THE WILSHIRE RETURNS
Wilshire Associates to Market the Original Wilshire 5000 IndexSM and the Wilshire Index Family that Spans the Globe
SANTA MONICA, Calif., April 1, 2009 -- Wilshire Associates Incorporated, a leading
global independent investment consulting and services firm, today announced that it will
once again market the original Wilshire 5000 Total Market IndexSM which was developed
in 1974 by its Chairman and Chief Executive Officer, Dennis A. Tito.
As of April 1, only Wilshire® will have the authorization to provide history back to
December 31, 1970 for the original Wilshire 5000SM which will be broadcast in real time
to data vendors using the symbol W5000. The Wilshire family of indexes spans the
globe and includes U.S. Size/Style, U.S. and Global Real Estate, as well as indexes
representing 65 countries and regional, developed and emerging markets indexes.
"Now widely considered the best way to track the U.S. equities market and estimate
market value changes, the Wilshire 5000 was not developed to create licensed products,
generate media coverage or support other indexes," noted Tito. "Beginning with the
Wilshire 5000, each Wilshire Index was created to assist our investment professionals
and clients to measure, understand and explain the market. That is why the Wilshire
Index family reflects Wilshire's performance measurement heritage as the right way to
measure the market," he said.
"The rules governing the construction of the Wilshire Indexes were not driven by what
was easy, sampled, sounded exciting, or imposed arbitrary rules and cutoffs. Each
Wilshire index has a reason as to why it was created to measure a section of the market,"
Tito commented. "For example in 1974, we were calculating betas and developing asset
allocation tools. We found that a market proxy of 500 stocks missed a significant part of
the investment performance story and fell short as a basis for risk measurement and
diversification. We had the data and the performance software, and created the Wilshire
5000," Tito stated.
"Several years later it became useful to separate the Wilshire 5000 into two parts. We
eliminated the 500 stocks in the S&P 500 Index and what was left became a new index,
called the Wilshire 4500SM," David Hall, senior managing director of Wilshire
Associates and head of Wilshire Equity Analytics, a division of Wilshire Analytics, the
investment technology business of the firm. "This greatly assisted money managers and
fund sponsors in more effectively and accurately benchmarking portfolio performance.
Continuing on that track, in 1986, Wilshire introduced a multi-factor style measurement
metric and associated style indexes to quantify portfolios' growth, value and size
characteristics based on its holdings," he added.
"Wilshire's number one requirement for all Wilshire Indexes is that they are the best
measure of the market. We know we have achieved this goal as our research confirms it
and index providers continue to follow our lead," said Robert Waid, vice president,
Wilshire Associates, and head of Wilshire Indexes. "Our mandate as an index provider is
to measure and describe the market in ways that are meaningful and important to
investment professionals worldwide. We are confident that the Wilshire Index Family
provides the best measure of equities markets spanning the globe," Waid concluded.
For more information on the Wilshire index family contact
WilshireIndexes@wilshire.com or visit www.wilshire.com/Indexes.
About Wilshire Associates
Wilshire Associates, a leading global, independent investment consulting and services
firm, provides consulting services, analytics solutions and customized investment
products to plan sponsors, investment managers and financial intermediaries. Its business
units include, Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and
Wilshire Private Markets.
The firm was founded in 1972, revolutionizing the industry by pioneering the application
of investment analytics and research to investment management for the institutional
marketplace. Wilshire also is credited with helping to develop the field of quantitative
investment analysis that uses mathematical tools to analyze market risks. All other
business units evolved from Wilshire's strong analytics foundation.
Wilshire developed the Wilshire 5000 Total Market IndexSM, the first asset/liability
models for pension funds, the first U.S. equity style metrics work and many other "firsts"
as the firm grew to approximately 350 employees serving the investment needs of
institutional and high net worth clients around the world.
Based in Santa Monica, California, Wilshire provides services to clients in more than 20
countries representing approximately 600 organizations. With ten offices on four
continents, Wilshire Associates and its affiliates are dedicated to providing clients with
the highest quality counsel, products and services. Wilshire is a registered service mark
of Wilshire Associates Incorporated. Please visit www.wilshire.com for more
information.
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