Unlike many investment advisors, Wilshire Associates Inc. offers both investment technology and investment advisory services. This approach stems from the founder's vision to merge actuarial science with investment principles.
Wilshire is a fee-based firm headquartered in Santa Monica, California. The financial advisor firm has more than $72.7 billion in AUM with close to 90 advisors serving more than $516,000 accounts. The firm works with a range of clients, and it offers a global presence, with locations in Pittsburgh, Denver, Singapore, New Jersey, Chicago and London.
Wilshire Associates Background
Wilshire functions as an investment technology and advisory firm founded in 1972 by co-founder and current CEO Dennis A. Tito. The firm has multiple businesses it uses to carry out its financial and investment solutions. These include Wilshire Consulting, Wilshire Analytics, Wilshire Private Markets and Wilshire Funds Management.
The firm’s management includes president and vice chairman of the board of directors, John C. Hindman, chief compliance officer (CCO) Benkai E.H. Bouey, chief investment officer and managing director of Wilshire Funds Management, Joshua M. Emanuel; president of Wilshire Consulting Andrew H. Junkin, general counsel Reena S. Lalji, managing director of Wilshire Consulting Maggie Ralbovsky; president of Wilshire Funds Management and Wilshire Analytics Jason A. Schwarz and managing director of Wilshire Private Markets William van Eesteren.
Wilshire Associates Client Types and Minimum Account Sizes
Wilshire Associates primarily serves an array of institutional clients, but the firm also serves non-high-net-worth and high-net-worth individuals. Its institutional clients include trusts, estates, pension and profit sharing plans, charitable organizations, corporations and retirement plans. Firm professionals may also advise U.S. or foreign government entities, public international organizations, state or municipal government entities, investment limited partnerships and other investment vehicles.
The firm’s account minimum size requirement varies depending on client type. Wilshire’s minimum account size requirement for institutions ranges from $1 million to $50 million. The firm doesn’t specify the account minimums for retail investors.
Services Offered by Wilshire Associates
Wilshire offers its clients a range of discretionary and non-discretionary advisory services, including:
- Portfolio Management
- Financial planning
- Pension consulting
- Selection of other advisors
Wilshire Associates Investment Philosophy
Wilshire Associates describes on its firm brochure that it believes asset allocation has the greatest impact on long-term returns. As part of its investment process, the firm utilizes its version of an integrated asset/liability modeling technique. Wilshire Associates also uses risk management and portfolio optimization models.
Wilshire Associates says on its website that its mission is to provide innovative investment solutions and unbiased, independent investment guidance to investors on a global level.
Wilshire Associates Fees
The firm’s management fees vary based on account type, and Wilshire Associates separates these fees by division. The management fees for Wilshire Analytics range from 1 to 25 basis points on AUM. Wilshire Consulting’s services present a range of different fees. For non-discretionary advisory services, the firm receives an annual fixed retainer fee between $35,000 and $4 million. Wilshire receives 10 to 65 basis points on AUM for discretionary advisory services, while its actuarial services fees range from $10,000 to $500,000.
Wilshire Private Markets charges a management fee between 50 and 100 basis points for separate account management. For pooled investment vehicles, the firm charges a percentage of the vehicle's invested capital. Wilshire Funds Management charges fixed retainer fees that range from $100,000 to $5 million, and the firm charges asset-based fees that range from 5 to 50 basis points.
Wilshire generally bills fees on a monthly or quarterly basis.
|*Estimated investment management fees do not include brokerage, custodial, third-party manager or other fees, which can vary in amount. Fee amounts are based on the Wilshire Analytics fee percentage range of .01% to 0.25%.|
|Estimated Investment Management Fees at Wilshire Associates*|
|Your Assets||Wilshire Associates Fee Amount|
|$500K||$50 - $1,250|
|$1MM||$100 - $2,500|
|$5MM||$500 - $12,500|
|$10MM||$1000 - $25,000|
What to Watch Out For
This firm doesn’t have any disclosures. Firm professionals can earn additional compensation through performance fees, creating a conflict of interest if advisors favor accounts they think will earn them higher compensation. While performance fees make such conflicts likely, the firm’s fiduciary duty ensures each client’s needs are prioritized.
Opening an Account With Wilshire Associates
Prospective clients have a few options for opening an account with Wilshire. You can either visit any of the firm’s offices, or you can call to set up an appointment with an advisor. If you’re interested in opening an account at the Santa Monica office, you can contact the firm at 310-451-3051.
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All information was accurate as of the writing of this article.