Investment Consulting

Asset Allocation

Wilshire Consulting believes that strategic asset allocation is the key to a successful investment program. Industry research and our experience indicate that the asset allocation decision has the greatest impact on a portfolio’s long-term return and risk profile. Wilshire embraced this important concept in the 1970s when we became an early innovator in creating integrated asset/liability models. Since that time, Wilshire has added to its asset allocation credentials by performing thousands of asset allocation studies and continually evaluating and enhancing our methodology.

Defined Benefit Plans: Wilshire utilizes proprietary optimization methodologies (as well as existing techniques, such as mean-variance and surplus optimization) to select a comprehensive set of efficient policy portfolios. The optimal policy portfolio is a function of an institution’s current financial condition, tolerance for various risks, overall investment objectives, liquidity needs, unique considerations with respect to plan design or participants, and available capital market opportunities.

Foundations and Endowments: Investment policies are derived from a review of a plan’s spending policy, contribution expectations, and financial projections. Policies are identified that maximize the probability that the foundation can continue to support the causes to which it is dedicated.

Other Asset Pools: Wilshire’s optimization methodologies can also be applied to defined contribution plans, insurance funds, operating asset pools, and sovereign wealth funds.

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