Wilshire Active Tax Free Income Portfolio

  • Comprehensive fixed income investment solution -- The Wilshire Active Income Tax-Free Portfolio offers allocations to tax-advantaged fixed income mutual funds and anticipates being diversified by allocating to 3 to 6 funds. The Portfolio targets an annualized distribution yield of 1.5% above the yield of the Bloomberg Barclays Capital 10-Year AAA Municipal Bond Index.
  • Total return as a secondary focus -- The Portfolio’s objective is to seek attractive levels of income, but a secondary goal is to seek a total return in excess of its performance benchmark (90% Bloomberg Barclays Municipal Bond Index +10% Bloomberg Barclays Municipal High Yield Index), while maintaining a risk profile similar to the Lipper General Municipal Debt Funds Average.
  • Duration management -- Wilshire adjusts the duration of the Portfolio based on the outlook for interest-rate movements.
  • Institutional investment managers -- Portfolios are constructed with third-party mutual fund managers who are well-regarded by Wilshire’s manager research team and who Wilshire deems to be proficient within the municipal fixed income domain.

Portfolio Characteristics

  • Distribution Yield1: 3.54%
  • Yield Target2: 4.23%
    Bloomberg Barclays Capital 10-Year
    AAA Municipal Bond Index: 2.73%
Data based on target allocations as of 10/31/2018.
  • Underlying Fund Expense3: 0.60%
  • Effective Duration: 7.05 Years
 
 

*Inception date: June 30, 2011.
**Primary Benchmark: 90% Bloomberg Barclays Municipal Bond Index +10% Bloomberg Barclays Municipal High Yield Index.

Information regarding performance data
The performance results above should be reviewed in the context of the markets applicable to the investment strategies noted. All returns for periods greater than one year are annualized. Performance results are based on model portfolios maintained by Wilshire Funds Management (WFM). There are certain limitations in model performance as the model results will not completely represent the actual trading of securities in a client account. The results reflect reinvestment of all dividends and interest. These results reflect the deduction of the maximum 0.20% Strategist fee that WFM charges third party firms providing this advisory service to end clients. However, actual client results will be lower based on the imposition of platform fees, advisory fees and custodial fees by these firms. As with all investments, there is no guarantee that the investment strategy will be successful and investors should be aware that investments can lose money, including principal, so that an investor could end up with less money than was invested.

 
 
 
 

Data based on target allocations as of 10/31/2018.


 

1An indication of the current dividends and interest vs. the current market value of the holdings. The yield represents the current amount of income that is being generated from the portfolio without liquidating the principal or capital gains of the portfolio. However, the yield will fluctuate daily and current or past performance is not indicative of future results. The yield is calculated before the application of Wilshire Fund Management’s Strategist fee, or any additional platform fees, advisory fees, or any other applicable fees. Wilshire uses Dreyfus AMT-Free Tax Exempt Cash Management Institutional (DEIXX) as a money market proxy when calculating distribution yield.

2There is no guarantee that this portfolio will achieve the targeted yield over any given period. Distributions may be subject to state income tax, depending on what states issuethe underlying securities of this portfolio.

3Underlying Fund Expense does not include Wilshire Fund Management’s Strategist fee. Platform fees, advisory fees, and other fees or charges may apply. Underlying Fund Expense reflects the weighted average underlying fund expense ratios as of 9/30/2018 and is subject to change due to various factors including changes in the underlying fund allocations and changes in underlying fund expense ratios.

A Note about Risk: Asset Allocation and Fixed Income Investments
The Portfolio is actively managed and is subject to change. The Portfolio is designed to invest in mutual funds that engage in a variety of investment strategies involving certain risks, and are subject to the particular risks of the mutual funds in proportion to which the Portfolio invests in them. Performance of any selected mutual fund may be lower than the performance of the asset class that the mutual fund was selected to represent.

Investments in fixed income securities are subject to several general risks, including interest rate risk and credit risk, which could reduce the performance of the Portfolio. These risks may occur from fluctuations in interest rates, a change to an issuer’s individual situation or industry, or events in the financial markets.

As interest rates fall, the prices of fixed income securities tend to rise. As rates rise, prices tend to fall.

Fixed income securities with credit ratings below BBB are considered to be “high yield securities,” sometimes called “junk bonds,” and carry increased risks of price volatility, illiquidity, and the possibility of default in the timely payment of interest and principal.

Portfolios that invest in tax-free fixed income securities may be subject to other types of risk such as call, credit, liquidity, interest-rate and general market risks. There is a risk that a bond issued as tax-exempt may be reclassified by the IRS as taxable, creating taxable rather than tax-free income. A portion of the income derived from the Portfolio may be subject to the Alternative Minimum Tax (AMT). State taxes may apply to some or all of the income derived from the Portfolio, depending on what state issues the underlying securities. Any capital gains realized may be subject to taxation. Investors should consult with a tax advisor for more information regarding taxation.

Important Information
Wilshire Active Income Portfolios are a suite of mutual fund asset-allocation models designed by Wilshire Funds Management (WFM), a business unit of Wilshire Associates Incorporated (“Wilshire®”), to invest across a range of mutual funds.

WFM uses an active tactical asset-allocation strategy to manage the Wilshire Active Income Portfolios. WFM’s process constructs portfolios in ways that seek to outperform their specific benchmarks. There is no guarantee that any of the Wilshire Active Income Portfolios will meet or exceed their investment objectives or performance benchmarks. Asset allocation portfolios do not ensure a profit or protect against loss.

There is no guarantee that any of the Wilshire Active Income Portfolios will provide the targeted income level over any given period. The actual dollar amount of income received by an investor could vary substantially from one year to the next and over time depending on several factors, including the interest-rate environment, the performance of funds in the portfolio and the financial markets in which they invest, and the allocation of a Wilshire Active Income Portfolio across the different funds selected. Additional platform and advisory fees and charges will apply, which will reduce the overall performance and the yield of the Wilshire Active Income Portfolio. In pursuing each portfolio’s primary investment objective to deliver targeted income and the yield, it is possible for a portfolio to experience investment losses and reduction of principal.

Third-party information contained herein has been obtained from sources believed to be reliable. Wilshire 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.

Your financial advisor is responsible for reviewing your individual financial situation and needs to determine suitability of this or any investment program.

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.

© 2018 Wilshire Associates Incorporated. All rights reserved. Information in this document is subject to change without notice.7825196 E0119