Risk management is the basis of Wilshire’s consulting philosophy. Wilshire was a thought leader in developing risk budgeting tools. This is evidenced in our investment structure model, a tool we have used for over 10 years, where the inputs are excess returns, excess risk and excess correlations and the objective is to develop portfolios with high information ratios (i.e., risk-adjusted returns). Because we have powerful proprietary analytics, we can implement risk budgeting and risk management at a more granular, holdings-based level. Our holdings-based style map is evidence of this as is our ability to model individual bonds.
Over our 30-year history, Wilshire Consulting has worked with clients to identify those risks that will not be systematically rewarded (e.g., equity style and size biases, fixed income interest rate bets) and then to implement structures which would help minimize or eliminate those risks. We believe the strength of our risk assessment capabilities is our ability to independently evaluate portfolios without relying on manager provided information to know the true drivers of results.
As a leader in risk management and analytics, Wilshire was early innovators to provide a factor-based, multi-asset risk management systems to the institutional marketplace in 2000. Since that time, Wilshire has continued to develop state of the art risk management technologies and conceptual frameworks that specifically support a disciplined investment process for plan sponsors. This combination of our risk management expertise and our technical ability to deliver a plan-wide risk management system specifically supports our risk management initiatives for plan sponsors.
The Wilshire iQuantumSM is an integrated performance measurement, performance attribution and risk management solution for multi-currency, multi-asset class portfolios. Wilshire iQuantum is built on the foundation of more than three decades of Wilshire's sophisticated analytical models to provide the most robust attribution and risk analytics in the investment industry. Building on the success of the popular Quantum suite, Wilshire iQuantum assists firms with portfolio analysis, management and reporting.
The Wilshire Compass is a PC-based fund management and consulting tool which combines Wilshire's comprehensive databases with sophisticated investment technology developed at Wilshire during the past 35+ years. Wilshire Compass is unique in that it provides users with the tools necessary to address all aspects of a disciplined investment process in one complete system.