Developing solutions which offer investors a secure, sustainable stream of income in retirement is a focus of many financial institutions. Wilshire Funds Management (“WFM”) recognizes that these solutions may take various forms, from those that utilize traditional mutual fund structures and offer the investor a focus on portfolio yield, to those that eliminate individual product constraints to offer an investment framework moving beyond asset allocation to include insurance-based solutions.
Regardless of your firm's product opportunity set, WFM can work with your organization to develop a sophisticated investment solution to meet the needs of the income-oriented investor. We work with your product development team to determine products that are to be included, the investment vehicles available, and the desired level of sophistication and complexity. To develop the recommended asset allocation policy for the model portfolios, WFM uses an income-aware, surplus optimization framework. Once the asset allocation models are developed, the portfolios are simulated to determine their likelihood of funding the desired income security objectives.