholder, for a charge of $12.00 per 175 drafts ordered, after all necessary
application forms have been received in proper form. The cost of the drafts
ordered by the shareholder will be collected by redemption of shares, or
fractions thereof, from the shareholder's account. If the entire account is
redeemed by draft, dividends credited to that account from the beginning of the
month through the day of redemption will be paid by a separate check mailed to
the address of record. Payment of drafts is subject to acceptance by the Fund,
and the Fund may refuse to honor drafts whenever the right of redemption has
been suspended or postponed, or whenever the shareholder's account is otherwise
impaired. When the draft is presented for payment and accepted, a sufficient
number of shares in the account will be redeemed to pay the amount of the draft.
When a draft is presented to redeem Fund shares in excess of the value of the
account OR TO REDEEM SHARES PURCHASED BY CHECK WITHIN 4 BUSINESS DAYS, the draft
will be returned marked "insufficient funds" and a service charge of $10.00 will
be levied on all drafts so marked. Redemption by draft is not available for
Retirement Accounts.
9
<PAGE>
Copies or cleared drafts may be obtained by calling the Fund at our
toll-free number (800) 247-4170 (in Iowa call toll-free (800) 422-3175, or in
the Des Moines metropolitan area call 225-5586), or by writing a letter to the
Fund. The first five copies of drafts per year will be provided at no charge to
the shareholder; thereafter, there will be a charge of $3 per copy. The costs of
the copies will be collected by redemption of shares, or fractions thereof, from
the shareholder's account.
By Telephone ($1,000 minimum):
Shareholders may redeem shares by telephone. The proceeds of shares so
redeemed will be sent by check to the shareholder of record at the address of
record. A shareholder wishing to use this method of redemption must complete the
appropriate portions of the Application and it must be on file with the Fund.
All applications for telephone redemption must have signatures guaranteed by a
commercial bank, trust company, member of a stock exchange, savings and loan
association or savings bank, other eligible financial institution, or a
registered representative of FBL Marketing Services, Inc. or FBL Investment
Advisory Services, Inc., and shall include such other documentation of authority
as the Fund deems necessary in the case of estates, trusts, guardianships,
corporations, unincorporated associations and pension and profit sharing plans.
THE FUND CANNOT ACCEPT GUARANTEES FROM NOTARIES PUBLIC. Once the completed form
is on file, the Fund will honor redemption requests by ANY PERSON by telephone,
using the toll free numbers listed on the cover page, telegraph or other methods
without a signature guarantee from the shareholder or any other person. Proceeds
may also be paid to the shareholder by wire transfer, but only to the bank and
account on file as designated by the shareholder, which must be a domestic
commercial bank that is a member of the Federal Reserve System. Although the
Fund does not charge for wiring funds, the shareholder will be responsible for
wire fees, if any, charged by the receiving bank. The Adviser employs procedures
designed to confirm that instructions communicated by telephone are genuine,
including requiring certain identifying information prior to acting upon
instructions, recording all telephone instructions and sending written
confirmations of instructions. To the extent such procedures are reasonably
designed to prevent unauthorized or fraudulent instructions neither the Adviser
nor the Fund would be liable for any losses from unauthorized or fraudulent
instructions. The Fund reserves the right to terminate this telephone redemption
privilege at any time. This procedure is not available for Retirement Accounts.
- --------------------------------------------------------------------------------
OTHER
SHAREHOLDER
SERVICES
- ----------------
The Fund offers a number of shareholder services designed to facilitate
investment in its shares. Full details as to each of such services and copies of
the various plans described below can be obtained from the Fund.
PERIODIC WITHDRAWAL PLAN:
A shareholder who owns $5,000 or more of Fund shares in a single account may
establish a Periodic Withdrawal Plan to provide for regular monthly, quarterly
or annual payments of a fixed dollar amount or fixed percent of the account
balance ($100 annual minimum) to be sent to the shareholder or a designated
payee. Fund shares held in the shareholder's account having a net asset value of
the amount of the requested payment will be redeemed on or around the fifth
business day before the end of the applicable month and a check will be mailed
to the investor within seven days thereafter.
10
<PAGE>
AUTOMATIC INVESTMENT PLAN:
A shareholder may elect to participate in the Fund's automatic investment
plan. This plan enables a shareholder to automatically purchase shares of the
Fund on a monthly basis. A minimum initial investment of $50 per account is
required to establish an automatic investment plan. Minimum monthly investments
of $25 per account are necessary to maintain the plan. The Fund will debit the
shareholder's financial institution account and subsequently purchase shares of
the Fund having a net asset value of the amount of the requested deposit on or
around the 16th day of the month. Shareholders interested in this plan must
complete an automatic investment form available from the Fund.
EXCHANGE PRIVILEGE:
A shareholder may exchange all or some Fund shares for shares of any
portfolio of FBL Series Fund, Inc., if that fund's shares are offered for sale
in the shareholder's state of residence. FBL Series Fund, Inc. currently offers
six Portfolios: Value Growth Portfolio, High Grade Bond Portfolio, High Yield
Bond Portfolio, Managed Portfolio, Money Market Portfolio and Blue Chip
Portfolio. A prospectus for FBL Series Fund, Inc. may be obtained by writing or
calling that fund at the same address or phone numbers as shown on the cover
page of this prospectus. Shares of that fund are subject to a contingent
deferred sales charge of up to 5%, as described in its prospectus. Exchanges may
be for any amount, except that if a new account is established by the exchange
privilege, an application for that account must be completed and mailed to the
fund, and the minimum initial purchase amount must be met. Exercise of the
exchange privilege is treated as a sale for federal income tax purposes and,
depending on the circumstances, a gain or loss may be realized by the
shareholder. Shareholders of the Fund interested in exercising the exchange
privilege must first obtain a prospectus and an exchange form from the Fund.
Once the completed exchange form is on file with the Fund, exchanges may be
authorized by telephone (by ANY PERSON) or by letter. This privilege may be
modified or terminated by the Fund at any time.
A shareholder may also request exchanges to any portfolio of FBL Series
Fund, Inc. on a monthly or quarterly basis using the automatic exchange
privilege. Automatic exchanges occur on the 20th day of the month of the elected
schedule or the following business day if the 20th is a holiday or weekend day.
Shareholders interested in the automatic exchange privilege must first obtain a
prospectus and an automatic exchange form from that fund. Automatic exchanges
are subject to the considerations listed in the above paragraph.
RETIREMENT PLANS:
Eligible shareholders of the Fund may participate in a variety of qualified
retirement plans which are available from FBL Investment Advisory Services, Inc.
Some of the plans currently offered are: Self-Employed Individual Retirement
Plans (Keogh Plans), Individual Retirement Accounts (IRAs), Simplified Employee
Pension Plans (SEPs), Tax Sheltered 403(b) Plans, Corporate Pension and Profit
Sharing Plans, and Public Employer Deferred Compensation Plans. The initial
investment to establish any such plan, and subsequent investments, may be in any
amount (subject to plan limitations). Investors Fiduciary Trust Company ("IFTC")
of Kansas City, Missouri serves as custodian and provides the required services
for Keogh Plans, IRAs, SEPs and Corporate Pension and Profit Sharing Plans. A
custodial fee, currently $10.00, will be collected annually by redemption of
shares, or fractions thereof, from each participant's account(s). FBL Investment
Advisory Services, Inc. performs plan services for IFTC for a portion of the
fee. Information with respect to these plans is available upon request from the
Fund.
Trustees of qualified retirement plans and 403(b)(7) custodial accounts are
required by law to withhold 20% of the taxable portion of any distribution that
is eligible to be "rolled over." The 20% withholding requirement does not apply
to distributions from IRAs or any part of a distribution which is transferred
directly to another qualified retirement plan, 403(b)(7) account or IRA.
Shareholders should consult their tax advisers regarding this 20% withholding
requirement.
11
<PAGE>
- --------------------------------------------------------------------------------
NET
ASSET
VALUE
- -------
The net asset value per share of the Fund is determined as of the earlier of
3:00 p.m. (Central Time) or the close of the New York Stock Exchange on each day
the Exchange is open (except the Tuesday before Christmas and the day after
Thanksgiving) and on each other day on which there is sufficient trading in the
Fund's investments that it might affect the net asset value, except that the net
asset value will not be computed on a day when no orders for purchase or
redemption of shares are received. If the Fund offices should be closed because
of a weather-related or comparable type of emergency, and the Fund is unable to
segregate orders and redemption requests received on the emergency closed day,
then the Fund will price those orders and redemptions at the net asset value
next determined. The net asset value per share is computed by dividing the total
value of the Fund's securities and other assets, less liabilities (including
dividends payable), by the number of Fund shares outstanding. The Fund seeks to
maintain a constant net asset value per share of $1.00. The Fund's total assets
are determined by valuing the portfolio securities at amortized cost pursuant to
Rule 2a-7 under the Investment Company Act.
- --------------------------------------------------------------------------------
MANAGEMENT
OF THE
FUND
- ---------------
DIRECTORS:
The Fund has a board of nine directors, five of whom are not "interested
persons" of the Fund as defined in the Investment Company Act. The Board of
Directors is responsible for the overall supervision of the operations of the
Fund and the performance of the various duties imposed on the directors of
investment companies by the Investment Company Act. The Board of Directors
elects officers of the Fund annually.
INVESTMENT ADVISER AND UNDERWRITER:
FBL Investment Advisory Services, Inc. ("FBL" or "Adviser"), 5400 University
Avenue, West Des Moines, Iowa 50266, acts as the Fund's investment adviser,
manager and principal underwriter and is sole distributor of the Fund's shares.
FBL has served as the Fund's investment adviser, manager and underwriter since
the Fund commenced operations in 1981. FBL is an indirect subsidiary of FBL
Financial Group, Inc., an Iowa corporation. The following individuals are
officers and/or directors of both FBL and the Fund: Stephen M. Morain, Thomas R.
Gibson, Timothy J. Hoffman, Dennis M. Marker, William J. Oddy, James W. Noyce,
Richard D. Warming, Sue A. Cornick, Kristi Rojohn and Elaine A. Followwill. The
Adviser also acts as an investment adviser to individuals, institutions and two
other mutual funds: FBL Series Fund, Inc. and FBL Variable Insurance Series
Fund. Personnel of the Adviser also manage investments for the portfolios of
insurance companies.
The Adviser handles the investment and reinvestment of the Fund's assets,
and is responsible for the overall management of the Fund's business affairs,
subject to the supervision of the Board of Directors. As compensation for the
advisory and management services provided by the Adviser, the
12
<PAGE>
Fund has agreed to pay the Adviser an annual management fee, effective December
1, 1996, of .25% of the average daily net assets accrued daily and payable
monthly. These fees were reduced from a graduated basis of .50% of the first
$200 million of average daily net assets, .40% on the next $200 million of
average daily net assets, .35% on the next $200 million of average daily net
assets and .30% of average daily net assets over $600 million. For the fiscal
year ended July 31, 1995, the Fund incurred advisory fees amounting to .50% of
average net assets.
SHAREHOLDER SERVICE, DIVIDEND DISBURSING AND TRANSFER AGENT:
FBL serves as the Fund's Shareholder Service, Dividend Disbursing and
Transfer Agent for a separate fee. FBL in turn has contracted with DST Systems,
Inc., an unrelated party, to perform certain services incidental to the
maintenance of shareholder accounts for a portion of the fee.
ACCOUNTING SERVICES:
The Fund has entered into an accounting services agreement with FBL pursuant
to which FBL performs accounting services for the Fund. In addition, the
agreement provides that FBL shall calculate the Fund's net asset value in
accordance with the Fund's Prospectus and prepare for Fund approval and use
various tax returns and other reports. For such services the Fund pays FBL an
annual fee, payable monthly, of .05% of the Fund's average daily net assets,
with the annual fee payable by the Fund not to exceed $30,000.
- --------------------------------------------------------------------------------
PORTFOLIO
TRANSACTIONS
-----------------
Purchases and sales of portfolio securities are normally principal
transactions. Portfolio securities are normally purchased directly from the
issuer or from an underwriter or market maker for the securities. There are
usually no brokerage commissions paid by the Fund for such purchases and none
were paid during the fiscal year ended July 31, 1996. Purchases from
underwriters will include a commission or concession paid by the issuer to the
underwriter, and purchases from dealers serving as market makers include the
spread between the bid and asked price. The primary consideration in the
allocation of transactions is the most favorable price and execution of orders.
- --------------------------------------------------------------------------------
DIVIDENDS
-----------
The Fund declares dividends of all its daily net investment income on each
day the Fund's net asset value per share is determined. Dividends are payable
monthly and are automatically reinvested and distributed on the last business
day of each month in full and fractional shares of the Fund at the then current
net asset value, unless a shareholder requests payment in cash; provided,
however, that no cash payment will be made for dividends in an amount under $10.
Any such dividend amount under $10 will be reinvested in shares of the Fund.
Each non-qualified account shareholder will receive a monthly summary of account
activity, including information on dividends paid or reinvested. Qualified
account shareholders will receive a quarterly statement reflecting dividend
activity. If the entire amount in an account is redeemed at any time during a
month, dividends credited to that account from the beginning of the month
through the day of redemption will be paid in addition to the proceeds of the
redemption.
13
<PAGE>
The Fund's net investment income, for dividend purposes, consists of (1)
accrued interest income, plus or minus amortized purchase discount or premium,
(2) plus or minus all short-term realized gains or losses and unrealized
appreciation or depreciation on portfolio assets, and (3) minus all accrued
expenses of the Fund. Expenses of the Fund are accrued daily. So long as the
Fund's portfolio securities are valued at amortized cost there would be no
unrealized appreciation or depreciation on portfolio securities.
- --------------------------------------------------------------------------------
TAXES
- ------
The Fund intends to continue to qualify as a regulated investment company
under the Internal Revenue Code of 1986, as amended. If so qualified, the Fund
will not be subject to federal income taxes to the extent that it distributes
its taxable investment income and realized gains. Distributions of net income
including any net short-term capital gains are taxable to shareholders as
ordinary income, whether such distributions are taken in cash or reinvested in
additional shares. Of course, such distributions are not taxable to shareholders
who are not subject to income tax. Distributions from the Fund do not qualify
for the "dividends received deduction" available to corporate shareholders.
Distributions declared in October, November or December to shareholders of
record as of a date in one of those months and paid during the following January
are treated for federal income tax purposes as paid on December 31 of the
calendar year in which declared. Shareholders are advised to consult with their
tax adviser. Statements as to the tax status of distributions to shareholders
will be furnished to shareholders annually.
The Fund is required by law to withhold 31% of taxable distributions to
shareholders who do not furnish their correct social security or taxpayer
identification number and in certain other circumstances.
- --------------------------------------------------------------------------------
GENERAL
INFORMATION
- ---------------
ORGANIZATION OF THE FUND
The Fund is a no-load, open-end, diversified management investment company
incorporated under Maryland law on November 5, 1980. The Fund has authorized
capital of 500,000,000 shares of capital stock, $0.001 par value per share. All
shares of capital stock have equal voting rights and equal rights with respect
to dividends, assets, liquidation and redemption. They are fully paid and
non-assessable when issued and have no preemptive, conversion or exchange
rights. The shares are transferable without restriction. Full and fractional
shares may be issued and each fractional share has proportionately the same
rights, including voting, as are provided for a full share.
SHAREHOLDER VOTING RIGHTS
Under the Fund's corporate charter and by-laws, the Fund is not required to
hold, and does not anticipate that it will hold, annual shareholders' meetings.
However, it will hold special meetings of shareholders as required or deemed
desirable for such purposes as electing directors, changing fundamental policies
or approving an investment management agreement.
Each member of the Board of Directors serves for a term of unlimited
duration, subject to the right to remove a Director by the Board of Directors or
the shareholders. The Board of Directors has the power to
14
<PAGE>
alter the number of directors and to appoint successor directors, provided that
immediately after the appointment of any successor director, at least two-thirds
of the directors have been elected by the shareholders of the Fund. However, if
at any time less than a majority of the directors holding office has been
elected by the shareholders, the directors are required to call a special
meeting of shareholders for the purpose of electing directors to fill any
existing vacancies on the Board.
As used in this Prospectus and in the Statement of Additional Information,
the phrase "majority of the Fund's outstanding voting securities" means the vote
of the lesser of (i) 67% of the shares of the Fund present at a meeting if the
holders of more than 50% of the outstanding shares are present in person or by
proxy, or (ii) more than 50% of the outstanding shares of the Fund.
REPORTS TO SHAREHOLDERS
Shareholders will receive unaudited semi-annual financial statements and
fiscal year-end financial statements audited by the Fund's independent auditors.
SHAREHOLDER INQUIRIES
Shareholders may make inquiries either by contacting their registered
representative or by writing or calling the Fund at the address or phone numbers
as shown on the front cover.
15
<PAGE>
APPLICATION FOR SHARES
[LOGO]
FBL MONEY MARKET FUND, INC.
Please Complete and Mail to:
FBL Money Market Fund, Inc.
3820 109th Street
Des Moines, Iowa 50391-7003
If you have any questions, please call toll-free at 1-800-422-3175 (in Iowa) or
1-800-247-4170 (National).
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DESIGNATE TYPE OF ACCOUNT & OWNER NAME(S)
/ / INDIVIDUAL OR JOINT ACCOUNT*
- --------------------------------------------------------------
Owner's Name
- ------------------------------------------------------------------------------
Joint Owner's Name
*Joint tenants with Right of Survivorship. The fund does not accept accounts
registered tenants-in-common.
/ / CUSTODIAL ACCOUNT
Uniform Gift or Transfer to Minors Act
- ------------------------------------------------------------------------------
Custodian's Name
- ------------------------------------------------------------------------------
Minor's Name
/ / TRUST, CORPORATION OF OTHER ENTITY ACCOUNT
- ------------------------------------------------------------------------------
Name of Trust, Corporation or Other Entity
- ------------------------------------------------------------------------------
Trustee(s') Name or Type of Entity
- ------------------------------------------------------------------------------
Date of Trust Agreement
PROVIDE YOUR TAX IDENTIFICATION NUMBER
- ------------------------------------------------------------------------------
Social Security or Tax ID Number
(Use minor's Social Security number for gifts/transfers to minors)
- ------------------------------------------------------------------------------
Joint Owner's or Custodian's Social Security or Tax ID Number
PROVIDE YOUR ADDRESS
- ------------------------------------------------------------------------------
Street or PO Box
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
City, State, Zip Code
PROVIDE YOUR DATE OF BIRTH PROVIDE YOUR MEMBERSHIP NUMBER
- -------------------------
- --------------------------------
- -------------------------------------------------------------------
INITIAL INVESTMENT
- ------------------------------------------------------------------------------
Amount ($500 minimum)
- --------------------------------------------------------------------------------
TO REINVEST YOUR DISTRIBUTIONS
Your dividends and capital gains will be reinvested unless you indicate
otherwise. (No cash payments will be made for dividends in an amount less than
$10.)
/ / Cash Dividends / / Cash Capital Gains
SPECIAL SHAREHOLDER PRIVILEGES
Expedited Redemption ($1,000 minimum)
/ / REDEMPTION BY TELEPHONE
I authorize FBL Investment Advisory Services, Inc. ("FBL") to honor telephone
requests FROM ANY PERSON without signature guarantee for the redemption of Fund
shares from my account. The proceeds shall be wired only to the account
designated below or, if none, mailed to the address of record. This privilege
will be terminated by the Fund without prior notice if FBL receives written
notice from any account owner of revocation of this authority. SIGNATURE
GUARANTEE REQUIRED.
- ------------------------------------------------------------------------------
Name of Bank (not a savings bank, savings & loan or credit union)
- ------------------------------------------------------------------------------
Address of Bank, City, State, Zip Code
- ------------------------------------------------------------------------------
Bank Account Number
- ------------------------------------------------------------------------------
Bank Routing Number
/ / REDEMPTION BY DRAFT (no minimum)
I authorize Norwest Bank Iowa, N.A. (the "Bank") to honor drafts drawn by me on
the Bank and the redemption of a sufficient number of Fund shares to pay such
drafts. This privilege is subject to the additional terms on the signature card.
/ / Enclosed is a completed signature card.
/ / Please send card for completion.
Please send information on the following:
/ / Exchange Between Funds
/ / Periodic Withdrawal Plan
/ / Automatic Investment Plan
- -------------------------------------------------------------------
TAX QUALIFIED PLANS ONLY
A qualified application must be submitted in addition to this form.
/ / Keogh / / IRA / / Simple
/ / Tax Deferred 403(b) / / SEP (available January 1, 1997)
DESIGNATED BENEFICIARY
- ------------------------------------------------------------------------------
Primary Beneficiary
- ------------------------------------------------------------------------------
Social Security Number Date of Birth
- ------------------------------------------------------------------------------
Contingent Beneficiary
- ------------------------------------------------------------------------------
Social Security Number Date of Birth
- ------------------------------------------------------------------------------
Contingent Beneficiary
- ------------------------------------------------------------------------------
Social Security Number Date of Birth
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SIGNATURES
By signing this form, I certify that:
I have received, read and agree to the terms of the prospectus for FBL Money
Market Fund, Inc. I have the authority and legal capacity to purchase mutual
fund shares, am of legal age in my state and believe each investment is suitable
for me. Under penalties of perjury, I certify that the number shown on this form
is a true and correct social security or tax identification number and, to the
best of my knowledge, I am not subject to backup withholding.
- ------------------------------------------------------------------------------
Signature of Applicant
- ------------------------------------------------------------------------------
Signature of Joint Applicant
- ------------------------------------------------------------------------------
Rep's Signature Number
- ------------------------------------------------------------------------------
Date
SIGNATURE GUARANTEE*
Complete for Expedited Redemption Privilege
- ------------------------------------------------------------------------------
Signature Guaranteed By
- ------------------------------------------------------------------------------
Authorized Signature
*Signature guarantee must be supplied by a commercial bank, trust company,
member of a securities exchange, savings and loan association or savings bank,
other eligible financial institution, or a registered representative of FBL
Marketing Services, Inc. or FBL Investment Advisory Services, Inc.
737-118A (12/96) This application must be accompanied or preceded by a current
prospectus.
<PAGE>
INSTITUTIONAL ACCOUNTS
Please execute the applicable sections below (all blanks should be completed
with the requested information and inappropriate alternatives should be
deleted).
CORPORATION/ASSOCIATION
I, ________________________________________, Secretary of
________________________, a (corporation) (unincorporated association),
organized under the laws of ____________________________________________________
(the "Organization"), certify that the following resolutions have been adopted
by the (board of directors) (trustees) (other managing body) of said
Organization and are now in full force and effect:
"RESOLVED, that the Organization establish an account in FBL Money Market
Fund, Inc. (the "Fund") and purchase shares of the Fund from time to time, and
the officers of this Organization are authorized to execute the Application for
such account presented for approval (being the form on which this certificate is
set forth) and select the draft redemption privilege and telephone redemption
privilege related to such account in accordance with the terms on such
Application;
FURTHER RESOLVED, that any ______________ (insert number of signatures
selected on the signature card) of the following officers of the Organization:
________________________________________________________________________________
_____________________________________________________ (insert titles) (is) (are)
authorized to execute drafts drawn pursuant to the Fund's draft redemption
privilege and the Fund, Norwest Bank Iowa, N.A. (the "Bank"), FBL Investment
Advisory Services, Inc. ("FBL") and their representatives are authorized to
honor as genuine and authorized all redemption drafts drawn pursuant to said
draft redemption privilege on behalf of the Organization signed with the actual
or facsimile signatures of said officers as certified to the Fund by the
Secretary of this Organization without inquiry as to the circumstances of their
issue or the disposition of any proceeds;
FURTHER RESOLVED, that in the case of facsimile signatures, redemption drafts
bearing the facsimile specimens or signatures resembling the facsimile specimens
may be honored as genuine and authorized regardless of by whom or by what means
the facsimile signatures thereon have been affixed thereto;
FURTHER RESOLVED, that any one of the aforesaid officers is authorized to act
for the Organization in all other cases in connection with the account of the
Organization with the Fund including providing instructions to the Fund, the
Bank, FBL or their representatives;
FURTHER RESOLVED, that these appointments and authorizations shall remain in
effect and the Fund, the Bank, FBL and their representatives may act thereon
until a revocation or modification thereof by this managing body, certified by
the Secretary of this Organization, shall be delivered to FBL."
The undersigned Secretary further certifies that the officers of this
Organization listed on the signature card as persons authorized to sign drafts
are now acting in the capacity listed and that the signatures of said persons
set forth on the signature card are genuine and authorized.
IN WITNESS WHEREOF, I have set my hand and the seal of this Organization this
____ day of ______________, 19____.
(SEAL) _____________________________
Secretary
- --------------------------------------------------------------------------------
PARTNERSHIP/TRUST/FIDUCIARY
In connection with the establishment of an account with FBL Money Market Fund,
Inc. (the "Fund") under the name _______________________________________________
_______________________, the undersigned certify that they are all of the (part-
ners) (trustees) (other fiduciaries) under the (partnership agreement) (trust)
(will) (court order) (other instrument) described as follows ___________________
_________________________________________________________________ (give detailed
description and dates) and certify that they have full power and authority to
establish an account with the Fund (the "Account") and to select the draft
redemption and telephone redemption privileges in accordance with the
Application to which this certification is attached. The undersigned further
certify that the execution of the Application and the selection of the
privileges noted above and the purchase from time to time of shares of the Fund
in connection therewith have been duly authorized. The undersigned agree to be
bound by the terms and conditions contained in the Application, signature card
and the Fund's current prospectus. The undersigned agree that the persons listed
on the signature card acting with the number of signatures indicated on said
signature card are authorized to execute drafts drawn pursuant to the Fund's
draft redemption privilege and the Fund, Norwest Bank Iowa, N.A. (the "Bank"),
FBL Investment Advisory Services, Inc. ("FBL") and their representatives are
authorized to honor as genuine and authorized all redemption drafts drawn
pursuant to said draft redemption privilege in connection with the Account
signed with the signatures of said persons described above as certified herein
without inquiry as to the circumstances of their issue or the disposition of any
proceeds. The undersigned certify that the signatures set forth on the front of
the Application and signature card are genuine and authorized. The undersigned
agree that any one of the aforesaid persons are authorized to act for the owner
of the Account in all other cases, including providing instructions to the Fund,
the Bank, FBL or their representatives. This certification shall remain in
effect and the Fund, the Bank, FBL and their representatives may act in reliance
thereon until a revocation or modification thereof certified to by the
undersigned or their successors is delivered to FBL. All certifications and
agreements herein are made jointly and severally.
<TABLE>
<S> <C> <C>
Dated:
Signature Title or Capacity
Signature Title or Capacity
Signature Title or Capacity
</TABLE>
<PAGE>
<TABLE>
<S> <C>
INVESTMENT ADVISER, UNDERWRITER, CUSTODIAN
SHAREHOLDER SERVICE, DIVIDEND DISBURSING Bankers Trust Company
AND TRANSFER AGENT Global Assets -- Insurance Group
FBL Investment Advisory Services, Inc. 16 Wall Street
5400 University Avenue New York, New York 10005
West Des Moines, Iowa 50266
LEGAL COUNSEL INDEPENDENT AUDITORS
Vedder, Price, Kaufman & Kammholz Ernst & Young LLP
Suite 2600 Suite 3400
222 North LaSalle Street 801 Grand Avenue
Chicago, Illinois 60601 Des Moines, Iowa 50309
</TABLE>
<PAGE>
------------------------------------------------------------------------
Farm Bureau Mutual Funds
FBL Money
Market Fund, Inc.
[LOGO]
PROSPECTUS
DECEMBER 1, 1996
INVESTMENT MANAGER AND
PRINCIPAL UNDERWRITER
FBL INVESTMENT ADVISORY
SERVICES, INC.
5400 UNIVERSITY AVENUE
WEST DES MOINES, IA 50266
1-800-247-4170 (OUTSIDE IOWA)
1-800-422-3175 (IN IOWA)
225-5586 (DES MOINES)
[LOGO]
FARM BUREAU MUTUAL FUNDS
5400 UNIVERSITY AVENUE
WEST DES MOINES, IOWA 50266
737-118(12/96)
<PAGE>
PART B
FARM BUREAU MUTUAL FUNDS
FBL MONEY MARKET FUND, INC.
5400 UNIVERSITY AVENUE
WEST DES MOINES, IOWA 50266
(515) 225-5586
STATEMENT OF ADDITIONAL INFORMATION
DECEMBER 1, 1996
This Statement of Additional Information is not a prospectus and should be
read in conjunction with the Prospectus of FBL Money Market Fund, Inc. (the
"Fund") dated December 1, 1996. A copy of the Prospectus may be obtained without
charge by writing or calling the Fund at the address and telephone number shown
above.
TABLE OF CONTENTS
<TABLE>
<S> <C>
INVESTMENT RESTRICTIONS...................................................... B-2
OFFICERS AND DIRECTORS....................................................... B-3
INVESTMENT OBJECTIVE AND POLICIES............................................ B-7
NET ASSET VALUE.............................................................. B-7
CALCULATION OF FUND'S YIELD.................................................. B-8
RETIREMENT PLANS............................................................. B-8
REDEMPTIONS.................................................................. B-10
INVESTMENT ADVISER........................................................... B-10
UNDERWRITING AND DISTRIBUTION................................................ B-12
OTHER INFORMATION............................................................ B-12
FINANCIAL STATEMENTS......................................................... B-12
</TABLE>
<PAGE>
INVESTMENT RESTRICTIONS
In seeking to achieve its investment objective as stated in the Prospectus,
the Fund has adopted the following investment restrictions. The Fund will not:
1. Purchase securities of any issuer (other than securities issued or
guaranteed by the U.S. Government, its agencies or instrumentalities) if, as
a result, more than 5% of the value of the Fund's assets (taken at current
value at the time of investment) would be invested in securities of that
issuer.
2. Purchase more than 10% of any class of securities of any issuer
other than securities issued or guaranteed by the U.S. Government, its
agencies or instrumentalities. (For this purpose, all outstanding debt
securities of an issuer are considered one class.)
3. Engage in puts, calls, straddles, spreads or any combination
thereof; nor engage in margin purchases, except for use of short-term
credits necessary for clearance of purchases and sales of portfolio
securities.
4. Make short sales of securities or maintain a short position in
securities.
5. Invest in real estate, including interests in real estate investment
trusts (although it may invest in securities secured by real estate or
interests therein or securities issued by companies which invest in real
estate or interests therein) or invest in commodities or commodity
contracts, including futures contracts.
6. Invest more than 5% of the value of the Fund's total assets (taken
at current value at the time of investment) in securities of issuers, other
than securities issued or guaranteed by the U.S. Government, its agencies or
instrumentalities, which have a record of less than three years continuous
operations, including predecessors.
7. Purchase or retain the securities of any issuer if any of the
officers or directors of the Fund or its investment adviser own individually
more than 1/2 of 1% of the securities of such issuer and together own more
than 5% of the securities of such issuer.
8. Concentrate its investments in any one industry by investing 25% or
more of the value of the Fund's total assets (taken at current value at the
time of investment) in any one industry, other than securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities,
obligations of banks or savings institutions, or instruments secured by
these money market instruments, such as repurchase agreements for U.S.
Government securities.
9. Make loans to others (except through the purchase of debt
obligations or repurchase agreements referred to under "Investment Objective
and Policies" in the Prospectus). In addition, the Fund may not invest more
than 10% of its net assets (taken at current value at the time of
investment) in repurchase agreements maturing in more than seven days.
10. Borrow money, except from banks for temporary or emergency purposes
and in no event in excess of 10% of its gross assets taken at the lesser of
cost or market or other fair value (the Fund will not borrow in order to
increase income (leveraging) but may borrow to facilitate meeting redemption
requests which might otherwise require untimely disposition of portfolio
securities; interest paid on any such borrowings will reduce net investment
income); nor will it pledge or mortgage more than 15% of its gross assets
taken at cost, except in connection with permissible borrowings discussed
immediately above; nor purchase money market instruments while any such
permissible borrowings are outstanding.
11. Act as an underwriter in securities. In this connection, the Fund
will not invest more than 10% of the value of its total assets in securities
(except repurchase agreements) which are subject to legal or contractual
restrictions on resale, or are not readily marketable.
12. Purchase securities of other investment companies, except in
connection with a merger, consolidation, acquisition or reorganization.
B-2
<PAGE>
13. Invest in companies for the purpose of exercising management or
control.
14. Purchase any common stocks or other equity securities, or securities
convertible into stock.
15. Issue senior securities.
The investment restrictions described above are fundamental and may not be
changed without the approval of the lesser of (i) 67% of the shares represented
at the meeting of the shareholders at which the holders of 50% or more of the
shares are represented in person or by proxy or (ii) more than 50% of the
outstanding voting securities.
In addition, the Fund may not: (a) purchase securities which are subject to
legal or contractual restrictions on resale in excess of 5% of the value of the
Fund's net assets; (b) invest in interests in oil, gas or other mineral
exploration or development programs or invest in oil, gas, or other mineral
leases; (c) pledge, mortgage or hypothecate its portfolio securities to the
extent that at any time the percentage of pledged securities would exceed 10% of
the Fund's total net assets; or (d) invest in real estate limited partnerships.
These restrictions, (a) through (d), may be changed by the Board of Directors
without shareholder approval.
OFFICERS AND DIRECTORS
The officers and directors of the Fund, their age and their principal
occupations for the past five years are set forth below, though corporate
positions may, in some instances, have changed during this period. The address
of the officers of the Fund is 5400 University Avenue, West Des Moines, Iowa
50266. The directors listed with an asterisk are "interested persons" of the
Fund as defined in the Investment Company Act of 1940.
EDWARD M. WIEDERSTEIN*, PRESIDENT AND DIRECTOR (48)
Farmer; Chairman, FBL Financial Group, Inc., President and Director, Iowa
Farm Bureau Federation, Farm Bureau Life Insurance Company, Universal
Assurors Life Insurance Company, FBL Insurance Brokerage, Inc., Farm Bureau
Mutual Insurance Company, Utah Farm Bureau Insurance Company, FBL Financial
Services, Inc., BIC, Inc. and Farm Bureau Agricultural Business Corporation;
Director, Western Farm Bureau Management Corporation, Western Farm Bureau
Life Insurance Company, Western Agricultural Insurance Company, American
Agricultural Insurance Company and Multi-Pig Corporation.
RICHARD D. HARRIS*, SENIOR VICE PRESIDENT, SECRETARY-TREASURER AND DIRECTOR (52)
Senior Vice President and Secretary-Treasurer, FBL Financial Group, Inc.,
Western Farm Bureau Life Insurance Company, Farm Bureau Life Insurance
Company, Universal Assurors Life Insurance Company, Farm Bureau Mutual
Insurance Company, Utah Farm Bureau Insurance Company, FBL Financial
Services, Inc. and FBL Insurance Brokerage, Inc.; Executive Director and
Secretary-Treasurer, Iowa Farm Bureau Federation; Senior Vice President and
Assistant Secretary-Treasurer, South Dakota Farm Bureau Mutual Insurance
Company; Vice President and Treasurer, Farm Bureau Management Corporation;
former Director, Public Policy Division, Iowa Farm Bureau Federation;
Director, Iowa FFA Foundation and Iowa Make-A-Wish Foundation.
STEPHEN M. MORAIN*, SENIOR VICE PRESIDENT, GENERAL COUNSEL, ASSISTANT SECRETARY
AND DIRECTOR (51)
General Counsel and Assistant Secretary, Iowa Farm Bureau Federation;
General Counsel, Secretary and Director, Farm Bureau Management Corporation;
Senior Vice President and General Counsel, FBL Financial Group, Inc., Farm
Bureau Life Insurance Company, Universal Assurors Life Insurance Company,
Farm Bureau Mutual Insurance Company, Utah Farm Bureau Insurance Company,
FBL Financial Services, Inc., FBL Insurance Brokerage, Inc. and South Dakota
Farm Bureau
B-3
<PAGE>
Mutual Insurance Company; Senior Vice President, General Counsel and
Director, FBL Investment Advisory Services, Inc. and FBL Marketing Services,
Inc.; Vice President and General Counsel, Western Farm Bureau Life Insurance
Company; Director, Computer Aided Design Software, Inc. and Iowa Business
Development Finance Corporation; Chairman, Edge Technologies, Inc.
THOMAS R. GIBSON, EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER (52)
Executive Vice President, General Manager and Chief Executive Officer, FBL
Financial Group, Inc., Executive Vice President and General Manager, Farm
Bureau Life Insurance Company, Universal Assurors Life Insurance Company,
Western Farm Bureau Life Insurance Company, Farm Bureau Mutual Insurance
Company, Utah Farm Bureau Insurance Company, FBL Insurance Brokerage, Inc.,
FBL Financial Services, Inc. and South Dakota Farm Bureau Mutual Insurance
Company; Executive Vice President, General Manager and Director, FBL
Investment Advisory Services, Inc. and FBL Marketing Services, Inc.
TIMOTHY J. HOFFMAN, VICE PRESIDENT, CHIEF MARKETING OFFICER (46)
Vice President, Chief Marketing Officer, FBL Financial Group, Inc., Farm
Bureau Life Insurance Company, Universal Assurors Life Insurance Company,
Western Farm Bureau Life Insurance Company, Farm Bureau Mutual Insurance
Company, Utah Farm Bureau Insurance Company, FBL Financial Services, Inc.,
South Dakota Farm Bureau Mutual Insurance Company and FBL Insurance
Brokerage, Inc.; President and Director, FBL Marketing Services, Inc. and
FBL Educational Services, Inc.; Vice President, Chief Marketing Officer and
Director, FBL Investment Advisory Services, Inc.
WILLIAM J. ODDY, VICE PRESIDENT, CHIEF OPERATING OFFICER AND ASSISTANT GENERAL
MANAGER (52)
Vice President, Chief Operating Officer and Assistant General Manager, FBL
Financial Group, Inc., Farm Bureau Life Insurance Company, Universal
Assurors Life Insurance Company, Western Farm Bureau Life Insurance Company,
FBL Insurance Brokerage, Inc., Utah Farm Bureau Insurance Company, Farm
Bureau Mutual Insurance Company, South Dakota Farm Bureau Mutual Insurance
Company and FBL Financial Services, Inc.; President, Treasurer and Director,
Communications Providers, Inc.; Vice President, Chief Operating Officer,
Assistant General Manager and Director, FBL Investment Advisory Services,
Inc. and FBL Marketing Services, Inc.; President and Director, FBL Real
Estate Ventures, Ltd. and RIK, Inc.
RICHARD D. WARMING, VICE PRESIDENT, CHIEF INVESTMENT OFFICER (63)
Vice President, Chief Investment Officer and Assistant Treasurer, FBL
Financial Group, Inc., Farm Bureau Life Insurance Company, Universal
Assurors Life Insurance Company, Western Farm Bureau Life Insurance Company,
FBL Insurance Brokerage, Inc., Utah Farm Bureau Insurance Company, FBL
Financial Services, Inc., Farm Bureau Mutual Insurance Company and South
Dakota Farm Bureau Mutual Insurance Company,; President and Director, FBL
Leasing Services, Inc. and FBL Investment Advisory Services, Inc.; Vice
President, Chief Investment Officer and Director, FBL Marketing Services,
Inc.; Vice President, Secretary and Director, RIK, Inc.; Secretary and
Director, FBL Real Estate Ventures, Ltd.
JAMES W. NOYCE, VICE PRESIDENT, CHIEF FINANCIAL OFFICER (40)
Vice President, Chief Financial Officer, FBL Financial Group, Inc., Farm
Bureau Life Insurance Company, Universal Assurors Life Insurance Company,
Western Farm Bureau Life Insurance Company, Farm Bureau Mutual Insurance
Company, Utah Farm Bureau Insurance Company, FBL Insurance Brokerage, Inc.,
FBL Financial Services, Inc. and South Dakota Farm Bureau Mutual Insurance
Company; Vice President, Treasurer and Director, FBL Leasing Services, Inc.
and RIK,
B-4
<PAGE>
Inc.; Vice President, Chief Financial Officer, Treasurer and Director, FBL
Investment Advisory Services, Inc. and FBL Marketing Services, Inc.;
Treasurer and Director, FBL Real Estate Ventures, Ltd.
DENNIS M. MARKER, INVESTMENT VICE PRESIDENT, ADMINISTRATION AND ASSISTANT
SECRETARY (45)
Investment Vice President, Administration, FBL Financial Group, Inc., Farm
Bureau Life Insurance Company, Universal Assurors Life Insurance Company,
Western Farm Bureau Life Insurance Company, FBL Insurance Brokerage, Inc.,
Farm Bureau Mutual Insurance Company, Utah Farm Bureau Insurance Company and
South Dakota Farm Bureau Mutual Insurance Company; Vice President and
Director, FBL Leasing Services, Inc; Investment Vice President,
Administration, Secretary and Director, FBL Investment Advisory Services,
Inc. and FBL Marketing Services, Inc.
SUE A. CORNICK, MARKET CONDUCT AND MUTUAL FUNDS VICE PRESIDENT AND ASSISTANT
SECRETARY (36)
Market Conduct and Mutual Funds Vice President and Assistant Secretary, FBL
Investment Advisory Services, Inc. and FBL Marketing Services, Inc.
KRISTI ROJOHN, ASSISTANT SECRETARY (33)
Senior Compliance Assistant and Assistant Secretary, FBL Investment Advisory
Services, Inc. and FBL Marketing Services, Inc.
ELAINE A. FOLLOWWILL, ASSISTANT SECRETARY (26)
Compliance Assistant and Assistant Secretary, FBL Investment Advisory
Services, Inc. and FBL Marketing Services, Inc.
DONALD G. BARTLING, DIRECTOR (69)
Box 104
Herman, Nebraska 68029
Farmer; Partner, Bartling Brothers Partnership (farming business); Director,
Papio Missouri River Natural Resources District.
JOHN R. GRAHAM, DIRECTOR (51)
1512 Country Club Place
Manhattan, Kansas 66502
Executive Vice President, Kansas Farm Bureau, Kansas Farm Bureau Services,
Kansas Agricultural Marketing Association, FB Services Insurance Agency,
Kansas Farm Bureau Life Insurance Company, The Farm Bureau Mutual Insurance
Company, Inc., Kansas Farm Bureau Reinsurance Company, Inc. and KFB
Insurance Company, Inc.; Chairman, Chief Executive Officer and Director, FB
Capital Management, Inc. of Kansas; Director, National Association of
Independent Insurers, Didde Corporation and Farm Bureau Mutual Insurance
Agency of Kansas; Partner, Arthur-Graham Rental Properties, CM Brass and G&H
Real Estate Investments; Trustee, Master Teacher Employee Benefit Pension
Trust.
ERWIN H. JOHNSON, DIRECTOR (53)
1841 March Avenue
Charles City, Iowa 50616
Farmer; Owner and Manager, Center View Farms Co.; Director, First Security
Bank and Trust Co., Charles City, Iowa; Farm Associate, Iowa State
University Cooperative Extension Service; Voting Delegate, former President
and Director, Floyd County Farm Bureau, Financial and Farm Management
Consultant; Iowa State University Overseas Projects.
B-5
<PAGE>
ANN JORGENSEN, DIRECTOR (56)
R.R. 1, Box 43
Garrison, Iowa 52229
Private Investor; Farm and Business Management; Partner, Jorg-Anna Farms;
President and Founder, Farm Home Offices; Vice President, Timberlane Hogs
Limited; Director, Iowa Department of Economic Development; Chairperson,
Rural Development Council; Member, Iowa Agriculture Products Advisory
Council; Secretary, Iowa Public Television Foundation, Iowa Freedom
International Foundation, Friends of the U.I.H.C.; former Director and
Chairperson, Iowa's Alcoholic Beverage Control Commission; former Regent,
State of Iowa Board of Regents; former Director, Iowa Public Television and
University of Iowa Hospitals and Clinics.
KENNETH KAY, DIRECTOR (53)
R R 2; Box 75
Atlantic, IA 50022
Farmer; Salesman, Pioneer Seed Corn; Voting Delegate, Vice President and
former President, Cass County Farm Bureau; Director, First Whitney Bank and
Trust; Board Member, Transportation Committee Chairman, Cass Atlantic
Development Corporation.
CURTIS C. PIETZ, DIRECTOR (65)
R. R. 3, Box 79
Lakefield, Minnesota 65150
Farmer; Director and Part Owner, Storden Seed and Chemical Service, Inc.;
Director, Minnesota Rural Finance Authority; Former Program Evaluator,
Minnesota Department of Vocational Education; Former President, Jackson
County Farm Bureau; Former Chairman and Director, Southwest Farm Management
Association; Director, F.C.S.
The officers and directors of the Fund also serve in similar capacities as
officers and directors of FBL Series Fund, Inc. and as officers and trustees of
FBL Variable Insurance Series Fund. Several of the officers and directors of the
Fund are also officers and directors of the Adviser. The Fund pays no direct
remuneration to any officer of the Fund. Each of the directors who is not
affiliated with the Adviser receives a fee of $115 plus expenses from the Fund
for each directors' meeting attended. For the fiscal year ended July 31, 1996,
directors' fees paid by the Fund totalled $2,645.
The following table sets forth the compensation received by all Directors of
the Fund for the fiscal year ended July 31, 1996. The information in the last
column of the table sets forth the total compensation received by all Directors
for calendar year 1995 for services as a Director of the Fund and other funds in
the FBL Family.
<TABLE>
<CAPTION>
AGGREGATE PENSION AND RETIREMENT TOTAL COMPENSATION
COMPENSATION FROM BENEFITS ACCRUED AS FROM ALL FUNDS IN
NAME OF DIRECTOR THE FUND PART OF FUND EXPENSES THE FBL FAMILY
- ---------------------------- ----------------- ----------------------- -------------------
<S> <C> <C> <C>
Donald G. Bartling $ 460 0 $ 1,380
John R. Graham 460 0 1,380
Erwin H. Johnson 345 0 1,380
Ann Jorgensen 460 0 1,380
Eugene R. Maahs 0 0 0
Stephen M. Morain 0 0 0
Dale W. Nelson 460 0 1,380
Curtis C. Pietz 460 0 1,380
Edward M. Wiederstein 0 0 0
</TABLE>
B-6
<PAGE>
As of November 18, 1996, the directors and officers as a group owned of
record or beneficially 1.65% of the then outstanding shares of the Fund, and no
shareholder of record owned 5% or more of the Fund's outstanding shares.
INVESTMENT OBJECTIVE AND POLICIES
The following information supplements the information set forth in the
Prospectus under the caption "INVESTMENT OBJECTIVE AND POLICIES."
It is the Fund's intention, as a general policy, to hold securities to
maturity. Nevertheless, the Fund may sell portfolio securities prior to maturity
in order to realize gains or losses or to shorten the average maturity and may
reduce or withhold dividends if it deems such actions appropriate to maintain a
stable net asset value. In addition, the Fund may attempt, from time to time, to
increase its yield by trading to take advantage of variations in the markets for
short-term money market instruments. Redemptions of Fund shares could also
necessitate the sale of portfolio securities at times when such sales would not
be otherwise desirable. While the Fund intends to invest in high quality money
market instruments, these investments are not entirely without risk. An increase
in interest rates will generally reduce the market value of the Fund's portfolio
investments and a decline in interest rates will generally increase the value of
the Fund's portfolio investments. Securities which are not issued or guaranteed
by the U.S. Government are subject to the possibility of default by the issuer.
Those obligations having the maximum degree of security tend to have
proportionately lower yields. Since the Fund's assets will be invested in
securities with short maturities and the Fund will manage its portfolio as
described above, the Fund's portfolio of money market instruments may be
expected to turn-over several times a year. Since securities with maturities of
less than one year are excluded from required portfolio turnover calculations,
the Fund's portfolio turnover rate for reporting purposes is zero. Of course,
there can be no assurance that the Fund will achieve its objective.
NET ASSET VALUE
The net asset value per share of the Fund is determined as of the earlier of
the close of the New York Stock Exchange or 3:00 p.m. (Central Time), on each
day the Exchange is open for business, except the Tuesday before Christmas and
the day after Thanksgiving, and on each other day on which there is a sufficient
degree of trading in the Fund's investments that it might affect the net asset
value, except that the net asset value will not be computed on a day when no
orders for purchase or redemption of shares are received. If the Fund offices
should be closed because of a weather-related or comparable type of emergency,
and the Fund is unable to segregate orders and redemption requests received on
the emergency closed day, then the Fund will price those orders and redemptions
at the net asset value next determined. The Fund's net asset value is computed
by dividing the total value of the Fund's securities and other assets, less
liabilities (including dividends payable), by the number of Fund shares
outstanding. The net asset value per share is ordinarily $1.00. The Fund's total
assets are determined by valuing the portfolio securities at amortized cost,
pursuant to Rule 2a-7 under the Investment Company Act of 1940. While this
method provides certainty in valuation, it may result in periods during which
the value, as determined by amortized cost, is higher or lower than the price
the Fund would receive if it sold its portfolio securities. Under the direction
of the Board of Directors, certain procedures have been adopted to monitor and
stabilize the price per share. Calculations are made to compare the value of the
Fund's portfolio valued at amortized cost with market values. Market valuations
are obtained by using actual quotations provided by market makers, estimates of
market value, or values obtained from yield data relating to classes of money
market instruments published by reputable sources at the mean between the bid
and asked prices for those instruments. If a deviation of 1/2 of 1% or more were
to occur between the Fund's $1.00 per share net asset value and the net asset
value calculated by reference to market valuations, or if there were any other
deviation which the Board of Directors believed would result in dilution or
other unfair results material to shareholders or purchasers, the Board of
Directors would promptly consider what action, if any, should be initiated. The
Fund reserves the right to calculate or estimate the net asset value more
frequently than once a day if deemed desirable.
B-7
<PAGE>
The market value of debt securities usually reflects yields generally
available on securities of similar quality. When yields decline, the market
value of a portfolio holding higher yielding securities increases; and when
yields increase, the market value of the portfolio invested at lower yields can
be expected to decline. In addition, if the Fund has net redemptions at a time
when interest rates have increased, the Fund may have to sell portfolio
securities prior to maturity at a price below the Fund's carrying value. Also,
because the portfolio generally will be valued at amortized cost rather than
market, any yield quoted may be different if the entire portfolio were valued at
market since amortized cost does not take market fluctuations into
consideration.
CALCULATION OF FUND'S YIELD
The Fund's yield is computed in accordance with a standard method prescribed
by rules of the Securities and Exchange Commission. Under that method, the yield
quotation is based on a seven-day period and is computed as follows: The Fund's
net investment income per share (accrued interest on portfolio securities, plus
or minus amortized premium or discount, less accrued expenses) is divided by the
price per share (expected to remain constant at $1.00) at the beginning of the
period ("base period return") and the result is divided by seven and multiplied
by 365. The resulting yield figure is carried to the nearest one-hundredth of
one percent. Realized capital gains or losses and unrealized appreciation or
depreciation of investments are not included in the calculation. The Fund's
yield for the seven-day period ended July 31, 1996 was 3.72%.
The Fund's effective yield is determined by taking the base period return
(computed as described above) and calculating the effect of the assumed
compounding. The formula for the effective yield is (base period return +1) to
the power of (365/7) - 1. The Fund's effective yield for the seven-day period
ended July 31, 1996 was 3.79%.
The Fund's yield fluctuates, and the publication of an annualized yield
quotation is not a representation as to what an investment in the Fund will
actually yield for any given future period. Actual yields will depend not only
on changes in interest rates on money market instruments during the period in
which the investment in the Fund is held, but also on such matters as any
realized gains and losses, unrealized appreciation and depreciation and changes
in Fund expenses.
RETIREMENT PLANS
The Fund offers a variety of retirement investment programs whereby
contributions are invested in shares of the Fund, and any dividends (and capital
gain distributions, if any) are reinvested in additional full and fractional
shares of the Fund. The Fund has waived the minimum investment requirement for
an account opened under any of these programs and subsequent investments can be
in any amount (subject to plan limitations).
SELF-EMPLOYED INDIVIDUAL RETIREMENT PLANS
The Fund has available for self-employed individuals a form of Paired
Defined Contribution Plan, Trust Agreement and related Custodial Agreement
(Keogh Plan) under IRS approved prototypes. A self-employed individual has
complete discretion to make his or her own fee arrangements with the custodial
bank of his or her selection, instead of using the custodian named herein on the
terms described under "General" below. The maximum annual tax deductible amount
for contributions is generally the lesser of 25% of earned income or $30,000.
For further details, including the right of appointing a successor custodian,
refer to the Plan, Trust Agreement and Custodial Agreement available from the
Fund.
INDIVIDUAL RETIREMENT ACCOUNTS
The Fund has available Individual Retirement Accounts (IRAs) under IRS
approved prototypes. A full $2,000 deduction for IRA contributions is available
only to (1) taxpayers who are not active participants in an employer-sponsored
retirement plan and (2) taxpayers who are active participants in an employer-
sponsored plan, but have adjusted gross income below a specified level. For
these purposes, a taxpayer
B-8
<PAGE>
will generally be deemed to be an active participant in an employer-sponsored
retirement plan if for any part of the taxable year either the employee or his
or her spouse is an active participant under a qualified pension plan, a
qualified profit sharing or money purchase plan, a 403(b) annuity program, a
Simplified Employee Pension plan, or a government plan (other than a plan
maintained for state and local employees under section 457 of the Internal
Revenue Code). Married taxpayers filing a joint return who are active
participants in an employer-sponsored plan may make a tax deductible IRA
contribution of up to $2,000 ($2,250 spousal) if their adjusted gross income is
$40,000 or less. Beginning in calendar year 1997, deductible IRA contributions
of up to $2,000 can be made for each spouse. In order to receive the deduction,
the combined compensation of both spouses must be equal to or greater than the
combined amount. Between $40,000 and $50,000 of adjusted gross income, the IRA
deduction is phased-out. For single taxpayers who are active participants in an
employer-sponsored plan, the $2,000 deductible IRA contribution is similarly
phased-out between $25,000 and $35,000 of adjusted gross income. To the extent
the IRA deduction is reduced or eliminated by the phase-out rule, an individual
may elect to make nondeductible IRA contributions that, when combined with the
deductible contributions, may not exceed $2,000 ($2,250 for a spousal IRA,
$4,000 for a spousal IRA beginning in calendar year 1997). The income on the IRA
contribution will not be taxed until withdrawn.
For a period of seven days after establishment of an IRA Account and receipt
of a disclosure statement, the investor may revoke his or her application and
the full payment made to the Account will be returned. Form 5305-A, available
from the Distributor, FBL Investment Advisory Services, Inc., 5400 University
Avenue, West Des Moines, Iowa 50266, is to be used to establish an Account. The
form should be consulted for detailed information, including circumstances under
which redemption requests must be accompanied by a declaration of intent as to
the disposition of the amount distributed.
TAX-SHELTERED 403(b) Plans
The Fund has available Tax-Deferred Plans under section 403(b) of the
Internal Revenue Code. Certain tax-exempt organizations and public schools may
establish such plans under which they will be able to make contributions which
are not currently taxable to their employees. For further details, contact the
Fund.
CORPORATE PENSION AND PROFIT SHARING PLANS
Accounts for corporate pension and profit sharing plans (IRS approved
prototypes as well as other plans) are available. For further details, contact
the Fund.
PUBLIC EMPLOYER DEFERRED COMPENSATION PLANS
Employees of state, county and municipal agencies may make investments with
pre-tax dollars through eligible deferred compensation plans authorized under
section 457 of the Internal Revenue Code. Contributions and earnings are
tax-sheltered until the funds are actually paid to the employee. Plans and
Administrative Services are available to states, counties and municipalities to
provide a tax-sheltered program for employees. For further details, contact the
Fund.
GENERAL
Investors Fiduciary Trust Company of Kansas City, Missouri, serves as
custodian and provides the services required for Keogh Plans, Individual
Retirement Plans, section 403(b) Plans and corporate pension and profit sharing
plans. An annual maintenance fee, currently $10, will be collected annually by
redemption of shares or fractions thereof from each participant's account(s).
FBL Investment Advisory Services, Inc. performs plan services for a portion of
the fee and during the fiscal year ended July 31, 1996 received $1,130 for its
services. Unusual administrative responsibilities will be subject to such
additional charges as will reasonably compensate the custodian for the service
involved.
Since a retirement investment program involves a commitment covering future
years, it is important that the investor consider his or her needs and whether
the investment objective of the Fund as
B-9
<PAGE>
described in the Prospectus is likely to fulfill them. Premature termination or
curtailment of the plan may result in adverse tax consequences. Consultation
with an attorney or other tax adviser regarding these plans is recommended. For
further information regarding these plans, contact the Fund.
REDEMPTIONS
The Fund may suspend the right of redemption or postpone the date of payment
during any period when (a) trading on the New York Stock Exchange is restricted
as determined by the Securities and Exchange Commission or such Exchange is
closed for trading (other than customary weekend and holiday closings); (b) an
emergency exists, as determined by the Securities and Exchange Commission, as a
result of which (i) disposal by the Fund of securities owned by it is not
reasonable or practicable, or (ii) it is not reasonably practicable for the Fund
to determine fairly the value of its net assets; or (c) the Securities and
Exchange Commission by order permits such suspension for the protection of the
Fund's investors. In such event, redemption will be effected at the net asset
value next determined after the suspension has been terminated unless the
shareholder has withdrawn the redemption request in writing and the request has
been received by FBL Investment Advisory Services, Inc., 5400 University Avenue,
West Des Moines, Iowa 50266, prior to the day of such determination of net asset
value.
INVESTMENT ADVISER
The following information supplements the information set forth in the
Prospectus under the caption "MANAGEMENT OF THE FUND." Pursuant to an Investment
Advisory and Management Services Agreement dated February 23, 1981 (the
"Agreement"), FBL Investment Advisory Services, Inc. ("FBL" or "Adviser"), acts
as the Fund's investment adviser and manager subject to the supervision of the
Fund's Board of Directors. FBL has served as investment adviser and manager
since the Fund commenced operations in March, 1981. FBL is a wholly-owned
subsidiary of FBL Financial Services, Inc., which is a wholly-owned subsidiary
of Farm Bureau Life Insurance Company, an Iowa insurance company, which is a
wholly-owned subsidiary of FBL Financial Group, Inc., an Iowa corporation, 54%
of whose outstanding voting shares are in turn owned by Iowa Farm Bureau
Federation, an Iowa not-for-profit corporation. The Adviser also acts as the
investment adviser to individuals, institutions and two other mutual funds: FBL
Series Fund, Inc. and FBL Variable Insurance Series Fund. Personnel of the
Adviser also manage investments for the portfolios of insurance companies.
The Adviser subscribes to leading bond information services and receives
published reports and statistical compilations from issuers directly, as well as
analyses from brokers and dealers who may execute portfolio transactions for the
Fund or the Adviser's other clients. The Adviser regards this information and
material, however, as an adjunct to its own research activities.
Under the Agreement, the Adviser handles the investment and reinvestment of
the Fund's assets and provides for the Fund, at the Adviser's expense, office
space and facilities, simple business equipment, advisory, research and
statistical facilities, clerical services and personnel as may be necessary to
administer the business affairs of the Fund. The Adviser also has agreed to
arrange for any of its officers and directors to serve without salary as
directors, officers or agents of the Fund if duly elected to such positions.
As compensation for the investment advisory and management services and the
aforementioned facilities and administrative services to be provided by the
Adviser, the Fund has agreed to pay the Adviser an annual management fee,
effective December 1, 1996, of .25% of the average daily net assets, accrued
daily and payable monthly. These fees were reduced from a graduated basis of
.50% of the first $200 million of average daily net assets, .40% on the next
$200 million of average daily net assets, .35% on the next $200 million of
average daily net assets and .30% of average daily net assets over $600 million.
For the fiscal years ended July 31, 1996, 1995 and 1994 the Fund's investment
advisory and management fee expense was $118,225, $96,398 and $106,225,
respectively.
The Adviser is not required to pay expenses of the Fund other than as set
forth above. The Fund pays such other expenses, which include net asset value
calculations; portfolio transaction costs;
B-10
<PAGE>
interest on Fund obligations; stock certificates; miscellaneous reports;
membership dues; all expenses of registration of its shares under federal and
state securities laws; all expenses of Shareholders' and Directors' meetings and
of preparing, printing and mailing proxy statements, reports and notices to
shareholders; investor services (including allocable telephone and personnel
expenses incurred by the Adviser); all taxes and fees payable to federal, state
or other governmental authorities; the fees and expenses of independent
auditors, legal counsel, custodian, transfer and dividend disbursing agent and
any fees of Directors who are not affiliated with the Adviser; insurance
premiums for fidelity bond and other coverage of the Fund's operations. However,
the Adviser has agreed that the management fee will be reduced, or it will
reimburse the Fund, by any amount necessary to prevent the Fund's total expenses
(including the management fee but excluding brokerage, interest, taxes and
extraordinary expenses) from exceeding the most restrictive limit on expenses
prescribed by any state in which Fund shares are offered for sale. The reduction
or reimbursement, however, shall not exceed the amount of the advisory fee for
such period. It is Management's understanding that no state in which Fund shares
are currently offered for sale presently imposes an expense limitation.
The Agreement continues in effect from year-to-year as long as its
continuation is approved annually by vote of a majority of the Fund's
outstanding shares or by its Board of Directors, including, in either event, a
majority of those directors who are not parties to such agreement or "interested
persons" (as such term is defined in the Investment Company Act of 1940) of any
such party except in their capacity as directors of the Fund. It may be
terminated without penalty at any time upon 60 days' notice by the Adviser, or
by the Fund by vote of the Fund's Board of Directors, or by a majority vote of
the Fund's outstanding shares and would terminate automatically upon assignment.
The Agreement may be amended only with the approval of a majority of the
outstanding voting securities of the Fund.
The Agreement provides that the Adviser shall not be liable for error of
judgment or mistake of law or for any loss suffered by the Fund in connection
with matters to which the Agreement relates, except loss resulting from bad
faith, gross negligence or willful misfeasance of the Adviser.
PORTFOLIO TRANSACTIONS: Purchases and sales of portfolio securities are
normally principal transactions. Portfolio securities are normally purchased
directly from the issuer or from an underwriter or market maker for the
securities. There are usually no brokerage commissions paid by the Fund for such
purchases and none were paid during the last three fiscal years. Purchases from
underwriters will include a commission or concession paid by the issuer to the
underwriter, and purchases from dealers serving as market makers include the
spread between the bid and asked prices. The primary consideration in the
allocation of transactions is the most favorable price and execution of orders.
Subject to this primary consideration, while there is no understanding or
arrangement to do so, FBL may place the Fund's portfolio transactions with firms
that furnish research, statistical and other services. FBL regards information
which is customarily available only in return for brokerage as among the many
elements to be considered in determining placement of securities transactions.
No specific value can be determined for most such information and services and
they are deemed supplemental to FBL's own efforts in the performance of its
duties under the investment advisory agreement. Any research benefits derived
are available for all clients of FBL.
The investment decisions for the Fund are reached independently from those
for the other mutual funds and other clients whose investments are managed by
FBL. Such other clients may also make investments in money market instruments at
the same time as the Fund. When both the Fund and one or more of such clients
have amounts available for investment in money market instruments, available
investments are allocated as to amount in a manner considered equitable to each.
In some cases, this procedure may affect the size or price of the position
obtainable for the Fund. It is the opinion of the Board of Directors that the
benefits available because of FBL's organization outweigh any disadvantages that
may arise from exposure to simultaneous transactions. Purchase and sale orders
for the Fund may be combined with those of other clients of the Adviser in the
interest of the most favorable net results to the Fund.
B-11
<PAGE>
Messrs. Morain, Gibson, Hoffman, Marker, Noyce, Oddy, Warming and Mses.
Cornick, Rojohn and Followwill, directors and/or officers of the Fund, are also
directors and/or officers of FBL as indicated under "MANAGEMENT OF THE FUND" in
the Prospectus.
UNDERWRITING AND DISTRIBUTION
Pursuant to an underwriting agreement dated December 31, 1983, FBL
Investment Advisory Services, Inc. (the "Distributor") serves as principal
underwriter and sole distributor of the Fund's shares, acting as the exclusive
agent of the Fund in the sale of its shares to securities dealers who in turn
sell the shares to the public. The Distributor has agreed to use its best
efforts to distribute shares of the Fund. The Distributor pays expenses incident
to the sale and distribution of Fund shares, including preparation and
distribution of literature relating to the Fund and its investment performance,
and circulation of advertising and public relations material.
The terms of termination and assignment under the underwriting agreement are
the same as those under the investment advisory agreement except that
termination for reasons other than assignment of the agreement requires six
months' notice.
The Fund bears the expenses of registration of its shares with the
Securities and Exchange Commission and the cost of qualifying and maintaining
the qualification of the Fund's shares under securities laws of the various
states. The Fund also pays expenses incident to the issuance of its shares, such
as taxes and transfer and dividend disbursing fees.
OTHER INFORMATION
CUSTODIAN:
Bankers Trust Company, 16 Wall Street, New York, New York 10005 currently
serves as custodian of all cash and securities owned by the Fund. The custodian
performs no managerial or policy-making functions for the Fund.
INDEPENDENT AUDITORS:
The Fund's independent auditors are Ernst & Young LLP, 801 Grand Avenue,
Suite 3400, Des Moines, Iowa 50309. The independent auditors audit and report on
the Fund's annual financial statements, review certain regulatory reports and
perform other professional accounting, auditing, tax and advisory services when
engaged to do so by the Fund.
ACCOUNTING SERVICES:
The Fund has entered into an accounting services agreement with FBL
Investment Advisory Services, Inc. pursuant to which FBL performs accounting
services for the Fund. In addition, the Agreement provides that FBL shall
calculate the Fund's net asset value in accordance with the Fund's current
Prospectus and to prepare for Fund approval and use various tax returns and
other reports. For such services, the Fund pays FBL an annual fee, payable
monthly, of .05% of the Fund's average daily net assets, with the annual fee
payable by the Fund not to exceed $30,000. During the fiscal year ended July 31,
1996, the aggregate amount of such fees paid to FBL was $11,822.
SHAREHOLDER SERVICE, DIVIDEND DISBURSING AND TRANSFER AGENT:
FBL Investment Advisory Services, Inc. serves as the Fund's Shareholder
Service, Dividend Disbursing and Transfer Agent. FBL in turn has contracted with
DST Systems, Inc. ("DST"), an unrelated party, to perform certain services
incident to the maintenance of shareholder accounts. The Fund pays FBL an annual
fee of $9.00 per account and miscellaneous activity fees plus out-of-pocket
expenses, a portion of which is paid to DST. During the fiscal year ended July
31, 1996, the aggregate amount of such fees paid to FBL was $143,355 of which
$38,988 was paid to DST.
FINANCIAL STATEMENTS
The Fund's audited financial statements, including the notes thereto,
contained in the Annual Shareholder Report for the fiscal year ended July 31,
1996, are incorporated herein by reference and accompany this Statement of
Additional Information.
B-12
<PAGE>
--------------------------
Farm Bureau Mutual Funds
FARM BUREAU MUTUAL FUNDS
5400 UNIVERSITY AVENUE
[LOGO]
WEST DES MOINES, IOWA 50266
737-128(96)
FBL Money
Market Fund, Inc.
R
ANNUAL REPORT
JULY 31, 1996
INVESTMENT MANAGER AND
PRINCIPAL UNDERWRITER
FBL INVESTMENT ADVISORY
SERVICES, INC.
5400 UNIVERSITY AVENUE
WEST DES MOINES, IA 50266
1-800-247-4170 (OUTSIDE IOWA)
1-800- 422-3175 (IN IOWA)
225-5586 (DES MOINES)
This report is not to be distributed
unless preceded or accompanied by
a prospectus.
<PAGE>
PRESIDENT'S LETTER
Dear Shareholder,
Although the Federal Reserve has made no change in rates since January, the
short-term fixed-income markets have been relatively volatile during 1996.
As the year began, it was difficult to determine the level of strength in
the economy given the weather extremes and the federal budget 'showdown' that
was taking place. The short-term markets appeared to be pricing in a
continuation of declining interest rates following the January reduction by the
Federal Reserve and moderate economic growth. As spring came and the initial
read of the first quarter's economic strength surfaced, it became clear that the
market's low-growth forecast was wrong. Suddenly, the focus of continued Fed
easing turned to the prospect of an increase in rates.
A series of strong releases of employment growth statistics forced an upward
ratcheting of interest rates on into the summer. Most recently, however, the
market has deemed growth to have cooled. The economic statistics presently
available could either confirm or deny the onset of a slowdown.
Currently, yields on the 90-day Treasury bill and 2-year Treasury note are
5.11% and 5.97%, respectively. With the Fed funds rate still at 5.25%, the
market is reflecting a relatively neutral outlook regarding short rates looking
ahead. Given the ambiguity of the economic data currently available, we share
that neutral outlook.
Whatever the post-election course of our economy and interest rates,
investors of FBL Money Market Fund, Inc. can be assured that their investments
are liquid and present limited credit risk. Whether you use the fund as an
interest-bearing checking account or as a haven from volatile capital markets,
we will attempt to provide an attractive investment vehicle for your cash
management needs.
[insert specimen signature]
EDWARD M. WIEDERSTEIN
PRESIDENT
August 16, 1996
2
<PAGE>
FBL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1996
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (equivalent to amortized cost)........ $23,663,343
Cash...................................................................... 923,430
Accrued interest receivable............................................... 24,987
Prepaid expense........................................................... 671
-----------
Total Assets.............................................................. $24,612,431
-----------
-----------
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable to FBL Investment Advisory Services, Inc............... $ 12,862
Accrued expenses........................................................ 25,623
-----------
Total Liabilities......................................................... 38,485
Net assets applicable to 24,573,946 shares of capital stock
outstanding (NOTE 4)..................................................... 24,573,946
-----------
Total Liabilities and Net Assets.......................................... $24,612,431
-----------
-----------
NET ASSET VALUE PER SHARE................................................. $ 1.00
-----------
-----------
</TABLE>
SEE ACCOMPANYING NOTES.
3
<PAGE>
FBL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED JULY 31, 1996
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest....................................................................... $1,281,043
EXPENSES
Paid to FBL Investment Advisory Services, Inc. (NOTE 3):
Investment advisory and management fees...................................... 118,225
Shareholder service, transfer and dividend disbursing agent fees............. 143,355
Accounting fees.............................................................. 11,822
Custodian fees................................................................. 58,737
Legal fees..................................................................... 19,126
Audit fees..................................................................... 8,500
Directors' fees and expenses................................................... 6,660
Reports to shareholders........................................................ 24,849
Registration fees.............................................................. 11,953
Miscellaneous.................................................................. 3,385
----------
Total Expenses................................................................. 406,612
Expense reimbursement (NOTE 3)................................................. (51,886)
----------
Net Expenses................................................................... 354,726
----------
Net Increase in Net Assets Resulting from Operations........................... $ 926,317
----------
----------
</TABLE>
SEE ACCOMPANYING NOTES.
4
<PAGE>
FBL MONEY MARKET FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
------------------------------
1996 1995
-------------- --------------
<S> <C> <C>
OPERATIONS
Net investment income............................................................ $ 926,317 $ 778,149
DIVIDENDS TO SHAREHOLDERS FROM (NOTE 5)
Net investment income............................................................ (926,317) (778,149)
-------------- --------------
-0- -0-
CAPITAL SHARE TRANSACTIONS (NOTE 4).............................................. 4,597,142 1,050,045
-------------- --------------
Total Increase in Net Assets..................................................... 4,597,142 1,050,045
NET ASSETS
Beginning of year................................................................ 19,976,804 18,926,759
-------------- --------------
End of year...................................................................... $ 24,573,946 $ 19,976,804
-------------- --------------
-------------- --------------
</TABLE>
SEE ACCOMPANYING NOTES.
5
<PAGE>
FBL MONEY MARKET FUND, INC.
SCHEDULE OF INVESTMENTS
JULY 31, 1996
<TABLE>
<CAPTION>
ANNUALIZED
YIELD ON PRINCIPAL
PURCHASE DATE AMOUNT VALUE
------------- ---------- -----------
<S> <C> <C> <C>
COMMERCIAL PAPER (17.90%)
NONDEPOSITORY INSTITUTIONS (15.66%)
American General Finance Corp., 5.33%, due
8/28/96........................................... 5.332% $ 900,000 $ 900,000
Deere (John) Capital Corp., 5.46%, due 9/19/96..... 5.460 600,000 600,000
Deere (John) Capital Corp., 5.40%, due 9/19/96..... 5.401 300,000 300,000
General Electric Capital Corp., 5.34%, due
8/21/96........................................... 5.340 600,000 600,000
General Electric Capital Corp., 5.46%, due
10/08/96.......................................... 5.459 500,000 500,000
Norwest Financial, Inc., 5.40%, due 10/11/96....... 5.397 950,000 950,000
-----------
3,850,000
INDUSTRIAL MACHINERY AND EQUIPMENT (2.24%)
IBM Corp., 5.51%, due 10/08/96..................... 5.506 550,000 550,000
-----------
Total Commercial Paper............................... 4,400,000
UNITED STATES GOVERNMENT AGENCIES (78.39%)
Federal Home Loan Bank, due 10/03/96............... 5.547 1,400,000 1,386,722
Federal Home Loan Mortgage Corp., due 8/16/96...... 5.341 2,750,000 2,743,977
Federal Home Loan Mortgage Corp., due 8/30/96...... 5.322 2,200,000 2,190,736
Federal Home Loan Mortgage Corp., due 9/03/96...... 5.455 625,000 621,932
Federal Home Loan Mortgage Corp., due 9/04/96...... 5.384 1,425,000 1,417,889
Federal Home Loan Mortgage Corp., due 9/16/96...... 5.442 2,000,000 1,986,377
Federal Home Loan Mortgage Corp., due 9/26/96...... 5.467 1,100,000 1,090,851
Federal Home Loan Mortgage Corp., due 10/18/96..... 5.447 2,000,000 1,976,986
Federal National Mortgage Assoc., due 8/09/96...... 5.366 1,475,000 1,473,269
Federal National Mortgage Assoc., due 9/03/96...... 5.356 700,000 696,627
Federal National Mortgage Assoc., due 9/10/96...... 5.464 3,700,000 3,677,977
-----------
Total United States Government Agencies.............. 19,263,343
-----------
Total Investments (96.29%)........................... 23,663,343
OTHER ASSETS LESS LIABILITIES (3.71%)
Cash, receivables and prepaid expense, less
liabilities....................................... 910,603
-----------
Total Net Assets (100.00%)........................... $24,573,946
-----------
-----------
</TABLE>
SEE ACCOMPANYING NOTES.
6
<PAGE>
FBL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
FBL Money Market Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as an open-end, diversified management
investment company and operates in the mutual fund industry.
The Fund values investments at amortized cost, which approximates market.
Under the amortized cost method, a security is valued at its cost on the date of
purchase and thereafter is adjusted to reflect a constant amortization to
maturity of the difference between the principal amount due at maturity and the
cost of the investment to the Fund.
The value of the underlying securities serving to collateralize repurchase
agreements is marked to market daily. Should the value of the underlying
securities decline, the seller would be required to provide the Fund with
additional securities so that the aggregate value of the underlying securities
was at least equal to the repurchase price. If a seller of a repurchase
agreement were to default, the Fund might experience losses in enforcing its
rights. To minimize this risk, the investment adviser (under the supervision of
the Board of Directors) will monitor the creditworthiness of the seller of the
repurchase agreement and must find such creditworthiness satisfactory before the
Fund may enter into the repurchase agreement.
The Fund records investment transactions generally on the trade date. Net
realized gains and losses on sales of investments, if any, are determined on the
basis of identified cost. Interest income on interest bearing investments is
recognized on an accrual basis.
All of the Fund's net investment income and any realized gains and losses
(none through July 31, 1996) on portfolio investments are declared as dividends
daily to shareholders of record as of the preceding business day.
2. FEDERAL INCOME TAXES
No provision for federal income taxes is considered necessary because the
Fund is qualified as a "regulated investment company" under the Internal Revenue
Code and intends to distribute each year substantially all of its net investment
income and realized capital gains to shareholders. The cost of investments is
the same for both federal income tax and financial reporting purposes.
3. MANAGEMENT CONTRACT AND TRANSACTIONS WITH AFFILIATES
The Fund has entered into agreements with FBL Investment Advisory Services,
Inc. ("FBL Investment") relating to the management of the Fund and the
investment of its assets. Pursuant to these agreements, fees paid to FBL
Investment are as follows: (1) investment advisory and management fees, which
are based on the Fund's daily net assets, currently at an annual rate of 0.50%
for the first $200,000,000 average daily net assets; (2) shareholder service,
transfer and dividend disbursing agent fees, which are based on direct services
provided and expenses incurred by the investment adviser, plus an annual per
account charge of $12.00; and (3) accounting fees, which are based on the Fund's
daily net assets at an annual rate of 0.05%, with a maximum annual expense of
$30,000.
7
<PAGE>
FBL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. MANAGEMENT CONTRACT AND TRANSACTIONS WITH AFFILIATES (CONTINUED)
FBL Investment has agreed to reimburse the Fund annually for its total
expenses, excluding brokerage, interest, taxes and extraordinary expenses in
excess of 1.50% of the Fund's average daily net assets. The amount reimbursed,
however, shall not exceed the amount of the investment advisory and management
fees paid by the Fund for such period.
Certain officers and directors of the Fund are also officers of Farm Bureau
Life Insurance Company, the indirect parent of FBL Investment, and other
affiliated entities. At July 31, 1996, Farm Bureau and its affiliated companies
owned 3,818,080 shares in the Fund:
4. CAPITAL SHARE TRANSACTIONS
Net assets as of July 31, 1996 consisted of:
<TABLE>
<S> <C>
Capital Stock (500,000,000 shares of $.001 par value Capital
Stock authorized)............................................ $ 24,574
Additional paid-in capital.................................... 24,549,372
-----------
Net Assets.................................................... $24,573,946
-----------
-----------
</TABLE>
Transactions in Capital Stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
----------------------------------------------------------------
1996 1995
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Shares sold............................ 77,494,901 $ 77,494,901 60,737,863 $ 60,737,863
Shares issued in reinvestment of
dividends and distributions........... 916,068 916,068 769,139 769,139
-------------- --------------- -------------- ---------------
78,410,969 78,410,969 61,507,002 61,507,002
Shares redeemed........................ (73,813,827) (73,813,827) (60,456,957) (60,456,957)
-------------- --------------- -------------- ---------------
Net Increase........................... 4,597,142 $ 4,597,142 1,050,045 $ 1,050,045
-------------- --------------- -------------- ---------------
-------------- --------------- -------------- ---------------
</TABLE>
8
<PAGE>
FBL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. DIVIDENDS TO SHAREHOLDERS
Dividends from net investment income are declared daily and are payable on
the last business day of the month. Dividends for the period ended July 31, 1996
were paid as follows:
<TABLE>
<CAPTION>
PAYABLE DATE
- -------------------------------------------------------------------
<S> <C>
August 31, 1995.................................................... $ .0037
September 29, 1995................................................. .0034
October 31, 1995................................................... .0037
November 30, 1995.................................................. .0035
December 29, 1995.................................................. .0033
January 31, 1996................................................... .0036
February 29, 1996.................................................. .0031
March 29, 1996..................................................... .0030
April 30, 1996..................................................... .0033
May 31, 1996....................................................... .0032
June 28, 1996...................................................... .0028
July 31, 1996...................................................... .0033
---------
Total Dividends Per Share.......................................... $ .0399
---------
---------
</TABLE>
9
<PAGE>
FBL MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED JULY 31,
-----------------------------------------------------
1996 1995 1994 1993 1992
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year..................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income From Investment Operations
Net investment income.............................. 0.040 0.041 0.020 0.019 0.036
--------- --------- --------- --------- ---------
Total from investment operations..................... 0.040 0.041 0.020 0.019 0.036
--------- --------- --------- --------- ---------
Less Distributions
Dividends (from net investment income)............. (0.040) (0.041) (0.020) (0.019) (0.036)
--------- --------- --------- --------- ---------
Total distributions.................................. (0.040) (0.041) (0.020) (0.019) (0.036)
--------- --------- --------- --------- ---------
Net asset value, end of year........................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Total Return:
Total investment return based on net asset value
(1)................................................. 4.05% 4.17% 1.95% 1.91% 3.69%
Ratios/Supplemental Data:
Net assets, end of year ($000's omitted)............. 24,574 19,977 18,927 22,072 33,511
Ratio of net expenses to average net assets.......... 1.50% 1.51% 1.50% 1.50% 1.25%
Ratio of net income to average net assets............ 3.92% 4.06% 1.92% 1.89% 3.75%
Information assuming no voluntary reimbursement by FBL
Investment of excess operating expenses (see NOTE 3):
Per share net investment income...................... $ 0.038 $ 0.036 $ 0.019 $ 0.019
Ratio of expenses to average net assets.............. 1.72% 2.01% 1.57% 1.54%
Amount reimbursed.................................... $ 51,886 $ 96,398 $ 6,978 $ 5,116
</TABLE>
- ------------------------
Note: Per share amounts have been calculated on the basis of monthly per share
amounts (using average monthly outstanding shares) accumulated for the
period.
(1) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
SEE ACCOMPANYING NOTES.
10
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders
FBL Money Market Fund, Inc.
We have audited the accompanying statement of assets and liabilities of FBL
Money Market Fund, Inc., including the schedule of investments, as of July 31,
1996, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of July
31, 1996, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of FBL
Money Market Fund, Inc. at July 31, 1996, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended, in conformity with generally accepted accounting
principles.
/s/ ERNST & YOUNG LLP
Des Moines, Iowa
August 30, 1996
11
<PAGE>
FBL MONEY MARKET FUND, INC.
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements:
(i) Financial Statements included in Part A of Registration Statement
Condensed Financial Information at July 31, 1996
(ii) Financial Statements included in Part B of Registration Statement
through incorporation by reference to the 1996 Annual Report to
Shareholders of FBL Money Market Fund, Inc.:
Report of Independent Auditors
Statement of Assets and Liabilities as of July 31, 1996
Statement of Operations for the year ended July 31, 1996
Statements of Changes in Net Assets for the years ended July 31,
1996 and 1995
Schedule of Investments at July 31, 1996
Notes to Financial Statements
(b) Exhibits
1. Restated Articles of Incorporation of Registrant.(2)
2. (a) By-Laws of Registrant, as amended.(2)
*(b) By-Laws, as amended August 15, 1996.
3. Inapplicable.
4. Specimen copy of certificate of the capital stock of Registrant, par value
$.001 per share.(2)
5. (a) Conformed copy of Investment Advisory and Management Agreement with
Registrant's Adviser.(2)
*(b) Amendment to Management Fee Schedule dated December 1, 1996.
6. (a) Conformed copy of Underwriting Agreement.(2)
(b) Conformed copy of Dealer Agreement.(2)
7. Inapplicable.
8. Conformed copy of Custodian Agreement.(2)
9. *(a) Fidelity Bond Joint Insureds Agreement.
(b) Joint Insureds D&O and E&O Agreement.(2)
(c) Accounting Services Agreement.(2)
(d) Shareholder Service, Dividend Disbursing and Transfer Agent
Agreement.(2)
10. Inapplicable.
- ------------------------
* Filed herewith
C-1
<PAGE>
*11. Consent of Ernst & Young LLP.
12. Inapplicable.
13. Conformed copy of Subscription Agreement.(2)
14. (a)(1) Prototype Money Purchase Pension and Profit Sharing Plan, as
amended.(2)
(a)(2) Adoption Agreements.(2)
(a)(3) Application Form for Keogh Plan.(2)
(b)(1) Model Individual Retirement Account.(2)
(b)(2) Model IRA Disclosure Statement.(2)
15. Inapplicable
16. Schedule for Computation of Performance Data.(1)
*27. Financial Data Schedules.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT
Inapplicable.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES
As of October 31, 1996 there were 4,622 record holders of the sole class of
issued and outstanding capital stock of the Registrant, $.001 par value.
ITEM 27. INDEMNIFICATION
The Maryland Code, Corporations and Associations, Section 2-418 provides for
indemnification of directors, officers, employees and agents. Article IX of the
Registrant's Articles of Incorporation restricts indemnification for officers
and directors in cases of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of his office. Article
XV of the Registrant's By-Laws also provides for indemnification under certain
circumstances.
The Investment Advisory and Management Services Agreement between the
Registrant and FBL Investment Advisory Services, Inc. ("Adviser") provides that,
in the absence of willful misfeasance, bad faith, gross negligence or reckless
disregard of obligations or duties thereunder on the part of the Adviser, the
Adviser shall not be liable for any error of judgment or mistake of law, or for
any loss suffered by the Fund in connection with the matters to which such
Agreement relates.
In addition, the Registrant maintains a directors and officers "errors and
omissions" liability insurance policy under which the Registrant and its
directors and officers are named insureds.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 ("Act") may be permitted to directors, officers and controlling persons
of the Registrant pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director,
- ------------------------
(1) Incorporated by reference from Post-Effective Amendment No. 8 to the
Registration Statement under the Securities Act of 1933 on Form N-1A, filed on
or about November 30, 1988.
(2) Incorporated by reference from Post-Effective Amendment No. 15 to the
Registration Statement under the Securities Act of 1933 on Form N-1A, filed on
December 1, 1995.
C-2
<PAGE>
officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER
Registrant's investment adviser is FBL Investment Advisory Services, Inc.
("FBL"). In addition to its services to Registrant as investment adviser,
underwriter, shareholder service, transfer and dividend disbursing agent, all as
set forth in Parts A and B of this Registration Statement on Form N-1A, FBL acts
as adviser, underwriter, shareholder service, transfer and dividend disbursing
agent for FBL Series Fund, Inc. and FBL Variable Insurance Series Fund,
diversified open-end series management investment companies.
The principal occupations of the principal executive officers and directors
of FBL and their services as officers and employees of Farm Bureau Multi-State
Services, Inc. and its affiliates are disclosed below. The address of Farm
Bureau Multi-State Services, Inc. and its affiliates is 5400 University Avenue,
West Des Moines, Iowa 50266.
<TABLE>
<CAPTION>
NAME AND POSITION(S) WITH FBL PRINCIPAL OCCUPATIONS
- --------------------------------------------- -------------------------------------------------------------------
<S> <C>
Stephen M. Morain General Counsel and Assistant Secretary, Iowa Farm Bureau
Senior Vice President, General Counsel and Federation; General Counsel, Secretary and Director, Farm Bureau
Director Management Corporation; Senior Vice President and General Counsel,
FBL Financial Group, Inc., Farm Bureau Life Insurance Company,
Universal Assurors Life Insurance Company, Farm Bureau Mutual
Insurance Company, Utah Farm Bureau Insurance Company, FBL
Financial Services, Inc., South Dakota Farm Bureau Mutual Insurance
Company and FBL Insurance Brokerage, Inc.; Senior Vice President,
General Counsel, Assistant Secretary and Director, FBL Series Fund,
Inc. and FBL Money Market Fund, Inc.; Senior Vice President,
General Counsel, Assistant Secretary and Trustee, FBL Variable
Insurance Series Fund; Senior Vice President, General Counsel and
Director, FBL Marketing Services, Inc.; Vice President and General
Counsel, Western Farm Bureau Life Insurance Company; Director,
Computer Aided Design Software, Inc. and Iowa Business Development
Finance Corporation; Chairman, Edge Technologies, Inc.
</TABLE>
C-3
<PAGE>
<TABLE>
<CAPTION>
NAME AND POSITION(S) WITH FBL PRINCIPAL OCCUPATIONS
- --------------------------------------------- -------------------------------------------------------------------
<S> <C>
Richard D. Warming, Vice President, Chief Investment Officer and Assistant Treasurer,
President and Director FBL Financial Group, Inc., Farm Bureau Life Insurance Company,
Universal Assurors Life Insurance Company, Western Farm Bureau Life
Insurance Company, FBL Insurance Brokerage, Inc., Utah Farm Bureau
Insurance Company, FBL Financial Services, Inc., Farm Bureau Mutual
Insurance Company, and South Dakota Farm Bureau Mutual Insurance
Company; President and Director, FBL Leasing Services, Inc.; Vice
President, Chief Investment Officer, FBL Series Fund, Inc., FBL
Money Market Fund, Inc. and FBL Variable Insurance Series Fund;
Vice President, Chief Investment Officer and Director, FBL
Marketing Services, Inc.; Vice President, Secretary and Director,
RIK, Inc.; Secretary and Director, FBL Real Estate Ventures, Ltd.
William J. Oddy, Vice President, Chief Operating Officer and Assistant General
Vice President, Chief Operating Officer, Manager, FBL Financial Group, Inc., Farm Bureau Life Insurance
Assistant General Manager and Company, Universal Assurors Life Insurance Company, Western Farm
Director Bureau Life Insurance Company, FBL Insurance Brokerage, Inc., Utah
Farm Bureau Insurance Company, Farm Bureau Mutual Insurance
Company, South Dakota Farm Bureau Mutual Insurance Company and FBL
Financial Services, Inc., FBL Series Fund, Inc., FBL Money Market
Fund, Inc. and FBL Variable Insurance Series Fund; President,
Treasurer and Director, Communications Providers, Inc.; Vice
President, Chief Operating Officer, Assistant General Manager and
Director, FBL Marketing Services, Inc.; President and Director, FBL
Real Estate Ventures, Ltd. and RIK, Inc.
Dennis M. Marker, Investment Vice President, Administration, FBL Financial Group,
Investment Vice President, Inc. Farm Bureau Life Insurance Company, Universal Assurors Life
Administration, Secretary and Insurance Company, Western Farm Bureau Life Insurance Company, FBL
Director Insurance Brokerage, Inc., Farm Bureau Mutual Insurance Company,
Utah Farm Bureau Insurance Company and South Dakota Farm Bureau
Mutual Insurance Company; Investment Vice President, Administration
and Assistant Secretary, FBL Series Fund, Inc., FBL Money Market
Fund, Inc. and FBL Variable Insurance Series Fund; Vice President
and Director, FBL Leasing Services, Inc; Investment Vice President,
Administration, Secretary and Director, FBL Marketing Services,
Inc.
</TABLE>
C-4
<PAGE>
<TABLE>
<CAPTION>
NAME AND POSITION(S) WITH FBL PRINCIPAL OCCUPATIONS
- --------------------------------------------- -------------------------------------------------------------------
<S> <C>
Thomas R. Gibson, Executive Vice President, General Manager and Chief Executive
Executive Vice President, General Officer, FBL Financial Group; Executive Vice President and General
Manager and Director Manager, Farm Bureau Life Insurance Company, Universal Assurors
Life Insurance Company, Western Farm Bureau Life Insurance Company,
Farm Bureau Mutual Insurance Company, Utah Farm Bureau Insurance
Company, FBL Insurance Brokerage, Inc., FBL Financial Services,
Inc., South Dakota Farm Bureau Mutual Insurance Company, FBL Series
Fund, Inc., FBL Money Market Fund, Inc. and FBL Variable Insurance
Series Fund; Executive Vice President, General Manager and
Director, FBL Marketing Services, Inc.
Timothy J. Hoffman, Vice President, Chief Marketing Officer, FBL Financial Group, Inc.,
Vice President, Chief Marketing Officer Farm Bureau Life Insurance Company, Universal Assurors Life
and Director Insurance Company, Western Farm Bureau Life Insurance Company, Farm
Bureau Mutual Insurance Company, Utah Farm Bureau Insurance
Company, FBL Financial Services, Inc., South Dakota Farm Bureau
Mutual Insurance Company, FBL Insurance Brokerage, Inc., FBL Series
Fund, Inc., FBL Money Market Fund, Inc. and FBL Variable Insurance
Series Fund; President and Director, FBL Marketing Services, Inc.
and FBL Educational Services, Inc.
James W. Noyce, Vice President, Chief Financial Officer, FBL Financial Group, Inc.,
Vice President, Chief Financial Officer, Farm Bureau Life Insurance Company, Universal Assurors Life
Treasurer and Director Insurance Company, Western Farm Bureau Life Insurance Company, Farm
Bureau Mutual Insurance Company, Utah Farm Bureau Insurance
Company, FBL Insurance Brokerage, Inc., FBL Financial Services,
Inc., South Dakota Farm Bureau Mutual Insurance Company, FBL Series
Fund, Inc., FBL Money Market Fund, Inc. and FBL Variable Insurance
Series Fund; Vice President, Treasurer and Director, FBL Leasing
Services, Inc. and RIK, Inc.; Vice President, Chief Financial
Officer, Treasurer and Director, FBL Marketing Services, Inc.;
Treasurer and Director, FBL Real Estate Ventures, Ltd.
</TABLE>
ITEM 29. PRINCIPAL UNDERWRITERS
(a) FBL Investment Advisory Services, Inc., the principal underwriter for
Registrant, also acts as the principal investment adviser, underwriter,
shareholder service, transfer and dividend disbursing agent for FBL
Series Fund, Inc. and FBL Variable Insurance Series Fund, diversified,
open-end series management investment companies.
(b) The principal business address of each director and principal officer of
the principal underwriter is 5400 University Avenue, West Des Moines,
Iowa 50266. See Item 28 for information on the principal officers of FBL
Investment Advisory Services, Inc., investment manager and principal
underwriter for the Registrant.
(c) Inapplicable.
C-5
<PAGE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
All such accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder are
maintained at the offices of the Registrant and the offices of the Investment
Adviser, FBL Investment Advisory Services, Inc., 5400 University Avenue, West
Des Moines, Iowa 50266.
ITEM 31. MANAGEMENT SERVICES
Inapplicable.
ITEM 32. UNDERTAKINGS
Inapplicable.
C-6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the registrant certifies that it meets all of
the requirements for effectiveness of this registration statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this amended
registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of West Des Moines and State of Iowa, on the 26th
day of November, 1996.
FBL MONEY MARKET FUND, INC.
By: /s/ EDWARD M. WIEDERSTEIN
--------------------------------------
Edward M. Wiederstein, President
Pursuant to the requirements of the Securities Act of 1933, this
post-effective amendment to the registration statement has been signed below by
the following persons in the capacity and on the date indicated.
<TABLE>
<C> <S> <C>
/s/ EDWARD M. WIEDERSTEIN November 26, 1996
- -------------------------------------- President and Director -----------------
Edward M. Wiederstein (Principal Executive Officer) (dated)
Senior Vice President,
/s/ RICHARD D. HARRIS Secretary-Treasurer and November 26, 1996
- -------------------------------------- Director (Principal Financial -----------------
Richard D. Harris and Accounting Officer) (dated)
/s/ STEPHEN M. MORAIN Senior Vice President, General November 26, 1996
- -------------------------------------- Counsel, Assistant Secretary -----------------
Stephen M. Morain and Director (dated)
/s/ DONALD G. BARTLING November 26, 1996
- -------------------------------------- Director -----------------
Donald G. Bartling* (dated)
/s/ JOHN R. GRAHAM November 26, 1996
- -------------------------------------- Director -----------------
John R. Graham* (dated)
/s/ ERWIN H. JOHNSON November 26, 1996
- -------------------------------------- Director -----------------
Erwin H. Johnson* (dated)
/s/ ANN JORGENSEN November 26, 1996
- -------------------------------------- Director -----------------
Ann Jorgensen* (dated)
/s/ KENNETH KAY November 26, 1996
- -------------------------------------- Director -----------------
Kenneth Kay* (dated)
</TABLE>
C-7
<PAGE>
<TABLE>
<C> <S> <C>
/s/ CURTIS C. PIETZ November 26, 1996
- -------------------------------------- Director -----------------
Curtis C. Pietz* (dated)
*By /s/ STEPHEN M. MORAIN
-----------------------------------
Attorney-in-Fact, pursuant to Power of
Attorney.
Stephen M. Morain
</TABLE>
C-8
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<C> <S>
1. Restated Articles of Incorporation of Registrant. (2)
2. (a) By-Laws of Registrant, as amended. (2)
*(b) By Laws, as amended August 15, 1996.
3. Inapplicable.
4. Specimen copy of certificate of the capital stock of Registrant, par value $.001 per
share. (2)
5. (a) Conformed copy of Investment Advisory and Management Agreement with Registrant's
Adviser. (2)
*(b) Amendment to Management Fee Schedule dated December 1, 1996.
6. (a) Conformed copy of Underwriting Agreement. (2)
(b) Conformed copy of Dealer Agreement. (2)
7. Inapplicable.
8. Conformed copy of Custodian Agreement. (2)
9. *(a) Fidelity Bond Joint Insureds Agreement.
(b) Joint Insureds D&O an E&O Agreement. (2)
(c) Account Services Agreement. (2)
(d) Shareholder Service, Divided Disbursing and Transfer Agent Agreement. (2)
10. Inapplicable.
*11. Consent of Ernst & Young LLP.
12. Inapplicable.
13. Conformed copy of Subscription Agreement. (2)
14. (a)(1) Prototype Money Purchase Pension and Profit Sharing Plan. (2)
(a)(2) Adoption Agreements. (2)
(a)(3) Application Form for Keogh Plan. (2)
(b)(1) Model Individual Retirement Account. (2)
(b)(2) Model IRA Disclosure Statement. (2)
15. Inapplicable.
16. Schedule of Computation of Performance Data. (1)
*27. Financial Data Schedules.
</TABLE>
- ------------------------
* Filed herewith
(1)Incorporated by reference from Post-Effective Amendment No. 8 to the
Registration Statement under the Securities Act of 1933 on Form N-1A filed on
or about November 30, 1988.
(2)Incorporated by reference from Post-Effective Amendment No. 15 to the
Registration Statement under the Securities Act of 1933 on Form N-1A filed on
December 1, 1995.
<PAGE>
BY-LAWS
OF
FBL MONEY MARKET FUND, INC.
ARTICLE I
SHAREHOLDERS MEETINGS
1. Meetings of the shareholders shall be held at such time and place
within, or without, the State of Maryland as may be determined by the board of
directors and designated in the notice of said meeting.
2. No meeting of the shareholders of this corporation shall be held
unless required by applicable law or otherwise determined by the board of
directors.
3. Meetings of the shareholders, for any purpose or purposes, unless
otherwise prescribed by statute, may be called by the board of directors or the
president at any time, and shall be called by the president or secretary at the
request in writing of one or more shareholders holding at least twenty-five
percent (25%) (or ten percent (10%) if a purpose of the meeting is to determine
if a director is to be removed from office) of the common stock of the
corporation, then issued and outstanding and entitled to vote, requesting a
meeting be called for a purpose requiring action by the shareholders as provided
herein or in the Articles of Incorporation, which purpose shall be specified in
any such written application. Business transacted shall be confined to the
objects stated in the notice.
4. Written notice of every meeting of the shareholders, stating the time,
place and purpose or purposes for which the meeting is called, shall be given by
the secretary to each shareholder entitled to vote thereat and to any
shareholder entitled by law to such notice. Such notice shall be given to each
shareholder by mailing the same, postage prepaid, to the address of the
shareholder as it appears on the books of the corporation not less than ten (10)
nor more than ninety (90) days before the time fixed for such meeting.
5. The holders of a majority of the shares of common stock issued and
outstanding and entitled to vote thereat, present in person or represented by
proxy, shall be requisite and shall constitute a quorum at all meetings of the
shareholders for the transaction of business, except as may be otherwise
provided by statute. If such quorum shall not be present or represented at any
meeting of the shareholders, the shareholders entitled to vote thereat, present
in person or represented by proxy, shall have power to adjourn the meeting from
time to time, (provided no adjournment shall be to a date more than one hundred
and twenty (120) days after the original record date), without notice other than
announcement at the meeting, until a quorum shall be present or represented. At
such adjourned meeting at which a quorum shall be present or represented, any
business may be transacted which might have been transacted at the meeting as
originally notified.
<PAGE>
6. When a quorum is present at any meeting, the vote of the holders of a
majority of the shares having the right to vote thereat, present in person or
represented by proxy, shall determine any question brought before such meeting,
unless the question is one upon which by express provision of the statutes,
articles of incorporation or these by-laws, a different vote is required in
which case such express provision shall control.
7. At any meeting of the shareholders every shareholder having the right
to vote shall be entitled to vote in person or by proxy appointed by an
instrument in writing, subscribed by such shareholder and bearing a date not
more than eleven (11) months prior to said meeting, which instrument shall be
filed with the secretary of the meeting before being voted. Each shareholder
shall have one vote or fraction thereof for each share or fraction thereof held.
8. The board of directors may fix a record date not more than ninety (90)
nor less than ten (10) days prior to the date for which a meeting is called, as
of which the shareholders entitled to vote at such meeting, or any adjournment
thereof, shall be determined, notwithstanding any transfer or the issue of any
share occurring after such record date.
ARTICLE II
DIRECTORS
1. The number of directors which shall constitute the whole board shall
be not less than three (3) nor more than fifteen (15). Within these
limits, the shareholders or a majority of the entire board of directors may
increase or decrease the number of directors, but the tenure of office of any
director shall not be affected by any decrease in the number of directors then
in office. Subject to death, resignation or removal, each director shall hold
office until the next meeting of shareholders called for the purpose of
conducting the election of such director or a successor thereto, and until his
successor is elected and qualified. Directors need not be shareholders of the
corporation.
2. If the office of any director or directors becomes vacant for any
reason, a majority of the remaining directors, though less than a quorum, may
choose a successor or successors, provided that immediately after filling any
such vacancy, at least two-thirds (2/3) of the directors then holding office
shall have been elected to such office by the shareholders of the corporation
entitled to vote at any meeting of shareholders; otherwise such vacancy
shall be filled by vote of the shareholders at a meeting called for such
purpose.
3. The property and business of the corporation shall be managed by its
board of directors which may exercise all such powers of the corporation and do
all such lawful acts and things as are not by statute, the articles of
incorporation or these by-laws prohibited or directed or required to be
exercised or done by the shareholders.
4. The board of directors may hold its meetings and keep the books of the
corporation at the office of the corporation in the City of West Des Moines,
State of Iowa, or at such other places as they may from time to time determine.
<PAGE>
The original or duplicate stock ledger shall be kept at the office of the
corporation in the City of West Des Moines, State of Iowa, or at the office of
any transfer agent which may be employed by the corporation pursuant to Article
X of the articles of incorporation.
5. A regular meeting of the board may be held at the place of and
immediately following the meeting of the shareholders at which such board was
elected, either within or without the State of Maryland; provided the directors
may, by unanimous consent of the whole board in writing, hold their regular
meeting at such other place and time as they may determine. No notice of such
meeting shall be necessary to the newly elected directors in order to legally
constitute the meeting provided a quorum shall be present. Other regular
meetings of the board of directors shall be held without notice at such time and
place, either within or without the State of Maryland, as shall from time to
time be determined by the board.
6. Special meetings of the board of directors may be held at any time
when called by the president or two (2) or more directors. Not less than
twenty-four (24) hours notice of any special meeting shall be given by the
secretary or the officer calling such meeting to each director either in
person, by telephone, by mail or by telegram. Such notice may be waived by any
director either in person, or in writing, or by telegram. Such special
meetings shall be held at such time and place, within or without the State of
Maryland, as the notice thereof or waiver shall specify. Unless otherwise
specified in the notice thereof, any and all business may be transacted at any
meeting of the board of directors.
7. At all meetings of the board of directors one-third (1/3) of the
entire board of directors shall be necessary and sufficient to constitute a
quorum for the transaction of business and the act of the majority of the
directors present at any meeting at which there is a quorum shall be the act of
the board of directors, except as may be otherwise specifically provided by
statute, by the articles of incorporation or by these by-laws. If a quorum
shall not be present at any meeting of the board of directors, the directors
present thereat may adjourn the meeting from time to time, without notice other
than announcement at the meeting, until a quorum shall be present.
ARTICLE III
COMMITTEES
The board of directors may, by resolution or resolutions passed by a
majority of the whole board, elect from their own number an executive committee
to consist of not less than three (3) nor more than five (5) members, which
shall have the power to conduct the current and ordinary business of the
corporation while the board of directors is not in session. The board of
directors may also in the same manner elect from their own number from time to
time other committees, the number composing such committees and the powers
conferred thereon to be determined from the resolution creating the same. The
committees shall keep regular minutes of their proceedings and report the same
to the board of directors when required.
<PAGE>
ARTICLE IV
NOTICES
1. Whenever, under the provisions of any statute, the articles of
incorporation or these by-laws, notice is required to be given to any
shareholder or director, it shall not be construed to mean personal notice
unless the context otherwise provides. Such notice may be given in writing, by
mail, by depositing the same in a post office or letter box, in a post-paid
sealed wrapper, addressed to such shareholder or director at such address as
appears on the books of the corporation, and such notice shall be deemed to be
given at the time when the same shall be thus mailed.
2. Whenever any notice is required to be given under the provisions of
any statute, the articles of incorporation or by these by-laws, a waiver thereof
in writing signed by the person or persons entitled to said notice, whether
before or after the time stated therein, shall be deemed equivalent thereto.
ARTICLE V
OFFICERS
1. The officers of the corporation shall be elected annually by the board
of directors. The board of directors may elect one of its own members as
chairman of the board, and shall elect a president, secretary and treasurer.
The board of directors may also elect one or more vice-presidents, one or more
assistant secretaries and one or more assistant treasurers. Two or more
offices, when consistent, may be held by the same person, except that any person
holding the office of president shall not hold the office of vice-president.
The president of the corporation shall be a director. All other officers may
be, but need not be, directors of the corporation.
2. The board of directors may appoint such other officers, agents and
representatives of the corporation as shall be deemed necessary, with such
powers for such term and to perform such acts and duties on behalf of the
corporation as the board of directors may see fit to the extent authorized or
permitted by law, the articles of incorporation and these by-laws.
3. The chairman of the board, if one shall be elected, shall preside at
all meetings of the shareholders and board of directors, and shall perform such
other duties as the board of directors may from time to time prescribe.
4. The president shall be the chief executive officer of the corporation
and, in the absence of the chairman of the board, or if a chairman is not
elected, shall preside at all meetings of the shareholders and board of
directors. The president shall have power to sign all certificates for shares
of stock. The president shall perform such other duties as the board of
directors shall from time to time prescribe.
5. The vice-presidents, in the order of their seniority or as designated
by the board of directors, shall in the
<PAGE>
absence or disability of the president, perform the duties and exercise the
powers of the president, and shall perform such other duties as the board of
directors may from time to time prescribe.
6. The secretary shall record all votes and proceedings of meetings of
the shareholders and of the board of directors in the corporation records. He
shall give, or cause to be given, notice of all meetings of the shareholders and
meetings of the board of directors when notice thereof is required. The
secretary shall have custody of the seal of the corporation and may affix the
same to any instrument requiring the corporate seal and attest to the same with
his signature. He shall have power to sign all certificates for shares of stock
and shall perform such other duties as the board of directors may from time to
time prescribe.
7. The assistant secretaries in order of their seniority or as directed
by the board of directors, shall in the absence or disability of the
secretary, preform the duties and exercise the powers of the secretary and shall
perform such other duties as the board of directors may prescribe.
8. The treasurer shall deliver all funds and securities of the
corporation which may come into his hands to such bank or trust company as the
board of directors may designate as custodian in accordance with Article X of
the articles of incorporation. He shall keep such record of the financial
transactions of the corporation as the board of directors shall prescribe. The
treasurer shall have power to sign all certificates for shares of stock and
shall perform such other duties as the board of directors may from time to time
prescribe.
9. The assistant treasurers in order of their seniority or as directed by
the board of directors, shall, in the absence or disability of the treasurer,
perform the duties and exercise the powers of the treasurer and shall perform
such other duties as the board of directors may prescribe.
10. The officers of the corporation shall hold office until their
successors are chosen and qualified. Any officer elected or appointed by the
board of directors may be removed at any time by the board of directors. If the
office of any officer shall become vacant for any reason, the vacancy shall be
filled by the board of directors.
ARTICLE VI
STOCK CERTIFICATES
1. The certificates of stock of the corporation, if the corporation shall
issue certificates of stock, shall be in the form prescribed by the board of
directors and shall be signed by the president or a vice-president, and the
secretary or treasurer or an assistant secretary or an assistant treasurer.
<PAGE>
2. In the event any officer of the corporation authorized to sign
certificates for shares of stock of the corporation shall die or cease to hold
office, the board of directors may, by resolution, adopt and permit to be
issued, when duly countersigned, certificates bearing the signature, either real
or facsimile, of such officers.
3. The board of directors may direct a new certificate or certificates to
be issued in place of any certificate or certificates theretofore issued by the
corporation alleged to have been lost, mutilated or destroyed upon such terms
and upon such conditions as it may prescribe.
4. The corporation shall be entitled to treat the holder of record of any
share or shares of stock as the holder in fact thereof and, accordingly, shall
not be bound to recognize any equitable or other claim to or interest in such
share or shares on the part of any other person, whether or not it shall have
express or other notice thereof, except as otherwise provided by the laws of the
State of Maryland.
5. Shares of stock shall be transferable, so as to affect the rights of
the corporation, only by transfer recorded on the books of the corporation in
person or by attorney, and, in the case of shares for which a certificate or
certificates have been issued, upon surrender of the certificate or certificates
representing such shares.
6. The board of directors shall have power to fix in advance a date, not
exceeding sixty (60) days preceding the date for the payment of any dividend, or
the date for the allotment of rights, as a record date for the determination of
the shareholders entitled to receive payment of any dividend or to any such
allotment of rights. In such case only such shareholders of record on the date
so fixed shall be considered shareholders for the purpose stated,
notwithstanding any transfer of any shares on the books of the corporation after
any such record date fixed as aforesaid.
ARTICLE VII
INVESTMENT AND OTHER RESTRICTIONS
The investment restrictions of the corporation's Portfolios shall be as set
forth in the corporation's registration statement as filed with the Securities
and Exchange Commission and in effect from time to time, and may be changed only
pursuant to the appropriate vote of shareholders and/or directors as set forth
in such registration statement and in accordance with applicable law.
<PAGE>
ARTICLE VIII
CUSTODIAN
1. The custodian employed by the corporation pursuant to Article X of
the articles of incorporation shall be required to enter into a contract with
the corporation which shall contain in substance the following provisions:
(a) The corporation will cause all securities and funds owned by the
corporation to be delivered or paid to the custodian, except as may be
permitted by the Investment Company Act of 1940.
(b) The custodian will receive and receipt for any monies due to the
corporation and deposit the same in its own banking department or in such
other banking institution, if any, as the board of directors may direct.
The custodian shall have the sole power to draw upon any such
account.
(c) The custodian shall release and deliver securities owned by the
corporation in the following cases only:
(1) Upon the sale of such securities for the account of the
corporation and the receipt of payment therefore;
(2) To the issuer thereof or its agent when such securities are
called, redeemed, retired or otherwise become payable, provided that
in any such case the cash proceeds thereof shall be delivered to the
custodian;
(3) To the issuer thereof or its agent for transfer into the
name of the corporation or the custodian, or a nominee of either, or
for exchange for a different number of bonds or certificates
representing the same number of shares or aggregate face amount,
provided that in any such case the new securities replacing such
securities are delivered to the custodian;
(4) To the broker selling the same for examination in accord
with the "street delivery" custom;
(5) For exchange or conversion pursuant to any plan of merger,
consolidation, reorganization, recapitalization or readjustment of the
securities of the issuer of such securities, or pursuant to provisions
for conversion contained in such securities, provided that in any such
case the new securities and cash, if any, are delivered to the
custodian;
(6) In the case of warrants, rights or similar options the
surrender thereof shall be only for the exercise of such warrants,
rights or other options on behalf of the corporation upon interim
receipts or temporary securities for definitive securities;
(7) For the purpose of exchanging interim receipts or temporary
securities for definitive securities;
(8) For the purpose of effecting a loan of the corporation's
securities to any person, firm, corporation or trust upon the receipt
by the custodian of cash or cash equivalent collateral at least equal
to the market value of the securities loaned;
<PAGE>
(9) To any bank for the purpose of collateralizing the
obligation of the corporation to repay any monies borrowed by the
corporation from such bank; provided, however, that custodian may at
the option of such lending bank keep such collateral in its posession,
subject to the rights of such bank given it by virtue of any
promissory note or agreement executed and delivered by the corporation
to such bank; or
(10) For the purpose of redeeming in kind shares of the
corporation upon delivery thereof to the custodian.
(d) The custodian shall pay out monies of the corporation only upon:
(1) the purchase of securities for the account of the
corporation and the delivery in due course of such securities to the
custodian;
(2) or in connection with the conversion, exchange or surrender
of securities owned by the corporation as set forth herein;
(3) for the repurchase or redemption of shares issued by the
corporation;
(4) for the making of any disbursements authorized by the board
of directors pursuant to the articles of incorporation and these by-
laws;
(5) in connection with the payment to a bank of the interest on,
or any portion of the principal of, any loan made by such bank to the
corporation;
(6) in connection with the payment to any person who has
borrowed the corporation's securities of the amount deposited with the
custodian as collateral for such borrowing, upon delivery of such
securities to the custodian;
(7) or the payment of any expenses or liabilities incurred by
the corporation.
(e) The custodian shall make deliveries of securities and payments of
cash only upon written instructions signed by such officer or officers, or
other agent or agents of the corporation, including the investment adviser,
as may be authorized to sign such instructions by resolution of the board
of directors.
The board of directors may from time to time authorize different
persons to sign instructions for different purposes.
2. The contract between the corporation and the custodian may contain any
other provisions not inconsistent with the articles of incorporation or with
these by-laws as the board of directors may approve.
3. Such contract shall be terminable by either party upon written notice
to the other; provided, however, that upon termination of the contract or
inability of the custodian to continue to serve, the custodian shall, upon
written notice of the appointment of another bank or trust company as successor
custodian, deliver and pay over to such successor custodian all securities and
monies held by it for the account of the corporation. In such case the board of
directors shall promptly appoint a successor custodian, but in the event no
successor custodian can be found having the required qualifications and willing
to serve, it shall be the duty of the board of directors to call as promptly as
possible a special meeting of the
<PAGE>
shareholders to determine whether the corporation shall function without a
custodian or shall be liquidated. If so directed by vote of the holders of a
majority of the outstanding shares of the corporation, as shown by proper
certified resolution, the custodian shall deliver and pay over all property of
the corporation held by it as specified in such vote.
ARTICLE IX
INVESTMENT ADVISER
The board of directors, with the approval of the shareholders and
consistent with Article XI of the articles of incorporation, may enter into a
contract with any person, firm or corporation to act as investment adviser for
the corporation and to perform such duties and render such other services as
shall be deemed necessary. Any such contract shall provide that it may be
terminated at any time by the corporation without penalty and upon not more than
sixty (60) days' written notice and shall be automatically terminated in the
event of its assignment by such person, firm or corporation. Any such
contract, which shall continue in effect for a period of more than two (2)
years from the date of its execution, shall be specifically approved at least
annually by vote of a majority of the outstanding voting securities of the
corporation or by the board of directors of the corporation, including
approval by a majority of the directors who are not parties to such a contract
or affiliated persons of such party (except solely by reason of being a director
of the corporation). Such contract may contain any other provision not
inconsistent with the articles of incorporation and these by-laws.
ARTICLE X
UNDERWRITER
The board of directors, consistent with Article XI of the articles of
incorporation, may enter into a contract with any person, firm or corporation
to act as underwriter for the corporation and to perform such other duties and
render such other services as shall be deemed necessary. Any such contract
shall provide that it shall be automatically terminated in the event of its
assignment by such person, firm or corporation, and that in the event it shall
continue in effect for a period of more than two (2) years from the date of
execution, it shall be specifically approved at least annually by vote of a
majority of the outstanding voting securities of the corporation or by the board
of directors of the corporation, including approval by a majority of the
directors who are not parties to such contract or affiliated persons of any such
party (except solely by reason of being a director of the corporation). Such
contract may be exclusive or not exclusive and may be, but need not be, with the
same person, firm or corporation, a party to an investment adviser's contract
with the corporation as provided in the articles of incorporation and these by-
laws. Such contract may also contain any provision not inconsistent with the
articles of incorporation and these by-laws.
<PAGE>
ARTICLE XI
STOCK TRANSACTIONS BY OFFICERS AND OTHERS
No officer or director of the corporation, and insofar as the corporation
can enforce this prohibition, neither the investment adviser nor an underwriter,
as described in Article IX and Article X, respectively, nor any member, officer,
director, trustee or shareholder of such investment adviser or underwriter shall
take a long or short position in the securities issued by the corporation,
except as follows:
(a) The foregoing provision shall not prohibit an underwriter from
purchasing shares of the corporation from the corporation or from another
underwriter if such purchases are limited to purchases for the purpose of
filling orders for such shares received by such underwriter, and provided
that orders to purchase from the corporation or from another underwriter
are entered with the corporation or the custodian promptly upon receipt by
the purchasing underwriter or, in case of a purchase from another
underwriter, upon receipt by such other underwriter of orders for such
shares, unless the purchasing underwriter is otherwise instructed by a
retail customer;
(b) The foregoing provision shall not prohibit an underwriter
from purchasing shares of the corporation as agent for the account of the
corporation.
(c) The foregoing provision shall not prohibit the purchase of shares
of the corporation from the corporation or from an underwriter by an
officer or director of the corporation or by such underwriter, or by any
member, officer, director, trustee or shareholder of the investment adviser
or of such underwriter at the public offering price at the time of such
purchase.
(d) The foregoing provision shall not prohibit the purchase of shares
of the corporation at net asset value, pursuant to a uniform offer
described in the prospectus, by any officer or director of the corporation,
its investment adviser or principal underwriter or by any full time
employee or sales representative of any of the foregoing who has acted as
such for not less than ninety (90) days, or by any trust, pension, profit-
sharing or other benefit plan for such persons; provided, that such
purchases are made upon the written assurance of the purchaser that the
purchase is made for investment purposes and that the shares will not be
re-sold except through redemption or repurchase by or on behalf of the
corporation.
<PAGE>
ARTICLE XII
AUDITOR
An auditor shall be selected annually, pursuant to the Investment Company
Act of 1940.
ARTICLE XIII
FISCAL YEAR
The fiscal year of the corporation shall be fixed by resolution of the
board of directors.
ARTICLE XIV
SEAL
The corporate seal of the corporation shall, subject to alteration by the
board of directors, consist of a flat-faced circular die, upon which shall be
engraved or cut the word "Maryland", together with the name of the corporation
and the year of its incorporation.
ARTICLE XV
INDEMNIFICATION
1. The Corporation shall indemnify each present and past officer and
director and his heirs and personal representative to the full extent permitted
by the Corporation's Articles of Incorporation and the Annotated Code of
Maryland Corporations and Associations Sec. 2-418 or any successor statute as
amended from time to time.
2. With respect to a proceeding against an officer or director brought by
or on behalf of the Corporation to obtain a judgment or decree in its favor,
the corporation shall provide the officer or director with the same
indemnification, after the same determination, as it is required to provide with
respect to a proceeding not brought by or on behalf of the Corporation.
3. The board of directors in its sole discretion may authorize or provide
to an employee or agent any indemnification described in this article.
4. Any indemnification provided by this Article:
(a) Continues as to an officer, director, employee or agent who has
ceased to be such and inures to the
<PAGE>
benefit of his heirs and personal representative; and
(b) Does not exclude any other rights to which a person is or may be
entitled by law, any agreement, vote of stockholders or disinterested
directors, or otherwise as to any action, including:
(i) Action in his official capacity; and
(ii) Action in another capacity while holding the office.
5. The indemnification provided by this Article shall be provided as to
officers and directors, and may be provided as to employees and agents, with
respect to any action, suit or proceeding arising from an act or omission or
alleged act or omission, whether occurring before or after the adoption of this
Article.
6. The provisions of this Article constitute a contract between the
Corporation and each director or officer who serves in any such capacity at
any time while this Article and the relevant provisions of The Annotated Code
of Maryland Corporations and Associations or other applicable law, if any, are
in effect, and repeal or modification of any such law or of this Article shall
not affect any rights or obligations then existing with respect to any state of
facts then or theretofore existing or any action, suit or proceeding theretofore
or thereafter brought or threatened based in whole or in part upon any such
state of facts.
7. Each section or portion thereof of this Article shall be deemed
severable from the remainder, and the invalidity of any such section or portion
shall not affect the validity of the remainder of this Article.
8. Nothing in this Article protects, or purports to protect, or may be
interpreted or construed to protect, any officer or director against any
liability to the Corporation or its security holders to which he would otherwise
be subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of his office.
ARTICLE XVI
AMENDMENTS
Either the board of directors or the shareholders may make, amend, alter or
repeal the by-laws at any meeting duly held, the notice of which includes notice
of the proposed addition, amendment, alteration or repeal of such by-laws;
provided, however, that the provisions concerning investment and other
restrictions contained in Article VII of these by-laws shall not be amended,
altered or repealed unless authorized by the vote of a majority of the
outstanding voting securities of the corporation.
<PAGE>
These by-laws include all amendments adopted through August 15, 1996 as
follows:
Article I, Section 8, amended June, 1973.
Article II, Section 4, amended September, 1974.
Article VI, Section 6, amended January, 1977.
Article XV, amended April, 1978.
Article I, Section 2, amended April, 1979.
Article I, Section 7, amended April, 1980.
Article VII, Section 8, amended November, 1980.
Article I, Sections 1, 2, 3, 5 and 9; Article II, Sections 2 and 5;
Article V, Section 1; amended August, 1987.
Article I, Section 3; Article VII; Article VIII; amended November 11,
1987.
Article VI, Sections 1 and 5, amended August 15, 1996.
<PAGE>
Exhibit 5b
INVESTMENT ADVISORY AND MANAGEMENT
SERVICES AGREEMENT
FBL MONEY MARKET FUND, INC.
Amendment to Management Fee Schedule
Effective December 1, 1996
Amendment effective December 1, 1996 to the Investment Advisory and Management
Services Agreement dated February 23, 1980 between FBL Money Market Fund, Inc.
and FBL Investment Advisory Services, Inc. ("FBLIAS"). Pursuant to a resolution
adopted by the Board of Directors on November 7, 1996, FBLIAS wishes to reduce
the management fee rate for the Fund.
The compensation in paragraph 3 is hereby amended to reflect the reduction in
management fees to 0.25% of the average daily net assets of the Fund.
The parties hereto have caused this amendment to be executed and delivered by
the persons designated below on November 7, 1996 to become effective as of the
day and year first written above.
FBL INVESTMENT ADVISORY FBL MONEY MARKET FUND, INC.
SERVICES, INC.
By: /s/ Richard D. Warming By: /s/ Edward M. Wiederstein
------------------------------ ------------------------------
President President
Attest: /s/ Dennis M. Marker Attest: /s/ Richard D. Harris
-------------------------- --------------------------
Secretary Secretary
<PAGE>
Exhibit 9a
FIDELITY BOND
JOINT INSUREDS AGREEMENT
THIS AGREEMENT is made as of September 26, 1996, by and among FBL Money Market
Fund, Inc. ("Money Fund"), FBL Series Fund, Inc. ("Series Fund") both Maryland
corporations; and FBL Variable Insurance Series Fund ("Insurance Series Fund"),
a Massachusetts business trust (collectively the "Funds").
The Funds, all of which are managed by FBL Investment Advisory Services, Inc.,
have acquired a joint insured brokers blanket bond issued by the Chubb Group of
insurance companies effective September 26, 1996 ("Bond"). The aggregate amount
of the Bond ("Bond Amount") is equal to the sum of the basic coverage for each
Fund, as indicated in Exhibit A attached hereto. The Funds desire to provide
herein for an allocation of the premium for the Bond and a manner of allocating
any proceeds received from the Bond.
The Funds hereto therefore agree that:
1. ALLOCATION OF PREMIUM. Each Fund shall pay a portion of the annual
joint bond premium as agreed to in writing no less often than annually
by the Funds and attached hereto as Exhibit A. These amounts have been
determined on the basis of the relative costs to each Fund of a single
insured bond in the amount of that Fund's Basic Coverage as indicated
in Exhibit A.
2. LOSS TO ONE FUND. In the event of an insured loss to only one Fund,
the entire proceeds for that loss shall be allocated to the Fund
incurring such loss.
3. LOSS TO MORE THAN ONE FUND.
(a) LOSS PERCENTAGES. For purposes of allocating the proceeds of
coverage of the Bond, each Fund shall have the loss percentage as
indicated in exhibit A, which percentages are based upon the
percentage of the total Bond coverage
<PAGE>
represented by the amount of each Fund's basic coverage.
(b) INITIAL ALLOCATION. Each Fund involved in an insured loss which
involves another Fund shall receive a portion of the proceeds
from the Bond equal to the lesser of (i) the amount of that
Fund's loss or (ii) an amount equal to the product of the Bond
Amount multiplied by that Fund's Loss Percentage, which initial
allocation assures that each Fund shall receive the full amount
of its loss up to the amount of its Basic Coverage.
(c) SUBSEQUENT ALLOCATION. Any Bond proceeds unallocated after the
initial allocation shall be allocated to the Funds for which the
loss was not covered by the initial allocation.
4. AGENT. Series Fund is hereby appointed as the agent for the Funds for
the purpose of making, adjusting, receiving and enforcing payment of
all claims and otherwise dealing with the Bond. Any expenses incurred
by Series Fund in its capacity as agent in connection with a claim
shall be shared by the Funds in proportion to the proceeds received by
the Funds for the loss. All other expenses incurred by Series Fund in
its capacity as agent shall be shared by the Funds in the same
proportion as their Loss Percentages.
6. MODIFICATION AND TERMINATION. This Agreement may be modified or
amended from time to time by mutual written agreement among the Funds.
It may be terminated with respect to any one Fund by not less than 75
days' written notice to the other Funds. It shall terminate as of the
date that any Fund ceases to be an insured under the Bond; provided
that such termination shall not affect such Fund's rights and
obligations hereunder with respect to any claims on behalf of such
Fund which are paid under the Bond after the date such Fund ceases to
be an insured under the Bond.
7. FURTHER ASSURANCES. Each Fund agrees to perform such further acts and
execute such
<PAGE>
further documents as are necessary to effectuate the purposes hereof.
IN WITNESS WHEREOF, the Funds have caused this Agreement to the executed as of
the day and year first above written.
Attest: FBL Series Fund, Inc.
/s/ Elaine A. Followwill By: /s/ Edward M. Wiederstein
- ---------------------------------------------- ------------------------------
Its Assistant Secretary, Elaine A. Followwill
Attest: FBL Money Market Fund, Inc.
/s/ Elaine A. Followwill By: /s/ Edward M. Wiederstein
- --------------------------------------------- -----------------------------
Its Assistant Secretary, Elaine A. Followwill
Attest: FBL Variable Insurance Series Fund
/s/ Elaine A. Followwill By: /s/ Edward M. Wiederstein
- --------------------------------------------- ------------------------------
Its Assistant Secretary, Elaine A. Followwill
<PAGE>
EXHIBIT A
FIDELITY BOND
JOINT INSUREDS AGREEMENT
9/26/96
For Bond Period September 26, 1996 through February 15, 1997.
1. Basic Coverage
Fund Basic Coverage
---- --------------
Series Fund 600,000
Money Fund 350,000
Insurance Series Fund 525,000
-------
Total 1,475,000
2. Allocation of Premium
Premium for Premium
Separate Allocation Bond
Fund Insured Bond Percentage Premium
---- ------------ ---------- -------
Series Fund 932.00 40.02% 776.74
Money Fund 559.00 24.00% 465.87
Ins. Series Fund 838.00 35.98% 698.39
------ ------ ------
Total 2,329.00 100.00% 1,941.00
3. Allocation of Bond Proceeds
Fund Loss Percentage
---- ---------------
Series Fund 40.68%
Money Fund 23.73%
Ins. Series Fund 35.59%
------
Total 100.00%
Attest: FBL SERIES FUND, INC.
/s/ Sue A. Cornick By: /s/ Stephen M. Morain
- --------------------------------- ----------------------------------
Its Assistant Secretary Its Vice President
<PAGE>
Attest: FBL MONEY MARKET FUND, INC.
/s/ Sue A. Cornick By: /s/ Stephen M. Morain
- --------------------------------- ----------------------------------
Its Assistant Secretary Its Vice President
Attest: FBL VARIABLE INSURANCE SERIES FUND
/s/ Sue A. Cornick By: /s/ Stephen M. Morain
- --------------------------------- ----------------------------------
Its Assistant Secretary Its Vice President
<PAGE>
Exhibit 11
[LETTERHEAD]
CONSENT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders
FBL Money Market Fund, Inc.
We consent to the reference to our firm under the captions "Condensed
Financial Information" and "Independent Auditors" in Part A and "Other
Information - Independent Auditors" in Part B and to the incorporation by
reference of our report dated August 30, 1996 on the financial statements of
FBL Money Market Fund, Inc. in this Post Effective Amendment No. 16 to Form
N-1A Registration Statement under the Securities Act of 1933 (No. 2-70162)
and in this Amendment No. 17 to the Registration Statement under the
Investment Company Act of 1940 (No. 811-3121).
/s/ Ernst & Young LLP
Des Moines, Iowa
November 26, 1996
<TABLE> <S> <C>
<PAGE>
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<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-END> JUL-31-1996
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<RECEIVABLES> 24987
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<INTEREST-INCOME> 1281043
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<EXPENSES-NET> 354726
<NET-INVESTMENT-INCOME> 926317
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<DISTRIBUTIONS-OF-INCOME> 926317
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<NUMBER-OF-SHARES-SOLD> 77494901
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<SHARES-REINVESTED> 916068
<NET-CHANGE-IN-ASSETS> 4597142
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<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> 0.040
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