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  April 2018 Monthly Market Commentary

U.S. Economy and Markets

  • Domestic equity markets were positive in April, as the Wilshire 5000 Total Market IndexSM and the S&P 500 Index returned 0.39% and 0.38%, respectively.
  • Market volatility dropped significantly in April, as the CBOE Volatility Index (VIX) ended the month at 15.93, a decrease from its March close of 19.97.
  • Performance across GICS sectors was mostly positive for the month, with the Energy and Utilities sectors leading the group, gaining 9.45% and 2.44%, respectively. The Consumer Staples and Industrials sectors trailed in April, dropping -4.06% and -2.74%, respectively.
  • The Energy sector significantly outpaced the other GICS sectors due to a rise in oil prices following global geopolitical tensions.
  • Small cap stocks outperformed their large cap counterparts this month, with the Wilshire U.S. Small Cap IndexSM and the Wilshire U.S. Large Cap IndexSM returning 1.08% and 0.33%, respectively.

International Economy and Markets

  • International markets, as measured by the MSCI EAFE Index, returned 2.28%. Emerging markets declined in April, with the MSCI Emerging Markets Index falling -0.44%.
  • European markets outperformed other international markets, with the MSCI Europe Index returning 2.77%.

Fixed Income/Real Estate/Commodities

  • The 10-year U.S. Treasury yield rose past 3.00% this month before settling at 2.95%, up from 2.74% in March.
  • The Bloomberg Barclays U.S. Aggregate Index declined -0.74% in April as rates increased across fixed income assets.
  • The Bloomberg Barclays Long-Term Treasury Index continued to decline, returning -1.94%, while the Bloomberg Barclays U.S. TIPS Index also fell, returning -0.06% in April.
  • U.S. real estate posted positive returns in April, with the Wilshire U.S. Real Estate Securities IndexSM gaining 1.42%. International real estate securities also posted positive returns, with the Wilshire Global ex U.S. Real Estate Securities IndexSM advancing 2.32%.
  • Commodities posted positive performance in April, largely attributable to the rise in energy prices, with the Bloomberg Commodity Index returning 2.58%.

Alternatives

  • The Wilshire Liquid Alternatives IndexSM returned -0.05% in April. The Wilshire Liquid Alternative Multi-Strategy Index and the Wilshire Liquid Focused Liquid Alternative Index were the best performers this month, returning 0.15% and 0.07%, respectively.
  • Lagging the pack, the Wilshire Liquid Alternative Equity Hedge IndexSM declined -0.19%.

GICS Sector Returns*

Wilshire 5000 Index
As of 4/30/2018
MTD (%) QTD (%) YTD (%) 1 Year (%)
Consumer Discretionary 1.99 1.99 4.16 18.62
Consumer Staples -4.06 -4.06 -10.57 -4.72
Energy 9.45 9.45 3.02 8.57
Financials -0.32 -0.32 -1.03 16.57
Health Care 1.15 1.15 0.50 13.84
Industrials -2.74 -2.74 -4.52 11.56
Information Technology 0.08 0.08 4.19 27.90
Materials 0.48 0.48 -4.84 10.73
Real Estate 0.41 0.41 -5.85 0.07
Telecommunications Services -0.71 -0.71 -7.97 -5.29
Utilities 2.44 2.44 -0.99 5.09

*GICS Sector returns for the Wilshire 5000 Total Market IndexSM. Source: Wilshire AtlasSM.

North American Equity

  MTD (%) QTD (%) YTD (%) 1 Year (%)
Wilshire 5000 Total Market IndexSM 0.39 0.39 -0.37 12.95
Standard & Poor’s 500 0.38 0.38 -0.38 13.26
Standard & Poor’s/TSX (CAD) 1.82 1.82 -2.78 3.11

U.S. Equity by Size/Style

  MTD (%) QTD (%) YTD (%) 1 Year (%)
Wilshire U.S. Large Cap IndexSM 0.33 0.33 -0.44 13.24
Wilshire U.S. Large Cap Growth IndexSM 0.49 0.49 1.79 17.73
Wilshire U.S. Large Cap Value IndexSM 0.18 0.18 -2.77 8.77
Wilshire U.S. Small Cap IndexSM 1.08 1.08 0.34 10.24
Wilshire U.S. Small Cap Growth IndexSM -0.02 -0.02 1.39 15.10
Wilshire U.S. Small Cap Value IndexSM 2.15 2.15 -0.84 5.30
Wilshire U.S. Micro Cap IndexSM 0.90 0.90 0.61 12.58

International Equity (USD)

  MTD (%) QTD (%) YTD (%) 1 Year (%)
MSCI AC World ex U.S. 1.60 1.60 0.39 15.90
MSCI EAFE 2.28 2.28 0.72 14.51
MSCI Europe 2.77 2.77 0.73 13.65
MSCI Pacific 1.46 1.46 0.76 16.47
MSCI Japan 0.67 0.67 1.51 19.19
MSCI EM (Emerging Markets) -0.44 -0.44 0.97 21.71

International Equity (Local Currency)

  MTD (%) QTD (%) YTD (%) 1 Year (%)
MSCI AC World ex U.S. 3.49 3.49 0.30 11.01
MSCI EAFE 4.50 4.50 0.03 8.56
MSCI Europe 4.92 4.92 0.36 5.48
MSCI Pacific 3.78 3.78 -0.52 14.61
MSCI Japan 3.58 3.58 -1.40 17.00
MSCI EM (Emerging Markets) 1.16 1.16 1.89 20.63

North American Fixed Income

  MTD (%) QTD (%) YTD (%) 1 Year (%)
Bloomberg Barclays U.S. Aggregate -0.74 -0.74 -2.19 -0.32
Bloomberg Barclays Long-Term Treasury -1.94 -1.94 -5.17 -0.04
Bloomberg Barclays U.S. TIPS -0.06 -0.06 -0.85 0.27
Bloomberg Barclays U.S. Credit -0.91 -0.91 -3.02 0.65
Bloomberg Barclays Corporate High Yield 0.65 0.65 -0.21 3.26

International Fixed Income

  MTD (%) QTD (%) YTD (%) 1 Year (%)
Bloomberg Barclays Global Aggregate (Unhedged) -1.60 -1.60 -0.26 4.09
Bloomberg Barclays Global Aggregate (Hedged) -0.37 -0.37 -0.49 1.39
JPM EMBI Plus -1.53 -1.53 -3.54 -1.47

Real Estate/Commodities/Alternatives

  MTD (%) QTD (%) YTD (%) 1 Year (%)
Wilshire U.S. Real Estate Securities IndexSM  1.42 1.42 -6.10 -2.15
Wilshire Global ex U.S. Real Estate Securities IndexSM  2.32 2.32 1.24 12.53
Wilshire Global Real Estate Securities IndexSM  1.75 1.75 -3.49 2.87
S&P GSCI Commodity (S&P GSCI)  5.04 5.04 7.33 22.14
Bloomberg Commodity Index  2.58 2.58 2.17 8.02
Wilshire Liquid Alternatives IndexSM  -0.05 -0.05 -1.04 2.18
Wilshire Liquid Alternative Equity Hedge IndexSM  -0.19 -0.19 -2.47 2.50
Wilshire Liquid Alternative Event Driven IndexSM  0.04 0.04 0.25 1.57
Wilshire Liquid Alternative Global Macro IndexSM  -0.05 -0.05 -1.76 1.34
Wilshire Liquid Alternative Multi-strategy IndexSM  0.15 0.15 -0.90 3.44
Wilshire Liquid Alternative Relative Value IndexSM -0.07 -0.07 -0.07 2.00
Wilshire Focused Liquid Alternative IndexSM 0.07 0.07 -0.60 2.43

*Returns are as of April 30, 2018. Source: Wilshire CompassSM

The Wilshire Indexes are calculated and distributed by Wilshire Associates Incorporated (“Wilshire”). The indices do not represent an investment. It is not possible to invest directly in an index. Exposure to an asset class represented by an index may be available through investable instruments derived from that index. Wilshire makes no representations regarding the advisability of investing in investment products based on the Wilshire Indexes not sponsored, endorsed, sold or promoted by Wilshire. Index returns do not reflect payment of certain sales charges or fees an investor may pay to purchase the securities underlying the Index or investment vehicles intended to track the performance of the Index. The imposition of these fees and charges would cause actual performance of the securities/vehicles to be lower than the Index performance shown. Inclusion of a company in the Wilshire Indexes does not in any way reflect an opinion of Wilshire on the investment merits of the company. Index returns are preliminary and are subject to revision.

The information from third parties contained herein has been obtained from sources believed to be reliable. Wilshire Funds Management gives no representations or warranties as to the accuracy of such information, and accepts no responsibility or liability (including for indirect, consequential or incidental damages) for any error, omission, or inaccuracy in such information and for results obtained from its use. Wilshire Funds Management (“WFM”) is a business unit of Wilshire Associates Incorporated (“Wilshire®”). WFM delivers Wilshire Advisor Solutions, which include models designed to provide a broad range of outcome-oriented investment solutions for advisors to use with their clients. Wilshire is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California. All other trade names, trademarks, and/or service marks are the property of their respective holders.

7072042 WAS E0818

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