Wilshire Active Tax-Free Income Portfolio

Wilshire Funds Management incorporates an actively managed allocation overlay utilizing tax-exempt fixed-income mutual funds to provide investors with a portfolio exempt from federal taxes that seeks to meet its yield target, outperform its performance benchmark (90% Bloomberg Barclays Municipal Bond Index +10% Bloomberg Barclays Municipal High Yield Index), and maintain a risk profile similar to the Lipper General Municipal Debt Funds Average.

Portfolio Information

Goal

  • The Portfolio seeks to provide an actively managed “go anywhere” solution with a yield target of 10-year AAA Muni yield + 150 bps1.

Portfolio Characteristics

  • Distribution Yield2: 3.11%
  • Yield Target1: 3.36%
    10-Year AAA Municipal Yield: 1.86%
  • Underlying Fund Expense3: 0.62%
  • Effective Duration: 6.71 Years
Data based on target allocations as of 8/31/2017.
 
 

*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). The models have been maintained in such a way as to record transactions at the same time they occur in actual client accounts in an attempt to approximate client returns as closely as possible. However, there are certain limitations in model performance as the model results may 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 8/31/2017.

 

Data based on target allocations as of 8/31/2017.

 

Data based on target allocations as of 8/31/2017.

 

Data based on target allocations as of 8/31/2017.

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.

Portfolios that invest 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 may apply which, if assessed, 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. Any opinions expressed in this material are current only as of the time made and are subject to change without notice. Wilshire assumes no duty to update any such statements.

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.

© 2017 Wilshire Associates Incorporated. All rights reserved. Information in this document is subject to change without notice.

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