Wilshire Associates
Encyclopedia
Wilshire Associates, Inc. is an independent investment management
firm that offers consulting services, and analytical products and manages fund of funds
investment vehicles for a global client base. Wilshire manages capital for more than 600 institutional investors globally representing more than $8 trillion of capital. Wilshire is also known for the creation of the Wilshire 5000 stock index
in 1974 and more recently the Wilshire 4500 stock index
.
Wilshire operates from four business units:
Wilshire which is headquartered in Santa Monica, California
with offices in the US in New York, Pittsburgh, Chicago and Denver as well as internationally in London, Singapore, Amsterdam, Canberra and Tokyo.
who was an early pioneer of applying computer-based technologies to investment applications. Since the early 1970s, the firm developed from a technology firm into an investment management
operation. In 1974, the firm created its signature Wilshire 5000 Stock index
which is a widely-used index of all stocks actively traded in the United States.
Wilshire established an early reputation by creating the first asset/liability model for pension fund
s in the 1970s, ten years before actuarial and accounting firms began to adopt this technology. Wilshire was also among the first to produce investment management tools to create index fund
s, optimize portfolios, construct bond portfolios and measure performance.
In 1981, Wilshire launched its investment consulting business to address the needs of the plan sponsor community providing support for the pensions' investment professionals. Also in the early 1980s, Wilshire began to develop its own investment products. In the late 1980s and early 1990s, Wilshire began to expand its investment activities into private market investments creating a series of private equity
and venture capital
product offerings.
In 2003, Wilshire was targeted by New York State Attorney General Elliot Spitzer in connection to its trading practices as part of a wide ranging 2003 investigation of mutual funds.
s, endowments
, foundations
, and insurance companies. Wilshire provides consulting services to more than 125 clients with total assets in excess of $800 billion.
of funds solutions for third-party intermediaries servicing retail and institutional investors. Wilshire supports its clients distribution of various white label investment products, acting as an investment advisor or sub-advisor and develops customized products for these clients. Wilshire also provides proprietary manager research capabilities. Among the white label investment products that Wilshire offers are:
and venture capital
funds. Wilshire often structures its investment mandates to meet specific objectives. Wilshire's attempts to select top quartile partnership private equity managers using top down research, a forward calendar to identify top tier general partners, rigorous due diligence of fund commitments
and active portfolio monitoring.
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
firm that offers consulting services, and analytical products and manages fund of funds
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
investment vehicles for a global client base. Wilshire manages capital for more than 600 institutional investors globally representing more than $8 trillion of capital. Wilshire is also known for the creation of the Wilshire 5000 stock index
Wilshire 5000
The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all stocks actively traded in the United States. Currently, the index contains over 4,100 components...
in 1974 and more recently the Wilshire 4500 stock index
Wilshire 4500
The Wilshire 4500 Completion Index, more commonly the Wilshire 4500, is a market capitalization-weighted index of all stocks actively traded in the United States with the exception of the stocks included in the S&P 500 index...
.
Wilshire operates from four business units:
- Wilshire Analytics
- Wilshire Consulting
- Wilshire Funds Management
- Wilshire Private Markets
Wilshire which is headquartered in Santa Monica, California
Santa Monica, California
Santa Monica is a beachfront city in western Los Angeles County, California, US. Situated on Santa Monica Bay, it is surrounded on three sides by the city of Los Angeles — Pacific Palisades on the northwest, Brentwood on the north, West Los Angeles on the northeast, Mar Vista on the east, and...
with offices in the US in New York, Pittsburgh, Chicago and Denver as well as internationally in London, Singapore, Amsterdam, Canberra and Tokyo.
History
Wilshire was founded in 1972 by Dennis TitoDennis Tito
Dennis Anthony Tito is an Italian American engineer and multimillionaire, most widely known as the first space tourist to fund his own trip into space. In mid-2001, he spent nearly eight days in orbit as a crew member of ISS EP-1, a visiting mission to the International Space Station...
who was an early pioneer of applying computer-based technologies to investment applications. Since the early 1970s, the firm developed from a technology firm into an investment management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
operation. In 1974, the firm created its signature Wilshire 5000 Stock index
Wilshire 5000
The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all stocks actively traded in the United States. Currently, the index contains over 4,100 components...
which is a widely-used index of all stocks actively traded in the United States.
Wilshire established an early reputation by creating the first asset/liability model for pension fund
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
s in the 1970s, ten years before actuarial and accounting firms began to adopt this technology. Wilshire was also among the first to produce investment management tools to create index fund
Index fund
An index fund or index tracker is a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market conditions.-Tracking:Tracking can be achieved by trying to hold all of the...
s, optimize portfolios, construct bond portfolios and measure performance.
In 1981, Wilshire launched its investment consulting business to address the needs of the plan sponsor community providing support for the pensions' investment professionals. Also in the early 1980s, Wilshire began to develop its own investment products. In the late 1980s and early 1990s, Wilshire began to expand its investment activities into private market investments creating a series of private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
and venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
product offerings.
In 2003, Wilshire was targeted by New York State Attorney General Elliot Spitzer in connection to its trading practices as part of a wide ranging 2003 investigation of mutual funds.
Wilshire Analytics
Wilshire's Analytics Division provides the firm's investment technology products including desktop applications for investment managers. The Wilshire Quantum Series is Wilshire Analytics' family of software for investment accounting, performance measurement, performance attribution, risk management, portfolio optimization, trade order management, and marketing and client servicing support for multi-currency portfolios.Wilshire Consulting
Wilshire's Consulting division provides investment consulting services including asset allocation, investment structure, manager search and performance measurement to public and corporate pension fundPension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
s, endowments
Financial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
, foundations
Private foundation
A private foundation is a legal entity set up by an individual, a family or a group of individuals, for a purpose such as philanthropy. The Bill & Melinda Gates Foundation is the largest private foundation in the U.S. with over $38 billion in assets...
, and insurance companies. Wilshire provides consulting services to more than 125 clients with total assets in excess of $800 billion.
Wilshire Funds Management
Wilshire Funds Management provides customized hedge fundHedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
of funds solutions for third-party intermediaries servicing retail and institutional investors. Wilshire supports its clients distribution of various white label investment products, acting as an investment advisor or sub-advisor and develops customized products for these clients. Wilshire also provides proprietary manager research capabilities. Among the white label investment products that Wilshire offers are:
- risk-based portfolios;
- target-maturity portfolios;
- multi-manager portfolios;
- global equity and fixed income portfolios; and
- global tactical asset allocationGlobal tactical asset allocationGlobal Tactical Asset Allocation, or GTAA, is a top-down investment strategy that attempts to exploit short-term mis-pricings among a global set of assets...
overlay portfolios.
Wilshire Private Markets
Wilshire's Private Markets division manages in excess of $6.5 billion across a range of fund of funds vehicles dedicated to private equityPrivate equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
and venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
funds. Wilshire often structures its investment mandates to meet specific objectives. Wilshire's attempts to select top quartile partnership private equity managers using top down research, a forward calendar to identify top tier general partners, rigorous due diligence of fund commitments
Private equity fund
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity....
and active portfolio monitoring.
External links
- Wilshire Associates, Inc. (company website)