Wilshire Active Tax Free Income Portfolio

  • Comprehensive fixed income investment solution—The Wilshire Active Tax Free Income Portfolio (the “Portfolio”) offers allocations to tax-advantaged fixed income mutual funds, offering diversified exposure to 3 to 6 fixed income funds. The Portfolio targets an annualized distribution yield of 1.5% above the yield of the BVAL Municipal 10-Year AAA Benchmark.
  • Total return as a secondary focus—The Portfolio’s objective is to seek attractive levels of income, with the secondary goal of total return in excess of its performance benchmark (90% Bloomberg Barclays Municipal Bond Index +10% Bloomberg Barclays Municipal High Yield Index). The Portfolio seeks to maintain a risk profile similar to the Morningstar Multi-Sector Bond Category Average.
  • Duration management—Wilshire adjusts the duration of the Portfolio based on its outlook for interest-rate movements.
  • Institutional investment managers—The Portfolio is constructed using third-party mutual fund managers who are well-regarded by Wilshire’s Manager Research Group.

Portfolio Characteristics

  • Distribution Yield1: 2.48%
  • Yield Target2: 2.20%
    BVAL Municipal AAA
  • Underlying Fund Expense3: 0.55%
  • Effective Duration4: 6.40 Years
  • Beta5: 1.27
  • Correlation to Benchmark6: 0.97
Data based on target allocations as of 6/30/2021.

*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. There are certain limitations in model performance as the model results will not completely represent the actual trading of securities in a client account. These results reflect the deduction of the maximum 0.20% Strategist fee. Actual client results will be lower based on the imposition of platform fees, advisory fees, transaction fees and custodial fees by third party firms. Due to differences in share classes and platform restrictions preventing the use of some securities, such as exchange-traded funds, Wilshire’s preferred allocation may not be available on all platforms. When a specific security or financial instrument is unavailable, Wilshire will use a substitute security that is suitable in the context of the portfolio’s stated investment objective. The results reflect reinvestment of all dividends and interest. All returns for periods greater than one year are annualized. 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. Past performance is not indicative of future results, and processes used may not achieve the desired results. It is not possible to invest directly in an index. 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.


Top Five State Exposures

State   %
Illinois   10.7
New York   10.1
California   9.1
New Jersey   5.7
Pennsylvania   5.4

Active Tax Free Income Portfolio Guidelines

All guidelines are on a Market Exposure* basis

Asset Class Min Max
Duration (years) vs. Benchmark -3.00 3.00
Maximum Allowable Exposures   Max
High Yield/Bank Debt/EM Debt   55.0%
Non-U.S. Dollar Exposure   0%

*Market Exposure refers to the dollar amount of funds, or percentage of a portfolio, invested in a particular type of security, market sector or industry, which is expressed as a percentage of total portfolio holdings. Market exposure describes the division of assets within a particular investment portfolio. The greater the market exposure, the greater the market risk in that specific investment area.

Data based on target allocations as of 6/30/2021.


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’s Strategist fee, or any platform fees, advisory fees or other applicable fees. Wilshire uses Dreyfus AMT-Free Tax Exempt Cash Management Institutional (DEIXX) to represent cash 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 issue the underlying securities of this portfolio.

3Underlying Fund Expense does not include Wilshire’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 5/31/2021 and is subject to change due to various factors including changes in the underlying fund allocations and changes in underlying fund expense ratios.

4Duration measures a bond’s or fixed income portfolio’s price sensitivity to interest rate changes. Effective duration is a duration calculation for bonds that have embedded options. This measure of duration takes into account the fact that expected cash flows will fluctuate as interest rates change.

5Beta is a measure of the fund’s sensitivity to the benchmark index.

6Correlation to Benchmark measures the relationship between the performance of the portfolio and that of the benchmark index. It is not a measure of the performance of a portfolio. Correlation is presented as a value between -1.0 and +1.0, where 1.0 represents a perfectively positive correlation, -1.0 represents a perfectly negative correlation and 0.0 indicates no correlation.

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 uses an active tactical asset-allocation strategy to manage the Wilshire Active Income Portfolios. Wilshire’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 Advisors LLC. All other trade names, trademarks, and/or service marks are the property of their respective holders.

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