Source: DALBAR’s 23rd Annual Quantitative Analysis of Investor Behavior Report the (“DALBAR Report”) and the Wilshire Trust Universe Comparison Services® (“Wilshire TUCS®”). Data on the average equity fund investor, the average bond fund investor, the average asset allocation fund investor and inflation are from the DALBAR Report. Data on average institutional investors is from Wilshire TUCS®.
The DALBAR Report utilizes monthly mutual fund sales, redemptions, and exchanges as the measure of “average investor” behavior, and refers to the average investor as the universe of all mutual fund investors whose actions and financial results are restated to represent a single investor. The DALBAR report represents average investor returns as the change in assets, after excluding sales, redemptions, and exchanges. This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses, and any other costs. Wilshire TUCS® is a cooperative effort among Wilshire Associates, several global custodian banks and trust companies to aggregate the asset allocation and holdings data of more than three trillion dollars of U.S institutional assets. Data on the average institutional investor represents the median total returns, gross of fees, of master trusts—all plans.
The chart shown intends to demonstrate what Wilshire believes to be the effect of behavioral biases, such as market timing, exhibited by retail investors. Other factors that may materially affect the difference in returns between retail and institutional investors include but are not limited to: size of asset pool, investment horizon, liquidity requirements, restraints and access to types, varieties, and brands of investments and lower-fee investment options. The reader should view these returns in consideration of other relevant factors and should not rely solely on performance data shown.
Wilshire’s 30+ years serving the institutional investor community informs our belief that global diversification, best-of-breed manager research, and access to alternative asset classes* can lead to better outcomes for investors. Through our lineup of managed portfolios, we offer the financial advisor community access to our experience.
*Alternative investments are subject to a number of risks and are not suitable for all investors.
Sophisticated institutional investors utilize a comprehensive set of investment and trading tools to effectively manage portfolios. In the private wealth marketplace, financial advisors seek a similar set of solutions designed to select and monitor investments, construct asset allocation models, and trade and rebalance accounts, all while maintaining their obligations as advisors. The Wilshire Wealth Management Solutions platform provides:
Wilshire’s mutual funds deliver access to institutional-caliber money managers. Our proprietary research gives us a unique perspective—and insight—into the capabilities of each asset manager, allowing us to identify those that best fit into our multi-manager funds.
Managing your obligations as a fiduciary can be challenging. As a plan sponsor you are required to navigate the landscape of available investment managers, monitor plan investments, and more. In response to these needs, Wilshire Associates offers plan sponsors ERISA 3(21) and 3(38) services. These services offer:
Investing involves risk including loss of principal. Asset allocation/diversification does not ensure a profit or protect against loss.
The information provided on this page is not intended to be comprehensive investment advice applicable to the circumstances of the individual. We strongly recommend you consult with a financial advisor prior to making any investment decisions.
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This information is for information purposes only. This information represents the current opinion of the firm. Information herein which has been obtained from third parties are based on sources believed to be reliable. Wilshire Funds Management does not represent that such information it is accurate. Statistical data contained herein are as of the dates noted and such information should not be relied on or be the basis for an investment decision. Past performance is no guarantee of future results. Investing involves risk including loss of principal.