SANTA MONICA, Calif.--(BUSINESS WIRE)--Wilshire Associates Incorporated (Wilshire®) today announced the launch of five additional liquid alternative indices. Together, these five indices comprise the Wilshire Liquid Alternative Index, which was introduced in early August and designed to serve as the industry standard for measuring aggregate performance of the liquid alternative mutual fund universe. The new indices aim to provide relevant and precise performance assessment metrics for the most common liquid alternative investment strategies that are implemented in mutual fund vehicles.
The additional suite of targeted indices includes the Wilshire Liquid Alternative Equity Hedge Index℠, Wilshire Liquid Alternative Event Driven Index℠, Wilshire Liquid Alternative Global Macro Index℠, Wilshire Liquid Alternative Relative Value Index℠ and the Wilshire Liquid Alternative Multi-Strategy Index℠.
The new offering leverages the intellectual capital of two distinct Wilshire business units: Wilshire Funds Management and Wilshire Analytics. Wilshire Funds Management, the investment management arm of the firm that works with financial intermediaries globally, advises on over $150 billion in assets, including traditional and alternative investment strategies. Wilshire Analytics is the technology foundation of Wilshire and creator of the Wilshire 5000®, the most comprehensive measure of the U.S. stock market.
A key driver for development of the Wilshire Liquid Alternatives Index family is the wide disparity and lack of common framework when benchmarking liquid alternative investment strategies. Upon review of fund prospectuses for the liquid alternative universe, Wilshire Manager Research concluded that the benchmarks most often used include hedge fund indices, cash and traditional market indices. Each of these approaches falls short of providing a relevant performance metric for liquid alternative investment strategies.
“Having first gone through an in-depth process to build a comprehensive liquid alternative mutual fund space that categorizes funds based on our assessment of the strategy they are running, we are able to create strategy-specific indices that align with what managers are actually doing,” said Jason Schwarz, president of Wilshire Funds Management. “These five new indices mirror industry-accepted hedge fund categories, but use an apples-to-apples approach given that the underlying index constituents are mutual funds as opposed to hedge funds.
“As the liquid alternatives mutual fund segment continues to expand and mature, new tools are needed to ensure that investment managers and financial advisors are able to bucket, assess and communicate performance of the most common liquid alternative investment strategies,” Schwarz added.
“We are thrilled to introduce the next series of liquid alternatives indices to our broad market standard. The gap in the marketplace is clear, and we believe Wilshire is uniquely positioned to leverage its rich history and combined assets to help pioneer a path toward a relevant market standard in a quickly evolving space,” said Cecilia Loo, president of Wilshire Analytics.
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, providing revolutionary technology and acting as an early innovator in the application of investment analytics and research to investment managers in 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 Index and became an early innovator in creating integrated asset/liability analysis/simulation models as well as practical models in risk budgeting through beta and active risk analysis. Wilshire has grown to a firm of more than 300 employees serving the needs of investors around the world.
Based in Santa Monica, California, Wilshire provides services to clients in more than 20 countries representing more than 500 organizations with assets totaling approximately US $7 trillion.* 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® and Wilshire 5000® are registered service marks of Wilshire Associates Incorporated. Wilshire 5000 Total Market Index℠, Wilshire US Micro-Cap Index℠, Wilshire US Large-Cap Value Index℠, Wilshire US Large-Cap Growth Index℠, Wilshire US Small-Cap Growth Index℠ and Wilshire US Small-Cap Value Index℠, Wilshire US Real Estate Securities Index℠ and Wilshire exUS Real Estate Securities Index℠ are service marks of Wilshire Associates Incorporated.
Please visit www.wilshire.com for more information.
*Client assets are as represented by Pensions and Investments (detailed in “P&I’s Top 1,000 Largest Retirement Plans” and “P&I’s Largest Money Managers Directory 2013” as of 9/30/12 and 12/31/12, and published 2/4/13 and 5/27/13, respectively).