UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-07076
WILSHIRE MUTUAL FUNDS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
WILSHIRE ASSOCIATES INCORPORATED
1299 OCEAN AVENUE, SUITE 700
SANTA MONICA, CA 90401-1085
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
LAWRENCE DAVANZO, PRESIDENT
1299 OCEAN AVENUE, SUITE 700
SANTA MONICA, CA 90401-1085
(NAME AND ADDRESS OF AGENT FOR SERVICE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 310-260-6639
DATE OF FISCAL YEAR END: DECEMBER 31
DATE OF REPORTING PERIOD: DECEMBER 31, 2008
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
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[LOGO] WILSHIRE MUTUAL FUNDS
ANNUAL REPORT
LARGE COMPANY GROWTH PORTFOLIO
LARGE COMPANY VALUE PORTFOLIO
SMALL COMPANY GROWTH PORTFOLIO
SMALL COMPANY VALUE PORTFOLIO
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO
WILSHIRE LARGE CAP CORE 130/30 FUND
DECEMBER 31, 2008
--------------------
www.wilfunds.com
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WILSHIRE MUTUAL FUNDS, INC.
Shareholder Letter ....................................................... 1
Commentary:
Large Company Growth Portfolio ........................................ 3
Large Company Value Portfolio ......................................... 7
Small Company Growth Portfolio ........................................ 11
Small Company Value Portfolio ......................................... 15
Dow Jones Wilshire 5000 Index Portfolio ............................... 19
Wilshire Large Cap Core 130/30 Fund ................................... 25
Disclosure of Fund Expenses .............................................. 29
Condensed Schedules of Investments:
Large Company Growth Portfolio ........................................ 32
Large Company Value Portfolio ......................................... 34
Small Company Growth Portfolio ........................................ 36
Small Company Value Portfolio ......................................... 38
Dow Jones Wilshire 5000 Index Portfolio ............................... 40
Schedule of Investments:
Wilshire Large Cap Core 130/30 Fund ................................... 42
Schedule of Securities Sold Short:
Wilshire Large Cap Core 130/30 Fund ................................... 49
Statements of Assets and Liabilities ..................................... 53
Statements of Operations ................................................. 55
Statements of Changes in Net Assets ...................................... 56
Statement of Cash Flows .................................................. 60
Financial Highlights:
Large Company Growth Portfolio ........................................ 61
Large Company Value Portfolio ......................................... 63
Small Company Growth Portfolio ........................................ 65
Small Company Value Portfolio ......................................... 67
Dow Jones Wilshire 5000 Index Portfolio ............................... 69
Wilshire Large Cap Core 130/30 Fund ................................... 73
Notes to Financial Statements ............................................ 75
Report of Independent Registered Public Accounting Firm .................. 87
Additional Fund Information .............................................. 88
Tax Information .......................................................... 92
Board Approval of Advisory and Subadvisory Agreements .................... 94
------------------------------------
THIS REPORT IS FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF LARGE COMPANY
GROWTH PORTFOLIO, LARGE COMPANY VALUE PORTFOLIO, SMALL COMPANY GROWTH PORTFOLIO,
SMALL COMPANY VALUE PORTFOLIO, DOW JONES WILSHIRE 5000 INDEX PORTFOLIO AND
WILSHIRE LARGE CAP CORE 130/30 FUND. ITS USE IN CONNECTION WITH ANY OFFERING OF
A PORTFOLIO'S SHARES IS AUTHORIZED ONLY IF ACCOMPANIED OR PRECEDED BY THE
PORTFOLIO'S CURRENT PROSPECTUS.
Wilshire Mutual Funds, Inc. are distributed by SEI Investments Distribution Co.
Dear Wilshire Mutual Funds Shareholder:
We are pleased to present the 2008 Annual Report to all shareholders of the
Wilshire Mutual Funds, Inc., (the "Fund"). This report covers the twelve month
period ended December 31, 2008 (the "Period"), for all share classes of the
Large Company Growth, Large Company Value, Small Company Growth, Small Company
Value, Large Cap Core 130/30 and Dow Jones Wilshire 5000 Index Portfolio.
MARKET ENVIRONMENT
As 2008 came to a close, investors learned the unsurprising news that the U.S.
has been in a recession since December 2007. This announcement was mirrored in
2008's GDP, which was negative three out of four quarters and ended the fourth
quarter with a 3.8% decline. Real economic growth was 1.3% this year and CPI
rose 0.1%, the smallest calendar year increase since 1954. Unemployment reached
6.7%, the highest level since 1993, and the housing market continued to struggle
with the S&P Case-Shiller 20-city index down (18)% in October from a year
earlier. Crude oil futures swung wildly in 2008, peaking at $145 a barrel in
July and ending the year under $40 a barrel.
2008 marked one of the most challenging periods for equity investors in memory.
The broad U.S. stock market, as measured by the Dow Jones Wilshire 5000SM,
retreated 37%, marking its worst year since 1931. The financial consequences
stemming from the housing crisis permeated every segment of the domestic equity
market this year and no sector was spared. Iconic, blue chip companies like AIG
and General Electric suffered huge losses in 2008, and generally speaking large
companies underperformed their smaller counterparts for the year. As 2008
progressed and general financial conditions worsened, investors reevaluated
their positions and scaled back growth expectations. As a result, growth
companies fell harder than value companies for the year. Several cyclical
sectors were among the worst hit in 2008, notably Financials, Energy, and
Materials. Less cyclical sectors such as Health Care benefited from investors'
gradual shift into a more defensive posture.
Trends witnessed over the past several years in international stock performance
were reversed in 2008 as international equities underperformed U.S. stocks for
the year. Developed non-U.S. markets returned (43)% in 2008, as measured by the
MSCI EAFE index, characteristic of the deteriorating economic and investor
sentiments within these global markets. Worse yet was the performance of fast
growing emerging markets. In recent years emerging markets, led by the BRICs
(Brazil, Russia, India, and China), have enjoyed rapid economic development and
expanding international trade. The global slowdown of 2008 however cast a dark
cloud of uncertainty over the future growth prospects of these economies and for
the year the MSCI Emerging Market index suffered a loss of (53)%.
1
FUND PERFORMANCE OVERVIEW*
The panic and indiscriminate selling of stocks that characterized 2008
significantly impacted our funds' performance and resulted in all of our funds'
asset values declining for the year. The fundamental principle of investing in
high quality companies was eroded in the rush to raise liquidity in 2008, and
when confronted with this irrational and challenging environment our funds
underperformed their respective benchmarks. Although we are disappointed by the
performance of the market and our funds, we are encouraged by the activities of
our subadvisors who continue to follow through with the disciplined investment
approaches that have made them successful. While the immediate terrain our
subadvisors must navigate will be challenging, their confidence and conviction
remains intact. It is our belief that as markets begin the healing process in
2009, it will be the patient and disciplined investors who will be rewarded on
the upside.
As always, we sincerely appreciate your continued support and confidence in
Wilshire Associates.
Sincerely,
/s/ Lawrence E. Davanzo
Lawrence E. Davanzo
President
* THE PERFORMANCE STATED IS FOR INVESTMENT CLASS SHARES. THE PERFORMANCE
DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE
RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE QUOTED TO
THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO
THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
2
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LARGE COMPANY GROWTH PORTFOLIO [LOGO]
COMMENTARY
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INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 ....................................... (41.88)%
FIVE YEARS ENDED 12/31/08 ..................................... (3.86)%
TEN YEARS ENDED 12/31/08 ...................................... (2.63)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF LARGE
COMPANY GROWTH PORTFOLIO AND THE RUSSELL 1000 GROWTH INDEX THROUGH 12/31/08.
[LINE GRAPH]
Initial Investment Date 12/31/98 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Wilshire Large Company Growth Portfolio,
Investment Class $10,000 $13,395 $11,307 $9,431 $7,378 $9,330 $ 9,955 $10,797 $11,332 $13,183 $7,662
Russell 1000 Growth Index $10,000 $13,316 $10,330 $8,220 $5,928 $7,692 $ 8,176 $ 8,607 $ 9,387 $10,496 $6,462
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
RUSSELL 1000 GROWTH INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF
THE LARGEST 1,000 U.S. COMPANIES WITH HIGH PRICE-TO-BOOK RATIOS AND HIGH
FORECASTED GROWTH VALUES. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE
PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES,
TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT
INVEST DIRECTLY IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION
THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF
PORTFOLIO SHARES.
THE PORTFOLIO'S INVESTMENT CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.43% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, there were no waivers. Without such waivers
and reimbursements, historical total returns would have been lower.
3
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LARGE COMPANY GROWTH PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
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INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 ....................................... (41.70)%
FIVE YEARS ENDED 12/31/08 ..................................... (3.51)%
TEN YEARS ENDED 12/31/08 ...................................... (2.30)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF
LARGE COMPANY GROWTH PORTFOLIO AND THE RUSSELL 1000 GROWTH INDEX
THROUGH 12/31/08.
[LINE GRAPH]
Initial Investment Date 12/31/98 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Wilshire Large Company Growth Portfolio
Institutional Class $10,000 $13,431 $11,376 $9,518 $7,466 $9,470 $10,143 $11,039 $11,630 $13,584 $7,920
Russell 1000 Growth Index $10,000 $13,316 $10,330 $8,220 $5,928 $7,692 $ 8,176 $ 8,607 $ 9,387 $10,496 $6,462
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
RUSSELL 1000 GROWTH INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF
THE LARGEST 1,000 U.S. COMPANIES WITH HIGH PRICE-TO-BOOK RATIOS AND HIGH
FORECASTED GROWTH VALUES. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE
PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES,
TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT
INVEST DIRECTLY IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION
THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF
PORTFOLIO SHARES.
THE PORTFOLIO'S INSTITUTIONAL CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.06% AS
OF 12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, there were no waivers. Without such waivers
and reimbursements, historical total returns would have been lower.
4
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LARGE COMPANY GROWTH PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
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2008 was a difficult year for equities and no style or size segment of the
market was immune to the wreckage of the financial crisis. Growth stocks
slightly underperformed their value counterparts for the year. Large growth
stocks underperformed large value stocks by 1.58% in 2008 as the Russell 1000
Value Index returned (36.85)% and the Russell 1000 Growth Index returned
(38.43)%. In an environment driven by panic selling and disregard to
fundamentals, Investment Class shares of the Large Company Growth Fund
experienced notable headwind and returned (41.88)% for the year, underperforming
its benchmark by 3.45%.
The Large Company Growth Fund's performance for the year was hampered by both
sector allocation and stock selection decisions. An underweight to the consumer
staples sector hurt performance as that sector was the best performer for the
year. Stock selection in industrials and information technology sectors also
hurt performance as the holdings in solid franchises such as Apple and Research
in Motion performed poorly. On the positive end, the Fund's overweight to the
defensive healthcare sector helped performance.
Although we are disappointed by the performance of the market and the Fund, we
are encouraged by the activities of our subadvisors who continue to follow
through with the disciplined investment approaches that have made them
successful. It is our belief that as markets begin the healing process, it will
be the patient and disciplined investors who will be rewarded on the upside.
The performance data quoted represents past performance and does not guarantee
future results. Current performance may be lower or higher. Performance data
current to the most recent month end may be obtained at www.wilfunds.com. The
investment return and principal value of an investment will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
Portfolio holdings subject to change. The Russell 1000 Growth Index is an
unmanaged index that measures the performance of the largest 1,000 companies
with high price-to-book ratios and high forecasted growth values. Index
performance is presented for general comparative purposes. Unlike a mutual fund,
the performance of an index assumes no taxes, transaction costs, management fees
or other expenses. An individual cannot invest directly in any index.
5
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LARGE COMPANY GROWTH PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
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PORTFOLIO SECTOR WEIGHTING*
(As of December 31, 2008)
[PIE CHART]
INVESTMENT COMPANY 0.4%
INFORMATION TECHNOLOGY 28.0%
HEALTH CARE 18.4%
INDUSTRIALS 11.3%
CONSUMER STAPLES 10.5%
CONSUMER DISCRETIONARY 9.9%
ENERGY 8.9%
FINANCIALS 6.8%
MATERIALS 3.9%
UTILITIES 1.2%
TELECOMMUNICATIONS SERVICES 0.7%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL LONG-TERM MARKET VALUE.
6
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LARGE COMPANY VALUE PORTFOLIO [LOGO]
COMMENTARY
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INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 ....................................... (41.55)%
FIVE YEARS ENDED 12/31/08 ..................................... (3.49)%
TEN YEARS ENDED 12/31/08 ...................................... (0.42)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF
LARGE COMPANY VALUE PORTFOLIO AND THE RUSSELL 1000 VALUE INDEX THROUGH 12/31/08.
[LINE GRAPH]
Initial Investment Date 12/31/98 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Wilshire Large Company Value Portfolio
Investment Class $10,000 $ 9,319 $10,900 $10,767 $8,912 $11,452 $12,973 $14,127 $16,740 $16,406 $ 9,589
Russell 1000 Value Index $10,000 $10,735 $11,488 $10,845 $9,162 $11,913 $13,878 $14,857 $18,162 $18,130 $11,450
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
RUSSELL 1000 VALUE INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF
THE LARGEST 1,000 U.S. COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER
FORECASTED GROWTH VALUES. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE
PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES,
TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT
DIRECTLY INVEST IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION
THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF
PORTFOLIO SHARES.
THE PORTFOLIO'S INVESTMENT CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.49% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, there were no waivers. Without such waivers
and reimbursements, historical total returns would have been lower.
7
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LARGE COMPANY VALUE PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 .................................. (41.41)%
FIVE YEARS ENDED 12/31/08 ................................ (3.25)%
TEN YEARS ENDED 12/31/08 ................................. (0.16)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF
LARGE COMPANY VALUE PORTFOLIO AND THE RUSSELL 1000 VALUE INDEX THROUGH 12/31/08.
[LINE GRAPH]
Initial Investment Date 12/31/98 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Wilshire Large Company Value Portfolio
Institutional Class $10,000 $ 9,344 $10,959 $10,855 $9,006 $11,603 $13,183 $14,393 $17,119 $16,790 $ 9,837
Russell 1000 Value Index $10,000 $10,735 $11,488 $10,845 $9,162 $11,913 $13,878 $14,857 $18,162 $18,130 $11,450
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
RUSSELL 1000 VALUE INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF
THE LARGEST 1,000 U.S. COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER
FORECASTED GROWTH VALUES. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE
PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES,
TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT
DIRECTLY INVEST IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION
THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF
PORTFOLIO SHARES.
THE PORTFOLIO'S INSTITUTIONAL CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.30% AS
OF 12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, there were no waivers. Without such waivers
and reimbursements, historical total returns would have been lower.
8
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LARGE COMPANY VALUE PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
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2008 was a difficult year for equities and no style or size segment of the
market was immune to the wreckage of the financial crisis. Value stocks slightly
outperformed their growth counterparts for the year. Large value stocks
outperformed large growth stocks by 1.58% during the year as the Russell 1000
Value Index returned (36.85)% and the Russell 1000 Growth Index returned
(38.43)%. The Large Company Value fund fell victim to the indiscriminate selling
and investors' disregard to fundamentals and Investment Class shares of the Fund
underperformed the benchmark by 4.70%.
The market was extremely volatile during the year, with the financials sector
representing the eye of the storm. Off (47.8)% for the year, the financial
sector posted the worst performance among the ten major sectors in the market.
The Fund's performance was dragged by financials and consumer cyclical stocks,
which came under pressure as the credit crisis on Wall Street began to spread to
Main Street. Both sector allocation and stock selection decisions affected
performance. Underweighting in the energy sector and overweighting in the
information technology sector detracted from performance. Stock selection in the
energy and materials sectors also hurt performance. Partially offsetting the
underperformance was the Fund's good stock selection in information technology.
Although we are disappointed by the performance of the market and the Fund, we
are encouraged by the activities of our subadvisors who continue to follow
through with the disciplined investment approaches that have made them
successful. It is our belief that as markets begin the healing process, it will
be the patient and disciplined investors who will be rewarded on the upside.
The performance data quoted represents past performance and does not guarantee
future results. Current performance may be lower or higher. Performance data
current to the most recent month end may be obtained at www.wilfunds.com. The
investment return and principal value of an investment will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
Portfolio holdings subject to change. The Russell 1000 Value Index is an
unmanaged index that measures the performance of the largest 1,000 companies
with lower price-to-book ratios and lower forecasted growth values. Index
performance is presented for general comparative purposes. Unlike a mutual fund,
the performance of an index assumes no taxes, transaction costs, management fees
or other expenses. An individual cannot invest directly in any index.
9
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LARGE COMPANY VALUE PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
PORTFOLIO SECTOR WEIGHTING*
(As of December 31, 2008)
[PIE CHART]
INFORMATION TECHNOLOGY 0.7%
FINANCIALS 25.2%
MATERIALS 14.7%
CONSUMER DISCRETIONARY 12.5%
INDUSTRIALS 11.2%
CONSUMER STAPLES 10.0%
ENERGY 9.8%
HEALTH CARE 9.1%
UTILITIES 3.9%
TELECOMMUNICATIONS SERVICES 2.9%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL LONG-TERM MARKET VALUE.
10
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SMALL COMPANY GROWTH PORTFOLIO [LOGO]
COMMENTARY
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INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 ................................ (39.13)%
FIVE YEARS ENDED 12/31/08 .............................. (2.33)%
TEN YEARS ENDED 12/31/08 ............................... 1.62%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF
SMALL COMPANY GROWTH PORTFOLIO AND THE RUSSELL 2000 GROWTH INDEX THROUGH
12/31/08.
[LINE GRAPH]
Initial investment Date 12/31/98 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Wilshire Small Company Growth Fund,
Investment Class $10,000 $11,443 $11,556 $11,203 $9,641 $13,210 $15,485 $16,023 $17,805 $19,293 $11,743
Russell 2000 Growth Index $10,000 $14,309 $11,100 $10,075 $7,026 $10,437 $11,930 $12,426 $14,084 $15,076 $ 9,266
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
RUSSELL 2000 GROWTH INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF
THE 2,000 SMALLEST U.S. COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER
FORECASTED GROWTH VALUES. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE
PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES,
TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT
INVEST DIRECTLY IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION
THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF
PORTFOLIO SHARES.
THE PORTFOLIO'S INVESTMENT CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.47% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, fees totaling 0.60% of average net assets
were waived and reimbursed. Without such waivers and reimbursements, total
returns since inception would have been lower.
11
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SMALL COMPANY GROWTH PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 ................................ (39.17)%
FIVE YEARS ENDED 12/31/08 .............................. (2.12)%
TEN YEARS ENDED 12/31/08 ............................... 1.84%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF
SMALL COMPANY GROWTH PORTFOLIO AND THE RUSSELL 2000 GROWTH INDEX THROUGH
12/31/08.
[LINE GRAPH]
Initial investment Date 12/31/98 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Wilshire Small Company Growth Portfolio
Istitutional Class $10,000 $11,469 $11,616 $11,289 $9,723 $13,350 $15,694 $16,292 $18,159 $19,717 $11,995
Russell 2000 Growth Index $10,000 $14,309 $11,100 $10,075 $7,026 $10,437 $11,930 $12,426 $14,084 $15,076 $ 9,266
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
RUSSELL 2000 GROWTH INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF
THE 2,000 SMALLEST U.S. COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER
FORECASTED GROWTH VALUES. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE
PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES,
TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT
INVEST DIRECTLY IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION
THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF
PORTFOLIO SHARES.
THE PORTFOLIO'S INSTITUTIONAL CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.24% AS
OF 12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, fees totaling 0.54% of average net assets
were waived and reimbursed. Without such waivers and reimbursements, total
returns since inception would have been lower.
12
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
2008 was a difficult year for equities and no style or size segment of the
market was immune to the wreckage of the current financial crisis. Both large
cap companies and small cap companies posted negative returns for the year,
small companies outperformed large cap stocks by 3.81%. The Russell 2000 Index
returned (33.79)% while the Russell 1000 was down (37.60)%. Within the small
companies universe, small growth stocks experienced more losses -- the Russell
2000 Growth Index returned (38.53)% versus the Russell 2000 Value Index's
(28.93)% return. During this challenging period, Investment Class shares of the
Small Company Growth fund returned (39.13)% for the year, slightly behind the
benchmark.
The Fund's performance was attributable to a combination of stock selection and
sector allocation decisions. Both a relative overweight and stock selection in
the energy sector detracted from performance. The drastically declining investor
sentiment toward rapidly growing small companies contributed to poor market
performance of a handful of energy companies held in the fund. On the positive
end, the Fund added value from its strong stock selection within the consumer
discretionary sector by not owning the hardest hit names such as J.Crew and
Tempur Pedic.
Although we are disappointed by the performance of the market and the Fund, we
are encouraged by the activities of our subadvisors who continue to follow
through with the disciplined investment approaches that have made them
successful. It is our belief that as markets begin the healing process, it will
be the patient and disciplined investors who will be rewarded on the upside.
The performance data quoted represents past performance and does not guarantee
future results. Current performance may be lower or higher. Performance data
current to the most recent month end may be obtained at www.wilfunds.com. The
investment return and principal value of an investment will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost. Small
company stocks may be subject to a higher degree of market risk than the
securities of more established companies because they tend to be more volatile
and less liquid. Portfolio holdings subject to change. The Russell 2000 Growth
Index is an unmanaged index that measures the performance of the 2,000 smallest
U.S. companies with higher price-to-book ratios and higher forecasted growth
values. Index performance is presented for general comparative purposes. Unlike
a mutual fund, the performance of an index assumes no taxes, transaction costs,
management fees or other expenses. An individual cannot invest directly in any
index.
13
- --------------------------------------------------------------------------------
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
PORTFOLIO SECTOR WEIGHTING*
(As of December 31, 2008)
[PIE CHART]
PREFERRED STOCK 0.1%
HEALTH CARE 30.6%
INDUSTRIALS 19.2%
INFORMATION TECHNOLOGY 19.1%
CONSUMER DISCRETIONARY 10.8%
FINANCIALS 8.0%
ENERGY 7.3%
TELECOMMUNICATIONS SERVICES 1.8%
CONSUMER STAPLES 1.5%
MATERIALS 1.1%
UTILITIES 0.5%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL LONG-TERM MARKET VALUE.
14
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO [LOGO]
COMMENTARY
- --------------------------------------------------------------------------------
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 ....................................... (32.81)%
FIVE YEARS ENDED 12/31/08 ..................................... 0.09%
TEN YEARS ENDED 12/31/08 ...................................... 3.92%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF
SMALL COMPANY VALUE PORTFOLIO AND THE RUSSELL 2000 VALUE INDEX THROUGH 12/31/08.
[LINE GRAPH]
Initial Investment Date 12/31/98 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Wilshire Small Company Value Portfolio
Investment Class $10,000 $8,780 $ 9,936 $11,648 $10,718 $14,620 $17,950 $18,921 $22,638 $21,856 $14,686
Russell 2000 Value Index $10,000 $9,851 $12,100 $13,797 $12,221 $17,845 $21,815 $22,842 $28,205 $25,448 $18,087
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
RUSSELL 2000 VALUE INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF
THE 2,000 SMALLEST U.S. COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER
FORECASTED GROWTH VALUES. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE
PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES,
TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT
INVEST DIRECTLY IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION
THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF
PORTFOLIO SHARES.
THE PORTFOLIO'S INVESTMENT CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.34% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, fees totaling 0.60% of average net assets
were waived and reimbursed. Without such waivers and reimbursements, total
returns since inception would have been lower.
15
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08........................................ (32.37)%
FIVE YEARS ENDED 12/31/08...................................... 0.46%
TEN YEARS ENDED 12/31/08....................................... 4.24%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF
SMALL COMPANY VALUE PORTFOLIO AND THE RUSSELL 2000 VALUE INDEX THROUGH 12/31/08.
[LINE GRAPH]
Initial Investment Date 12/31/98 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Wilshire Small Company Value Portfolio
Institutional Class $10,000 $8,799 $ 9,977 $11,728 $10,816 $14,803 $18,224 $19,268 $23,131 $22,394 $15,145
Russell 2000 Value Index $10,000 $9,851 $12,100 $13,797 $12,221 $17,845 $21,815 $22,842 $28,205 $25,448 $18,087
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
RUSSELL 2000 VALUE INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF
THE 2,000 SMALLEST U.S. COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS AND LOWER
FORECASTED VALUES. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE
PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES,
TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT
INVEST DIRECTLY IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION
THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF
PORTFOLIO SHARES.
THE PORTFOLIO'S INSTITUTIONAL CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.00% AS
OF 12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, fees totaling 0.61% of average net assets
were waived and reimbursed. Without such waivers and reimbursements, total
returns since inception would have been lower.
16
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
2008 was a difficult year for equities and no style or size segment of the
market was immune to the wreckage of the current financial crisis. Both large
cap companies and small cap companies posted negative returns for the year,
small companies outperformed large cap stocks by 3.81%. The Russell 2000 Index
returned (33.79)% while the Russell 1000 was off (37.60)%. As investors hastily
overlook any expectation of future growth and emphasize stability, small value
stocks outperformed their small growth counterparts by 9.61% -- the Russell 2000
Value Index returned (28.93)% versus the Russell 2000 Growth Index's (38.53)%
return for the year. Investment Class shares of the Small Company Value Fund
returned (32.81)%, underperforming its benchmark by 3.88%.
The Fund's underperformance is primarily attributable to stock selection within
the energy, industrials, and information technology sectors. On the positive
end, the Fund had strong stock selection in the financial sector. An
underweighting in the economically sensitive consumer discretionary sector also
helped performance as many in this sector sold off during the second half of
year.
While we are disappointed by the performance of the market and the Fund, we are
encouraged by the activities of our subadvisors who continue to follow through
with the disciplined investment approaches that have made them successful. It is
our belief that as markets begin the healing process, it will be the patient and
disciplined investors who will be rewarded on the upside.
The performance data quoted represents past performance and does not guarantee
future results. Current performance may be lower or higher. Performance data
current to the most recent month end may be obtained at www.wilfunds.com. The
investment return and principal value of an investment will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost. Small
company stocks may be subject to a higher degree of market risk than the
securities of more established companies because they tend to be more volatile
and less liquid. Portfolio holdings subject to change. The Russell 2000 Value
Index is an unmanaged index that measures the performance of the 2,000 smallest
U.S. companies with lower price-to-book ratios and lower forecasted growth
values. Index performance is presented for general comparative purposes. Unlike
a mutual fund, the performance of an index assumes no taxes, transaction costs,
management fees or other expenses. An individual cannot invest directly in any
index.
17
- --------------------------------------------------------------------------------
SMALL COMPANY VALUE PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
PORTFOLIO SECTOR WEIGHTING*
(As of December 31, 2008)
[PIE CHART]
FINANCIALS 39.9%
INDUSTRIALS 15.9%
HEALTH CARE 9.1%
INFORMATION TECHNOLOGY 8.8%
CONSUMER DISCRETIONARY 7.3%
MATERIALS 5.1%
ENERGY 4.9%
UTILITIES 4.8%
CONSUMER STAPLES 3.2%
TELECOMMUNICATIONS SERVICES 1.0%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL LONG-TERM MARKET VALUE.
18
- --------------------------------------------------------------------------------
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
COMMENTARY
- --------------------------------------------------------------------------------
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 .................................. (37.11)%
FIVE YEARS ENDED 12/31/08 ................................ (2.41)%
INCEPTION (2/1/99) THROUGH 12/31/08 ...................... (1.72)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF DOW JONES
WILSHIRE 5000 INDEX PORTFOLIO AND THE DOW JONES WILSHIRE 5000 INDEX THROUGH
12/31/08.
[LINE GRAPH]
Initial Investment Date 2/1/99 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Dow Jones Wilshire 5000 Index Portfolio
Investment Class $10,000 $11,853 $10,541 $9,329 $7,340 $9,514 $10,576 $11,171 $12,786 $13,394 $8,423
Dow Jones Wilshire 5000 Index $10,000 $11,918 $10,619 $9,454 $7,482 $9,849 $11,078 $11,785 $13,644 $14,410 $9,044
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
DOW JONES WILSHIRE 5000 INDEX IS AN UNMANAGED INDEX THAT MEASURES THE
PERFORMANCE OF ALL U.S. HEADQUARTERED EQUITY SECURITIES WITH READILY AVAILABLE
PRICE DATA. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES.
UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES, TRANSACTION
COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT INVEST DIRECTLY
IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION THAT A SHAREHOLDER
WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF PORTFOLIO SHARES.
THE PORTFOLIO'S INVESTMENT CLASS ANNUAL OPERATING EXPENSE RATIO IS 0.78% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, there were no waivers. Without such waivers
and reimbursements, total returns since inception would have been lower.
19
- --------------------------------------------------------------------------------
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 .................................. (36.95)%
FIVE YEARS ENDED 12/31/08 ................................ (2.17)%
INCEPTION (2/1/99) THROUGH 12/31/08 ...................... (1.46)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF DOW JONES
WILSHIRE 5000 INDEX PORTFOLIO AND THE DOW JONES WILSHIRE 5000 INDEX THROUGH
12/31/08.
[LINE GRAPH]
Initial Investment Date 2/1/99 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Dow Jones Wilshire 5000 Index Portfolio
Institutional Class $10,000 $11,876 $10,591 $9,399 $7,419 $9,648 $10,764 $11,391 $13,061 $13,711 $8,644
Dow Jones Wilshire 5000 Index $10,000 $11,918 $10,619 $9,454 $7,482 $9,849 $11,078 $11,785 $13,644 $14,410 $9,044
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
DOW JONES WILSHIRE 5000 INDEX IS AN UNMANAGED INDEX THAT MEASURES THE
PERFORMANCE OF ALL U.S. HEADQUARTERED EQUITY SECURITIES WITH READILY AVAILABLE
PRICE DATA. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES.
UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES, TRANSACTION
COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT INVEST DIRECTLY
IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION THAT A SHAREHOLDER
WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF PORTFOLIO SHARES.
THE PORTFOLIO'S INSTITUTIONAL CLASS ANNUAL OPERATING EXPENSE RATIO IS 0.59% AS
OF 12/31/08.
* Assumes reinvestment of distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, there were no waivers. Without such waivers
and reimbursements, total returns since inception would have been lower.
20
- --------------------------------------------------------------------------------
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
QUALIFIED CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 .................................. (37.09)%
FIVE YEARS ENDED 12/31/08 ................................ (2.51)%
INCEPTION (5/10/00) THROUGH 12/31/08 ..................... (3.15)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF DOW JONES
WILSHIRE 5000 INDEX PORTFOLIO AND THE DOW JONES WILSHIRE 5000 INDEX THROUGH
12/31/08.
[LINE GRAPH]
Initial Investment Date 5/25/00 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08
------ ------ ------ ------ ------ ------ ------ ------ ------
Dow Jones Wilshire 5000 Index Portfolio
Qualified Class $10,000 $9,578 $8,471 $6,660 $8,622 $9,581 $10,104 $11,537 $12,071 $7,593
Dow Jones Wilshire 5000 Index $10,000 $9,508 $8,465 $6,699 $8,819 $9,919 $10,552 $12,216 $12,902 $8,098
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
DOW JONES WILSHIRE 5000 INDEX IS AN UNMANAGED INDEX THAT MEASURES THE
PERFORMANCE OF ALL U.S. HEADQUARTERED EQUITY SECURITIES WITH READILY AVAILABLE
PRICE DATA. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES.
UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES, TRANSACTION
COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT INVEST DIRECTLY
IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION THAT A SHAREHOLDER
WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF PORTFOLIO SHARES.
THE PORTFOLIO'S QUALIFIED CLASS ANNUAL OPERATING EXPENSE RATIO IS 0.84% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, there were no waivers. Without such waivers
and reimbursements, total returns since inception would have been lower.
21
- --------------------------------------------------------------------------------
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
HORACE MANN CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 .................................. (37.08)%
FIVE YEARS ENDED 12/31/08 ................................ (2.46)%
INCEPTION (12/10/99) THROUGH 12/31/08 .................... (1.92)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF DOW
JONES WILSHIRE 5000 INDEX PORTFOLIO AND THE DOW JONES WILSHIRE 5000 INDEX
THROUGH 12/31/08.
Initial Investment Date 12/13/99 DEC 99 DEC 00 DEC 01 DEC 02 DEC 03 DEC 04 DEC 05 DEC 06 DEC 07 DEC 08 DEC 09
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Dow Jones Wilshire 5000 Index Portfolio
Horace Mann Class $10,000 $11,865 $10,549 $9,334 $7,345 $9,508 $10,576 $11,156 $12,754 $13,340 $8,393 $8,393
Dow Jones Wilshire 5000 Index $10,000 $10,433 $ 9,296 $8,276 $6,550 $8,622 $ 9,698 $10,316 $11,944 $12,614 $7,917 $7,917
[LINE GRAPH]
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
DOW JONES WILSHIRE 5000 INDEX IS AN UNMANAGED INDEX THAT MEASURES THE
PERFORMANCE OF ALL U.S. HEADQUARTERED EQUITY SECURITIES WITH READILY AVAILABLE
PRICE DATA. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES.
UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES, TRANSACTION
COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL CANNOT INVEST DIRECTLY
IN ANY INDEX. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION THAT A SHAREHOLDER
WOULD PAY ON PORTFOLIO DISTRIBUTIONS OR THE REDEMPTION OF PORTFOLIO SHARES.
THE PORTFOLIO'S HORACE MANN CLASS ANNUAL OPERATING EXPENSE RATIO IS 0.82% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, there were no waivers. Without such waivers
and reimbursements, total returns since inception would have been lower.
22
- --------------------------------------------------------------------------------
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
The Dow Jones Wilshire 5000 Index posted a return of (36.95)% for 2008. This was
a difficult year for every style and size segment of the equity market and no
industry was immune to the wreckage of the current financial crisis. Although
equities trended downward in the first two quarters of the year, setting an
ominous tone for the rest of 2008, it was the astonishing events of September,
most notably the Lehman Brother's bankruptcy, which brought the global financial
system to its knees. Designed to deliver similar returns as those posted by the
Dow Jones Wilshire 5000 index, the fund slightly underperformed its benchmark.
For the year, Investment Class shares of the Fund returned (37.11)% versus the
Dow Jones 5000 return of (36.95)%.
While we are disappointed by the performance of the market and the Fund, we
believe that as markets begin the healing process, it will be the patient and
disciplined investors who will be rewarded on the upside.
The performance data quoted represents past performance and does not guarantee
future results. Current performance may be lower or higher. Performance data
current to the most recent month end may be obtained at www.wilfunds.com. The
investment return and principal value of an investment will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
Portfolio holdings subject to change. The Dow Jones Wilshire 5000 Index is an
unmanaged index that measures the performance of all U.S. headquartered equity
securities with readily available price data. Index performance is presented for
general comparative purposes. Unlike a mutual fund, the performance of an index
assumes no taxes, transaction costs, management fees or other expenses. An
individual cannot invest directly in any index.
23
- --------------------------------------------------------------------------------
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
PORTFOLIO SECTOR WEIGHTING*
(As of December 31, 2008)
[PIE CHART]
FINANCIALS 15.4%
INFORMATION TECHNOLOGY 15.2%
HEALTH CARE 14.4%
ENERGY 12.5%
INDUSTRIALS 11.4%
CONSUMER STAPLES 11.2%
CONSUMER DISCRETIONARY 8.7%
UTILITIES 4.5%
TELECOMMUNICATIONS SERVICES 3.5%
MATERIALS 3.2%
PREFERRED STOCK 0.0%
RIGHTS 0.0%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL LONG-TERM MARKET VALUE.
24
- --------------------------------------------------------------------------------
WILSHIRE LARGE CAP CORE 130/30 FUND [LOGO]
COMMENTARY
- --------------------------------------------------------------------------------
INVESTMENT CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 ....................................... (38.31)%
INCEPTION (11/15/07) THROUGH 12/31/08 ......................... (34.28)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF WILSHIRE
LARGE CAP CORE 130/30 FUND AND THE S&P 500 INDEX THROUGH 12/31/08.
[LINE GRAPH]
Initial Investment Date 11/16/07 DEC 07 DEC 08
------ ------
Wilshire Large Cap Core 130/30 Fund Investment Class $10,000 $10,120 $6,243
S&P 500 Index $10,000 $10,090 $6,357
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
S&P 500 INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF ALL U.S.
HEADQUARTERED EQUITY SECURITIES WITH READILY AVAILABLE PRICE DATA. INDEX
PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. UNLIKE A MUTUAL FUND,
THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES, TRANSACTION COSTS, MANAGEMENT FEES
OR OTHER EXPENSES. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. THE TABLE
ABOVE DOES NOT REFLECT THE DEDUCTION THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO
DISTRIBUTIONS OR THE REDEMPTION OF PORTFOLIO SHARES.
THE PORTFOLIO'S INVESTMENT CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.50% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, fees totaling 1.09% of average net assets
were waived and reimbursed. Without such waivers and reimbursements, total
returns since inception would have been lower.
25
- --------------------------------------------------------------------------------
WILSHIRE LARGE CAP CORE 130/30 FUND [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
INSTITUTIONAL CLASS SHARES
AVERAGE ANNUAL TOTAL RETURN*
ONE YEAR ENDED 12/31/08 ....................................... (38.09)%
INCEPTION (11/15/07) THROUGH 12/31/08 ......................... (34.05)%
COMPARATIVE PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN SHARES OF WILSHIRE
LARGE CAP CORE 130/30 FUND AND THE S&P 500 INDEX THROUGH 12/31/08.
[LINE GRAPH]
Initial Investment Date 11/16/07 DEC 07 DEC 08
------ ------
Wilshire Large Cap Core 130/30 Fund Institutional Class $10,000 $10,123 $6,267
S&P 500 Index $10,000 $10,090 $6,357
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. THE
S&P 500 INDEX IS AN UNMANAGED INDEX THAT MEASURES THE PERFORMANCE OF ALL U.S.
HEADQUARTERED EQUITY SECURITIES WITH READILY AVAILABLE PRICE DATA. INDEX
PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. UNLIKE A MUTUAL FUND,
THE PERFORMANCE OF AN INDEX ASSUMES NO TAXES, TRANSACTION COSTS, MANAGEMENT FEES
OR OTHER EXPENSES. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. THE TABLE
ABOVE DOES NOT REFLECT THE DEDUCTION THAT A SHAREHOLDER WOULD PAY ON PORTFOLIO
DISTRIBUTIONS OR THE REDEMPTION OF PORTFOLIO SHARES.
THE PORTFOLIO'S INVESTMENT CLASS ANNUAL OPERATING EXPENSE RATIO IS 1.21% AS OF
12/31/08.
* Assumes reinvestment of all distributions. During certain periods since
inception, certain fees and expenses were waived or reimbursed. For the
year ended December 31, 2008, fees totaling 1.09% of average net assets
were waived and reimbursed. Without such waivers and reimbursements, total
returns since inception would have been lower.
26
- --------------------------------------------------------------------------------
WILSHIRE LARGE CAP CORE 130/30 FUND [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
2008 was a difficult year for equities and no style or size segment of the
market was immune to the wreckage of the current financial crisis. The fund's
large cap oriented portfolio suffered losses as large cap companies posted worse
results than smaller companies. The year was marked by highly disruptive actions
that prevented normal market activities, especially associated with this fund.
Designed to maximize investment opportunities, shorting is one of the key
components of this fund's investment strategy. On several occasions during 2008,
the SEC prohibited or substantially curtailed shorting activities in the stock
market.
Under such circumstances, Investment Class shares of the Fund returned (38.31)%
for the year, underperforming the S&P 500 Index by 1.32%. The underperformance
was primarily attributable to stock selections in the industrial sector with
names like Deere & Co., Cummins Engine, and Honeywell. The underperformance was
partially offset by its underweight to, and strong stock selection in, the
financial sector. The Fund's short position in many of headline names like AIG,
Fannie Mae, and Merrill Lynch helped performance as the financials sector turned
in the worst sector returns in 2008, off (47.80)% for the year.
Although we are disappointed by the performance of the market and the Fund, we
are encouraged by the activities of our subadvisors who continue to follow
through with the disciplined investment approaches that have made them
successful. As the restriction on shorting has been removed and market begins to
return to more orderly fashion in 2009, it is our belief it will be the patient
and disciplined investors who will be rewarded on the upside.
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. PERFORMANCE DATA
CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED AT WWW.WILFUNDS.COM. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
PORTFOLIO HOLDINGS SUBJECT TO CHANGE. INDEX PERFORMANCE IS PRESENTED FOR GENERAL
COMPARATIVE PURPOSES. UNLIKE A MUTUAL FUND, THE PERFORMANCE OF AN INDEX ASSUMES
NO TAXES, TRANSACTION COSTS, MANAGEMENT FEES OR OTHER EXPENSES. AN INDIVIDUAL
CANNOT INVEST DIRECTLY IN ANY INDEX.
27
- --------------------------------------------------------------------------------
WILSHIRE LARGE CAP CORE 130/30 FUND [LOGO]
COMMENTARY - (CONTINUED)
- --------------------------------------------------------------------------------
PORTFOLIO SECTOR WEIGHTING*
(As of December 31, 2008)
[PIE CHART]
INFORMATION TECHNOLOGY 16.6%
HEALTH CARE 13.7%
INDUSTRIALS 13.4%
CONSUMER STAPLES 11.4%
ENERGY 11.4%
CONSUMER DISCRETIONARY 10.8%
FINANCIALS 10.7%
UTILITIES 4.7%
TELECOMMUNICATIONS SERVICES 4.0%
MATERIALS 3.3%
* BASED ON PERCENT OF PORTFOLIO'S TOTAL LONG-TERM MARKET VALUE.
28
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DISCLOSURE OF FUND EXPENSES [LOGO]
FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
We believe it is important for you to understand the impact of fees regarding
your investment. All mutual funds have operating expenses. As a shareholder of a
Portfolio (or a "fund"), you incur ongoing costs, which include costs for
investment advisory, administrative services, distribution and/or shareholder
services and shareholder reports (like this one), among others. Operating
expenses, which are deducted from a fund's gross income, directly reduce the
investment return of the fund. A fund's expenses are expressed as a percentage
of its average net assets. This figure is known as the expense ratio. The
following examples are intended to help you understand the ongoing fees (in
dollars) of investing in your fund and to compare these costs with those of
other mutual funds. The examples are based on an investment of $1,000 made at
the beginning of the period shown and held for the entire period.
This table illustrates your fund's costs in two ways:
ACTUAL FUND RETURN: This section helps you to estimate the actual expenses,
after any applicable fee waivers, that you paid over the period. The "Ending
Account Value" shown is derived from the Portfolio's ACTUAL return for the past
six month period. The "Expense Ratio" column shows the period's annualized
expense ratio and the "Expenses Paid During Period" column shows the dollar
amount that would have been paid by an investor who started with $1,000 in the
Portfolio at the beginning of the period.
You may use the information here, together with your account value, to estimate
the expenses that you paid over the period. To do so, simply divide your account
value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6),
then multiply the result by the number given for your fund in the first line
under the heading entitled "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN: This section is intended to help you compare your fund's
costs with those of other mutual funds. The "Ending Account Value" shown is
derived from hypothetical account values and hypothetical expenses based on the
Portfolio's actual expense ratio and assumed rate of return. It assumes that the
Portfolio had an annual return of 5% before expenses, but that the expense ratio
is unchanged. In this case, because the return used is NOT the Portfolio's
actual return, the results do not apply to your investment. This example is
useful in making comparisons to other mutual funds because the Securities and
Exchange Commission requires all mutual funds to calculate expenses based on an
assumed 5% annual return. You can assess your fund's ongoing costs by comparing
this hypothetical example with the hypothetical examples that appear in
shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help
you compare your ONGOING costs only and do not reflect any transactional costs
such as sales charges (loads), redemption fees, or exchange fees. Wilshire
Mutual Funds, Inc. has no such charges, but these may be present in other funds
to which you compare this data. Therefore, the hypothetical portions of the
table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds.
29
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DISCLOSURE OF FUND EXPENSES - (CONTINUED) [LOGO]
FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value Expense During Period
07/01/08 12/31/08 Ratio(1) 07/01/08-12/31/08(2)
---------- ---------- -------- --------------------
LARGE COMPANY GROWTH PORTFOLIO
- ---------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Investment Class ............. $ 1,000.00 $ 656.50 1.36% $ 5.66
Institutional Class .......... $ 1,000.00 $ 657.20 1.04% $ 4.33
HYPOTHETICAL 5% RETURN
Investment Class ............. $ 1,000.00 $ 1,018.30 1.36% $ 6.90
Institutional Class .......... $ 1,000.00 $ 1,019.91 1.04% $ 5.28
LARGE COMPANY VALUE PORTFOLIO
- ---------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Investment Class ............. $ 1,000.00 $ 682.20 1.40% $ 5.92
Institutional Class .......... $ 1,000.00 $ 683.10 1.32% $ 5.58
HYPOTHETICAL 5% RETURN
Investment Class ............. $ 1,000.00 $ 1,018.10 1.40% $ 7.10
Institutional Class .......... $ 1,000.00 $ 1,018.50 1.32% $ 6.70
SMALL COMPANY GROWTH PORTFOLIO
- ---------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Investment Class ............. $ 1,000.00 $ 660.20 1.58% $ 6.59
Institutional Class .......... $ 1,000.00 $ 661.20 1.36% $ 5.68
HYPOTHETICAL 5% RETURN
Investment Class ............. $ 1,000.00 $ 1,017.19 1.58% $ 8.01
Institutional Class .......... $ 1,000.00 $ 1,018.30 1.36% $ 6.90
SMALL COMPANY VALUE PORTFOLIO
- ---------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Investment Class ............. $ 1,000.00 $ 749.20 1.35% $ 5.94
Institutional Class .......... $ 1,000.00 $ 750.90 1.04% $ 4.58
HYPOTHETICAL 5% RETURN
Investment Class ............. $ 1,000.00 $ 1,018.35 1.35% $ 6.85
Institutional Class .......... $ 1,000.00 $ 1,019.91 1.04% $ 5.28
30
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DISCLOSURE OF FUND EXPENSES - (CONTINUED) [LOGO]
FOR THE SIX MONTH PERIOD ENDED DECEMBER 31, 2008 (UNAUDITED)
- --------------------------------------------------------------------------------
Beginning Ending
Account Account Expenses Paid
Value Value Expense During Period
07/01/08 12/31/08 Ratio(1) 07/01/08-12/31/08(2)
---------- ---------- -------- --------------------
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Investment Class ................................. $ 1,000.00 $ 709.40 0.84% $ 3.61
Institutional Class .............................. $ 1,000.00 $ 709.30 0.79% $ 3.39
Qualified Class .................................. $ 1,000.00 $ 709.60 0.86% $ 3.70
Horace Mann Class ................................ $ 1,000.00 $ 709.40 0.86% $ 3.70
HYPOTHETICAL 5% RETURN
Investment Class ................................. $ 1,000.00 $ 1,020.91 0.84% $ 4.27
Institutional Class .............................. $ 1,000.00 $ 1,021.17 0.79% $ 4.01
Qualified Class .................................. $ 1,000.00 $ 1,020.81 0.86% $ 4.37
Horace Mann Class ................................ $ 1,000.00 $ 1,020.81 0.86% $ 4.37
WILSHIRE LARGE CAP CORE 130/30 FUND
- ---------------------------------------------------------------------------------------------------------------
ACTUAL FUND RETURN
Investment Class ................................. $ 1,000.00 $ 695.20 1.49% $ 6.35
Institutional Class .............................. $ 1,000.00 $ 697.00 1.16% $ 4.95
HYPOTHETICAL 5% RETURN
Investment Class ................................. $ 1,000.00 $ 1,017.55 1.49% $ 7.56
Institutional Class .............................. $ 1,000.00 $ 1,019.25 1.16% $ 5.89
(1) ANNUALIZED, BASED ON THE PORTFOLIO'S MOST RECENT FISCAL HALF-YEAR
EXPENSES.
(2) EXPENSES ARE EQUAL TO THE PORTFOLIO'S ANNUALIZED EXPENSE RATIO MULTIPLIED
BY THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF
DAYS IN THE PERIOD, THEN DIVIDED BY 366.
31
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- ------------ -------------- -------------
COMMON STOCK -- 97.7%
Consumer Discretionary -- 9.7%
39,506 Apollo Group, Inc., Class A+ .................... 1.5 $ 3,026,950
63,500 Coach, Inc.+ .................................... 0.6 1,318,895
64,540 DIRECTV Group, Inc. (The)+ ...................... 0.7 1,478,612
35,660 Dollar Tree, Inc.+ .............................. 0.7 1,490,588
43,768 McDonald's Corp. ................................ 1.4 2,721,932
362,680 Other Securities ................................ 4.8 9,351,335
-------------
19,388,312
-------------
Consumer Staples -- 10.3%
35,844 Coca-Cola Co. (The) ............................. 0.8 1,622,658
131,710 CVS/Caremark Corp. .............................. 1.9 3,785,345
20,063 General Mills, Inc. ............................. 0.6 1,218,827
56,346 PepsiCo, Inc. ................................... 1.5 3,086,070
46,382 Philip Morris International, Inc ................ 1.0 2,018,081
35,460 Procter & Gamble Co. ............................ 1.1 2,192,137
46,397 Wal-Mart Stores, Inc. ........................... 1.3 2,601,016
137,509 Other Securities ................................ 2.1 4,052,064
-------------
20,576,198
-------------
Energy -- 8.7%
48,168 Exxon Mobil Corp. ............................... 1.9 3,845,251
65,945 National Oilwell Varco, Inc.+ ................... 0.8 1,611,696
39,094 Occidental Petroleum Corp. ...................... 1.2 2,345,249
56,564 Schlumberger, Ltd. .............................. 1.2 2,394,354
253,251 Other Securities ................................ 3.6 7,237,504
-------------
17,434,054
-------------
Financials -- 6.7%
28,850 Aflac, Inc. ..................................... 0.7 1,322,484
85,075 Charles Schwab Corp. (The) ...................... 0.7 1,375,663
9,576 CME Group, Inc., Class A ........................ 1.0 1,992,861
25,900 Goldman Sachs Group, Inc. (The) ................. 1.1 2,185,701
Percentage of
Shares Net Assets (%) Value
- ------------ -------------- -------------
Financials (continued)
272,964 Other Securities ................................ 3.2 $ 6,482,793
-------------
13,359,502
-------------
Health Care -- 18.1%
52,102 Abbott Laboratories ............................. 1.4 2,780,684
43,700 Allergan, Inc. .................................. 0.9 1,761,984
26,252 Amgen, Inc.+ .................................... 0.8 1,516,053
39,719 Baxter International, Inc. ...................... 1.1 2,128,541
73,654 Celgene Corp.+ .................................. 2.0 4,071,593
14,492 Genentech, Inc.+ ................................ 0.6 1,201,532
106,996 Gilead Sciences, Inc.+ .......................... 2.7 5,471,775
25,508 Johnson & Johnson ............................... 0.8 1,526,144
77,404 Pfizer, Inc. .................................... 0.7 1,370,825
49,680 Teva Pharmaceutical Industries, Ltd. ADR ........ 1.0 2,114,877
291,442 Other Securities ................................ 6.1 12,309,433
-------------
36,253,441
-------------
Industrials -- 11.1%
28,715 Danaher Corp. ................................... 0.8 1,625,556
62,550 Expeditors International of Washington, Inc. .... 1.0 2,081,038
52,609 Union Pacific Corp. ............................. 1.2 2,514,710
28,654 United Technologies Corp. ....................... 0.8 1,535,854
452,032 Other Securities ................................ 7.3 14,536,283
-------------
22,293,441
-------------
Information Technology -- 27.5%
171,200 Activision Blizzard, Inc.+ ...................... 0.8 1,479,168
53,522 Apple, Inc.+ .................................... 2.3 4,568,103
192,826 Cisco Systems, Inc.+ ............................ 1.6 3,143,064
96,000 Cognizant Technology Solutions Corp., Class A+ .. 0.9 1,733,760
13,267 Google, Inc., Class A+ .......................... 2.1 4,081,592
81,802 Hewlett-Packard Co. ............................. 1.5 2,968,595
226,360 Intel Corp. ..................................... 1.7 3,318,438
57,483 International Business Machines Corp. ........... 2.4 4,837,769
75,191 Juniper Networks, Inc.+ ......................... 0.6 1,316,594
See Notes to Financial Statements.
32
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- ------------ -------------- -------------
Information Technology (continued)
13,000 Mastercard, Inc., Class A ....................... 0.9 $ 1,858,090
301,854 Microsoft Corp. ................................. 2.9 5,868,042
161,532 Oracle Corp.+ ................................... 1.4 2,863,962
136,284 QUALCOMM, Inc. .................................. 2.4 4,883,056
660,459 Other Securities ................................ 6.0 12,192,911
-------------
55,113,144
-------------
Materials -- 3.8%
47,551 Monsanto Co. .................................... 1.7 3,345,213
15,730 Potash Corp of Saskatchewan ..................... 0.6 1,151,751
101,946 Other Securities ................................ 1.5 3,105,363
-------------
7,602,327
-------------
Telecommunication Services -- 0.7%
46,730 Other Securities ................................ 0.7 1,406,609
-------------
1,406,609
-------------
Utilities -- 1.1%
56,541 Other Securities ................................ 1.1 2,319,973
-------------
2,319,973
-------------
Total Common Stock
(Cost $231,374,996) 195,747,001
-------------
INVESTMENT COMPANY -- 0.4%
Financials -- 0.4%
21,500 Other Securities ................................ 0.4 796,790
-------------
Total Investment Company
(Cost $766,129) 796,790
-------------
Percentage of
Shares Net Assets (%) Value
- ------------ -------------- ------------
CASH EQUIVALENT -- 0.6%
1,227,162 PNC Institutional Money Market Trust,
0.05% (A) ....................................... 0.6 $ 1,227,162
-------------
Total Cash Equivalent (Cost $1,227,162) 1,227,162
-------------
Total Investments -- 98.7% (Cost $233,368,287) 197,770,953
Other Assets & Liabilities, 1.3% 2,591,848
-------------
NET ASSETS -- 100.0% $ 200,362,801
=============
(A) Rate shown is the 7-day effective yield as of December 31, 2008.
+ Non-income producing security.
ADR - American Depositary Receipt
The Condensed Schedule of Investments does not reflect the complete portfolio
holdings. It includes the Portfolio's 50 largest holdings and each investment of
any issuer that exceeds 1% of the Portfolio's net assets. "Other Securities"
represent all issues not required to be disclosed under the rules adopted by the
U.S. Securities and Exchange Commission ("SEC"). The complete schedule of
portfolio holdings is available (i) without charge, upon request, by calling
(800) 607-2200; (ii) on the SEC's website at http://www.sec.gov; and (iii) on
our website at www.wilfunds.com.
See Notes to Financial Statements.
33
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- --------- -------------- -----------
COMMON STOCK -- 89.7%
Consumer Discretionary -- 11.2%
30,900 Home Depot, Inc. (The) ......................... 2.4 $ 711,318
15,725 J.C. Penney Co., Inc. .......................... 1.0 309,782
12,550 Magna International, Inc., Class A ............. 1.3 375,622
19,525 Mattel, Inc. ................................... 1.1 312,400
7,000 McDonald's Corp. ............................... 1.5 435,330
8,625 Omnicom Group, Inc. ............................ 0.8 232,185
6,400 Whirlpool Corp. ................................ 0.9 264,640
55,894 Other Securities ............................... 2.2 670,273
-----------
3,311,550
-----------
Consumer Staples -- 9.0%
24,100 Altria Group, Inc. ............................. 1.2 362,946
5,100 Kimberly-Clark Corp. ........................... 0.9 268,974
8,300 Kraft Foods, Inc., Class A ..................... 0.7 222,855
7,400 Procter & Gamble Co. ........................... 1.6 457,468
23,900 Sara Lee Corp. ................................. 0.8 233,981
6,900 Wal-Mart Stores, Inc. .......................... 1.3 386,814
49,020 Other Securities ............................... 2.5 728,425
-----------
2,661,463
-----------
Energy -- 8.8%
7,000 BP PLC ADR ..................................... 1.1 327,180
6,700 Chevron Corp. .................................. 1.7 495,599
8,931 ConocoPhillips ................................. 1.6 462,626
7,900 Exxon Mobil Corp. .............................. 2.1 630,657
35,250 Other Securities ............................... 2.3 680,016
-----------
2,596,078
-----------
Financials -- 22.5%
16,700 Allstate Corp. (The) .......................... 1.9 547,092
41,825 Bank of America Corp. ......................... 2.0 588,896
13,500 Capital One Financial Corp. ................... 1.5 430,515
70,025 Citigroup, Inc. ............................... 1.6 469,867
12,939 Fidelity National
Financial, Inc., Class A ...................... 0.8 229,667
23,275 JPMorgan Chase & Co. .......................... 2.5 733,861
10,118 Torchmark Corp. ............................... 1.5 452,275
5,200 Travelers Cos., Inc. (The) .................... 0.8 235,040
Percentage of
Shares Net Assets (%) Value
- --------- -------------- -----------
Financials (continued)
26,675 UBS AG+ ........................................ 1.3 $ 381,453
13,200 Wells Fargo & Co. .............................. 1.3 389,136
75,556 Other Securities ............................... 7.3 2,200,179
-----------
6,657,981
-----------
Health Care -- 13.2%
14,575 AmerisourceBergen Corp., Class A ............... 1.8 519,745
10,100 Bristol-Myers Squibb Co. ....................... 0.8 234,825
9,500 Eli Lilly & Co. ............................... 1.3 382,565
12,125 Johnson & Johnson .............................. 2.5 725,439
10,750 Merck & Co., Inc. .............................. 1.1 326,800
34,500 Pfizer, Inc. ................................... 2.1 610,995
19,425 Schering-Plough Corp. .......................... 1.1 330,808
7,700 Wyeth .......................................... 1.0 288,827
44,330 Other Securities ............................... 1.5 464,083
-----------
3,884,087
-----------
Industrials -- 8.1%
6,851 Baker (Michael) Corp.+ ......................... 0.8 252,871
5,325 Boeing Co. ..................................... 0.8 227,218
3,900 General Dynamics Corp. ......................... 0.7 224,601
3,625 L-3 Communications Holdings, Inc.,
Class 3 ........................................ 0.9 267,452
10,900 Northrop Grumman Corp. ......................... 1.7 490,936
33,400 Quanex Building Products Corp. ................. 1.1 312,958
49,129 Other Securities ............................... 2.1 627,998
-----------
2,404,034
-----------
Information Technology -- 10.1%
224,100 Alcatel-Lucent ADR ............................. 1.6 481,815
24,525 CA, Inc. ....................................... 1.5 454,449
8,421 Lexmark International,
Inc., Class A+ ................................. 0.8 226,525
15,773 Microsoft Corp. ................................ 1.0 306,627
79,000 Motorola, Inc. ................................. 1.2 349,970
177,251 Other Securities ............................... 4.0 1,156,870
-----------
2,976,256
-----------
See Notes to Financial Statements.
34
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS -(CONTINUED)
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- --------- -------------- -----------
Materials -- 0.7%
10,736 Other Securities ............................... 0.7 $ 197,584
-----------
197,584
-----------
Telecommunication Services -- 2.6%
10,900 AT&T, Inc. ..................................... 1.0 310,650
13,800 Verizon Communications, Inc. ................... 1.6 67,820
-----------
778,470
-----------
Utilities -- 3.5%
6,650 Sempra Energy .................................. 1.0 283,490
5,850 Wisconsin Energy Corp. ......................... 0.8 245,583
44,700 Other Securities ............................... 1.7 490,886
-----------
1,019,959
-----------
Total Common Stock
(Cost $34,250,002) 26,487,462
-----------
CASH EQUIVALENT -- 0.2%
55,013 PNC Institutional
Money Market Trust, 0.05% (A) .................. 0.2 55,013
-----------
Total Cash Equivalent
(Cost $55,013) 55,013
-----------
Total Investments -- 89.9%
(Cost $34,305,015) 26,542,475
Other Assets & Liabilities, Net --10.1% 2,984,797
-----------
NET ASSETS -- 100.0% $29,527,272
===========
(A) Rate shown is the 7-day effective yield as of December 31, 2008.
+ Non-income producing security.
ADR - American Depositary Receipt
PLC - Public Limited Company
The Condensed Schedule of Investments does not reflect the complete portfolio
holdings. It includes the Portfolio's 50 largest holdings and each investment of
any issuer that exceeds 1% of the Portfolio's net assets. "Other Securities"
represent all issues not required to be disclosed under the rules adopted by the
U.S. Securities and Exchange Commission ("SEC"). The complete schedule of
portfolio holdings is available (i) without charge, upon request, by calling
(800) 607-2200; (ii) on the SEC's website at http://www.sec.gov; and (iii) on
our website at www.wilfunds.com.
See Notes to Financial Statements.
35
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- --------- -------------- -----------
COMMON STOCK -- 99.0%
Consumer Discretionary -- 10.7%
6,700 99 Cents Only Stores+ ........................ 1.3 $ 73,231
853 Capella Education Co.+ ....................... 0.9 50,122
1,620 Steven Madden, Ltd.+ . ....................... 0.6 34,539
361 Strayer Education, Inc. ...................... 1.4 77,402
20,341 Other Securities ............................. 6.5 344,888
-----------
580,182
-----------
Consumer Staples -- 1.5%
1,690 TreeHouse Foods, Inc.+ ....................... 0.8 46,036
1,800 Other Securities ............................. 0.7 34,568
-----------
80,604
-----------
Energy -- 7.2%
2,392 Arena Resources, Inc.+ ....................... 1.2 67,191
1,440 CARBO Ceramics, Inc. ......................... 0.9 51,163
675 Comstock Resources, Inc.+ .................... 0.6 31,894
3,474 EXCO Resources, Inc.+ ........................ 0.6 31,474
28,046 Other Securities ............................. 3.9 209,324
-----------
391,046
-----------
Financials -- 7.9%
1,350 Financial Federal Corp. ...................... 0.6 31,415
2,000 Nationwide Health Properties, Inc. ........... 1.0 57,440
24,158 Other Securities ............................. 6.3 340,385
-----------
429,240
-----------
Health Care -- 30.4%
1,050 Alexion Pharmaceuticals, Inc.+ ............... 0.7 38,000
1,475 Cubist Pharmaceuticals, Inc.+ ................ 0.7 35,636
2,376 Cyberonics, Inc.+ ............................ 0.7 39,370
1,905 Genoptix, Inc.+ .............................. 1.2 64,922
1,280 Gen-Probe, Inc.+ ............................. 1.0 54,835
3,300 HMS Holdings Corp.+ .......................... 1.9 104,016
2,284 Icon PLC ADR+ ................................ 0.8 44,972
4,920 Immucor, Inc.+ ............................... 2.4 130,774
950 LHC Group, Inc.+ ............................. 0.6 34,200
Percentage of
Shares Net Assets (%) Value
- --------- -------------- -----------
Health Care (continued)
1,425 Martek Biosciences Corp. ..................... 0.8 $ 43,192
3,120 Masimo Corp.+ ................................ 1.7 93,070
1,250 Mentor Corp. ................................. 0.7 38,662
1,650 Meridian Bioscience, Inc. .................... 0.8 42,025
600 Myriad Genetics, Inc.+ ....................... 0.7 39,756
2,930 Natus Medical, Inc.+ ......................... 0.7 37,943
1,342 OSI Pharmaceuticals, Inc.+ ................... 1.0 52,405
4,030 Phase Forward, Inc.+ ......................... 1.0 50,455
1,338 Psychiatric Solutions, Inc.+ ................. 0.7 37,263
55,920 Other Securities ............................. 12.3 667,064
-----------
1,648,560
-----------
Industrials -- 19.0%
2,314 Briggs & Stratton Corp. ...................... 0.8 40,703
675 Clean Harbors, Inc.+ ......................... 0.8 42,822
3,880 Cornell, Inc.+ ............................... 1.3 72,129
1,162 Genessee & Wyoming, Inc., Class A+ ........... 0.7 35,441
3,110 Geo Group, Inc. (The)+ ....................... 1.0 56,073
2,680 Ritchie Bros. Auctioneers, Inc. .............. 1.1 57,406
1,650 Team, Inc.+ .................................. 0.8 45,705
4,103 Wabtec Corp. ................................. 3.0 163,094
800 Watson Wyatt Worldwide, Inc., Class A ........ 0.7 38,256
28,011 Other Securities ............................. 8.8 479,186
-----------
1,030,815
-----------
Information Technology -- 18.9%
675 CACI International, Inc., Class A+ ........... 0.6 30,436
2,001 Flir Systems, Inc.+ .......................... 1.1 61,391
3,240 Informatica Corp.+ ........................... 0.8 44,485
600 Mantech International Corp., Class A+ ........ 0.6 32,514
4,360 Monolithic Power Systems, Inc.+ .............. 1.0 54,980
2,192 Netlogic Microsystems, Inc.+ ................. 0.9 48,246
1,740 Nice Systems, Ltd. ADR+ ...................... 0.7 39,098
See Notes to Financial Statements.
36
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- --------- -------------- -----------
Information Technology (continued)
1,410 Quality Systems, Inc. ........................ 1.1 $ 61,504
2,795 Vocus, Inc.+ ................................. 0.9 50,897
4,340 Yucheng Technologies, Ltd.+ .................. 0.6 31,639
50,818 Other Securities ............................. 10.6 568,693
-----------
1,023,883
-----------
Materials -- 1.1%
2,638 Other Securities ............................. 1.1 58,446
-----------
58,446
-----------
Telecommunication Services -- 1.8%
5,442 Syniverse Holdings, Inc.+ .................... 1.2 64,977
4,512 Other Securities ............................. 0.6 32,074
-----------
97,051
-----------
Utilities -- 0.5%
956 Other Securities ............................. 0.5 29,118
-----------
29,118
-----------
Total Common Stock
(Cost $6,450,865) 5,368,945
-----------
PREFERRED STOCK -- 0.0%
Health Care -- 0.0%
28 Other Securities ............................. 0.0 3,429
-----------
Total Preferred Stock
(Cost $3,970) 3,429
-----------
CASH EQUIVALENT -- 1.1%
58,486 PNC Institutional Money
Market Trust, 0.05% (A) ...................... 1.1 58,486
Total Cash Equivalent
(Cost $58,486) 58,486
-----------
Total Investments -- 100.1%
(Cost $6,513,321) 5,430,860
Other Assets & Liabilities, Net -- (0.1)% (3,636)
-----------
NET ASSETS -- 100.0% $ 5,427,224
===========
(A) Rate shown is the 7-day effective yield as of December 31, 2008.
+ Non-income producing security.
ADR - American Depositary Receipt
PLC - Public Limited Company
The Condensed Schedule of Investments does not reflect the complete portfolio
holdings. It includes the Portfolio's 50 largest holdings and each investment of
any issuer that exceeds 1% of the Portfolio's net assets. "Other Securities"
represent all issues not required to be disclosed under the rules adopted by the
U.S. Securities and Exchange Commission ("SEC"). The complete schedule of
portfolio holdings is available (i) without charge, upon request, by calling
(800) 607-2200; (ii) on the SEC's website at http://www.sec.gov; and (iii) on
our website at www.wilfunds.com.
See Notes to Financial Statements.
37
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- ---------- -------------- ----------
COMMON STOCK -- 99.2%
Consumer Discretionary -- 7.3%
5,700 Cato Corp. (The), Class A ..................... 1.0 $ 86,070
69,096 Other Securities .............................. 6.3 541,575
----------
627,645
----------
Consumer Staples -- 3.2%
5,500 Elizabeth Arden, Inc.+ ........................ 0.8 69,355
900 Ralcorp Holdings, Inc.+ ....................... 0.6 52,560
8,127 Other Securities .............................. 1.8 154,231
----------
276,146
----------
Energy -- 4.9%
10,400 Acergy SA ADR ................................. 0.7 60,112
4,700 Denbury Resources, Inc.+ ...................... 0.6 51,324
43,712 Other Securities .............................. 3.6 309,743
----------
421,179
----------
Financials -- 39.6%
3,400 Aspen Insurance Holdings, Ltd. ................ 1.0 82,450
2,700 Assurant, Inc. ................................ 0.9 81,000
2,500 Chemical Financial Corp. ...................... 0.8 69,700
4,757 Equity One, Inc. .............................. 1.0 84,199
5,700 Extra Space Storage, Inc. ..................... 0.7 58,824
4,500 First Commonwealth Financial Corp. ............ 0.7 55,710
6,800 First Financial Bancorp ....................... 1.0 84,252
5,400 First Niagara Financial Group, Inc. ........... 1.0 87,318
5,300 Forestar Group, Inc.+ ......................... 0.6 50,456
1,190 Hancock Holding Co. ........................... 0.6 54,097
1,251 IBERIABANK Corp. .............................. 0.7 60,048
1,100 Infinity Property & Casualty .................. 0.6 51,403
10,900 Inland Real Estate Corp. ...................... 1.6 141,482
4,100 Knight Capital Group, Inc., Class A+ .......... 0.8 66,215
2,865 LTC Properties, Inc. .......................... 0.7 58,102
Percentage of
Shares Net Assets (%) Value
- ---------- -------------- ----------
Financials (continued)
8,400 Meadowbrook Insurance Group, Inc. ............. 0.6 $ 54,096
4,355 Old National Bancorp .......................... 0.9 79,087
7,500 PMA Capital Corp., Class A+ ................... 0.6 53,100
1,300 Reinsurance Group of America, Inc., Class A ... 0.6 55,666
2,423 Safety Insurance Group, Inc. .................. 1.1 92,219
1,900 StanCorp Financial Group, Inc. ................ 0.9 79,363
3,900 Tower Group, Inc. ............................. 1.3 110,019
7,500 Trustco Bank Corp. ............................ 0.8 71,325
2,250 Zenith National Insurance Corp. ............... 0.8 71,032
125,569 Other Securities .............................. 19.3 1,675,528
----------
3,426,691
----------
Health Care -- 9.0%
2,466 Amsurg Corp., Class A+ ........................ 0.7 57,556
1,300 Magellan Health Services, Inc.+ ............... 0.6 50,908
5,000 Sepracor, Inc.+ ............................... 0.6 54,900
4,400 Viropharma, Inc.+ ............................. 0.7 57,288
41,127 Other Securities .............................. 6.4 560,673
----------
781,325
----------
Industrials -- 15.6%
1,550 Acuity Brands, Inc. ........................... 0.6 54,111
3,800 Belden, Inc. .................................. 0.9 79,344
6,069 CBIZ, Inc.+ ................................... 0.6 52,497
8,800 Griffon Corp.+ ................................ 1.0 82,104
1,000 Lincoln Electric Holdings, Inc. ............... 0.6 50,930
4,350 Marten Transport, Ltd.+ ....................... 1.0 82,476
4,300 Mine Safety Appliances Co. .................... 1.2 102,813
57,143 Other Securities .............................. 9.7 849,508
----------
1,353,783
----------
See Notes to Financial Statements.
38
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- ---------- -------------- ----------
Information Technology -- 8.8%
4,569 Actel Corp.+ .................................. 0.6 $ 53,549
2,000 Rogers Corp.+ ................................. 0.6 55,540
3,436 Standard Microsystems Corp.+ .................. 0.7 56,144
97,991 Other Securities .............................. 6.9 592,582
----------
757,815
----------
Materials -- 5.1%
6,900 Wausau Paper Corp. ............................ 0.9 78,936
9,900 Yamana Gold, Inc. ............................. 0.9 76,428
40,358 Other Securities .............................. 3.3 281,627
----------
436,991
----------
Telecommunication Services -- 1.0%
19,317 Other Securities .............................. 1.0 89,156
----------
89,156
----------
Utilities -- 4.7%
3,117 Black Hills Corp............................... 1.0 84,034
1,374 Northwest Natural Gas Co....................... 0.7 60,772
3,050 NorthWestern Corp. ............................ 0.8 71,583
1,950 Unisource Energy Corp. ........................ 0.6 57,252
5,720 Other Securities .............................. 1.6 137,366
----------
411,007
----------
Total Common Stock
(Cost $10,436,075) 8,581,738
----------
CASH EQUIVALENT -- 0.6%
52,866 PNC Institutional Money Market
Trust, 0.05% (A) ........................... 0.6 52,866
----------
Total Cash Equivalent
(Cost $52,866) 52,866
----------
Total Investments -- 99.8%
(Cost $10,488,941) 8,634,604
Other Assets & Liabilities, Net -- 0.2% 17,193
----------
NET ASSETS -- 100.0% $8,651,797
==========
(A) Rate shown is the 7-day effective yield as of December 31, 2008.
+ Non-income producing security.
ADR - American Depositary Receipt
The Condensed Schedule of Investments does not reflect the complete portfolio
holdings. It includes the Portfolio's 50 largest holdings and each investment of
any issuer that exceeds 1% of the Portfolio's net assets. "Other Securities"
represent all issues not required to be disclosed under the rules adopted by the
U.S. Securities and Exchange Commission ("SEC"). The complete schedule of
portfolio holdings is available (i) without charge, upon request, by calling
(800) 607-2200; (ii) on the SEC's website at http://www.sec.gov; and (iii) on
our website at www.wilfunds.com.
See Notes to Financial Statements.
39
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- --------- -------------- ------------
COMMON STOCK -- 102.1%
Consumer Discretionary -- 8.9%
43,683 Comcast Corp. Special, Class A ............... 0.5 $ 737,369
26,950 Home Depot, Inc. (The) ....................... 0.4 620,389
19,400 McDonald's Corp. ............................. 0.8 1,206,486
61,074 Time Warner, Inc. ............................ 0.4 614,404
28,220 Walt Disney Co. (The) ........................ 0.4 640,312
702,764 Other Securities ............................. 6.4 9,902,044
------------
13,721,004
------------
Consumer Staples -- 11.5%
36,020 Coca-Cola Co. (The) .......................... 1.1 1,630,625
9,380 Colgate-Palmolive Co. ........................ 0.4 642,905
23,142 CVS/Caremark Corp. ........................... 0.4 665,101
24,040 PepsiCo, Inc. ................................ 0.9 1,316,671
33,125 Philip Morris
International, Inc. .......................... 0.9 1,441,269
50,352 Procter & Gamble Co. ......................... 2.0 3,112,761
41,595 Wal-Mart Stores, Inc. ........................ 1.5 2,331,816
254,828 Other Securities ............................. 4.3 6,607,824
------------
17,748,972
------------
Energy -- 12.7%
31,999 Chevron Corp. ................................ 1.5 2,366,966
23,301 ConocoPhillips ............................... 0.8 1,206,992
83,900 Exxon Mobil Corp. ............................ 4.3 6,697,737
12,610 Occidental Petroleum Corp. ................... 0.5 756,474
19,300 Schlumberger, Ltd. ........................... 0.5 816,969
354,319 Other Securities ............................. 5.1 7,820,923
------------
19,666,061
------------
Financials -- 15.8%
83,443 Bank of America Corp. ........................ 0.8 1,174,877
624 Berkshire Hathaway, Inc., Class B+ ........... 1.3 2,005,536
88,450 Citigroup, Inc. .............................. 0.4 593,500
7,520 Goldman Sachs Group, Inc. (The) .............. 0.4 634,613
60,059 JPMorgan Chase & Co. ......................... 1.2 1,893,660
27,709 U.S. Bancorp ................................. 0.5 693,002
Percentage of
Shares Net Assets (%) Value
- --------- -------------- ------------
Financials (continued)
57,004 Wells Fargo & Co. ............................ 1.1 $ 1,680,478
862,697 Other Securities ............................. 10.1 15,725,155
------------
24,400,821
------------
Health Care -- 14.7%
26,100 Abbott Laboratories .......................... 0.9 1,392,957
18,302 Amgen, Inc.+ ................................. 0.7 1,056,941
32,950 Bristol-Myers Squibb Co. ..................... 0.5 766,087
14,895 Eli Lilly & Co. .............................. 0.4 599,822
8,650 Genentech, Inc.+ ............................. 0.5 717,172
15,300 Gilead Sciences, Inc.+ ....................... 0.5 782,442
45,585 Johnson & Johnson ............................ 1.8 2,727,351
18,868 Medtronic, Inc. .............................. 0.4 592,833
35,958 Merck & Co., Inc. ............................ 0.7 1,093,123
109,261 Pfizer, Inc. ................................. 1.3 1,935,012
20,450 Wyeth ........................................ 0.5 767,079
397,887 Other Securities ............................. 6.5 10,256,386
------------
22,687,205
------------
Industrials -- 11.6%
162,646 General Electric Co. ......................... 1.7 2,634,865
12,000 United Parcel Service, Inc., Class B ......... 0.5 661,920
15,344 United Technologies Corp. .................... 0.5 822,438
490,663 Other Securities ............................. 8.9 13,811,677
------------
17,930,900
------------
Information Technology -- 15.5%
15,500 Apple, Inc.+ ................................. 0.9 1,322,925
96,323 Cisco Systems, Inc.+ ......................... 1.0 1,570,065
3,650 Google, Inc., Class A+ ....................... 0.7 1,122,923
40,577 Hewlett-Packard Co. .......................... 1.0 1,472,539
90,466 Intel Corp. .................................. 0.9 1,326,232
21,770 International Business
Machines Corp. ............................... 1.2 1,832,163
129,540 Microsoft Corp. .............................. 1.6 2,518,258
65,330 Oracle Corp.+ ................................ 0.8 1,158,301
26,625 QUALCOMM, Inc. ............................... 0.6 953,974
808,324 Other Securities ............................. 6.8 10,667,062
------------
23,944,442
------------
See Notes to Financial Statements.
40
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO DECEMBER 31, 2008 [LOGO]
CONDENSED SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Percentage of
Shares Net Assets (%) Value
- --------- -------------- ------------
Materials -- 3.2%
204,211 Other Securities ............................. 3.2 $ 5,055,322
------------
5,055,322
------------
Telecommunication Services -- 3.6%
97,624 AT&T, Inc. ................................... 1.8 2,782,284
50,059 Verizon
Communicatios, Inc. .......................... 1.1 1,697,000
137,632 Other Securities ............................. 0.7 1,053,635
------------
5,532,919
------------
Utilities -- 4.6%
16,100 Southern Co .................................. 0.4 595,700
240,551 Other Securities ............................. 4.2 6,496,034
------------
7,091,734
------------
Total Common Stock
(Cost $168,314,204) 157,779,380
------------
RIGHTS -- 0.0%
900 Other Securities ............................. 0.0 315
------------
Total Rights
(Cost $900) 315
------------
PREFERRED STOCK -- 0.0%
4 Other Securities ............................. 0.0 490
------------
Total Preferred Stock
(Cost $1,147) 490
------------
Total Investments -- 102.1%
(Cost $168,316,251) 157,780,185
Other Assets & Liabilities, Net -- (2.1)% (3,276,914)
------------
NET ASSETS -- 100.0% $154,503,271
============
+ Non-income producing security.
The Condensed Schedule of Investments does not reflect the complete portfolio
holdings. It includes the Portfolio's 50 largest holdings and each investment of
any issuer that exceeds 1% of the Portfolio's net assets. "Other Securities"
represent all issues not required to be disclosed under the rules adopted by the
U.S. Securities and Exchange Commission ("SEC"). The complete schedule of
portfolio holdings is available (i) without charge, upon request, by calling
(800) 607-2200; (ii) on the SEC's website at http://www.sec.gov; and (iii) on
our website at www.wilfunds.com.
See Notes to Financial Statements.
41
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
Shares Value
- --------- ------------
COMMON STOCK -- 106.7%
Consumer Discretionary -- 11.6%
3,500 Advance Auto Parts, Inc. ......................... $ 117,775
4,690 Apollo Group, Inc., Class A+ ..................... 359,348
4,200 AutoNation, Inc.+ ................................ 41,496
1,400 Autozone, Inc.+ .................................. 195,258
1,450 Best Buy Co., Inc. ............................... 40,760
4,350 Big Lots, Inc.+ .................................. 63,031
2,550 Bob Evans Farms, Inc. ............................ 52,096
7,110 Burger King Holdings, Inc. ....................... 169,787
3,650 Career Education Corp.+ .......................... 65,481
1,950 CBS Corp., Class B ............................... 15,970
4,900 Coach, Inc.+ ..................................... 101,773
2,935 Comcast Corp., Class A ........................... 47,400
20,050 Comcast Corp. Special, Class A ................... 338,444
4,400 Darden Restaurants, Inc. ......................... 123,992
1,800 DIRECTV Group, Inc. (The)+ ....................... 41,238
17,600 Discovery Communications, Inc., Class A+ ......... 249,216
2,980 DISH Network Corp., Class A+ ..................... 33,048
5,100 Dollar Tree, Inc.+ ............................... 213,180
2,650 DreamWorks Animation SKG, Inc., Class A+ ......... 66,939
2,800 Expedia, Inc.+ ................................... 23,072
8,100 Family Dollar Stores, Inc. ....................... 211,167
1,400 GameStop Corp., Class A+ ......................... 30,324
2,050 Gannett Co., Inc. ................................ 16,400
5,150 Gap, Inc. (The) .................................. 68,959
4,400 H&R Block, Inc. .................................. 99,968
8,500 Harley-Davidson, Inc. ............................ 144,245
4,400 Hasbro, Inc. ..................................... 128,348
3,750 Home Depot, Inc. (The) ........................... 86,325
1,250 Johnson Controls, Inc. ........................... 22,700
2,350 Jones Apparel Group, Inc. ........................ 13,771
4,600 Liz Claiborne, Inc. .............................. 11,960
Shares Value
- --------- ------------
Consumer Discretionary (continued)
12,850 Lowe's Cos., Inc. ................................ $ 276,532
13,600 Ltd. Brands, Inc. ................................ 136,544
1,450 Macy's, Inc. ..................................... 15,008
2,910 Marvel Entertainment, Inc.+ ...................... 89,483
12,250 McDonald's Corp. ................................. 761,827
1,150 Newell Rubbermaid, Inc. .......................... 11,247
4,000 News Corp., Class A .............................. 36,360
3,500 Nike, Inc., Class B .............................. 178,500
900 Omnicom Group, Inc. .............................. 24,228
1,757 Panera Bread Co., Class A+ ....................... 91,786
750 priceline.com, Inc.+ ............................. 55,237
2,400 Pulte Homes, Inc. ................................ 26,232
6,950 RadioShack Corp. ................................. 82,983
500 Sherwin-Williams Co. (The) ....................... 29,875
950 Snap-On, Inc. .................................... 37,411
1,400 Tiffany & Co. .................................... 33,082
68,050 Time Warner, Inc. ................................ 684,583
18,650 TJX Cos., Inc. ................................... 383,630
4,510 Toll Brothers, Inc.+ ............................. 96,649
2,100 Tupperware Brands Corp. .......................... 47,670
5,240 Urban Outfitters, Inc.+ .......................... 78,495
1,650 Viacom, Inc., Class B+ ........................... 31,449
10,600 Virgin Media Inc. ................................ 52,894
2,000 WABCO Holdings, Inc. ............................. 31,580
2,050 Walt Disney Co. (The) ............................ 46,515
300 Washington Post Co., Class B ..................... 117,075
1,650 Wyndham Worldwide Corp. .......................... 10,808
12,240 Yum! Brands, Inc. ................................ 385,560
-----------
7, 046,714
Consumer Staples -- 12.2% -----------
1,850 Alberto-Culver Co., Class B ...................... 45,344
8,800 Altria Group, Inc. ............................... 132,528
10,400 Archer-Daniels-Midland Co. ....................... 299,832
19,600 Avon Products, Inc. .............................. 470,988
2,200 BJ's Wholesale Club, Inc.+ ....................... 75,372
950 Campbell Soup Co. ................................ 28,509
See Notes to Financial Statements.
42
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WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- ------------
Consumer Staples (continued)
1,150 Central European Distribution Corp.+ ............. $ 22,655
4,855 Church & Dwight Co., Inc. ........................ 272,463
5,000 Coca-Cola Co. (The) .............................. 226,350
1,660 Colgate-Palmolive Co. ............................ 113,776
5,600 ConAgra Foods, Inc. .............................. 92,400
6,390 Constellation Brands, Inc., Class A+ ............. 100,770
2,700 Corn Products International, Inc. ................ 77,895
750 Costco Wholesale Corp. ........................... 39,375
27,580 CVS/Caremark Corp. ............................... 792,649
4,900 Dean Foods Co.+ .................................. 88,053
1,400 Estee Lauder Cos., Inc. (The), Class A ........... 43,344
900 General Mills, Inc. .............................. 54,675
1,250 Hansen Natural Corp.+ ............................ 41,913
6,500 HJ Heinz Co. ..................................... 244,400
600 JM Smucker Co. (The) ............................. 26,016
210 Kellogg Co. ...................................... 9,209
700 Kimberly-Clark Corp. ............................. 36,918
7,050 Kraft Foods, Inc., Class A ....................... 189,292
9,200 Kroger Co. (The) ................................. 242,972
6,500 Molson Coors Brewing Co., Class B ................ 317,980
1,900 Pepsi Bottling Group, Inc. ....................... 42,769
5,930 PepsiCo, Inc. .................................... 324,786
17,250 Philip Morris International, Inc. ................ 750,548
10,750 Procter & Gamble Co. ............................. 664,565
1,900 Ralcorp Holdings, Inc.+ .......................... 110,960
750 Reynolds American, Inc. .......................... 30,232
2,250 Safeway, Inc. .................................... 53,483
1,400 SUPERVALU, Inc. .................................. 20,440
10,700 Tyson Foods, Inc., Class A ....................... 93,732
1,600 Universal Corp. .................................. 47,792
2,400 Walgreen Co. ..................................... 59,208
20,630 Wal-Mart Stores, Inc. ............................ 1, 156,518
------------
7, 440,711
------------
Shares Value
- --------- ------------
Energy -- 12.2%
900 Anadarko Petroleum Corp. ......................... $ 34,695
300 Apache Corp. ..................................... 22,359
1,600 Atwood Oceanics, Inc.+ ........................... 24,448
1,400 Cameron International Corp.+ ..................... 28,700
11,650 Chevron Corp. .................................... 861,750
1,400 Cimarex Energy Co. ............................... 37,492
4,600 ConocoPhillips ................................... 238,280
3,200 Consol Energy, Inc. .............................. 91,456
4,500 Devon Energy Corp. ............................... 295,695
900 Diamond Offshore Drilling, Inc. .................. 53,046
24,500 El Paso Corp. .................................... 191,835
500 EOG Resources, Inc. .............................. 33,290
34,250 Exxon Mobil Corp. ................................ 2, 734,178
4,300 Forest Oil Corp.+ ................................ 70,907
900 Halliburton Co. .................................. 16,362
450 Hess Corp. ....................................... 24,138
20,300 Marathon Oil Corp. ............................... 555,408
2,500 Massey Energy Co. ................................ 34,475
400 Murphy Oil Corp. ................................. 17,740
550 National Oilwell Varco, Inc.+ .................... 13,442
4,800 Newfield Exploration Co.+ ........................ 94,800
1,350 Noble Corp. ...................................... 29,821
5,800 Noble Energy, Inc. ............................... 285,476
4,200 Occidental Petroleum Corp. ....................... 251,958
1,950 Oil States International, Inc.+ .................. 36,446
600 Peabody Energy Corp. ............................. 13,650
12,710 PetroHawk Energy Corp.+ .......................... 198,657
1,650 Rowan, Inc. ...................................... 26,235
2,620 Schlumberger, Ltd. ............................... 110,905
800 SEACOR Holdings, Inc.+ ........................... 53,320
12,900 Southwestern Energy Co.+ ......................... 373,713
4,100 Sunoco, Inc. ..................................... 178,186
600 Teekay Corp. ..................................... 11,790
2,050 Tesoro Corp. ..................................... 26,999
2,400 Tidewater, Inc. .................................. 96,648
See Notes to Financial Statements.
43
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WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- ---------
Energy (continued)
2,650 Transocean, Ltd.+ ...................................... $ 125,212
1,400 Valero Energy Corp. .................................... 30,296
2,782 XTO Energy, Inc. ....................................... 98,121
---------
7,421,929
---------
Financials -- 11.4%
2,655 ACE, Ltd. .............................................. 140,503
1,350 Aflac, Inc. ............................................ 61,884
1,400 Allstate Corp. (The) ................................... 45,864
1,400 American Express Co. ................................... 25,970
750 Ameriprise Financial, Inc. ............................. 17,520
3,700 Annaly Capital Management, Inc. ........................ 58,719
2,500 AON Corp. .............................................. 114,200
1,600 Arch Capital Group, Ltd.+ .............................. 112,160
3,100 Astoria Financial Corp. ................................ 51,088
41,450 Bank of America Corp. .................................. 583,616
6,954 Bank of New York Mellon Corp. (The) .................... 197,007
750 BB&T Corp. ............................................. 20,595
4,200 Capital One Financial Corp. ............................ 133,938
4,970 Charles Schwab Corp. (The) ............................. 80,365
5,150 Chubb Corp. ............................................ 262,650
24,650 Citigroup, Inc. ........................................ 165,402
50 CME Group, Inc., Class A ............................... 10,405
2,050 Discover Financial Services ............................ 19,537
900 Everest Re Group, Ltd. ................................. 68,526
6,300 Fifth Third Bancorp .................................... 52,038
500 Franklin Resources, Inc. ............................... 31,890
1,050 Genworth Financial, Inc., Class A ...................... 2,972
1,610 Goldman Sachs Group, Inc. (The) ........................ 135,868
750 Hartford Financial Services Group, Inc. ................ 12,315
3,200 Health Care REIT, Inc. ................................. 135,040
17,300 Hudson City Bancorp, Inc. .............................. 276,108
Shares Value
- --------- ---------
Financials (continued)
350 IntercontinentalExchange, Inc.+ ........................ $ 28,854
29,955 JPMorgan Chase & Co. ................................... 944,481
1,050 Loews Corp. ............................................ 29,662
1,800 Marshall & Ilsley Corp. ................................ 24,552
2,000 MetLife, Inc. .......................................... 69,720
1,450 Morgan Stanley ......................................... 23,258
12,100 New York Community Bancorp, Inc. ....................... 144,716
4,350 Northern Trust Corp. ................................... 226,809
750 NYSE Euronext .......................................... 20,535
2,000 PartnerRe, Ltd. ........................................ 142,540
400 PNC Financial Services Group, Inc. ..................... 19,600
2,550 Prudential Financial, Inc. ............................. 77,163
4,100 Public Storage ......................................... 325,950
2,600 Raymond James Financial, Inc. .......................... 44,538
10,020 Regions Financial Corp. ................................ 79,759
600 Simon Property Group, Inc. ............................. 31,878
16,600 SLM Corp.+ ............................................. 147,740
1,250 State Street Corp. ..................................... 49,162
500 SunTrust Banks, Inc. ................................... 14,770
7,885 TD Ameritrade Holding Corp.+ ........................... 112,361
4,950 Travelers Cos., Inc. (The) ............................. 223,740
7,600 U.S. Bancorp ........................................... 190,076
5,800 Unum Group ............................................. 107,880
26,165 Wells Fargo & Co. ...................................... 771,344
12,300 Willis Group Holdings, Ltd. ............................ 306,024
650 XL Capital, Ltd., Class A .............................. 2,405
---------
6,975,697
---------
Health Care -- 14.6%
14,260 Abbott Laboratories .................................... 761,056
950 Aetna, Inc. ............................................ 27,075
1,800 AMERIGROUP Corp.+ ...................................... 53,136
5,200 Amgen, Inc.+ ........................................... 300,300
6,990 Baxter International, Inc. ............................. 374,594
See Notes to Financial Statements.
44
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WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- ---------
Health Care (continued)
3,800 Becton Dickinson & Co. ................................. $ 259,882
550 Biogen Idec, Inc.+ ..................................... 26,197
3,300 Boston Scientific Corp.+ ............................... 25,542
27,605 Bristol-Myers Squibb Co. ............................... 641,816
600 Cardinal Health, Inc. .................................. 20,682
2,000 Celgene Corp.+ ......................................... 110,560
2,400 Cephalon, Inc.+ ........................................ 184,896
900 Cigna Corp. ............................................ 15,165
1,700 Eli Lilly & Co. ........................................ 68,459
4,400 Endo Pharmaceuticals Holdings, Inc.+ ................... 113,872
7,150 Express Scripts, Inc., Class A+ ........................ 393,107
300 Facet Biotech Corp.+ ................................... 2,877
1,600 Forest Laboratories, Inc.+ ............................. 40,752
900 Genzyme Corp.+ ......................................... 59,733
16,245 Gilead Sciences, Inc.+ ................................. 830,769
1,200 Health Net, Inc.+ ...................................... 13,068
9,200 Hologic, Inc.+ ......................................... 120,244
8,100 Hospira, Inc.+ ......................................... 217,242
400 Illumina, Inc.+ ........................................ 10,420
650 Inverness Medical Innovations, Inc.+ ................... 12,291
17,800 Johnson & Johnson ...................................... 1,064,974
2,100 Kinetic Concepts, Inc.+ ................................ 40,278
28,400 King Pharmaceuticals, Inc.+ ............................ 301,608
2,600 Laboratory Corp. of America Holdings+ .................. 167,466
1,180 Life Technologies Corp.+ ............................... 27,506
1,790 Medco Health Solutions, Inc.+ .......................... 75,019
950 Medtronic, Inc. ........................................ 29,849
3,250 Merck & Co., Inc. ...................................... 98,800
15,900 Mylan, Inc.+ ........................................... 157,251
5,005 Omnicare, Inc. ......................................... 138,939
1,500 PDL BioPharma, Inc. .................................... 9,270
1,844 Perrigo Co. ............................................ 59,580
54,450 Pfizer, Inc. ........................................... 964,310
4,300 Quest Diagnostics, Inc. ................................ 223,213
Shares Value
- --------- ---------
Health Care (continued)
1,500 Schering-Plough Corp. .................................. $ 25,545
1,600 St. Jude Medical, Inc.+ ................................ 52,736
6,545 Thermo Fisher Scientific, Inc.+ ........................ 222,988
2,050 UnitedHealth Group, Inc. ............................... 54,530
5,750 Varian Medical Systems, Inc.+ .......................... 201,480
400 Varian, Inc.+ .......................................... 13,404
2,900 Warner Chilcott, Ltd., Class A+ ........................ 42,050
4,750 Watson Pharmaceuticals, Inc.+ .......................... 126,207
1,650 WellCare Health Plans, Inc.+ ........................... 21,219
1,700 Wyeth .................................................. 63,767
600 Zimmer Holdings, Inc.+ ................................. 24,252
---------
8,889,976
---------
Industrials -- 14.3%
11,400 3M Co. ................................................. 655,956
1,650 Ametek, Inc. ........................................... 49,847
10,100 AMR Corp.+ ............................................. 107,767
1,500 Avery Dennison Corp. ................................... 49,095
900 Boeing Co. ............................................. 38,403
450 Burlington Northern Santa Fe Corp. ..................... 34,069
1,000 Caterpillar, Inc. ...................................... 44,670
2,345 CH Robinson Worldwide, Inc. ............................ 129,045
2,700 Continental Airlines, Inc., Class B+ ................... 48,762
600 CSX Corp. .............................................. 19,482
3,950 Cummins, Inc. .......................................... 105,583
3,585 Danaher Corp. .......................................... 202,947
7,700 Deere & Co. ............................................ 295,064
6,500 Dover Corp. ............................................ 213,980
2,200 Dun & Bradstreet Corp. ................................. 169,840
1,200 Emerson Electric Co. ................................... 43,932
4,300 Equifax, Inc. .......................................... 114,036
See Notes to Financial Statements.
45
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WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- --------------
Industrials (continued)
1,900 Fastenal Co. ..................................... $ 66,215
350 First Solar, Inc.+ ............................... 48,286
600 Flowserve Corp. .................................. 30,900
1,000 Fluor Corp. ...................................... 44,870
1,150 Foster Wheeler, Ltd.+ ............................ 26,887
1,350 Gardner Denver, Inc.+ ............................ 31,509
10,750 General Dynamics Corp. ........................... 619,093
23,850 General Electric Co. ............................. 386,370
4,400 Goodrich Corp. ................................... 162,888
1,740 Honeywell International, Inc. .................... 57,124
900 Illinois Tool Works, Inc. ........................ 31,545
1,650 Ingersoll-Rand Co., Ltd., Class A ................ 28,628
1,000 Jacobs Engineering Group, Inc.+ .................. 48,100
6,500 Joy Global, Inc. ................................. 148,785
4,500 L-3 Communications Holdings, Inc., Class 3 ....... 332,010
2,305 Lockheed Martin Corp. ............................ 193,804
800 Manitowoc Co., Inc. (The) ........................ 6,928
12,900 Masco Corp. ...................................... 143,577
3,850 Norfolk Southern Corp. ........................... 181,143
3,800 Northrop Grumman Corp. ........................... 171,152
1,150 Overseas Shipholding ............................. 48,426
550 Parker Hannifin Corp. ............................ 23,397
2,800 Pitney Bowes, Inc. ............................... 71,344
11,800 Raytheon Co. ..................................... 602,272
5,700 Republic Services, Inc., Class A ................. 141,303
750 Rockwell Collins, Inc. ........................... 29,318
5,100 RR Donnelley & Sons Co. .......................... 69,258
200 Seaboard Corp. ................................... 238,800
130 Shaw Group, Inc. (The)+ .......................... 2,661
1,650 Southwest Airlines Co. ........................... 14,223
1,350 SPX Corp. ........................................ 54,742
2,250 Trinity Industries, Inc. ......................... 35,460
16,650 Tyco International, Ltd. ......................... 359,640
15,035 Union Pacific Corp. .............................. 718,673
Shares Value
- --------- ---------------
Industrials (continued)
800 United Parcel Service, Inc., Class B ............. $ 44,128
14,950 United Technologies Corp. ........................ 801,320
3,100 URS Corp.+ ....................................... 126,387
3,600 UTi Worldwide, Inc. .............................. 51,624
850 Wabtec Corp. ..................................... 33,788
3,190 Waste Connections, Inc.+ ......................... 100,708
750 WW Grainger, Inc. ................................ 59,130
---------------
8,708,894
---------------
Information Technology -- 17.6%
4,600 Accenture, Ltd., Class A ......................... 150,834
12,600 Agilent Technologies, Inc.+ ...................... 196,938
2,150 Alliance Data Systems Corp.+ ..................... 100,039
1,400 Altera Corp. ..................................... 23,394
7,000 Amdocs, Ltd.+ .................................... 128,030
1,800 Ansys, Inc.+ ..................................... 50,202
2,080 Apple, Inc.+ ..................................... 177,528
3,000 Autodesk, Inc.+ .................................. 58,950
1,400 Automatic Data Processing, Inc. .................. 55,076
2,600 Avnet, Inc.+ ..................................... 47,346
3,250 Avocent Corp.+ ................................... 58,207
17,000 BMC Software, Inc.+ .............................. 457,470
3,530 Broadcom Corp., Class A+ ......................... 59,904
13,100 CA, Inc. ......................................... 242,743
26,100 Cisco Systems, Inc.+ ............................. 425,430
5,300 Computer Sciences Corp.+ ......................... 186,242
1,450 Corning, Inc. .................................... 13,819
3,250 Dell, Inc.+ ...................................... 33,280
2,000 Dolby Laboratories, Inc., Class A+ ............... 65,520
1,700 DST Systems, Inc.+ ............................... 64,566
2,650 eBay, Inc.+ ...................................... 36,994
8,700 EchoStar Corp., Class A+ ......................... 129,369
2,700 EMC Corp.+ ....................................... 28,269
1,535 Equinix, Inc.+ ................................... 81,647
3,800 Fiserv, Inc.+ .................................... 138,206
See Notes to Financial Statements.
46
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WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- --------------
Information Technology (continued)
760 Google, Inc., Class A+ ........................... $ 233,814
9,000 Harris Corp. ..................................... 342,450
4,900 Hewitt Associates, Inc., Class A+ ................ 139,062
18,450 Hewlett-Packard Co. .............................. 669,551
3,400 IAC/InterActive Corp.+ ........................... 53,482
4,250 Ingram Micro, Inc., Class A+ ..................... 56,908
2,600 Integrated Device Technology, Inc.+ .............. 14,586
16,800 Intel Corp. ...................................... 246,288
14,550 International Business Machines Corp. ............ 1,224,528
9,800 Intuit, Inc.+ .................................... 233,142
1,800 Jabil Circuit, Inc. .............................. 12,150
1,950 Lexmark International, Inc., Class A+ ............ 52,455
23,000 LSI Corp.+ ....................................... 75,670
350 Mastercard, Inc., Class A ........................ 50,026
5,390 McAfee, Inc.+ .................................... 186,332
3,300 Metavante Technologies, Inc.+ .................... 53,163
1,855 Microsemi Corp.+ ................................. 23,447
77,740 Microsoft Corp. .................................. 1,511,265
6,000 Netease.com ADR+ ................................. 132,600
4,300 Nintendo Co., Ltd. ADR ........................... 205,325
12,700 Novell, Inc.+ .................................... 49,403
53,971 Oracle Corp.+ .................................... 956,906
3,800 Parametric Technology Corp.+ ..................... 48,070
3,200 Plantronics, Inc. ................................ 42,240
1,070 Polycom, Inc.+ ................................... 14,456
2,350 QLogic Corp.+ .................................... 31,584
2,350 QUALCOMM, Inc. ................................... 84,200
2,400 Quest Software, Inc.+ ............................ 30,216
28,200 Sun Microsystems, Inc.+ .......................... 107,724
4,010 Sybase, Inc.+ .................................... 99,328
14,150 Symantec Corp.+ .................................. 191,308
5,200 Synopsys, Inc.+ .................................. 96,304
1,950 Texas Instruments, Inc. .......................... 30,264
Shares Value
- --------- --------------
Information Technology (continued)
750 Tyco Electronics, Ltd. ........................... $ 12,157
7,000 VeriSign, Inc.+ .................................. 133,560
2,700 Vishay Intertechnology, Inc.+ .................... 9,234
1,900 WebMD Health Corp., Class A+ ..................... 44,821
2,400 Western Digital Corp.+ ........................... 27,480
8,250 Western Union Co. (The) .......................... 118,305
4,085 Xilinx, Inc. ..................................... 72,795
1,700 Yahoo!, Inc.+ .................................... 20,740
--------------
10,747,342
--------------
Materials -- 3.5%
450 AK Steel Holding Corp. ........................... 4,194
11,400 Crown Holdings, Inc.+ ............................ 218,880
500 Cytec Industries, Inc. ........................... 10,610
950 Dow Chemical Co. (The) ........................... 14,335
900 EI Du Pont de Nemours & Co. ...................... 22,770
5,750 FMC Corp. ........................................ 257,198
750 Freeport-McMoRan Copper & Gold, Inc. ............. 18,330
1,000 Greif, Inc., Class A ............................. 33,430
1,950 International Paper Co. .......................... 23,010
1,800 Intrepid Potash, Inc.+ ........................... 37,386
1,300 Lubrizol Corp. ................................... 47,307
3,350 Monsanto Co. ..................................... 235,672
2,650 Mosaic Co. (The) ................................. 91,690
800 Newmont Mining Corp. ............................. 32,560
600 Nucor Corp. ...................................... 27,720
3,050 Olin Corp. ....................................... 55,144
7,600 Owens-Illinois, Inc.+ ............................ 207,708
5,955 Pactiv Corp.+ .................................... 148,160
5,600 PPG Industries, Inc. ............................. 237,608
4,300 Praxair, Inc. .................................... 255,248
1,250 Reliance Steel & Aluminum Co. .................... 24,925
1,300 Rock-Tenn Co., Class A ........................... 44,434
1,450 RPM International, Inc. .......................... 19,271
See Notes to Financial Statements.
47
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOG0]
SCHEDULE OF INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- --------------
Materials (continued)
600 Scotts Miracle-Gro Co. (The), Class A ............ $ 17,832
1,400 Terra Industries, Inc. ........................... 23,338
450 United States Steel Corp. ........................ 16,740
600 Weyerhaeuser Co. ................................. 18,366
--------------
2,143,866
--------------
Telecommunication Services -- 4.2%
505 American Tower Corp., Class A+ ................... 14,807
51,600 AT&T, Inc. ....................................... 1,470,600
6,700 CenturyTel, Inc. 183,111
1,850 Leap Wireless International, Inc.+ ............... 49,747
5,710 MetroPCS Communications, Inc.+ ................... 84,793
6,100 NII Holdings, Inc.+ .............................. 110,898
1,000 US Cellular Corp.+ ............................... 43,240
18,655 Verizon Communications, Inc. ..................... 632,404
--------------
2,589,600
--------------
Utilities -- 5.1%
7,400 AES Corp. (The)+ ................................. 60,976
750 American Electric Power Co., Inc. ................ 24,960
11,700 Centerpoint Energy, Inc. ......................... 147,654
10,350 CMS Energy Corp. ................................. 104,639
900 Constellation Energy Group, Inc. ................. 22,581
500 DTE Energy Co. ................................... 17,835
5,050 Duke Energy Corp. ................................ 75,800
950 Edison International ............................. 30,514
4,055 Exelon Corp. ..................................... 225,499
750 FirstEnergy Corp. ................................ 36,435
1,500 Idacorp, Inc. .................................... 44,175
6,600 MDU Resources Group, Inc. ........................ 142,428
6,700 Mirant Corp.+ .................................... 126,429
100 New Jersey Resources Corp. ....................... 3,935
Shares Value
- --------- ---------------
Utilities (continued)
9,900 NiSource, Inc. ................................... $ 108,603
5,600 Northeast Utilities .............................. 134,736
10,200 NRG Energy, Inc.+ ................................ 237,966
8,500 NV Energy, Inc. .................................. 84,065
3,400 OGE Energy Corp. ................................. 87,652
4,300 Oneok, Inc. ...................................... 125,216
7,300 Pepco Holdings, Inc. ............................. 129,648
9,200 PG&E Corp. ....................................... 356,132
4,500 Pinnacle West Capital Corp. ...................... 144,585
2,100 Portland General Electric Co. .................... 40,887
5,400 PPL Corp. ........................................ 165,726
800 Progress Energy, Inc. ............................ 31,880
800 Questar Corp. .................................... 26,152
900 Sempra Energy .................................... 38,367
6,500 Southern Co. ..................................... 240,500
3,500 Westar Energy, Inc. .............................. 71,785
---------------
3,087,760
---------------
Total Common Stock
(Cost $67,808,516) 65,052,489
---------------
Maturity
Date Par
-------- --------
REPURCHASE AGREEMENT -- 0.1%
Agreement with JPMorgan, 0.01%
dated 12/31/08 to be repurchased at $82,250,
collateralized by$85,000 U.S. Treasury Inflation Bonds,
2.375%, due 04/15/11(market value $90,761)
(Cost $82,250) 01/02/09 $ 82,250 82,250
--------------
Total Investments -- 106.8%
(Cost $67,890,766) 65,134,739
Other Assets & Liabilities, Net -- (6.8)% (4,161,843)
--------------
NET ASSETS -- 100.0% $ 60,972,896
==============
See Notes to Financial Statements.
48
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WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF SECURITIES SOLD SHORT
- --------------------------------------------------------------------------------
Shares Value
- --------- -----------
COMMON STOCK -- (20.7)%
Consumer Discretionary -- (3.6)%
1,500 Abercrombie & Fitch Co., Class A ................ $ 34,605
4,700 Amazon.com, Inc.+ ............................... 241,016
1,100 Autoliv, Inc. SDR ............................... 23,606
2,500 Black & Decker Corp. ............................ 104,525
3,400 BorgWarner, Inc. ................................ 74,018
200 Clear Channel Outdoor Holdings, Inc., Class A+ .. 1,230
300 CTC Media, Inc.+ ................................ 1,440
2,500 Darden Restaurants, Inc. ........................ 70,450
500 DeVry, Inc. ..................................... 28,705
1,100 Dick's Sporting Goods, Inc.+ .................... 15,521
1,200 DreamWorks Animation SKG, Inc., Class A+ ........ 30,312
1,350 Fortune Brands, Inc. ............................ 55,728
2,200 Gentex Corp. .................................... 19,426
1,100 Harley-Davidson, Inc. ........................... 18,667
2,200 Honda Motor Co., Ltd. ADR ....................... 46,948
500 Interactive Data Corp. .......................... 12,330
3,600 International Game Technology ................... 42,804
3,300 J.C. Penney Co., Inc. ........................... 65,010
400 Lamar Advertising Co., Class A+ ................. 5,024
4,800 Liberty Global, Inc., Class A+ .................. 76,416
6,300 Macy's, Inc. .................................... 65,205
2,200 Marriott International, Inc., Class A ........... 42,790
400 Matthews International Corp., Class A ........... 14,672
1,800 MDC Holdings, Inc. .............................. 54,540
1,000 Mohawk Industries, Inc.+ ........................ 42,970
1,100 Morningstar, Inc.+ .............................. 39,050
7,000 News Corp., Class A ............................. 63,630
2,800 Nordstrom, Inc. ................................. 37,268
2,110 Scholastic Corp. ................................ 28,654
Shares Value
- --------- -----------
Consumer Discretionary (continued)
1,300 Scripps Networks Interactive, Inc., Class A ..... $ 28,600
550 Sears Holdings Corp.+ ........................... 21,379
4,000 Service Corp. International ..................... 19,880
2,050 Stanley Works (The) ............................. 69,905
23,950 Starbucks Corp.+ ................................ 226,567
2,800 Starwood Hotels & Resorts Worldwide, Inc. ....... 50,120
300 Strayer Education, Inc. ......................... 64,323
2,715 Tiffany & Co. ................................... 64,155
1,750 Tupperware Brands Corp. ......................... 39,725
2,660 Walt Disney Co. (The) ........................... 60,355
2,400 Weight Watchers International, Inc. ............. 70,608
1,200 Whirlpool Corp. ................................. 49,620
1,750 Yum! Brands, Inc. ............................... 55,125
-----------
2,176,922
-----------
Consumer Staples -- (1.4)%
1,375 Brown-Forman Corp., Class B ..................... 70,799
700 Central European Distribution Corp.+ ............ 13,790
550 Clorox Co. ...................................... 30,558
770 Colgate-Palmolive Co. ........................... 52,776
1,100 Costco Wholesale Corp. .......................... 57,750
2,850 Dean Foods Co.+ ................................. 51,215
1,200 Energizer Holdings, Inc.+ ....................... 64,968
3,200 Hershey Co. (The) ............................... 111,168
1,350 Kimberly-Clark Corp. ............................ 71,199
1,750 Pepsi Bottling Group, Inc. ...................... 39,392
2,700 Safeway, Inc. ................................... 64,179
3,200 Sara Lee Corp. .................................. 31,328
2,200 Unilever NV ..................................... 54,010
1,190 UST, Inc. ....................................... 82,562
1,600 Walgreen Co. .................................... 39,472
-----------
835,166
-----------
See Notes to Financial Statements.
49
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WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF SECURITIES SOLD SHORT - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- -----------
Energy -- (1.4)%
700 Apache Corp. ................................ $ 52,171
1,200 Baker Hughes, Inc. .......................... 38,484
1,500 Cabot Oil & Gas Corp. ....................... 39,000
1,300 Cimarex Energy Co. .......................... 34,814
1,150 CNX Gas Corp.+ .............................. 31,395
2,300 ConocoPhillips .............................. 119,140
2,700 Continental Resources, Inc.+ ................ 55,917
550 Diamond Offshore Drilling, Inc. ............. 32,417
1,600 Frontier Oil Corp. .......................... 20,208
1,200 Hess Corp. .................................. 64,368
700 Holly Corp. ................................. 12,761
2,600 Murphy Oil Corp. ............................ 115,310
1,500 Nabors Industries, Ltd.+ .................... 17,955
600 Quicksilver Resources, Inc.+ ................ 3,342
1,000 Range Resources Corp. ....................... 34,390
8,200 Spectra Energy Corp. ........................ 129,068
1,100 Suncor Energy, Inc. ......................... 21,450
700 Ultra Petroleum Corp.+ ...................... 24,157
800 XTO Energy, Inc. ............................ 28,216
-----------
874,563
-----------
Financials -- (2.2)%
900 Affiliated Managers Group, Inc.+ ............ 37,728
4,400 Aflac, Inc. ................................. 201,696
140 Alexander's, Inc. ........................... 35,686
4,400 American Express Co. ........................ 81,620
4,300 Arthur J. Gallagher & Co. ................... 111,413
750 City National Corp. ......................... 36,525
500 CNA Financial Corp. ......................... 8,220
3,700 Comerica, Inc. .............................. 73,445
4,000 Eaton Vance Corp. ........................... 84,040
3,200 Fidelity National Financial, Inc., Class A .. 56,800
1,100 First American Corp. ........................ 31,779
3,100 First Horizon National Corp. ................ 32,767
2,200 Host Hotels & Resorts, Inc. ................. 16,654
1,900 Jefferies Group, Inc. ....................... 26,714
Shares Value
- --------- -----------
Financials (continued)
7,300 Keycorp ..................................... $ 62,196
1,350 Legg Mason, Inc. ............................ 29,578
2,700 Leucadia National Corp. ..................... 53,460
4,950 Moody's Corp. ............................... 99,445
700 MSCI, Inc., Class A+ ........................ 12,432
300 Odyssey Re Holdings Corp. ................... 15,543
1,900 People's United Financial, Inc. ............. 33,877
3,500 Progressive Corp. (The) ..................... 51,835
400 Stifel Financial Corp.+ ..................... 18,340
550 Student Loan Corp. (The) .................... 22,550
100 T Rowe Price Group, Inc. .................... 3,544
1,800 Taubman Centers, Inc. ....................... 45,828
550 Vornado Realty Trust ........................ 33,193
2,100 Webster Financial Corp. ..................... 28,938
-----------
1,345,846
-----------
Health Care -- (2.2)%
4,385 Allergan, Inc. .............................. 176,803
850 Beckman Coulter, Inc. ....................... 37,349
500 Celgene Corp.+ .............................. 27,640
3,350 Health Net, Inc.+ ........................... 36,482
750 Henry Schein, Inc.+ ......................... 27,517
1,250 Idexx Laboratories, Inc.+ ................... 45,100
600 Intuitive Surgical, Inc.+ ................... 76,194
1,095 Johnson & Johnson ........................... 65,514
910 Laboratory Corp. of America Holdings+ ....... 58,613
2,600 Merck & Co., Inc. ........................... 79,040
2,700 Novo Nordisk ADR ............................ 138,753
11,800 Schering-Plough Corp. ....................... 200,954
4,650 Sepracor, Inc.+ ............................. 51,057
6,900 UnitedHealth Group, Inc. .................... 183,540
2,200 Vertex Pharmaceuticals, Inc.+ ............... 66,836
500 Waters Corp.+ ............................... 18,325
1,220 Zimmer Holdings, Inc.+ ...................... 49,313
-----------
1,339,030
-----------
See Notes to Financial Statements.
50
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF SECURITIES SOLD SHORT - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- ------------
Industrials -- (3.0)%
710 3M Co. .............................................. $ 40,853
1,350 Alexander & Baldwin, Inc. ........................... 33,831
1,600 Ametek, Inc. ........................................ 48,336
3,550 Avery Dennison Corp. ................................ 116,191
455 Carlisle Cos., Inc. ................................. 9,419
4,900 Caterpillar, Inc. ................................... 218,883
2,800 Clarcor, Inc. ....................................... 92,904
1,500 Con-way, Inc. ....................................... 39,900
2,030 Copart, Inc.+ ....................................... 55,196
700 Covanta Holding Corp.+ .............................. 15,372
2,200 Donaldson Co., Inc. ................................. 74,030
870 Dun & Bradstreet Corp. .............................. 67,164
7,550 Iron Mountain, Inc.+ ................................ 186,712
2,650 Kansas City Southern+ ............................... 50,483
1,150 Landstar System, Inc. ............................... 44,194
4,000 Monster Worldwide, Inc.+ ............................ 48,360
1,100 PACCAR, Inc. ........................................ 31,460
2,150 Pitney Bowes, Inc. .................................. 54,782
500 Precision Castparts Corp. ........................... 29,740
2,200 Robert Half International, Inc. .................... 45,804
2,700 Rollins, Inc. ....................................... 48,816
3,675 Roper Industries, Inc. .............................. 159,532
3,800 Textron, Inc. ....................................... 52,706
1,150 Toro Co. ............................................ 37,950
150 TransDigm Group, Inc.+ .............................. 5,035
4,140 United Parcel Service, Inc., Class B ................ 228,362
1,900 USG Corp.+ .......................................... 15,276
------------
1,851,291
------------
Information Technology -- (4.0)%
6,600 Adobe Systems, Inc.+ ................................ 140,514
9,200 Alcatel-Lucent ADR .................................. 19,780
4,100 Apple, Inc.+ ........................................ 349,935
5,600 Applied Materials, Inc. ............................. 56,728
990 Cisco Systems, Inc.+ ................................ 16,137
1,100 Citrix Systems, Inc.+ ............................... 25,927
1,480 Cognizant Technology Solutions Corp., Class A+ ...... 26,729
Shares Value
- --------- ------------
Information Technology (continued)
18,200 Corning, Inc. ....................................... $ 173,446
800 Dolby Laboratories, Inc., Class A+ .................. 26,208
700 Electronic Arts, Inc.+ .............................. 11,228
19,000 EMC Corp.+ .......................................... 198,930
1,950 Fidelity National Information Services, Inc. ........ 31,726
1,950 Fiserv, Inc.+ ....................................... 70,922
2,570 Gartner, Inc.+ ...................................... 45,823
370 Google, Inc., Class A+ .............................. 113,831
2,700 IAC/InterActive Corp.+ .............................. 42,471
2,900 Imation Corp. ....................................... 39,353
26,200 Intel Corp. ......................................... 384,092
750 Itron, Inc.+ ........................................ 47,805
1,720 Jack Henry & Associates, Inc. ....................... 33,385
2,600 Kla-Tencor Corp. .................................... 56,654
2,400 Lam Research Corp.+ ................................. 51,072
3,800 Linear Technology Corp. ............................. 84,056
5,500 Macrovision Solutions Corp.+ ........................ 69,575
400 Microchip Technology, Inc. .......................... 7,812
2,675 Nvidia Corp.+ ....................................... 21,587
500 QUALCOMM, Inc. ...................................... 17,915
1,600 Salesforce.com, Inc.+ ............................... 51,216
3,400 SanDisk Corp.+ ...................................... 32,640
4,900 Sun Microsystems, Inc.+ ............................. 18,718
1,200 Varian Semiconductor Equipment Associates, Inc.+ .... 21,744
2,150 VeriSign, Inc.+ ..................................... 41,022
5,500 Yahoo!, Inc.+ ....................................... 67,100
1,750 Zebra Technologies Corp., Class A+ .................. 35,455
------------
2,431,536
------------
Materials -- (1.5)%
1,800 Commercial Metals Co. ............................... 21,366
2,500 Crown Holdings, Inc.+ ............................... 48,000
3,050 Ecolab, Inc. ........................................ 107,207
See Notes to Financial Statements.
51
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND DECEMBER 31, 2008 [LOGO]
SCHEDULE OF SECURITIES SOLD SHORT - (CONTINUED)
- --------------------------------------------------------------------------------
Shares Value
- --------- ------------
Materials (continued)
1,100 International Flavors & Fragrances, Inc. ............ $ 32,692
7,300 International Paper Co. ............................. 86,140
3,600 Nalco Holding Co. ................................... 41,544
1,500 Owens-Illinois, Inc.+ ............................... 40,995
2,000 Pactiv Corp.+ ....................................... 49,760
500 PPG Industries, Inc. ................................ 21,215
4,355 Praxair, Inc. ....................................... 258,513
1,600 Sigma-Aldrich Corp. ................................. 67,584
3,500 Weyerhaeuser Co. .................................... 107,135
------------
882,151
------------
Telecommunication Services -- (0.5)%
4,600 American Tower Corp., Class A+ ...................... 134,872
3,500 Crown Castle International Corp.+ ................... 61,530
1,100 Embarq Corp. ........................................ 39,556
2,350 NII Holdings, Inc.+ ................................. 42,723
2,300 Windstream Corp. .................................... 21,160
------------
299,841
------------
Utilities -- (0.9)%
1,500 Allegheny Energy, Inc. .............................. 50,790
1,100 Energen Corp. ....................................... 32,263
2,000 Equitable Resources, Inc. ........................... 67,100
3,300 Exelon Corp. ........................................ 183,513
5,800 PPL Corp. ........................................... 178,002
5,200 Reliant Energy, Inc.+ ............................... 30,056
1,000 WGL Holdings, Inc. .................................. 32,690
------------
574,414
------------
Total Common Stock
(Proceeds $13,276,397) 12,610,760
------------
Shares Value
- --------- ------------
INVESTMENT COMPANY -- (0.1)%
4,130 Technology Select SPDR .............................. $ 63,644
------------
Total Investment Company
(Proceeds $83,189) 63,644
------------
Total Securities Sold Short -- (20.8)%
(Proceeds $13,359,586) $ 12,674,404
------------
+ Non-income producing security
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
SDR - Swedish Depositary Receipt
SPDR - Standard and Poor's 500 Depositary Receipt
See Notes to Financial Statements.
52
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES [LOGO]
DECEMBER 31, 2008
- --------------------------------------------------------------------------------
DOW JONES WILSHIRE
LARGE LARGE SMALL SMALL WILSHIRE LARGE CAP
COMPANY COMPANY COMPANY COMPANY 5000 CORE
GROWTH VALUE GROWTH VALUE INDEX 130/30
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------ ----------- ----------- ----------- ------------ ------------
ASSETS:
Investments, at value (Note 2) ............. $197,770,953 $26,542,475 $ 5,430,860 $ 8,634,604 $157,780,185 $ 65,134,739
Cash ....................................... -- -- -- -- -- 251,717
Receivable for Portfolio shares sold ....... 2,987,269 2,908,449 878 1,078 816,078 8,383,323
Receivable for investment securities
sold .................................... 2,631,874 147,463 12,274 64,204 18,621,567 77,140
Receivable from investment advisor ......... -- -- -- -- -- 21,280
Dividends and interest receivable .......... 247,951 56,225 2,994 17,761 347,496 65,170
Dividend reclaim receivable ................ 18,741 -- 3 -- -- --
Prepaid expenses and other assets .......... 20,255 13,406 11,813 12,841 30,649 16,061
------------ ----------- ----------- ----------- ------------ ------------
Total Assets ............................ $203,677,043 $29,668,018 $ 5,458,822 $ 8,730,488 $177,595,975 $ 73,949,430
------------ ----------- ----------- ----------- ------------ ------------
LIABILITIES:
Payable to Custodian ....................... 349,717 -- -- -- 8,910,812 --
Securities sold short, at value ............ -- -- -- -- -- 12,674,404
Payable for Portfolio shares redeemed ...... 1,021,299 35,163 14,120 41,845 4,626,029 108,563
Payable for investment securities
purchased .................................. 1,483,943 40,490 -- 20,283 9,290,554 134,773
Investment advisory fees payable
(Note 3) ................................... 125,230 16,461 1,096 1,732 13,923 --
Distribution fees payable (Note 4) ......... 60,563 11,276 1,070 2,440 28,493 8,135
Administration fees payable ................ 11,688 1,536 307 485 9,746 1,645
Chief compliance officer fees payable ...... 6,224 774 168 253 5,056 590
Trustees' fees payable ..................... 1,899 236 51 77 1,543 180
Dividends on short sales ................... -- -- -- -- -- 11,802
Accrued expenses and other payables ........ 253,679 34,810 14,786 11,576 206,548 36,442
------------ ----------- ----------- ----------- ------------ ------------
Total Liabilities ....................... 3,314,242 140,746 31,598 78,691 23,092,704 12,976,534
------------ ----------- ----------- ----------- ------------ ------------
NET ASSETS ................................. $200,362,801 $29,527,272 $ 5,427,224 $ 8,651,797 $154,503,271 $ 60,972,896
============ =========== =========== =========== ============ ============
NET ASSETS consist of:
Undistributed net investment income ........ $ -- $ 987 $ -- $ 27,262 $ 302,374 $ 62,832
Accumulated net realized loss on
investments sold and securities sold
short ...................................... (34,452,209) (14,931,075) (2,604,655) (4,174,808) (45,948,054) (7,466,782)
Net unrealized depreciation of
investments and securities sold short ...... (35,597,334) (7,762,540) (1,082,461) (1,854,337) (10,536,066) (2,070,845)
Paid-in Capital ............................ 270,412,344 52,219,900 9,114,340 14,653,680 210,685,017 70,447,691
------------ ----------- ----------- ----------- ------------ ------------
NET ASSETS ................................. $200,362,801 $29,527,272 $ 5,427,224 $ 8,651,797 $154,503,271 $ 60,972,896
============ =========== =========== =========== ============ ============
Investments, at cost (Note 2) .............. $233,368,287 $34,305,015 $ 6,513,321 $10,488,941 $168,316,251 $ 67,890,766
Proceeds from short sales (Note 2) ......... $ -- $ -- $ -- $ -- $ -- $ 13,359,586
See Notes to Financial Statements.
53
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES - (CONTINUED) [LOGO]
DECEMBER 31, 2008
- --------------------------------------------------------------------------------
DOW JONES WILSHIRE
LARGE LARGE SMALL SMALL WILSHIRE LARGE CAP
COMPANY COMPANY COMPANY COMPANY 5000 CORE
GROWTH VALUE GROWTH VALUE INDEX 130/30
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------ ----------- ----------- ----------- ------------ ------------
NET ASSETS:
Investment Class shares .................... $118,682,504 $24,790,758 $ 5,272,882 $ 8,210,682 $ 98,032,187 $ 36,355,744
============ =========== =========== =========== ============ ============
(50,000,000 shares authorized, per
class, per Portfolio, par value $.001
per share)+ Institutional Class shares ... $ 81,680,297 $ 4,736,514 $ 154,342 $ 441,115 $ 55,088,369 $ 24,617,152
============ =========== =========== =========== ============ ============
(50,000,000 shares authorized, per
class, per Portfolio, par value $.001
per share)+ Qualified Class shares ...... N/A N/A N/A N/A $ 430,466 N/A
============ =========== =========== =========== ============ ============
(50,000,000 shares authorized, per
class, per Portfolio, par value $.001
per share)+ Horace Mann Class shares .... N/A N/A N/A N/A $ 952,249 N/A
============ =========== =========== =========== ============ ============
(50,000,000 shares authorized, per
class, per Portfolio, par value $.001
per share)+
SHARES OUTSTANDING:
Investment Class shares .................... 5,898,545 2,473,405 543,811 751,436 12,775,341 5,838,869
============ =========== =========== =========== ============ ============
Institutional Class shares ................. 3,941,374 473,198 15,386 40,044 7,186,976 3,937,226
============ =========== =========== =========== ============ ============
Qualified Class shares ..................... N/A N/A N/A N/A 56,154 N/A
============ =========== =========== =========== ============ ============
Horace Mann Class shares ................... N/A N/A N/A N/A 124,342 N/A
============ =========== =========== =========== ============ ============
INVESTMENT CLASS SHARES:
Net asset value, Offering and
redemption price per share ............. $ 20.12 $ 10.02 $ 9.70 $ 10.93 $ 7.67 $ 6.23
============ =========== =========== =========== ============ ============
INSTITUTIONAL CLASS SHARES:
Net asset value, Offering and
redemption price per share ............. $ 20.72 $ 10.01 $ 10.03 $ 11.02 $ 7.67 $ 6.25
============ =========== =========== =========== ============ ============
QUALIFIED CLASS SHARES:
Net asset value, Offering and
redemption price per share ............. N/A N/A N/A N/A $ 7.67 N/A
============ =========== =========== =========== ============ ============
HORACE MANN CLASS SHARES:
Net asset value, Offering and
redemption price per share ............. N/A N/A N/A N/A $ 7.66 N/A
============ =========== =========== =========== ============ ============
+ For the Wilshire Large Cap Core 130/30 Fund, (40,000,000 shares authorized,
per class, par value $.001 per share).
See Notes to Financial Statements.
54
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS [LOGO]
FOR THE YEAR ENDED DECEMBER 31, 2008
- --------------------------------------------------------------------------------
LARGE LARGE SMALL SMALL DOW JONES WILSHIRE
COMPANY COMPANY COMPANY COMPANY WILSHIRE LARGE CAP
GROWTH VALUE GROWTH VALUE 5000 INDEX CORE 130/30
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------- ------------ ----------- ----------- ------------ -----------
INVESTMENT INCOME:
Dividends ................................. $ 3,546,724 $ 1,154,624 $ 65,405 $ 293,521 $ 4,535,197 $ 519,026
Interest .................................. 106,773 7,304 3,191 3,780 22,823 3,493
Short stock rebates (Note 2) .............. -- -- -- -- -- 119,969
Securities lending income ................. 245,582 39,981 43,648 68,399 204,655 --
Foreign taxes withheld .................... (1,716) (1,498) (267) (75) (665) (362)
------------- ------------ ----------- ----------- ------------ -----------
Total Income ........................... $ 3,897,363 $ 1,200,411 $ 111,977 $ 365,625 $ 4,762,010 $ 642,126
------------- ------------ ----------- ----------- ------------ -----------
EXPENSES
Investment advisory fee (Note 3) .......... 2,603,309 334,147 116,620 160,362 212,305 221,372
Distribution (12b-1) fees (Note 4)
Investment Class ....................... 545,094 98,137 30,051 40,481 295,138 19,425
Qualified Class ........................ N/A N/A N/A N/A 1,378 N/A
Horace Mann Class ...................... N/A N/A N/A N/A 4,625 N/A
Service fees
Investment Class ....................... 293,203 14,513 12,156 17,133 62,443 13,393
Institutional Class .................... 953 2,143 17 (7) 111,838 7,046
Qualified Class ........................ N/A N/A N/A N/A 675 N/A
Administration and Accounting fees
(Note 3) ............................... 288,440 43,322 25,610 29,553 226,023 36,809
Directors' fees and expenses (Note 3) ..... 59,968 7,640 2,347 3,224 34,849 3,239
Chief compliance officer fees ............. 37,145 4,641 1,355 1,868 14,834 2,216
Transfer agent fees (Note 3) .............. 282,545 41,641 34,748 36,972 157,115 35,695
Offering expenses ......................... -- -- -- -- -- 89,206
Professional fees ......................... 144,328 19,240 4,974 7,369 123,537 16,090
Printing fees ............................. 104,611 21,628 8,059 10,484 138,412 18,132
Custodian fees (Note 3) ................... 53,370 30,032 20,010 22,855 30,683 54,305
Registration and filing fees .............. 31,546 21,861 21,600 22,005 30,251 10,815
Dividend expense on securities sold
short .................................. -- -- -- -- -- 113,601
Interest expense .......................... -- -- -- -- -- 152,264
Other ..................................... 50,194 13,641 6,052 3,772 34,912 4,108
------------- ------------ ----------- ----------- ------------ -----------
Total Expenses ............................ 4,494,706 652,586 283,599 356,071 1,479,018 797,716
Fees waived and reimbursed by investment
adviser (Note 3) ....................... -- -- (82,320) (113,197) -- (242,021)
------------- ------------ ----------- ----------- ------------ -----------
Net expenses ........................... 4,494,706 652,586 201,279 242,874 1,479,018 555,695
------------- ------------ ----------- ----------- ------------ -----------
Net Investment Income/(Loss) .............. (597,343) 547,825 (89,302) 122,751 3,282,992 86,431
------------- ------------ ----------- ----------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS AND SHORT SALES
(Notes 1 and 7)
Net realized gain/(loss) from:
Investments ............................ (31,996,345) (12,668,012) (2,547,382) (3,967,970) (24,772,375) (9,190,420)
Short sales ............................ -- -- -- -- -- 1,819,892
Net change in unrealized appreciation/
(depreciation) on:
Investments ............................ (139,455,725) (10,785,786) (2,928,141) (2,866,749) (72,312,417) (2,904,268)
Short sales ............................ -- -- -- -- -- 555,392
------------- ------------ ----------- ----------- ------------ -----------
NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS, FUTURES CONTRACTS AND
SHORT SALES ............................ (171,452,070) (23,453,798) (5,475,523) (6,834,719) (97,084,792) (9,719,404)
------------- ------------ ----------- ----------- ------------ -----------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................ $(172,049,413) $(22,905,973) $(5,564,825) $(6,711,968) $(93,801,800) $(9,632,973)
============= ============ =========== =========== ============ ===========
See Notes to Financial Statements.
55
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS [LOGO]
FOR THE YEAR ENDED DECEMBER 31, 2008
- --------------------------------------------------------------------------------
LARGE LARGE SMALL SMALL DOW JONES WILSHIRE
COMPANY COMPANY COMPANY COMPANY WILSHIRE LARGE CAP
GROWTH VALUE GROWTH VALUE 5000 INDEX CORE 130/30
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------- ------------ ------------ ------------ ------------- -----------
Operations:
Net investment income/(loss) ........... $ (597,343) $ 547,825 $ (89,302) $ 122,751 $ 3,282,992 $ 86,431
Net realized loss on investments and
short sales ......................... (31,996,345) (12,668,012) (2,547,382) (3,967,970) (24,772,375) (7,370,528)
Net change in unrealized
depreciation on investments and
short sales ......................... (139,455,725) (10,785,786) (2,928,141) (2,866,749) (72,312,417) (2,348,876)
------------- ------------ ------------ ------------ ------------- -----------
Net decrease in net assets resulting
from operations ..................... $(172,049,413) $(22,905,973) (5,564,825) (6,711,968) (93,801,800) $(9,632,973)
------------- ------------ ------------ ------------ ------------- -----------
Distributions to Shareholders From:
Net investment income:
Investment Class shares ............. -- (515,500) -- (102,537) (1,803,750) (70,753)
Institutional Class shares .......... -- (41,978) -- (7,772) (1,173,679) (39,319)
Qualified Class shares .............. N/A N/A N/A N/A (7,559) N/A
Horace Mann Class shares ............ N/A N/A N/A N/A (15,141) N/A
Net realized capital gains:
Investment Class shares ............. (2,369,131) (1,036) (297,496) (1,756) -- --
Institutional Class shares .......... (1,539,607) (77) (8,379) (93) -- --
------------- ------------ ------------ ------------ ------------- -----------
Total distributions to shareholders .... (3,908,738) (558,591) (305,875) (112,158) (3,000,129) (110,072)
------------- ------------ ------------ ------------ ------------- -----------
Capital Stock Transactions (Dollars):
Investment Class shares:
Shares sold ......................... 22,629,655 7,597,387 1,860,125 7,131,640 68,932,213 35,853,409
Shares issued as reinvestment of
distributions .................... 2,333,455 515,040 293,495 102,125 1,538,912 68,985
Shares redeemed ..................... (108,280,970) (19,615,682) (9,841,372) (14,643,287) (61,150,618) (5,219,679)
------------- ------------ ------------ ------------ ------------- -----------
Total Investment Class shares .......... (83,317,860) (11,503,255) (7,687,752) (7,409,522) 9,320,507 30,702,715
------------- ------------ ------------ ------------ ------------- -----------
Institutional Class shares:
Shares sold ......................... 29,394,027 3,815,890 16,912 917,960 6,136,012 34,968,875
Shares issued as reinvestment of
distributions .................... 930,367 33,315 7,792 7,737 1,165,726 39,027
Shares redeemed ..................... (51,998,803) (5,137,589) (39,073) (5,321,680) (24,359,675) (15,061,495)
------------- ------------ ------------ ------------ ------------- -----------
Total Institutional Class shares ....... (21,674,409) (1,288,384) (14,369) (4,395,983) (17,057,937) 19,946,407
------------- ------------ ------------ ------------ ------------- -----------
Qualified Class shares:
Shares sold ......................... N/A N/A N/A N/A 93,085 N/A
Shares issued as reinvestment of
distributions .................... N/A N/A N/A N/A 7,558 N/A
Shares redeemed ..................... N/A N/A N/A N/A (24,512) N/A
------------- ------------ ------------ ------------ ------------- -----------
Total Qualified Class shares ........... N/A N/A N/A N/A 76,131 N/A
------------- ------------ ------------ ------------ ------------- -----------
Horace Mann Class shares:
Shares sold ......................... N/A N/A N/A N/A 60,544 N/A
Shares issued as reinvestment of
distributions .................... N/A N/A N/A N/A 15,141 N/A
Shares redeemed ..................... N/A N/A N/A N/A (120,901) N/A
------------- ------------ ------------ ------------ ------------- -----------
Total Horace Mann Class shares ......... N/A N/A N/A N/A (45,216) N/A
------------- ------------ ------------ ------------ ------------- -----------
Net increase/(decrease) in net assets
from Capital Stock transactions .... (104,992,269) (12,791,639) (7,702,121) (11,805,505) (7,706,515) 50,649,122
------------- ------------ ------------ ------------ ------------- -----------
Net increase/(decrease) in net
assets .............................. $(280,950,420) $(36,256,203) $(13,572,821) $(18,629,631) $(104,508,444) $40,906,077
============= ============ ============ ============ ============= ===========
See Notes to Financial Statements.
56
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS - (CONTINUED) [LOGO]
FOR THE YEAR ENDED DECEMBER 31, 2008
- --------------------------------------------------------------------------------
LARGE LARGE SMALL SMALL DOW JONES WILSHIRE
COMPANY COMPANY COMPANY COMPANY WILSHIRE LARGE CAP
GROWTH VALUE GROWTH VALUE 5000 INDEX CORE 130/30
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------ ----------- ----------- ----------- ------------ -------------
NET ASSETS:
Beginning of year ............................. $481,313,221 $65,783,475 $19,000,045 $27,281,428 $259,011,715 $ 20,066,819
------------ ----------- ----------- ----------- ------------ -------------
End of year ................................... $200,362,801 $29,527,272 $ 5,427,224 $ 8,651,797 $154,503,271 $ 60,972,896
============ =========== =========== =========== ============ =============
Undistributed net investment
incomeat end of period. .................... $ -- $ 987 -- $ 27,262 $ 302,374 $ 62,832
============ =========== =========== =========== ============ =============
Capital Share Transactions:
Investment Class shares:
Shares sold ................................ 757,688 550,618 126,702 492,316 8,004,845 5,702,402
Shares issued as reinvestment
of distributions ........................ 120,904 53,929 32,208 10,049 209,091 11,497
Shares redeemed ............................ (3,815,998) (1,405,009) (718,847) (1,062,361) (6,961,111) (585,989)
------------ ----------- ----------- ----------- ------------ -------------
Net increase/(decrease) in Investment
Class shares outstanding ................... (2,937,406) (800,462) (559,937) (559,996) 1,252,825 5,127,910
============ =========== =========== =========== ============ =============
Institutional Class shares:
Shares sold ................................ 1,045,798 352,538 1,089 66,593 599,792 4,622,923
Shares issued as reinvestment
of distributions ........................ 46,799 3,492 828 755 158,602 6,472
Shares redeemed ............................ (1,813,137) (367,208) (3,568) (367,536) (2,732,627) (1,963,730)
------------ ----------- ----------- ----------- ------------ -------------
Net increase/(decrease) in
Institutional Class shares
outstanding ............................. (720,540) (11,178) (1,651) (300,188) (1,974,233) 2,665,665
============ =========== =========== =========== ============ =============
Qualified Class shares:
Shares sold ................................ N/A N/A N/A N/A 8,517 N/A
Shares issued as reinvestment
of distributions ........................ N/A N/A N/A N/A 1,028 N/A
Shares redeemed ............................ N/A N/A N/A N/A (2,288) N/A
------------ ----------- ----------- ----------- ------------ -------------
Net increase in Qualified Class
shares outstanding ......................... N/A N/A N/A N/A 7,257 N/A
============ =========== =========== =========== ============ =============
Horace Mann Class shares:
Shares sold ................................ N/A N/A N/A N/A 6,079 N/A
Shares issued as reinvestment
of distributions ........................ N/A N/A N/A N/A 2,063 N/A
Shares redeemed ............................ N/A N/A N/A N/A (12,458) N/A
------------ ----------- ----------- ----------- ------------ -------------
Net decrease in Horace Mann
Class shares outstanding ................... N/A N/A N/A N/A (4,316) N/A
============ =========== =========== =========== ============ =============
See Notes to Financial Statements.
57
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS [LOGO]
FOR THE YEAR ENDED DECEMBER 31, 2007
- --------------------------------------------------------------------------------
LARGE LARGE SMALL SMALL DOW JONES WILSHIRE
COMPANY COMPANY COMPANY COMPANY WILSHIRE LARGE CAP
GROWTH VALUE GROWTH VALUE 5000 INDEX CORE 130/30
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------- ------------- ------------- ------------- ------------- -------------
Operations:
Net investment income/(loss) ........... $ (918,024) $ 705,098 $ (82,010) $ 166,730 $ 3,532,220 $ 6,620
Net realized gain on investments,
futures contracts and short sales ... 94,476,379 10,714,022 1,898,551 1,652,666 5,406,000 (63,192)
Net change in unrealized appreciation/
(depreciation) on investments,
futures contracts and short
sales ............................ (8,558,818) (12,965,172) (547,929) (2,690,428) 4,141,406 278,031
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) in net assets
resulting from operations ........... 84,999,537 (1,546,052) 1,268,612 (871,032) 13,079,626 221,459
------------- ------------- ------------- ------------- ------------- -------------
Distributions to Shareholders From:
Net investment income:
Investment Class shares ............. -- (584,332) -- (135,499) (1,988,583) (340)
Institutional Class shares .......... -- (121,616) -- (53,996) (1,914,540) (3,660)
Qualified Class shares .............. N/A N/A N/A N/A (7,704) N/A
Horace Mann Class shares ............ N/A N/A N/A N/A (20,879) N/A
Return of capital:
Investment Class shares ............. -- (3,499) -- -- -- --
Institutional Class shares .......... -- (728) -- -- -- --
Net realized capital gains:
Investment Class shares ............. (53,102,352) (12,707,134) (1,996,330) (1,876,493) -- --
Institutional Class shares .......... (29,224,950) (1,896,287) (31,666) (491,375) -- --
------------- ------------- ------------- ------------- ------------- -------------
Total distributions to shareholders .... (82,327,302) (15,313,596) (2,027,996) (2,557,363) (3,931,706) (4,000)
------------- ------------- ------------- ------------- ------------- -------------
Capital Stock Transactions (Dollars):
Investment Class shares:
Shares sold ......................... 35,525,765 10,043,737 4,426,500 7,416,974 23,787,800 7,126,829
Shares issued as reinvestment of
distributions .................... 51,693,850 13,109,304 1,978,700 1,992,669 1,938,381 340
Shares redeemed ..................... (153,789,077) (27,927,474) (2,516,145) (8,835,728) (33,691,378) (2,011)
------------- ------------- ------------- ------------- ------------- -------------
Total Investment Class shares .......... (66,569,462) (4,774,433) 3,889,055 573,915 (7,965,197) 7,125,158
------------- ------------- ------------- ------------- ------------- -------------
Institutional Class shares:
Shares sold ......................... 39,819,932 9,822,769 228,615 4,895,814 56,225,754 12,828,982
Shares issued as reinvestment
of distribution .................. 17,762,919 1,722,894 25,895 542,252 1,907,129 3,660
Shares redeemed ..................... (116,988,327) (8,008,131) (133,165) (316,683) (13,542,851) (108,440)
------------- ------------- ------------- ------------- ------------- -------------
Total Institutional Class shares ....... (59,405,476) 3,537,532 121,345 5,121,383 44,590,032 12,724,202
------------- ------------- ------------- ------------- ------------- -------------
Qualified Class shares:
Shares sold ......................... N/A N/A N/A N/A 70,608 N/A
Shares issued as reinvestment
of distributions ................. N/A N/A N/A N/A 7,704 N/A
Shares redeemed ..................... N/A N/A N/A N/A (604,756) N/A
------------- ------------- ------------- ------------- ------------- -------------
Total Qualified Class shares ........... N/A N/A N/A N/A (526,444) N/A
------------- ------------- ------------- ------------- ------------- -------------
Horace Mann Class shares:
Shares sold ......................... N/A N/A N/A N/A 81,602 N/A
Shares issued as reinvestment
of distributions ................. N/A N/A N/A N/A 20,681 N/A
Shares redeemed ..................... N/A N/A N/A N/A (397,326) N/A
------------- ------------- ------------- ------------- ------------- -------------
Total Horace Mann Class shares ......... N/A N/A N/A N/A (295,043) N/A
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) in net assets
from Capital Stock transactions ..... (125,974,938) (1,236,901) 4,010,400 5,695,298 35,803,348 19,849,360
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) in net assets .. $(123,302,703) $ (18,096,549) $ 3,251,016 $ 2,266,903 $ 44,951,268 $ 20,066,819
------------- ------------- ------------- ------------- ------------- -------------
See Notes to Financial Statements.
58
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS - (CONTINUED) [LOGO]
FOR THE YEAR ENDED DECEMBER 31, 2007
- --------------------------------------------------------------------------------
LARGE LARGE SMALL SMALL DOW JONES WILSHIRE
COMPANY COMPANY COMPANY COMPANY WILSHIRE LARGE CAP
GROWTH VALUE GROWTH VALUE 5000 INDEX CORE 130/30
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND(1)
------------- ------------- ------------- ------------- ------------- -------------
NET ASSETS:
Beginning of year .................. $ 604,615,924 $ 83,880,024 $ 15,749,029 $ 25,014,525 $ 214,060,447 $ --
------------- ------------- ------------- ------------- ------------- -------------
End of year ........................ $ 481,313,221 $ 65,783,475 $ 19,000,045 $ 27,281,428 $ 259,011,715 $ 20,066,819
============= ============= ============= ============= ============= =============
Undistributed net investment
income at end of period ......... $ -- $ 4,769 $ -- $ 504 $ -- $ 10,197
============= ============= ============= ============= ============= =============
CAPITAL SHARE TRANSACTIONS:
Investment Class shares:
Shares sold ..................... 907,634 430,030 236,891 388,461 1,898,429 711,124
Shares issued as reinvestment
of distributions ............. 1,432,756 736,064 113,263 117,009 152,990 33
Shares redeemed ................. (3,980,551) (1,218,317) (136,959) (453,290) (2,669,789) (198)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) in
Investment Class shares
outstanding .................. (1,640,161) (52,223) 213,195 52,180 (618,370) 710,959
============= ============= ============= ============= ============= =============
Institutional Class shares:
Shares sold ..................... 995,791 420,448 11,809 252,666 4,660,674 1,281,874
Shares issued as reinvestment
of distributions ............. 479,820 96,846 1,435 31,600 150,523 355
Shares redeemed ................. (2,931,497) (354,081) (7,124) (16,817) (1,072,713) (10,668)
------------- ------------- ------------- ------------- ------------- -------------
Net increase/(decrease) in
Institutional Class shares
outstanding ..................... (1,455,886) 163,213 6,120 267,449 3,738,484 1,271,561
============= ============= ============= ============= ============= =============
Qualified Class shares:
Shares sold ..................... N/A N/A N/A N/A 5,579 N/A
Shares issued as reinvestment
of distributions ............. N/A N/A N/A N/A 608 N/A
Shares redeemed ................. N/A N/A N/A N/A (49,988) N/A
------------- ------------- ------------- ------------- ------------- -------------
Net decrease in Qualified Class
shares outstanding .............. N/A N/A N/A N/A (43,801) N/A
============= ============= ============= ============= ============= =============
Horace Mann Class shares:
Shares sold ..................... N/A N/A N/A N/A 6,522 N/A
Shares issued as reinvestment
of distributions ............. N/A N/A N/A N/A 1,636 N/A
Shares redeemed ................. N/A N/A N/A N/A (31,071) N/A
------------- ------------- ------------- ------------- ------------- -------------
Net decrease in Horace
Mann Class shares outstanding ... N/A N/A N/A N/A (22,913) N/A
============= ============= ============= ============= ============= =============
- ----------
(1) The Wilshire Large Cap Core 130/30 Fund commenced operations November 15,
2007.
See Notes to Financial Statements.
59
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
STATEMENT OF CASH FLOWS [LOGO]
FOR THE YEAR ENDED DECEMBER 31, 2008
- --------------------------------------------------------------------------------
WILSHIRE
LARGE CAP
CORE 130/30
FUND
------------
INCREASE (DECREASE) IN CASH
Cash Flows From Operating Activities:
Net decrease in net assets from operations ................................... $ (9,632,973)
Adjustment to reconcile net decrease in net assets from operations to net cash
used in operating activities:
Purchase of investment securities ............................................ (98,867,268)
Proceeds from disposition of investment securities ........................... 46,219,957
Purchase of short-term investment securities, net ............................ 1,210,219
Purchases to cover securities sold short ..................................... (22,341,656)
Proceeds from securities sold short .......................................... 31,843,891
Decrease in investment securities sold receivable ............................ 83,440
Increase in dividends and interest receivable ................................ (30,908)
Increase in reimbursement due from Advisor ................................... (21,280)
Decrease in prepaid expenses and other assets ................................ 36,556
Increase in dividend expense on short positions .............................. 746
Decrease in payable for investment securities purchased ...................... (1,681,068)
Decrease in investment advisory fees payable ................................. (50,291)
Increase in distribution fees payable ........................................ 6,547
Increase in administration fees payable ...................................... 1,645
Decrease in service fees payable ............................................. (650)
Increase in chief compliance officer fees payable ............................ 590
Increase in directors fees and expenses payable .............................. 180
Increase in other accrued expenses ........................................... 15,674
Change in unrealized depreciation on investments ............................. 2,348,876
Realized loss on investments ................................................. 7,370,528
------------
Net cash used in operating activities ........................................ (43,487,245)
Cash Flows From Financing Activities:
Proceeds from shares sold .................................................... 62,569,535
Payment on shares redeemed ................................................... (20,172,611)
Distributions to shareholders ................................................ (2,060)
------------
Net cash flows provided by financing activities .............................. 42,394,864
------------
Net decrease in cash ......................................................... (1,092,381)
Cash at beginning of year .................................................... 1,344,098
------------
Cash at end of year .......................................................... $ 251,717
============
Supplemental disclosure of cash flow information:
Non cash financing activities not included herein consists of reinvestment of
distributions of $110,072 and interest paid of $152,264.
See Notes to Financial Statements.
60
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INVESTMENT CLASS SHARES
--------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period ........................ $ 35.34 $ 36.20 $ 34.49 $ 31.80 $ 29.83
-------- -------- -------- -------- --------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)(1) ............................. (0.09) (0.13) (0.06) (0.12) 0.04
Net realized and unrealized gain/(loss) on investments ...... (14.73) 6.18 1.77 2.81 1.96
-------- -------- -------- -------- --------
Total from investment operations ............................ (14.82) 6.05 1.71 2.69 2.00
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
From net investment income .................................. 0.00 0.00 0.00 0.00 (0.03)
From capital gains .......................................... (0.40) (6.91) 0.00 0.00 0.00
-------- -------- -------- -------- --------
Total distributions ......................................... (0.40) (6.91) 0.00 0.00 (0.03)
-------- -------- -------- -------- --------
Net asset value, end of period .............................. $20.12 $ 35.34 $ 36.20 $ 34.49 $ 31.80
======== ======== ======== ======== ========
Total return ................................................ (41.88)% 16.33% 4.96% 8.46% 6.70%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........................ $118,683 $312,297 $379,226 $411,660 $410,332
Operating expenses excluding custody earnings credits ....... 1.43% 1.41% 1.34% 1.39% 1.44%
Operating expenses including reimbursement/waiver/custody
earnings credits ......................................... 1.43% 1.41% 1.34% 1.38% 1.43%
Operating expenses excluding reimbursement/waiver/custody
earnings credits ......................................... 1.43% 1.41% 1.34% 1.39% 1.44%
Net investment income/(loss) ................................ (0.31)% (0.32)% (0.18)% (0.37)% 0.11%
Portfolio turnover rate ..................................... 178% 129% 62% 58% 121%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
See Notes to Financial Statements.
61
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
LARGE COMPANY GROWTH PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INSTITUTIONAL CLASS SHARES
--------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period ........................ $ 36.25 $ 36.84 $ 34.97 $ 32.13 $ 30.13
-------- -------- -------- -------- --------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) .................................... 0.02 0.03 0.07 0.00(2) 0.13
Net realized and unrealized gain/(loss) on investments ...... (15.15) 6.29 1.80 2.84 2.01
-------- -------- -------- -------- --------
Total from investment operations ............................ (15.13) 6.32 1.87 2.84 2.14
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
From net investment income .................................. 0.00 0.00 0.00 0.00 (0.14)
From capital gains .......................................... (0.40) (6.91) 0.00 0.00 0.00
-------- -------- -------- -------- --------
Total distributions ......................................... (0.40) (6.91) 0.00 0.00 (0.14)
-------- -------- -------- -------- --------
Net asset value, end of period .............................. $ 20.72 $ 36.25 $ 36.84 $ 34.97 $ 32.13
======== ======== ======== ======== ========
Total return ................................................ (41.70)% 16.80% 5.35% 8.84% 7.10%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........................ $ 81,680 $169,017 $225,390 $212,501 $182,467
Operating expenses excluding custody earnings credits ....... 1.06% 1.02% 0.98% 1.01% 1.10%
Operating expenses including reimbursement/waiver/custody
earnings credits ......................................... 1.06% 1.02% 0.98% 1.01% 1.09%
Operating expenses excluding reimbursement/waiver/custody
earnings credits ......................................... 1.06% 1.02% 0.98% 1.01% 1.10%
Net investment income ....................................... 0.07% 0.08% 0.19% 0.00%(3) 0.45%
Portfolio turnover rate ..................................... 178% 129% 62% 58% 121%
(1) The selected per share data was calculated using the average shares
outstanding method for the period
(2) Amount is less than $0.01 per share
(3) Amount represents less than 0.01%
See Notes to Financial Statements.
62
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INVESTMENT CLASS SHARES
--------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period ........................ $ 17.51 $ 22.99 $ 21.17 $ 21.92 $ 20.52
-------- -------- -------- -------- --------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) .................................... 0.17 0.20 0.20 0.14 0.14
Net realized and unrealized gain/(loss) on investments ...... (7.45) (0.58) 3.71 1.82 2.59
-------- -------- -------- -------- --------
Total from investment operations ............................ (7.28) (0.38) 3.91 1.96 2.73
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
From net investment income .................................. (0.21) (0.23) (0.19) (0.14) (0.39)
Return of capital ........................................... 0.00 (0.00)(2) 0.00 (0.10) 0.00
From capital gains .......................................... 0.00(2) (4.87) (1.90) (2.47) (0.94)
-------- -------- -------- -------- --------
Total distributions ......................................... (0.21) (5.10) (2.09) (2.71) (1.33)
-------- -------- -------- -------- --------
Net asset value, end of period .............................. $ 10.02 $ 17.51 $ 22.99 $ 21.17 $ 21.92
======== ======== ======== ======== ========
Total return ................................................ (41.55)% (2.00)% 18.49% 8.90% 13.28%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........................ $ 24,791 $ 57,314 $ 76,481 $ 56,245 $ 49,749
Operating expenses excluding custody earnings credits ....... 1.49% 1.42% 1.39% 1.50% 1.65%
Operating expenses including reimbursement/waiver/custody
earnings credits ......................................... 1.49% 1.42% 1.39% 1.49% 1.65%
Operating expenses excluding reimbursement/waiver/custody
earnings credits ......................................... 1.49% 1.42% 1.39% 1.50% 1.65%
Net investment income ....................................... 1.22% 0.85% 0.87% 0.64% 0.67%
Portfolio turnover rate ..................................... 183% 120% 50% 43% 73%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
(2) Amount is less than $0.01 per share.
See Notes to Financial Statements.
63
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
LARGE COMPANY VALUE PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INSTITUTIONAL CLASS SHARES
--------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period ........................ $ 17.49 $ 23.04 $ 21.19 $ 21.94 $ 20.55
-------- -------- -------- -------- --------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) .................................... 0.20 0.27 0.27 0.20 0.21
Net realized and unrealized gain/(loss) on investments ...... (7.45) (0.64) 3.74 1.83 2.59
-------- -------- -------- -------- --------
Total from investment operations ............................ (7.25) (0.37) 4.01 2.03 2.80
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
From net investment income .................................. (0.23) (0.31) (0.26) (0.21) (0.47)
Return of capital ........................................... 0.00 (0.00)(2) 0.00 (0.10) 0.00
From capital gains .......................................... 0.00(2) (4.87) (1.90) (2.47) (0.94)
-------- -------- -------- -------- --------
Total distributions ......................................... (0.23) (5.18) (2.16) (2.78) (1.41)
-------- -------- -------- -------- --------
Net asset value, end of period .............................. $ 10.01 $ 17.49 $ 23.04 $ 21.19 $ 21.94
======== ======== ======== ======== ========
Total return ................................................ (41.41)% (1.92)% 18.94% 9.18% 13.62%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........................ $ 4,736 $ 8,469 $ 7,399 $ 7,811 $ 10,059
Operating expenses excluding custody earnings credits ....... 1.30% 1.12% 1.08% 1.21% 1.34%
Operating expenses including reimbursement/waiver/custody
earnings credits ......................................... 1.30% 1.12% 1.08% 1.20% 1.34%
Operating expenses excluding reimbursement/waiver/custody
earnings credits ......................................... 1.30% 1.12% 1.08% 1.21% 1.34%
Net investment income ....................................... 1.34% 1.15% 1.18% 0.91% 0.97%
Portfolio turnover rate ..................................... 183% 120% 50% 43% 73%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
(2) Amount is less than $0.01 per share.
See Notes to Financial Statements.
64
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INVESTMENT CLASS SHARES
------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning
of period ............................................ $ 16.94 $ 17.46 $ 16.88 $ 17.74 $ 15.73
---------- ---------- ---------- ---------- ----------
INCOME/(LOSS) FROM INVESTMENT
OPERATIONS:
Net investment loss(1) .................................. (0.10) (0.09) (0.17) (0.17) (0.24)
Net realized and unrealized
gain/(loss) on investments . ......................... (6.56) 1.60 2.04 0.79 2.95
---------- ---------- ---------- ---------- ----------
Total from investment
operations ........................................... (6.66) 1.51 1.87 0.62 2.71
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
From capital gains ...................................... (0.58) (2.03) (1.29) (1.48) (0.70)
---------- ---------- ---------- ---------- ----------
Total distributions ..................................... (0.58) (2.03) (1.29) (1.48) (0.70)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period .......................... $ 9.70 $ 16.94 $ 17.46 $ 16.88 $ 17.74
========== ========== ========== ========== ==========
Total return ............................................ (39.13)% 8.36% 11.12% 3.48% 17.22%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period
(in 000's) ........................................... $ 5,273 $ 18,702 $ 15,553 $ 14,913 $ 13,916
Operating expenses excluding
custody earnings credits ............................. 1.47% 2.06% 2.05% 1.52% 1.87%
Operating expenses including
reimbursement/waiver/custody
earnings credits ..................................... 1.47% 1.46% 1.43% 1.50% 1.87%
Operating expenses excluding
reimbursement/waiver/custody
earnings credits ..................................... 2.07% 2.06% 2.05% 2.36% 2.82%
Net investment loss ..................................... (0.66)% (1.09)% (0.96)% (0.97)% (1.46)%
Portfolio turnover rate ................................. 87% 99% 62% 71% 106%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
See Notes to Financial Statements.
65
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
SMALL COMPANY GROWTH PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INSTITUTIONAL CLASS SHARES
------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning
of period ............................................ $ 17.50 $ 17.93 $ 17.25 $ 18.04 $ 15.94
---------- ---------- ---------- ---------- ----------
INCOME/(LOSS) FROM INVESTMENT
OPERATIONS:
Net investment loss(1) .................................. (0.06) (0.06) (0.12) (0.12) (0.19)
Net realized and unrealized
gain/(loss) on investments ........................... (6.83) 1.66 2.09 0.81 2.99
---------- ---------- ---------- ---------- ----------
Total from investment
operations ........................................... (6.89) 1.60 1.97 0.69 2.80
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
From capital gains ...................................... (0.58) (2.03) (1.29) (1.48) (0.70)
---------- ---------- ---------- ---------- ----------
Total distributions ..................................... (0.58) (2.03) (1.29) (1.48) (0.70)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period .......................... $ 10.03 $ 17.50 $ 17.93 $ 17.25 $ 18.04
========== ========== ========== ========== ==========
Total return ............................................ (39.17)% 8.58% 11.46% 3.81% 17.56%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period
(in 000's) ........................................... $ 154 $ 298 $ 196 $ 206 $ 214
Operating expenses excluding
custody earnings credits ............................. 1.24% 1.81% 1.77% 1.21% 1.55%
Operating expenses including
reimbursement/waiver/custody
earnings credits ..................................... 1.24% 1.21% 1.15% 1.19% 1.55%
Operating expenses excluding
reimbursement/waiver/custody
earnings credits ..................................... 1.78% 1.81% 1.77% 2.05% 2.50%
Net investment loss ..................................... (0.39)% (0.92)% (0.68)% (0.66)% (1.14)%
Portfolio turnover rate ................................. 87% 99% 62% 71% 106%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
See Notes to Financial Statements.
66
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INVESTMENT CLASS SHARES
------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning
of period ............................................ $ 16.49 $ 18.77 $ 17.46 $ 21.47 $ 19.52
---------- ---------- ---------- ---------- ----------
INCOME/(LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income/(loss)(1) ......................... 0.09 0.10 0.03 (0.07) (0.06)
Net realized and unrealized
gain/(loss) on investments ........................... (5.51) (0.70) 3.38 1.22 4.51
---------- ---------- ---------- ---------- ----------
Total from investment operations ........................ (5.42) (0.60) 3.41 1.15 4.45
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
From net investment income .............................. (0.14) (0.11) (0.03) 0.00 (0.03)
From capital gains ...................................... 0.00(2) (1.57) (2.07) (5.16) (2.47)
---------- ---------- ---------- ---------- ----------
Total distributions ..................................... (0.14) (1.68) (2.10) (5.16) (2.50)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period .......................... $ 10.93 $ 16.49 $ 18.77 $ 17.46 $ 21.47
========== ========== ========== ========== ==========
Total return ............................................ (32.81)% (3.45)% 19.64% 5.41% 22.78%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period
(in 000's) ........................................... $ 8,211 $ 21,630 $ 23,639 $ 17,048 $ 36,826
Operating expenses excluding
custody earnings credits ............................. 1.34% 1.79% 1.92% 1.50% 1.48%
Operating expenses including
reimbursement/waiver/custody
earnings credits ..................................... 1.34% 1.19% 1.31% 1.48% 1.46%
Operating expenses excluding
reimbursement/waiver/custody
earnings credits ..................................... 1.94% 1.79% 1.92% 2.10% 2.09%
Net investment income/(loss) ............................ 0.62% (0.05)% 0.15% (0.32)% (0.28)%
Portfolio turnover rate ................................. 83% 68% 72% 68% 134%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
(2) Amount is less than $0.01 per share.
See Notes to Financial Statements.
67
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
SMALL COMPANY VALUE PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INSTITUTIONAL CLASS SHARES
------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning
of period ............................................ $ 16.61 $ 18.90 $ 17.56 $ 21.50 $ 19.55
---------- ---------- ---------- ---------- ----------
INCOME/(LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income(1) ................................ 0.12 0.17 0.09 0.00(2) 0.01
Net realized and unrealized
gain/(loss) on investments ........................... (5.51) (0.72) 3.41 1.22 4.51
---------- ---------- ---------- ---------- ----------
Total from investment
operations ........................................... (5.39) (0.55) 3.50 1.22 4.52
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
From net investment income .............................. (0.20) (0.17) (0.09) 0.00 (0.10)
From capital gains ...................................... 0.00(2) (1.57) (2.07) (5.16) (2.47)
---------- ---------- ---------- ---------- ----------
Total distributions ..................................... (0.20) (1.74) (2.16) (5.16) (2.57)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period .......................... $ 11.02 $ 16.61 $ 18.90 $ 17.56 $ 21.50
========== ========== ========== ========== ==========
Total return (32.37)% (3.18)% 20.05% 5.73% 23.11%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period
(in 000's) ........................................... $ 441 $ 5,652 $ 1,375 $ 1,231 $ 3,961
Operating expenses excluding
custody earnings credits ............................. 1.00% 1.51% 1.62% 1.17% 1.17%
Operating expenses including
reimbursement/waiver/custody
earnings credits ..................................... 1.00% 0.91% 1.02% 1.16% 1.15%
Operating expenses excluding
reimbursement/waiver/custody
earnings credits ..................................... 1.61% 1.51% 1.62% 1.78% 1.78%
Net investment income/(loss) ............................ 0.82% 0.30% 0.44% (0.01)% 0.03%
Portfolio turnover rate ................................. 83% 68% 72% 68% 134%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
(2) Amount is less than $0.01 per share.
See Notes to Financial Statements.
68
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INVESTMENT CLASS SHARES
--------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .................... $ 12.42 $ 12.02 $ 10.59 $ 10.09 $ 9.17
---------- ---------- ---------- ---------- ----------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) ................................ 0.15 0.15 0.12 0.09 0.09
Net realized and unrealized gain/(loss)
on investments ....................................... (4.77) 0.42 1.41 0.48 0.93
---------- ---------- ---------- ---------- ----------
Total from investment operations ........................ (4.62) 0.57 1.53 0.57 1.02
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
From net investment income .............................. (0.13) (0.17) (0.10) (0.07) (0.10)
---------- ---------- ---------- ---------- ----------
Total distributions ..................................... (0.13) (0.17) (0.10) (0.07) (0.10)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period .......................... $ 7.67 $ 12.42 $ 12.02 $ 10.59 $ 10.09
========== ========== ========== ========== ==========
Total return ............................................ (37.11)% 4.75% 14.46% 5.63% 11.17%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .................... $ 98,032 $ 143,090 $ 145,952 $ 123,809 $ 122,263
Operating expenses excluding custody
earnings credits ..................................... 0.78% 0.68% 0.74% 0.82% 0.92%
Operating expenses including reimbursement/waiver/
custody earnings credits ............................. 0.78% 0.68% 0.74% 0.82% 0.92%
Operating expenses excluding reimbursement/waiver/
custody earnings credits ............................. 0.78% 0.68% 0.74% 0.82% 0.92%
Net investment income ................................... 1.48% 1.20% 1.08% 0.89% 0.93%
Portfolio turnover rate ................................. 52% 60% 69% 46% 31%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
See Notes to Financial Statements.
69
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INSTITUTIONAL CLASS SHARES
--------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period .................... $ 12.41 $ 12.02 $ 10.60 $ 10.11 $ 9.18
---------- ---------- ---------- ---------- ----------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) ................................ 0.17 0.19 0.15 0.12 0.12
Net realized and unrealized gain/(loss)
on investments ....................................... (4.76) 0.41 1.40 0.47 0.94
---------- ---------- ---------- ---------- ----------
Total from investment operations ........................ (4.59) 0.60 1.55 0.59 1.06
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS:
From net investment income .............................. (0.15) (0.21) (0.13) (0.10) (0.13)
---------- ---------- ---------- ---------- ----------
Total distributions ..................................... (0.15) (0.21) (0.13) (0.10) (0.13)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period .......................... $ 7.67 $ 12.41 $ 12.02 $ 10.60 $ 10.11
========== ========== ========== ========== ==========
Total return ............................................ (36.95)% 4.97% 14.66% 5.83% 11.56%
========== ========== ========== ========== ==========
RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) .................... $ 55,088 $ 113,721 $ 65,177 $ 42,854 $ 41,368
Operating expenses excluding custody
earnings credits ..................................... 0.59% 0.39% 0.47% 0.54% 0.62%
Operating expenses including reimbursement/waiver/
custody earnings credits ............................. 0.59% 0.39% 0.47% 0.54% 0.62%
Operating expenses excluding reimbursement/waiver/
custody earnings credits ............................. 0.59% 0.39% 0.47% 0.54% 0.62%
Net investment income ................................... 1.62% 1.49% 1.35% 1.17% 1.22%
Portfolio turnover rate ................................. 52% 60% 69% 46% 31%
(1) The selected per share data was calculated using the average shares
outstanding method for the period
See Notes to Financial Statements.
70
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
QUALIFIED CLASS SHARES
--------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period ........................ $12.42 $12.02 $10.61 $10.10 $ 9.15
------ ------ ------ ------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) .................................... 0.15 0.14 0.11 0.08 0.08
Net realized and unrealized gain/(loss) on investments ...... (4.76) 0.42 1.39 0.47 0.94
------ ------ ------ ------ ------
Total from investment operations ............................ (4.61) 0.56 1.50 0.55 1.02
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income .................................. (0.14) (0.16) (0.09) (0.04) (0.07)
------ ------ ------ ------ ------
Total distributions ......................................... (0.14) (0.16) (0.09) (0.04) (0.07)
------ ------ ------ ------ ------
Net asset value, end of period .............................. $ 7.67 $12.42 $12.02 $10.61 $10.10
====== ====== ====== ====== ======
Total return ................................................ (37.09)% 4.63% 14.18% 5.46% 11.13%
====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........................ $ 431 $ 607 $1,114 $ 880 $1,399
Operating expenses excluding custody earnings credits ....... 0.84% 0.79% 0.83% 0.93% 0.99%
Operating expenses including reimbursement/waiver/custody
earnings credits ......................................... 0.84% 0.79% 0.83% 0.93% 0.99%
Operating expenses excluding reimbursement/waiver/custody
earnings credits ......................................... 0.84% 0.79% 0.83% 0.93% 0.99%
Net investment income ....................................... 1.40% 1.08% 0.99% 0.75% 0.85%
Portfolio turnover rate ..................................... 52% 60% 69% 46% 31%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
See Notes to Financial Statements.
71
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
DOW JONES WILSHIRE 5000 INDEX PORTFOLIO [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
HORACE MANN CLASS SHARES
--------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
12/31/2008 12/31/2007 12/31/2006 12/31/2005 12/31/2004
---------- ---------- ---------- ---------- ----------
Net asset value, beginning of period ........................ $12.38 $11.99 $10.57 $10.08 $ 9.15
------ ------ ------ ------ ------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(1) .................................... 0.15 0.14 0.12 0.08 0.08
Net realized and unrealized gain/(loss) on investments ...... (4.75) 0.41 1.39 0.47 0.95
------ ------ ------ ------ ------
Total from investment operations ............................ (4.60) 0.55 1.51 0.55 1.03
------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
From net investment income .................................. (0.12) (0.16) (0.09) (0.06) (0.10)
------ ------ ------ ------ ------
Total distributions ......................................... (0.12) (0.16) (0.09) (0.06) (0.10)
------ ------ ------ ------ ------
Net asset value, end of period .............................. $ 7.66 $12.38 $11.99 $10.57 $10.08
====== ====== ====== ====== ======
Total return ................................................ (37.08)% 4.60% 14.32% 5.49% 11.23%
====== ====== ====== ====== ======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........................ $ 952 $1,593 $1,817 $1,891 $1,964
Operating expenses excluding custody earnings credits ....... 0.82% 0.74% 0.77% 0.89% 0.97%
Operating expenses including reimbursement/waiver/custody
earnings credits ......................................... 0.82% 0.74% 0.77% 0.89% 0.97%
Operating expenses excluding reimbursement/waiver/custody
earnings credits ......................................... 0.82% 0.74% 0.77% 0.89% 0.97%
Net investment income ....................................... 1.41% 1.14% 1.05% 0.82% 0.87%
Portfolio turnover rate ..................................... 52% 60% 69% 46% 31%
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
See Notes to Financial Statements.
72
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INVESTMENT CLASS SHARES
---------------------------
YEAR PERIOD
ENDED ENDED
12/31/2008 12/31/2007(1)
----------- -------------
Net asset value, beginning of period $ 10.12 $ 10.00
--------- --------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income/(loss)(2) .......................... 0.02 (0.02)
Net realized and unrealized gain/(loss) on
investments and short sales ........................... (3.90) 0.14
--------- --------
Total from investment operations. ........................ (3.88) 0.12
LESS DISTRIBUTIONS:
From net investment income ............................... (0.01) (0.00)(3)
--------- --------
Total distributions ...................................... (0.01) (0.00)
--------- --------
Net asset value, end of period ........................... $ 6.23 $ 10.12
========= ========
Total return(4) .......................................... (38.31)% 1.21%(5)
========= ========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ..................... $ 36,356 $ 7,196
Operating expenses including dividends on
short sales and interest expense, after
expense reimbursement/waiver .......................... 2.70% 3.51%(6)
Operating expenses including dividends on
short sales and interest expense, before
expense reimbursement/waiver .......................... 3.79% 5.00%(6)
Operating expenses excluding dividends on
short sales and interest expense, after
expense reimbursement/waiver .......................... 1.50% 1.50%(6)
Net investment income (loss) ............................. 0.20% (1.24)%(6)
Portfolio turnover rate .................................. 175% 84%(5)
(1) The Wilshire Large Cap Core 130/30 Fund commenced operations November 15,
2007.
(2) The selected per share data was calculated using the average shares
outstanding method for the period.
(3) Amount is less than $0.01 per share.
(4) Total return represents the total return for the period indicated.
(5) Not annualized.
(6) Annualized.
See Notes to Financial Statements.
73
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
WILSHIRE LARGE CAP CORE 130/30 FUND [LOGO]
FINANCIAL HIGHLIGHTS - (CONTINUED)
- --------------------------------------------------------------------------------
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
INSTITUTIONAL CLASS SHARES
--------------------------
YEAR PERIOD
ENDED ENDED
12/31/2008 12/31/2007(1)
----------- ------------
Net asset value, beginning of period $ 10.12 $ 10.00
--------- --------
INCOME/(LOSS) FROM INVESTMENT
OPERATIONS:
Net investment income/(loss)(2) .......................... 0.04 (0.01)
Net realized and unrealized gain/(loss) on
investments and short sales .......................... (3.89) 0.13
--------- --------
Total from investment operations ......................... (3.85) 0.12
--------- --------
LESS DISTRIBUTIONS:
From net investment income ............................... (0.02) (0.00)(3)
--------- --------
Total distributions ...................................... (0.02) (0.00)
--------- --------
Net asset value, end of period ........................... $ 6.25 $ 10.12
========= ========
Total return(4) .......................................... (38.09) 1.23%(5)
========= ========
RATIOS TO AVERAGE NET ASSETS/
SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ..................... $ 24,617 $ 12,870
Operating expenses including dividends on
short sales and interest expense, after
expense reimbursement/waiver .......................... 2.41% 3.09%(6)
Operating expenses including dividends on
short sales and interest expense, before
expense reimbursement/waiver .......................... 3.50% 4.38%(6)
Operating expenses excluding dividends on
short sales and interest expense, after
expense reimbursement/waiver .......................... 1.21% 1.25%(6)
Net investment income (loss) ............................. 0.49% (0.79%)(6)
Portfolio turnover rate .................................. 175% 84%(5)
(1) The Wilshire Large Cap Core 130/30 Fund commenced operations November 15,
2007.
(2) The selected per share data was calculated using the average shares
outstanding method for the period.
(3) Amount is less than $0.01 per share.
(4) Total return represents the total return for the period indicated.
(5) Not annualized.
(6) Annualized.
See Notes to Financial Statements.
74
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS [LOGO]
DECEMBER 31, 2008
- --------------------------------------------------------------------------------
1. Organization.
Wilshire Mutual Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end diversified
investment company, which was incorporated under Maryland law on July 30, 1992.
The Company operates as a series company and presently offers six series, all of
which had operations during the annual period: Large Company Growth Portfolio,
Large Company Value Portfolio, Small Company Growth Portfolio, Small Company
Value Portfolio, Dow Jones Wilshire 5000 Index Portfolio and Wilshire Large Cap
Core 130/30 Fund (collectively the "Portfolios", each a "Portfolio"). On July
21, 2008, the Wilshire/MAXAM Diversity Fund commenced operations. Financial
statements are presented separately. On December 22, 2008, the Board of
Directors determined that it was in the best interests of the Wilshire/MAXAM
Diversity Fund to redeem all the outstanding shares of the Fund on January, 15,
2009, and to terminate the Fund. Prior to January 15, 2009, shareholders of the
Fund could redeem their shares for shares of another Wilshire Fund. Any shares
of the Wilshire/MAXAM Diversity Fund that were not redeemed or exchanged prior
to January 15, 2009, were redeemed automatically at their net asset value on
that date. The Company accounts separately for the assets, liabilities and
operations of each series.
Each of the Portfolios offers Investment and Institutional Class shares, each of
which has equal rights as to voting privileges. The Dow Jones Wilshire 5000
Index Portfolio also offers Qualified Class Shares and Horace Mann Class Shares.
Each of the Investment Class, Qualified Class and Horace Mann Class has
exclusive voting rights with respect to its particular service and distribution
plan. Investment income, realized and unrealized capital gains and losses and
the common expenses of each Portfolio are allocated on a pro-rata basis to each
class based on the relative net assets of each class to the total net assets of
each Portfolio. Each class of shares differs in its respective service and
distribution expenses.
2. Significant Accounting Policies.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
PORTFOLIO VALUATION: A security listed or traded on U.S. exchanges is valued at
its last sales price on the exchange where it is principally traded. In the
absence of a current quotation, the security is valued at the mean between the
last bid and asked prices on that exchange. Securities quoted on the National
Association of Securities Dealers Automatic Quotation (NASDAQ) System, for which
there have been sales, are valued at the NASDAQ official closing price. If there
are no such sales, the most recent bid quotation is used. Securities traded
over-the-counter (other than on NASDAQ) are valued at the last current sale
price. In the event market quotations are not readily available, securities are
valued at fair value according to procedures established by the Board
75
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- --------------------------------------------------------------------------------
of Directors or as determined in good faith by the Pricing Committee, whose
members include at least two representatives of the Adviser, one of whom is an
officer of the Company, or by the Company's Valuation Committee. Fair value is
defined as the amount the owner of a security might reasonably expect to receive
upon a current sale. Securities whose value using the procedures outlined above
does not reflect fair value because a significant valuation event has occurred
may be valued at fair value by the Pricing Committee or by the Company's
Valuation Committee. Significant events include, but are not limited to the
following: significant fluctuations in domestic markets, foreign markets or
foreign currencies; occurrences not directly tied to the securities markets such
as natural disasters, armed conflicts or significant governmental actions; and
major announcements affecting a single issuer or an entire market or market
sector.
SECURITIES SOLD SHORT: The Wilshire Large Cap Core 130/30 Fund engages in short
selling. To complete a short sales transaction, the Portfolio must borrow the
security to make delivery to the buyer. The Portfolio then is obligated to
replace the security borrowed by purchasing the security at the market price at
the time of replacement. The price at such time may be more or less than the
price at which the security was sold by the Portfolio. Until the security is
replaced, the Portfolio is required to pay to the lender amounts equal to any
dividends or interest, which accrue during the period of the loan. To borrow the
security, the Portfolio also may be required to pay a premium, which would
increase the cost of the security sold. The Portfolio pays interest to the
lender for borrowing the security. This amount is reflected as interest expense
in the Statements of Operations.
Until the Portfolio closes its short position or replaces the borrowed security,
the Portfolio will: (a) maintain a segregated account containing cash or liquid
securities at such a level that (i) the amount deposited in the account plus the
amount deposited with the custodian as collateral will equal the current value
of the security sold short and (ii) the amount deposited in the segregated
account as collateral will not be less than the market value of the security at
the time the security was sold short; or (b) otherwise cover the Portfolio's
short position.
The short stock rebates presented in the Statements of Operations represent the
net income earned on the short sale proceeds held on deposit with the
Portfolio's custodian. The Portfolio is subject to risk of loss if the broker
were to fail to perform its obligation under contractual terms. Dividends on
short positions are recorded on the ex-dividend date as an expense on the
Statements of Operations. Short sales transactions result in off-balance sheet
risk because the ultimate obligation may exceed the amount shown in the
Statements of Assets and Liabilities. The Portfolio will incur a loss if the
price of the security increases between the date of the short sale and the date
on which the Portfolio replaces the borrowed security. The Fund will realize a
gain if the price of the security declines between those dates. Short selling
involves the risk of a potentially unlimited increase in the market value of the
security sold short, which could result in a potentially unlimited loss for the
Portfolio.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, accretion of discount and amortization of premium on investments, is
recognized on the accrual basis. Distributions received on securities
76
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DECEMBER 31, 2008
- --------------------------------------------------------------------------------
that represent a return of capital or capital gain are reclassed as a reduction
of cost of investments and/or as a realized gain. The actual character of
income, realized gain and return of capital distributions received from Real
Estate Investment Trusts are not known until after the end of the fiscal year,
at which time such distributions are appropriately adjusted.
EXPENSES: Distribution and Service fees directly attributable to a class of
shares are charged to that class' operations. Expenses of the Portfolios other
than Distribution and Service fees are prorated among the classes to which the
expense relates based on the relative net assets of each class of shares.
Expenses directly attributable to a Portfolio are charged to that Portfolio.
Expenses not directly attributable to a Portfolio are allocated proportionately
among all Funds daily in relation to the net assets of each Portfolio or another
reasonable basis. Expenses which are attributable to the Company and the
Wilshire Variable Insurance Trust are allocated across the Company and the
Wilshire Variable Insurance Trust based upon relative net assets or another
reasonable basis. Expenses and fees, including the advisory fees, are accrued
daily and taken into account for the purpose of determining the net asset value
of each Portfolio's shares.
OFFERING COSTS: Offering costs for Wilshire Large Cap Core 130/30 Fund are
amortized on a straight-line basis over one year from commencement of
operations.
REPURCHASE AGREEMENTS: Securities pledged as collateral for repurchase
agreements are held by PNC Global Investment Servicing and are designated as
being held on each Fund's behalf by its custodian under a book-entry system.
Each Fund monitors the adequacy of the collateral on a daily basis and can
require the seller to provide additional collateral in the event the market
value of the securities pledged falls below the carrying value of the repurchase
agreement, including accrued interest. It is the Funds' policy to only enter
into repurchase agreements with banks and other financial institutions which are
deemed by the investment adviser to be creditworthy. The Fund bears the risk of
loss in the event that the other party to a repurchase agreement defaults on its
obligations and the Fund is prevented from exercising its rights to dispose of
the underlying securities received as collateral and the risk of a possible
decline in the value of the underlying securities during the period.
CASH AND CASH EQUIVALENTS: Idle cash may be swept into various money market
funds and is classified as cash equivalents on the Schedule of Investments.
Amounts invested are generally available on the same business day.
INVESTMENTS IN REITS: With respect to the Portfolio, dividend income is recorded
based on the income included in distributions received from the REIT investments
using published REIT reclassifications including some management estimates when
actual amounts are not available. Distributions received in excess of these
estimated amounts are recorded as a reduction of the cost of investments or
reclassified to capital gains. The actual amounts of income, return of capital,
and capital gains are only determined by each REIT after its fiscal year end,
and may differ from the estimated amounts.
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NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
DECEMBER 31, 2008
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DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders are recorded on the
ex-dividend date. Distributions from net investment income, if any, are declared
and paid annually. The Portfolios' net realized capital gains, unless offset by
any available capital loss carryforward, are distributed to shareholders
annually. Additional distributions of net investment income and capital gains
may be made at the discretion of the Board of Directors in order to avoid the
application of a 4% non-deductible Federal excise tax.
SECURITIES LENDING: The Portfolios may seek additional income by lending their
securities on a short-term basis to banks, brokers and dealers in return for
cash collateral, which is invested in short-term securities. A Portfolio may
return a portion of the interest earned to the borrower or a third party which
is unaffiliated with the Company and acting as a "placing broker." A Portfolio
receives compensation for lending securities in the form of fees. A Portfolio
also continues to receive dividends on the securities loaned. Security loans are
secured at all times by collateral. It is the Company's policy that the
collateral be equal to at least 102% of the market value of the securities
loaned plus accrued interest when the transaction is entered into and that the
collateral supporting loans be remarked daily. Gain or loss in the market price
of the securities loaned that may occur during the term of the loan are
reflected in the value of the Portfolio. The risks from securities lending are
that the borrower may not provide additional collateral when required or return
the securities when due or when called for by the Portfolio. Lending securities
entails a risk of loss to the Fund if and to the extent that the market value of
securities loans were to increase and the borrower did not increase the
collateral accordingly, and the borrower fails to return the securities. PNC
Global Investment Services, the Portfolios' custodian, acts as the securities
lending agent for the Portfolios. There were no securities on loan or related
collateral at December 31, 2008. The related income from securities loaned
during the period is reflected in the Statements of Operations.
3. Investment Advisory Fee and Other Transactions.
Pursuant to the Advisory Agreement (the "Agreement") between the Company and
Wilshire Associates Incorporated ("Wilshire" or the "Adviser"), Wilshire charges
annual fees of 0.75% of average daily net assets for the Large Company Growth
and Large Company Value Portfolios, 0.85% of average daily net assets for the
Small Company Growth and Small Company Value Portfolios, 0.10% of average daily
net assets for the Dow Jones Wilshire 5000 Index Portfolio and 1.00% for the
Wilshire Large Cap Core 130/30 Fund. For the year ended December 31, 2008,
Wilshire voluntarily waived 0.60% from its fee for the Small Company Growth
Portfolio and 0.60% from its fee for the Small Company Value Portfolio. Wilshire
will not seek recoupment from the Company for expenses previously waived or
reimbursed through December 31, 2008 for such Portfolios. Wilshire has entered
into a contractual expense limitation agreement with the Wilshire Large Cap Core
130/30 Fund to waive a portion of its management fee and/or reimburse expenses
to limit expenses (excluding taxes, brokerage expenses, dividend expenses on
short securities, and extraordinary expenses) to 1.50% and 1.25% of average
daily net assets for Investment Class shares and Institutional Class shares,
respectively. This agreement to limit expenses continues through at least April
30, 2009. Wilshire may recoup the amount of any management fee waived within
three years after the year in which Wilshire incurred the expense if the
recoupment does not exceed the existing expense limitation for the Wilshire
Large Cap Core 130/30 Fund. At December 31, 2008, the amounts of waivers subject
to recoupment for Wilshire Large Cap Core 130/30 Fund are $242,041, expiring in
2011 and $21,064, expiring in 2010.
78
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NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
DECEMBER 31, 2008
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For the year ended December 31, 2008, advisory Wilshire waived fees and
reimbursed expenses as follows:
PORTFOLIO WAIVED FEES REIMBURSED EXPENSES
- --------- ----------- -------------------
Small Company Growth Portfolio ............. $ 82,320 $ --
Small Company Value Portfolio .............. 113,197 --
Wilshire Large Cap Core 130/30 Fund ........ 123,576 118,445
The Board of Directors of the Company has approved Los Angeles Capital
Management and Equity Research ("L.A. Capital"), Payden & Rydell ("Payden"),
Quest Investment Management, Inc. ("Quest"), Sawgrass Asset Management
("Sawgrass"), Victory Capital Management Inc. ("Victory"), Pzena Investment
Management, LLC ("Pzena"), Acadian Asset Management, Inc. ("Acadian"),
Systematic Financial Management, L.P. ("Systematic"), Ranger Investment
Management, L.P., NWQ Investment Management Company, LP ("NWQ"), AG Asset
Management, LLC ("AG"), AXA Rosenberg Investment Management LLC ("AXA"),
Thompson, Siegel & Walmsley LLC ("TSW") and TWIN Capital Management, Inc.
("TWIN") (collectively the "Sub-Advisers") to provide sub-advisory services with
respect to the Portfolios. Payden, Quest, Sawgrass and Victory each manage a
portion of the Large Company Growth Portfolio. L.A. Capital, Pzena, Acadian and
Systematic each manage a portion of the Large Company Value Portfolio. L.A.
Capital and Ranger each manage a portion of the Small Company Growth Portfolio.
L.A. Capital and NWQ each manage a portion of the Small Company Value Portfolio.
L.A. Capital is the sole sub-adviser for the Dow Jones Wilshire 5000 Index
Portfolio. AG, AXA, TSW and TWIN each manage a portion of the Wilshire Large Cap
Core 130/30 Fund.
Wilshire continues to oversee the Sub-Advisers. The fees of the Sub-Advisers are
paid by Wilshire.
SEI Investments Global Funds Services serves as the Company's administrator and
accounting agent pursuant to an administration agreement dated May 31, 2008. DST
Systems, Inc. serves as the Company's transfer agent and dividend disbursing
agent. PNC Global Investment Servicing serves as the Company's custodian for all
Portfolios except the Wilshire Large Cap Core 130/30 Fund. Custodial Trust
Company serves as the custodian for the Wilshire Large Cap Core 130/30 Fund. SEI
Investments Distribution Co. serves as the Company's distributor.
Prior to July 14, 2008, PNCGIS Inc. ("PNCGIS") served as the Company's
administrator, transfer agent and accounting agent pursuant to a services
agreement. PNCGIS served as the Company's distributor.
OFFICERS' AND DIRECTORS' EXPENSES: The officers of the Company receive
remuneration from the Adviser. The Company does not pay any remuneration to its
officers with the exception of the Company's Chief Compliance Officer ("CCO").
The Company and Wilshire Variable Insurance Trust each pay a portion of the
CCO's compensation and related out of pocket expenses, and the Adviser pays the
remainder of such compensation. Effective April 1, 2008, the Company and
Wilshire Variable Insurance Trust together pay each independent director an
annual retainer of $14,000, an annual additional Board Chair retainer of
$12,000, a Board in-person meeting fee of $1,500, a Board telephonic meeting fee
of $1,000, an annual Committee Member retainer of $4,000, an annual Committee
Chairperson retainer of $8,000 in lieu of the $4,000 Committee Member retainer,
and a Committee tele-
79
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WILSHIRE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
DECEMBER 31, 2008
- --------------------------------------------------------------------------------
phonic meeting fee of $500. Prior to April 1, 2008, the Company and the Wilshire
Variable Insurance Trust together paid each independent director an annual Board
member retainer of $10,000, an annual additional Board chair retainer of
$16,000, a Board meeting fee of $1,500, a telephonic meeting fee of $1,000, an
annual Committee member retainer of $4,000, an annual Committee chair retainer
of $8,000 in lieu of the $4,000 Committee member retainer, and a Committee
telephonic meeting fee of $500.
4. Distribution and Shareholder Services Plans.
The Directors of the Company have adopted shareholder services and/or
distribution plans (the "Plans") pursuant to Rule 12b-1 under the 1940 Act, with
respect to the Investment Class Shares of each Portfolio and the Qualified Class
Shares of the Dow Jones Wilshire 5000 Index Portfolio. Under the Plans, each
such Portfolio reimburses SEI Investments Distribution Co. (the "Distributor"),
at an annual rate of up to 0.25% of the value of the average daily net assets
attributable to the Investment Class Shares and Qualified Class Shares of each
Portfolio and at an annual rate of up to 0.35% of the value of the average daily
net assets attributable to the Horace Mann Class shares of each Portfolio, for
certain service fees provided by securities dealers or other financial
intermediaries ("service fees") or for certain distribution expenses for the
purpose of financing any activity intended to result in the sale of Investment
Class Shares or Qualified Class Shares. For the year ended December 31, 2008,
the distribution and service fee expenses incurred for each such class of the
Large Company Growth Portfolio, Large Company Value Portfolio, Small Company
Growth Portfolio, Small Company Value Portfolio, Dow Jones Wilshire 5000 Index
Portfolio and Wilshire Large Cap Core 130/30 was 0.25% of the respective average
net assets of each Portfolio.
In addition, Investment Class Shares and Institutional Class Shares pay the
expenses associated with certain shareholder servicing arrangements with third
parties, provided that payment of such fees to any such shareholder service
provider does not exceed in any year 0.20% and 0.15% for the Investment and
Institutional Class Shares, respectively, of the Portfolio's average net assets
attributable to the shares whose holders are serviced by such provider.
For the year period ended December 31, 2008, the shareholder service provider
fees were as follows (as a percent of average net assets of each class):
PORTFOLIO INVESTMENT CLASS INSTITUTIONAL CLASS
- --------- ---------------- -------------------
Large Company Growth Portfolio ............. 0.13% 0.01%
Large Company Value Portfolio .............. 0.03% 0.08%
Small Company Growth Portfolio ............. 0.09% 0.05%
Small Company Value Portfolio .............. 0.08% 0.02%
Dow Jones Wilshire 5000 Index Portfolio .... 0.05% 0.12%
Wilshire Large Cap Core 130/30 Fund ........ 0.17% 0.07%
The Qualified Class Shares of the Dow Jones Wilshire 5000 Index Portfolio has
adopted a shareholder services plan which authorizes payments by the Qualified
Class Shares of up to 0.15% of the average daily net assets attributable to the
Portfolio's Qualified Class Shares for certain shareholder services provided by
Insurers or other financial intermediaries. For the year ended December 31,
2008, the shareholder service provider fees for the Qualified Class Shares were
0.15% of average net assets.
80
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WILSHIRE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
DECEMBER 31, 2008
- --------------------------------------------------------------------------------
The Directors of the Company have adopted a shareholder services and
distribution plan pursuant to Rule 12b-1 with respect to the Horace Mann Class
Shares of the Dow Jones Wilshire 5000 Index Portfolio. Under such Plan, the
Company reimburses the Distributor for its shareholder service and distribution
payments at an annual rate of up to 0.35% of the value of the average daily net
assets of the Dow Jones Wilshire 5000 Index Portfolio attributable to the Horace
Mann Class Shares.
5. Securities Transactions.
For the year ended December 31, 2008, aggregate cost of purchases and proceeds
from sales of securities, other than short-term investments and short sales and
purchases to cover, were as follows:
PORTFOLIO PURCHASES SALES
- --------- ------------ ------------
Large Company Growth Portfolio ................. $443,860,571 $561,946,910
Large Company Value Portfolio .................. 82,022,582 97,161,351
Small Company Growth Portfolio ................. 11,782,006 19,221,871
Small Company Value Portfolio .................. 15,294,139 26,139,383
Dow Jones Wilshire 5000 Index Portfolio ........ 111,744,284 112,719,197
Wilshire Large Cap Core 130/30 Fund ............ 98,867,268 46,219,957
For Wilshire Large Cap Core 130/30 Fund, short sales and purchases to cover were
$31,843,891 and $22,341,656, respectively.
ADOPTION OF STATEMENT OF FINANCIAL ACCOUNTING STANDARD NO. 157 "FAIR VALUE
MEASUREMENTS"("FAS 157"): In September, 2006, the Financial Accounting Standards
Board ("FASB") released Statement of Financial Accounting Standards ("SFAS") No.
157, which provides enhanced guidance for using fair value to measure assets and
liabilities. The Fund adopted SFAS No. 157 on January 1, 2008. SFAS No. 157
establishes a fair value hierarchy and specifies that a valuation technique used
to measure fair value shall maximize the use of observable inputs and minimize
the use of unobservable inputs. The objective of a fair value measurement is to
determine the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the
measurement date (an exit price). Accordingly, the fair value hierarchy gives
the highest priority to quoted prices (unadjusted) in active markets for
identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). The three levels of the fair value hierarchy
under SFAS No. 157 are described below:
o Level 1 - quoted prices in active markets for identical securities.
o Level 2 - other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.).
o Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
81
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WILSHIRE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
DECEMBER 31, 2008
- --------------------------------------------------------------------------------
The summary of inputs used to value the Portfolios' net assets as of December
31, 2008 is as follows:
LARGE LARGE SMALL SMALL
COMPANY COMPANY COMPANY COMPANY DOW JONES WILSHIRE
GROWTH VALUE GROWTH VALUE WILSHIRE 5000 LARGE CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO INDEX PORTFOLIO 130/30 FUND
------------ ------------ ----------- ----------- --------------- ------------
ASSETS:
Level 1-Quoted Prices ............. $197,770,953 $ 26,542,475 $ 5,430,860 $ 8,634,604 $ 157,780,185 $ 65,052,489
Level 2-Other Significant
Observable Inputs .............. -- -- -- -- -- 82,250
Level 3-Significant
Unobservable Inputs ............ -- -- -- -- -- --
------------ ------------ ----------- ----------- --------------- ------------
Total Market Value
of Assets ...................... $197,770,953 $ 26,542,475 $ 5,430,860 $ 8,634,604 $ 157,780,185 $ 65,134,739
------------ ------------ ----------- ----------- --------------- ------------
LIABILITIES:
Level 1-Quoted Prices ............. -- -- -- -- -- $(12,674,404)
Level 2-Other Significant
Observable Inputs .............. -- -- -- -- -- --
Level 3-Significant
Unobservable Inputs ............ -- -- -- -- -- --
------------ ------------ ----------- ----------- --------------- ------------
Total Market Value
of Liabilities ................. $ -- $ -- $ -- $ -- $ -- $(12,674,404)
------------ ------------ ----------- ----------- --------------- ------------
6. Significant Shareholder Activity.
On December 31, 2008, the Portfolios had the following concentrations of
shareholders holding 10% or more of the outstanding shares of the Portfolios.
These represent omnibus shareholder accounts comprised of many individual
shareholders.
PORTFOLIO
- ---------
Large Company Growth Portfolio (1 omnibus shareholder) ................. 40%
Large Company Value Portfolio (1 omnibus shareholder) .................. 68%
Small Company Growth Portfolio (2 omnibus shareholders) ................ 60%
Small Company Value Portfolio (2 omnibus shareholders) ................. 53%
Dow Jones Wilshire 5000 Index Portfolio (4 omnibus shareholders) ....... 66%
Wilshire Large Cap Core 130/30 Fund (2 omnibus shareholders) ........... 67%
7. Tax Information.
No provision for federal income taxes is required because each Portfolio intends
to qualify as a regulated investment company under Subchapter M of the Internal
Revenue Code of 1986, as amended, and distribute to shareholders all of its
taxable income and gains. Federal income tax regulations differ from accounting
principles
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NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
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generally accepted in the United States of America; therefore, distributions
determined in accordance with tax regulations may differ in amount or character
from net investment income and realized gains for financial reporting purposes.
Financial reporting records are adjusted for permanent book/tax differences to
reflect tax character. Financial records are not adjusted for temporary
differences.
The Fund is not aware of any tax positions for which it is reasonably possible
that the total amounts of unrecognized tax benefits will significantly change in
the next twelve months. Management has completed their analysis and has
determined that the adoption of FIN 48 will not have an impact on the Fund's
financial statements, and therefore the Fund did not record any tax expense in
the current period. If the Fund were to record a tax expense as a result of the
adoption of FIN 48, the tax expense would include any interest and penalties.
The Fund files U.S. federal income tax returns and if applicable, returns in
various foreign jurisdictions in which it invests. While the statute of
limitations remains open to examine the Fund's U.S. federal income tax returns
filed for the fiscal years 2005 to 2008, no examinations are in progress or
anticipated at this time. However, management's conclusions regarding FIN 48 may
be subject to review and adjustment at a later date based on factors including,
but not limited to, further implementation guidance expected from the FASB, and
on-going analyses of and changes to tax laws, regulations and interpretations
thereof.
Under current tax law, capital and currency losses realized after October 31 may
be deferred and treated as occurring on the first day of the following fiscal
year. For the year ended December 31, 2008, the following Portfolios had
post-October capital loss deferrals as follows:
PORTFOLIO CAPITAL LOSSES
- --------- --------------
Large Company Growth Portfolio ............................. $ 16,496,945
Large Company Value Portfolio .............................. 2,207,104
Small Company Growth Portfolio ............................. 561,144
Small Company Value Portfolio .............................. 1,154,851
Dow Jones Wilshire 5000 Index Portfolio .................... 12,871,081
Wilshire Large Cap Core 130/30 Fund ........................ 1,948,775
The federal tax cost, unrealized appreciation and depreciation at December 31,
2008 for each Portfolio are as follows:
NET
UNREALIZED
TAX UNREALIZED UNREALIZED APPRECIATION
PORTFOLIO COST APPRECIATION DEPRECIATION (DEPRECIATION)
- --------- ------------ ------------ ------------ ---------------
Large Company Growth Portfolio ..................... $243,154,827 $ 13,191,752 $(58,575,626) $ (45,383,874)
Large Company Value Portfolio ...................... 35,548,773 1,566,220 (10,572,518) (9,006,298)
Small Company Growth Portfolio ..................... 6,628,349 485,224 (1,682,713) (1,197,489)
Small Company Value Portfolio ...................... 10,749,843 673,574 (2,788,813) (2,115,239)
Dow Jones Wilshire 5000 Index Portfolio ............ 179,273,170 27,930,868 (49,423,853) (21,492,985)
Wilshire Large Cap Core 130/30 Fund ................ 70,485,995 1,374,084 (6,725,340) (5,351,256)
83
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WILSHIRE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
DECEMBER 31, 2008
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The Portfolios intend to retain realized gains to the extent of available
capital loss carryforwards. At December 31, 2008, the following Portfolios had
available for federal income tax purposes unused capital losses as follows:
EXPIRING DECEMBER 31,
------------------------------------------------------------------
PORTFOLIO 2010 2011 2012 2013 2016
- --------- ----------- ----------- ----------- --------- ------------
Large Company Growth Portfolio ... $ -- $ -- $ -- $ -- $ 8,168,724
Large Company Value Portfolio .... -- -- -- -- 11,480,213
Small Company Growth Portfolio ... -- -- -- -- 1,928,483
Small Company Value Portfolio .... -- -- -- -- 2,759,056
Dow Jones Wilshire 5000
Index Portfolio ............... 2,960,522 3,810,802 5,509,772 108,266 9,722,562
Wilshire Large Cap Core
130/30 Fund ................... -- -- -- -- 2,973,710
The tax character of distributions declared were:
2008 2008 2008 2007 2007 2007
ORDINARY CAPITAL RETURN OF ORDINARY CAPITAL RETURN OF
PORTFOLIO INCOME GAINS CAPITAL INCOME GAINS CAPITAL
- --------- ----------- --------- --------- ------------ ------------ ---------
Large Company Growth Portfolio ... $ 3,908,641 $ -- $ 97 $ 11,201,849 $ 71,125,453 $ --
Large Company Value Portfolio .... 557,498 1,093 -- 2,716,827 12,592,542 4,227
Small Company Growth Portfolio ... -- 305,872 3 220,425 1,807,571 --
Small Company Value Portfolio .... 110,316 1,842 -- 727,195 1,830,168 --
Dow Jones Wilshire 5000
Index Portfolio ............... 3,000,129 -- -- 3,931,706 -- --
Wilshire Large Cap Core
130/30 Fund ................... 110,072 -- -- 4,000 -- --
At December 31, 2008, the components of distributable accumulated
earnings/(losses) on a tax basis were as follows:
DOW JONES WILSHIRE
LARGE LARGE SMALL SMALL WILSHIRE LARGE CAP
COMPANY COMPANY COMPANY COMPANY 5000 CORE
GROWTH VALUE GROWTH VALUE INDEX 130/30
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO FUND
------------- ------------- ------------ ------------ ------------- ------------
Undistributed ordinary income ....... $ -- $ 987 $ -- $ 27,263 $ 294,244 $ 88,295
Capital loss carryforwards .......... (8,168,724) (11,480,213) (1,928,483) (2,759,056) (22,111,924) (2,973,710)
Post October losses ................. (16,496,945) (2,207,104) (561,144) (1,154,851) (12,871,081) (1,948,775)
Unrealized appreciation ............. (45,383,874) (9,006,298) (1,197,489) (2,115,239) (21,492,985) (4,640,605)
------------- ------------- ------------ ------------ ------------- ------------
Total accumulated earnings/(loss) ... $ (70,049,543) $ (22,692,628) $ (3,687,116) $ (6,001,883) $ (56,181,746) $ (9,474,795)
------------- ------------- ------------ ------------ ------------- ------------
84
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WILSHIRE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
DECEMBER 31, 2008
- --------------------------------------------------------------------------------
The differences between book and tax-basis unrealized appreciation/depreciation
are attributable primarily to the tax deferral of losses on wash sales on all
Portfolios.
8. Reclassifications.
Accounting principles generally accepted in the United States of America require
that certain components of net assets be reclassified between financial and tax
reporting. These reclassifications have no effect on net assets or net asset
values per share. The permanent differences are primarily attributable to the
net realized gain on sale of partnerships, write-off of net operating losses and
the re-characterization of distributions. As of December 31, 2008, the
reclassifications were as follows:
INCREASE INCREASE/(DECREASE)
INCREASE/(DECREASE) UNDISTRIBUTED NET REALIZED
PORTFOLIO PAID-IN CAPITAL INVESTMENT INCOME CAPITAL GAINS
- --------- ------------------- ----------------- -------------------
Large Company Growth Portfolio ............ $ (590,502) $ 597,343 $ (6,841)
Large Company Value Portfolio ............. 4,227 5,871 (10,098)
Small Company Growth Portfolio ............ (86,875) 89,302 (2,427)
Small Company Value Portfolio ............. -- 14,316 (14,316)
Dow Jones Wilshire 5000 Index Portfolio ... (8,568) 19,511 (10,943)
Wilshire Large Cap Core 130/30 Fund ....... (45,447) 76,276 (30,829)
9. Indemnifications.
In the normal course of business, the Company, on behalf of the Portfolios
enters into contracts that provide general indemnifications. The Portfolios'
maximum exposure under these arrangements is dependent on claims that may be
made against the Portfolios in the future and, therefore, cannot be estimated;
however, based on experience, the risk of material loss from such claims is
considered remote.
The Income Fund is one of the underlying funds the Target Maturity Funds invest
in. The Income Fund invests primarily in debt instruments. The issuers' ability
to meet their obligations may be affected by the recent economic developments.
In addition, the Fund's investments are subject to credit risk," which is the
risk that an issuer will be unable, or will be perceived to be unable, to repay
its obligations at maturity. Funds that invest primarily in high quality
securities generally are subject to less credit risk than funds that invest in
lower quality securities. Certain securities are backed by credit enhancements
from various financial institutions and financial guarantee assurance agencies.
These credit enhancements reinforce the credit quality of the individual
securities; however, if any of the financial institutions or financial guarantee
assurance agencies' credit quality should deteriorate, it could cause the
individual security's credit quality to change. Additionally, if any of the
Funds concentrate their credit enhancements in any one financial institution,
the risk of credit quality deterioration increases. The value of asset-backed
securities may be affected by the credit risk of the servicing agent for the
pool, the originator of the loans or receivables, or the financial
institution(s) providing the credit support. In addition to credit risk,
asset-backed securities and other securities with early redemption features are
subject to pre-payment risk. During periods of declining interest rates,
prepayment of loans underlying asset-backed securities can be expected to
accelerate or an issuer may retire an outstanding bond early to reduce interest
costs. A Fund's ability to maintain
85
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WILSHIRE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED) [LOGO]
DECEMBER 31, 2008
- --------------------------------------------------------------------------------
positions in such securities will be affected by reductions in the principal
amount of such securities resulting from prepayments, and its ability to
reinvest the returns of principal at comparable yields is subject to generally
prevailing interest rates at that time.
10. New Accounting Pronouncement.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161,
"Disclosures about Derivative Instruments and Hedging Activities" ("FAS 161")
and is effective for fiscal years beginning after November 15, 2008. FAS 161 is
intended to improve financial reporting for derivative instruments by requiring
enhanced disclosure that enables investors to understand how and why an entity
uses derivatives, how derivatives are accounted for, and how derivative
instruments affect an entity's results of operations and financial position.
Management is currently evaluating the implications of FAS 161. The impact on
the Portfolios' financial statement disclosures, if any, is currently being
assessed.
86
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WILSHIRE MUTUAL FUNDS, INC. [LOGO]
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of Wilshire Mutual Funds, Inc.:
In our opinion, the accompanying statements of assets and liabilities, including
the condensed schedules of investments of Large Company Growth Portfolio, Large
Company Value Portfolio, Small Company Growth Portfolio, Small Company Value
Portfolio and Dow Jones Wilshire 5000 Index Portfolio and the schedule of
investments of Wilshire Large Cap Core 130/30 Fund and the schedule of
securities sold short of Wilshire Large Cap Core 130/30 Fund (constituting
Wilshire Mutual Funds, Inc., hereafter referred to as the "Portfolios") and the
related statements of operations, of changes in net assets and of cash flows and
the financial highlights present fairly, in all material respects, the financial
position of the Portfolios at December 31, 2008 and the results of each of their
operations, the changes in each of their net assets, the cash flows of Wilshire
Large Cap Core 130/30 Fund and each of their financial highlights for each of
the periods indicated, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Portfolios' management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 2008 by correspondence with the
custodians and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
March 2, 2009
87
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WILSHIRE MUTUAL FUNDS, INC. [LOGO]
ADDITIONAL FUND INFORMATION
- --------------------------------------------------------------------------------
The Board of Directors has responsibility for the overall management and
operations of the Company. The Board establishes the Company's policies and
meets regularly to review the activities of the officers, who are responsible
for the day-to-day operations of the Company.
Set forth below are the names of the Directors and executive officers of the
Company, their ages, positions and terms of office, their principal occupations
during the past five years, and other directorships held by them. The address of
each Director and Officer is 1299 Ocean Avenue, Suite 700, Santa Monica,
California 90401.
NUMBER OF
TERM OF FUNDS/
POSITION OFFICE(1) AND PRINCIPAL FUNDS IN OTHER
HELD LENGTH OF OCCUPATIONS COMPLEX DIRECTORSHIPS
WITH THE TIME DURING THE PAST OVERSEEN HELD BY
NAME AND AGE COMPANY SERVED FIVE YEARS BY DIRECTOR DIRECTOR
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
- -------------------------------------------------------------------------------------------------------------------------------
Lawrence E. Director and Since 2005 President, Wilshire Associates Incorporated, 15 Wilshire Variable
Davanzo, 55(2) President October 2007-Present; Senior Managing Director, Insurance Trust (9
October 2004-October 2007, Wilshire Associates Funds); Wilshire
Incorporated; President, 2005- Present, Wilshire Associates
Variable Insurance Trust; Managing Director, Incorporated
August 2004- October 2004, Guggenheim Partners,
independent investor, August 2001-August 2004.
88
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WILSHIRE MUTUAL FUNDS, INC. [LOGO]
ADDITIONAL FUND INFORMATION - (CONTINUED)
- --------------------------------------------------------------------------------
NUMBER OF
TERM OF FUNDS/
POSITION OFFICE(1) AND PRINCIPAL FUNDS IN OTHER
HELD LENGTH OF OCCUPATIONS COMPLEX DIRECTORSHIPS
WITH THE TIME DURING THE PAST OVERSEEN HELD BY
NAME AND AGE COMPANY SERVED FIVE YEARS BY DIRECTOR DIRECTOR
- -------------------------------------------------------------------------------------------------------------------------------
NON-INTERESTED DIRECTORS
- -------------------------------------------------------------------------------------------------------------------------------
Theodore J. Director Since 2008 President and Chief Executive Officer, National 15 Wilshire Variable
Beck, 55 Endowment for Financial Education (since 2005); Insurance Trust
Associate Dean for Executive Education and (9 Funds)
Corporate Relationships, and President for the
Center for Advanced Studies in Business at the
University of Wisconsin (1999-2005)
Roger A. Director Since 2006 Vice President, University Medical Foundation, 15 Integrity Mutual
Formisano, 59 2006- Present; formerly Director, The Center for Insurance Company,
Leadership and Applied Business, UW-Madison Wilshire Variable
School of Business; Principal, R.A. Formisano & Insurance Trust
Company, LLC (9 Funds)
Richard A. Director Since 2006 Retired; formerly Senior Relationship Manager, 15 Wilshire Variable
Holt, 66 Scudder Insurance Asset Management. Insurance Trust
(9 Funds)
Suanne K. Director Since 2008 Retired; formerly Chief Compliance Officer, Bahl 15 Wilshire Variable
Luhn, 53 & Gaynor (investment adviser) (1990 to 2006) Insurance Trust
(9 Funds)
Harriet A. Director Since 2006 President, Greater Cincinnati Credit Union; 15 Greater Cincinnati
Russell, 66 formerly Vice President, Cincinnati Board of Credit Union Board;
Education; formerly teacher, Walnut Hills High Wilshire Variable
School. Insurance Trust
(9 Funds)
George J. Director, Since 2006 Independent Consultant; Consultant, Horace Mann 15 Wilshire Variable
Zock, 57 Chairman of Service Corporation (2004 to 2005); Executive Insurance Trust
the Board Vice President, Horace Mann Life Insurance (9 Funds)
Company and Horace Mann Service Corporation
(1997 to 2003).
89
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WILSHIRE MUTUAL FUNDS, INC. [LOGO]
ADDITIONAL FUND INFORMATION - (CONTINUED)
- --------------------------------------------------------------------------------
NUMBER OF
TERM OF FUNDS/
POSITION OFFICE(1) AND PRINCIPAL FUNDS IN OTHER
HELD LENGTH OF OCCUPATIONS COMPLEX DIRECTORSHIPS
WITH THE TIME DURING THE PAST OVERSEEN HELD BY
NAME AND AGE COMPANY SERVED FIVE YEARS BY DIRECTOR DIRECTOR
- -------------------------------------------------------------------------------------------------------------------------------
OFFICERS
- -------------------------------------------------------------------------------------------------------------------------------
Helen Chief Since 2004 Managing Director, Wilshire Associates N/A N/A
Thompson, 41 Compliance Incorporated. (since 2003); Associate Director,
Officer and First Quadrant, L.P. (2001 to 2003); Chief
Secretary Investment Accountant, Financial Controller,
Company Secretary, Associate Director,
Treasurer and Since 2008 Compliance Officer (1996 to 2003), First
Vice President Quadrant Limited
(1) EACH DIRECTOR SERVES UNTIL THE NEXT SHAREHOLDERS' MEETING (AND UNTIL THE
ELECTION AND QUALIFICATION OF A SUCCESSOR), OR UNTIL DEATH, RESIGNATION,
REMOVAL OR RETIREMENT WHICH TAKES EFFECT NO LATER THAN THE MAY 1 FOLLOWING
HIS OR HER 70TH BIRTHDAY. OFFICERS ARE ELECTED BY THE BOARD ON AN ANNUAL
BASIS TO SERVE UNTIL THEIR SUCCESSORS HAVE BEEN ELECTED AND QUALIFIED.
(2) MR. DAVANZO IS AN INTERESTED PERSON BECAUSE OF HIS POSITION WITH THE
COMPANY'S INVESTMENT ADVISER, WILSHIRE ASSOCIATES INCORPORATED.
The Company's Statement of Additional Information includes additional
information about the Directors of the Company and is available, without charge,
upon request, by calling 1-888-200-6796.
90
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WILSHIRE MUTUAL FUNDS, INC. [LOGO]
ADDITIONAL FUND INFORMATION - (CONTINUED)
- --------------------------------------------------------------------------------
INFORMATION ON PROXY VOTING
The Securities and Exchange Commission ("SEC") has adopted the requirement that
all funds file their complete proxy voting records with the SEC on an annual
basis on Form N-PX. Such filing, for the 12-month period ended June 30, must be
made no later than August 31 of each year.
A description of policies and procedures that the Portfolios use to determine
how to vote proxies relating to portfolio securities, along with each
Portfolio's proxy voting record relating to portfolio securities held during
most recent 12-month period ended June 30 is available at no charge, upon
request by calling 1-888-200-6796, by e-mailing us at www.wilfunds.com or on the
SEC's website at http://www.sec.gov.
INFORMATION ON FORM N-Q
The Company files its complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q within sixty days
after the end of period. The Company's Form N-Q is available on the SEC's
website at http://www.sec.gov, and may be reviewed and copied at the SEC's
Public Reference Room in Washington, DC. Information on the operation of the
Public Reference Room may be obtained by calling 1-202-551-8090.
91
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WILSHIRE MUTUAL FUNDS, INC.
TAX INFORMATION [LOGO]
(UNAUDITED)
- --------------------------------------------------------------------------------
Of the distributions made by the following Portfolios, the corresponding
percentage represents the amount of each distribution which will qualify for the
dividends received deduction available to corporate shareholders:
PORTFOLIO PERCENTAGE
- --------- ----------
Large Company Growth Portfolio ................................... 19.08%
Large Company Value Portfolio .................................... 99.95%
Small Company Growth Portfolio ................................... 0.00%
Small Company Value Portfolio .................................... 100.00%
Dow Jones Wilshire 5000 Index Portfolio .......................... 91.33%
Wilshire Large Cap Core 130/30 Fund .............................. 100.00%
Pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003, the
Portfolios listed below designate the following percentages of their income
dividends distributed in 2006 as qualified dividend income as defined in Section
1(h)(II) of the Internal Revenue Code.
PORTFOLIO PERCENTAGE
- --------- ----------
Large Company Growth Portfolio ................................... 28.99%
Large Company Value Portfolio .................................... 100.00%
Small Company Growth Portfolio ................................... 0.00%
Small Company Value Portfolio .................................... 100.00%
Dow Jones Wilshire 5000 Index Portfolio .......................... 89.29%
Wilshire Large Cap Core 130/30 Fund .............................. 90.74%
Pursuant to the American Jobs Creation Act of 2004, the Funds listed below
designate the following percentages of income distributions as qualified
interest income that is exempt from U.S. withholding tax when paid to foreign
investors.
PORTFOLIO PERCENTAGE
- --------- ----------
Large Company Growth Portfolio ................................... 0.00%
Large Company Value Portfolio .................................... 0.61%
Small Company Growth Portfolio ................................... 0.00%
Small Company Value Portfolio .................................... 0.99%
Dow Jones Wilshire 5000 Index Portfolio .......................... 0.48%
Wilshire Large Cap Core 130/30 Fund .............................. 4.69%
92
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WILSHIRE MUTUAL FUNDS, INC.
TAX INFORMATION [LOGO]
(UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
Pursuant to the American Jobs Creation Act of 2004, the Funds listed below
designate the following percentages of short-term capital gain distributions as
qualified short-term capital gain that is exempt from U.S. withholding tax when
paid to foreign investors.
PORTFOLIO PERCENTAGE
- ---------- ----------
Large Company Growth Portfolio ................................ 100.00%
Large Company Value Portfolio ................................. 0.00%
Small Company Growth Portfolio ................................ 0.00%
Small Company Value Portfolio ................................. 0.00%
Dow Jones Wilshire 5000 Index Portfolio ....................... 0.00%
Wilshire Large Cap Core 130/30 Fund ........................... 0.00%
The following Portfolios designate long-term capital gain distributions pursuant
to Section 852(b)(3) of the Internal Revenue Code as follows:
PORTFOLIO
- ----------
Large Company Value Portfolio ................................. $ 1,093
Small Company Growth Portfolio ................................ 305,875
Small Company Value Portfolio ................................. 1,842
93
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WILSHIRE MUTUAL FUNDS, INC. [LOGO]
BOARD APPROVAL OF ADVISORY AND SUBADVISORY AGREEMENTS
- --------------------------------------------------------------------------------
During the six months ended December 31, 2008, the Board of Directors (the
"Board") of Wilshire Mutual Funds, Inc. (the "Company") approved the renewal for
an additional one-year term of the Company's advisory agreement with Wilshire
Associates Incorporated ("Wilshire" or the "Adviser") with respect to each of
the Large Company Growth Portfolio, Large Company Value Portfolio, Small Company
Growth Portfolio, Small Company Value Portfolio, Dow Jones Wilshire 5000 Index
Portfolio, Wilshire Large Cap Core 130/30 Fund and Wilshire/MAXAM Diversity Fund
(the "Funds"). The Board also approved the renewal for additional one-year terms
of Wilshire's Subadvisory Agreements with the Company's subadvisers: Acadian
Asset Management, Inc. with respect to the Large Company Value Portfolio, Los
Angeles Capital Management and Equity Research, Inc. with respect to each of the
Small Company Value, Small Company Growth, Large Company Growth and Dow Jones
Wilshire 5000 Index Portfolios, NWQ Investment Management Company, LLC with
respect to the Small Company Value Portfolio, Payden & Rygel with respect to the
Large Company Growth Portfolio, Pzena Investment Management, LLC with respect to
the Small Company Value Portfolio, Quest Investment Management, Inc. with
respect to the Large Company Growth Portfolio, Ranger Investment Management,
L.P. with respect to the Small Company Growth Portfolio, Sawgrass Asset
Management, LLC with respect to the Large Company Growth Portfolio, Systematic
Financial Management, L.P. with respect to the Large Company Value Portfolio and
Victory Capital Management, Inc. with respect to the Large Company Growth
Portfolio. In the following text, the Advisory Agreement between the Company and
Wilshire is referred to as the "Advisory Agreement," the subadvisers are
referred to as "Subadvisers" and the Subadvisory Agreements between Wilshire and
each Subadviser are referred to as "Subadvisory Agreements."
The information in this summary outlines the Board's considerations associated
with its approval the Advisory Agreement and each of the Subadvisory Agreements.
In connection with its deliberations regarding the continuation of these
relationships, the Board considered such information and factors as it believed
to be relevant. As described below, the Board considered the nature, extent and
quality of the services performed by Wilshire and the Subadvisers under the
existing advisory arrangements; with respect to Wilshire, comparative fees and
expense ratios as prepared by Wilshire; the profits to be realized by Wilshire
and the Subadvisers; the extent to which Wilshire and the Subadvisers realize
economies of scale as a Fund grows; and whether any fall-out benefits are being
realized by Wilshire and the Subadvisers. In considering these matters, the
Board was advised with respect to relevant legal standards by independent
counsel. In addition, the Directors who are not "interested persons" of the
Company as defined in the Investment Company Act of 1940 (the "Independent
Directors") met with counsel in private sessions at which no representatives of
Wilshire were present and discussed the renewal of the Subadvisory Agreements
with management and in private sessions with counsel at which no representatives
of the Subadvisers were present.
94
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WILSHIRE MUTUAL FUNDS, INC.
BOARD APPROVAL OF ADVISORY AND SUBADVISORY AGREEMENTS [LOGO]
(CONTINUED)
- --------------------------------------------------------------------------------
As required by the Investment Company Act of 1940, each approval was confirmed
by the unanimous separate vote of the Independent Directors. In deciding to
approve renewal of the Advisory Agreement and the Subadvisory Agreements, the
Board did not identify a single factor as controlling and this summary does not
describe all of the matters considered. However, the Board concluded, after
reviewing the factors, in favor of such approval.
INFORMATION REQUESTED AND RECEIVED
- ----------------------------------
The Board, including all the Independent Directors, considered the renewal of
the Subadvisory Agreements pursuant to a process that concluded at the Board's
August 22, 2008 meeting and the renewal of the Advisory Agreement pursuant to a
process that concluded at the Board's December 5, 2008 meeting, in each case
following an extensive process. At the direction of the Independent Directors,
counsel to the Company and the Independent Directors sent memoranda to the
Adviser requesting information regarding the Subadvisory Agreements and the
Advisory Agreement to be provided to the Directors in advance of meetings of the
Contract Review Committee (which is comprised of all the Independent Directors)
held on August 21, 2008 and December 4 and 5, 2008, respectively. Based upon a
review of such information, counsel sent follow-up memoranda, on behalf of the
Independent Directors, requesting additional information to be considered at the
August 21, 2008 and December 4 and 5, 2008 meetings.
In response to the requests for information, the Directors received information
from the Adviser as to each of the Funds describing: (i) the nature, extent and
quality of services provided, (ii) the investment performance of each Fund,
(iii) the costs of services provided and estimated profits realized by the
Adviser, (iv) the extent to which economies of scale are realized as a Fund
grows, (v) whether fee levels reflect any possible economies of scale for the
benefit of Fund shareholders, (vi) comparisons of services rendered and amounts
paid to other registered investment companies, and (vii) benefits realized by
the Adviser from its relationship with each Fund. The Directors received
information from the Adviser regarding the factors underlying the
recommendations to continue each Subadvisory Agreement. The Directors also
received information from each Subadviser as to each Fund it managed describing:
(i) the nature, extent and quality of services provided, (ii) the investment
performance of the Subadviser in connection with the Fund, (iii) the financial
condition of the Subadviser, (iv) the extent to which economies of scale are
realized as a Fund grows, (v) whether fee levels reflect any possible economies
of scale for the benefit of Fund shareholders, (vi) comparisons of services
rendered and amounts paid by other registered investment companies and any
comparable advisory clients, and (vii) benefits realized by the Subadviser from
its relationship with the Fund. At each meeting, the Inde-
95
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WILSHIRE MUTUAL FUNDS, INC.
BOARD APPROVAL OF ADVISORY AND SUBADVISORY AGREEMENTS [LOGO]
(CONTINUED)
- --------------------------------------------------------------------------------
pendent Directors also received a memorandum from counsel describing their
duties in connection with contract approvals, and they were assisted in their
review by independent legal counsel.
Prior to consideration by the Board, the Contract Review Committee met on August
21, 2008 and December 4 and 5, 2008, as applicable, to discuss the information
provided. With respect to Wilshire, it also considered the assessment of
performance made by the Investment Committee (which is comprised solely of
Independent Directors), which met on December 4, 2008 to review the data
Wilshire had prepared on performance. Following its evaluation of all materials
provided, the Contract Review Committee concluded that it was in the best
interests of each Fund to renew the Advisory and Subadvisory Agreements and
recommended to the Board that the Advisory and Subadvisory Agreements be
renewed. At its meetings on August 22, 2008 and December 5, 2008, as applicable,
the Board considered the recommendation of the Contract Review Committee along
with the other factors that the Board deemed relevant.
NATURE, EXTENT AND QUALITY OF SERVICES -- WILSHIRE
- --------------------------------------------------
With respect to the nature, extent and quality of services provided by the
Adviser, the Board reviewed the functions performed by the Adviser. The Board
considered the experience and skills of the senior management leading fund
operations, the experience and skills of the personnel performing the functions
under the Advisory Agreement and the resources made available to such personnel.
The Board also considered the compliance programs established by the Adviser and
the level of compliance maintained for the Funds. The Board reviewed the
processes used by the Adviser to select, monitor and replace subadvisers. The
Board concluded that the Adviser was successful in negotiating favorable
sub-advisory agreements on behalf of the Funds. The Board concluded that the
Adviser had a robust system in place for selecting, monitoring and terminating
subadvisers. The Board also reviewed the Adviser's financial condition, and
considered the financial support provided by the Adviser to the Small Company
Growth and Small Company Value Portfolios through voluntary expense caps and to
the Wilshire Large Cap Core 130/30 and Wilshire/MAXAM Diversity Funds through
expense limitation agreements. Based upon all relevant factors, the Board
concluded that the nature, quality and extent of the services provided by the
Adviser to each Fund are satisfactory.
The Board reviewed information on the performance of each Fund for one-, three-,
five- and ten-year periods, as applicable, along with performance information of
a relevant benchmark for the same periods, and a peer group of funds for one-,
three- and five-year periods (except for the Wilshire Large Cap Core 130/30
Fund, which does not have a relevant peer group). For the Large Company Growth
Portfolio and the Small Company Growth Portfolio, the Board determined that
performance was satis-
96
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WILSHIRE MUTUAL FUNDS, INC.
BOARD APPROVAL OF ADVISORY AND SUBADVISORY AGREEMENTS [LOGO]
(CONTINUED)
- --------------------------------------------------------------------------------
factory, noting that each Fund's performance was competitive as compared to its
peer group and that it outperformed its benchmark for the ten-year period. For
the Small Company Value Portfolio, the Board determined that performance was
satisfactory, noting that the Fund's performance was competitive as compared to
its peer group. The Board determined that the performance for the Dow Jones
Wilshire 5000 Index Portfolio was satisfactory, noting that the Fund's
performance was competitive as compared to its peer group and that its
underperformance to its benchmark was modest. For the Large Company Value
Portfolio, the Board noted the steps taken by the Adviser to address
underperformance and determined that such steps were reasonable. For the
Wilshire Large Cap Core 130/30 Fund and the Wilshire/MAXAM Diversity Fund, the
Board noted that it had engaged in an extensive review and evaluation when the
Adviser was recently approved to manage these Funds and determined that
performance was too new to make a new assessment.
ADVISORY FEES
- -------------
The Board reviewed each Fund's advisory fee and total expense ratio and reviewed
information comparing the advisory fee and total expense ratio to those of a
peer group of funds. The Board determined that the advisory fee and expense
ratio for each Fund were within a competitive range. Although the Board noted
that the Wilshire/MAXAM Diversity Fund has a high contractual advisory fee in
comparison to its peer group, the Board recognized that the advisory fee charged
to the Fund is primarily driven by the subadvisory and underlying manager fees
paid, which the Board concluded were at competitive levels. As to total
expenses, the Board noted that total expenses are influenced by the small size
of the complex. The Board received information regarding fees charged by the
Adviser to other registered investment companies advised by the Adviser and
similar to certain Funds and determined such fees were comparable to those of
the applicable Funds. The Board concluded that the advisory fee for each Fund
was reasonable and appropriate in amount.
PROFITABILITY TO WILSHIRE AND ECONOMIES OF SCALE
- ------------------------------------------------
With respect to the profitability of the Advisory Agreement, the Board primarily
considered the fee structure of the Advisory Agreement, including the costs of
the services provided and the profits realized by the Adviser from its
relationship with the Funds. The Board concluded that the profits realized by
the Adviser were reasonable in comparison with the costs of providing investment
advisory services to the Funds. In addition, the Board considered the extent to
which economies of scale are realized as the Funds grow and whether fee levels
reasonably reflect economies of scale for the benefit of shareholders. The Board
reviewed each Fund's asset size, each Fund's expense ratio, the voluntary
expense caps in place for the Small Company Growth and Small Company Value
Portfolios, the expense limi-
97
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WILSHIRE MUTUAL FUNDS, INC.
BOARD APPROVAL OF ADVISORY AND SUBADVISORY AGREEMENTS [LOGO]
(CONTINUED)
- --------------------------------------------------------------------------------
tation agreements in place for the Wilshire Large Cap Core 130/30 and
Wilshire/MAXAM Diversity Funds and whether the investment process produced
economies of scale. The Board concluded that each Fund's advisory fee reasonably
reflected appropriate recognition of any economies of scale.
FALL-OUT BENEFITS -- WILSHIRE
- -----------------------------
The Board considered the nature and amount of any benefits derived by the
Adviser from its relationship with the Funds. The Board determined that the
advisory fees were reasonable in light of these fall-out benefits.
NATURE, EXTENT AND QUALITY OF SERVICES -- SUBADVISERS
- -----------------------------------------------------
As to each Subadvisory Agreement, the Board considered the nature, extent and
quality of services provided. The Board considered the reputation,
qualifications and background of the Subadviser, investment approach of the
Subadviser, the experience and skills of investment personnel responsible for
the day-to-day management of each Fund, and the resources made available to such
personnel. The Board also considered the Subadviser's compliance with investment
policies and general legal compliance. In addition, the Board considered the
analysis provided by the Adviser, which concluded that each Subadviser was
providing reasonable services and recommended that each Subadvisory Agreement
for each Fund be continued.
The Board reviewed information comparing each Subadviser's investment
performance to a relevant benchmark. Based upon all relevant factors, the Board
concluded that the investment performance of Los Angeles Capital Management with
respect to the Small Company Growth Portfolio, Quest and Victory with respect to
the Large Company Growth Portfolio, Acadian and Systematic with respect to the
Large Company Value Portfolio and NWQ with respect to the Small Company Value
Portfolio met or exceeded acceptable levels of investment performance and,
therefore, was satisfactory. The Board concluded that the investment performance
of Los Angeles Capital Management with respect to the Large Company Growth and
Small Company Value Portfolios was in a competitive range in comparison to its
benchmark for most periods reviewed. The Board determined that Los Angeles
Capital Management's underperformance with respect to the Dow Jones Wilshire
5000 Index Portfolio was a result of its small size and expenses and, therefore
concluded that investment performance was satisfactory. The Board determined
that Payden & Rygel's outperformance with respect to the Large Company Growth
Portfolio for the one year ended June 30, 2008 and since Payden & Rygel has been
employed as a subadviser (since January 31, 2007) resulted in a conclusion that
investment performance was satisfactory. The Board determined that, although
Ranger had outperformed with respect to the Small Company Growth Portfolio for
the quarter ended June 30, 2008, Ranger's investment performance was too new
98
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WILSHIRE MUTUAL FUNDS, INC.
BOARD APPROVAL OF ADVISORY AND SUBADVISORY AGREEMENTS [LOGO]
(CONTINUED)
- --------------------------------------------------------------------------------
to judge. The Board determined that, although Sawgrass with respect to the Large
Company Growth Portfolio had underperformed for all periods reviewed (since
January 31, 2007), to approve Sawgrass' Subadvisory Agreement given the limited
period covered coupled with more recent outperformance in June 2008 and
Sawgrass' less aggressive management style, which would be expected to perform
less well during the prevailing market conditions. The Board noted that Pzena
with respect to the Large Company Value Portfolio had underperformed for all
periods reviewed. The Board reviewed additional historical performance data for
accounts managed by Pzena that are similar to Pzena's portion of the Large
Company Value Portfolio, which showed that Pzena's performance is cyclical.
Based upon the additional information reviewed and Wilshire's strong
recommendation to renew the agreement based upon its evaluation of the quality
and long-term track record of Pzena, the Board determined to approve
continuation of the Subadvisory Agreement with Pzena.
SUBADVISORY FEES
- ----------------
The Board considered each Fund's subadvisory fees. The Board evaluated the
competitiveness of the subadvisory fees based upon data supplied by each
Subadviser about the fees charged to other clients. The Board also considered
that the subadvisory fee rates were negotiated at arm's length between the
Adviser and each Subadviser, that the Adviser compensates the Subadviser from
its fees and that the aggregate advisory fee was deemed reasonable by the Board.
For the Subadvisers that reported fees for "Other Clients" with comparable
investment policies and services, the Board noted that most Subadvisers did not
charge higher fees to the Adviser for the Funds than were charged to their Other
Clients. For the Subadvisers where the fees charged to the Adviser were higher
than that charged to Other Clients, the Board determined that the fees charged
to the Adviser were competitive.
Based upon all of the above, the Board determined that the subadvisory fees for
each Fund were reasonable.
PROFITABILITY TO THE SUBADVISERS
- --------------------------------
The Board noted that the Adviser compensates each Subadviser from its own
advisory fees and that the fees were negotiated at arm's length between the
Adviser and each Subadviser. In addition, the Board noted that the revenues to
the various Subadvisers were limited due to the size of the Funds. The Board
took these factors into consideration in concluding that the subadvisory fees
were reasonable.
99
- --------------------------------------------------------------------------------
WILSHIRE MUTUAL FUNDS, INC.
BOARD APPROVAL OF ADVISORY AND SUBADVISORY AGREEMENTS [LOGO]
(CONTINUED)
- --------------------------------------------------------------------------------
ECONOMIES OF SCALE -- SUBADVISERS
- ---------------------------------
The Board considered whether there are economies of scale with respect to the
subadvisory services provided to each Fund and whether the subadvisory fees
reflect such economies of scale through breakpoints in fees. The Board also
considered whether the effective subadvisory fee rate for each Fund under the
Subadvisory Agreement is reasonable in relation to the asset size of such Fund.
The Board concluded that the fee schedule for each Fund reflects an appropriate
recognition of any economies of scale.
FALL-OUT BENEFITS -- SUBADVISERS
- --------------------------------
The Board also considered the character and amount of other incidental benefits
received by each Subadviser. The Board considered each Subadviser's soft dollar
practices, where applicable. The Board concluded that, taking into account the
benefits arising from these practices, the fees charged under each Subadvisory
Agreement were reasonable.
CONCLUSION
- ----------
Based upon all of the information considered and the conclusions reached, the
Board determined that the terms of the Advisory Agreement and each Subadvisory
Agreement continue to be fair and reasonable and that the continuation of the
Advisory Agreement and each Subadvisory Agreement is in the best interests of
each Fund.
100
[LOGO] Wilshire Mutual Funds
Wilshire Associates Incorporated
1299 Ocean Avenue
Santa Monica, CA 90401
1-888-200-6796
www.wilfunds.com
WIL-AR-001-0100
[GRAPHIC OMITTED]
Wilshire/MAXAM Diversity Fund
December 31, 2008
www.wilfunds.com
WILSHIRE MUTUAL FUNDS, INC.
Disclosure of Fund Expenses...................................................1
Schedule of Investments.......................................................2
Statement of Assets and Liabilities...........................................3
Statement of Operation........................................................4
Statement of Changes in Net Assets............................................5
Financial Highlights..........................................................6
Notes to Financial Statements.................................................8
Report of Independent Registered Public Accounting Firm ......................13
Additional Fund Information...................................................14
Tax Information...............................................................16
Wilshire Mutual Funds, Inc. are distributed by SEI Investments Distribution Co.
WILSHIRE/MAXAM DIVERSITY FUND
DISCLOSURE OF FUND EXPENSES (IN LIQUIDATION)
FOR THE PERIOD ENDED DECEMBER 31, 2008 (UNAUDITED)
We believe it is important for you to understand the impact of fees regarding
your investment. All mutual funds have operating expenses. As a shareholder of
Fund, you incur ongoing costs, which include costs for investment advisory,
administrative services, distribution and/or shareholder services and
shareholder reports (like this one), among others. Operating expenses, which are
deducted from a fund's gross income, directly reduce the investment return of
the fund. A fund's expenses are expressed as a percentage of its average net
assets. This figure is known as the expense ratio. The following examples are
intended to help you understand the ongoing fees (in dollars) of investing in
your fund and to compare these costs with those of other mutual funds. The
examples are based on an investment of $1,000 made at the beginning of the
period shown and held for the entire period. This table illustrates your fund's
costs in two ways:
ACTUAL FUND RETURN: This section helps you to estimate the actual expenses,
after any applicable fee waivers, that you paid over the period. The "Ending
Account Value" shown is derived from the Fund's ACTUAL return for the past six
month period. The "Expense Ratio" column shows the period's annualized expense
ratio and the "Expenses Paid During Period" column shows the dollar amount that
would have been paid by an investor who started with $1,000 in the Fund at the
beginning of the period.
You may use the information here, together with your account value, to estimate
the expenses that you paid over the period. To do so, simply divide your account
value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6),
then multiply the result by the number given for your fund in the first line
under the heading entitled "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN: This section is intended to help you compare your fund's
costs with those of other mutual funds. The "Ending Account Value" shown is
derived from hypothetical account values and hypothetical expenses based on the
Fund's actual expense ratio and assumed rate of return. It assumes that the Fund
had an annual return of 5% before expenses, but that the expense ratio is
unchanged. In this case, because the return used is NOT the Fund's actual
return, the results do not apply to your investment. This example is useful in
making comparisons to other mutual funds because the Securities and Exchange
Commission requires all mutual funds to calculate expenses based on an assumed
5% annual return. You can assess your fund's ongoing costs by comparing this
hypothetical example with the hypothetical examples that appear in shareholder
reports of other funds.
Please note that the expenses shown in the table are meant to highlight and help
you compare your ONGOING costs only and do not reflect any transactional costs
such as sales charges (loads), redemption fees, or exchange fees. The Fund has
no such charges, but these may be present in other funds to which you compare
this data. Therefore, the hypothetical portions of the table are useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds.
Beginning Ending
Account Account Expenses Paid
Value Value Expense During Period
07/21/08* 12/31/08 Ratio(1) 07/21/08-12/31/08(2)
------------ ----------- ----------- ---------------------
ACTUAL FUND RETURN
Investment Class $1,000.00 $3,677.50 3.17% $33.02
Institutional Class $1,000.00 $3,679.70 1.25% $13.03
HYPOTHETICAL 5% RETURN
Investment Class $1,000.00 $1,008.06 3.17% $14.23
Institutional Class $1,000.00 $1,016.70 1.25% $ 5.66
* THE FUND COMMENCED OPERATIONS ON JULY 21, 2008.
(1) ANNUALIZED, BASED ON THE FUND'S MOST RECENT FISCAL PERIOD EXPENSES.
(2) EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE
AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY THE NUMBER OF DAYS IN
THE PERIOD, THEN DIVIDED BY 366.
1
WILSHIRE MUTUAL FUNDS
SCHEDULE OF INVESTMENTS (IN LIQUIDATION)
DECEMBER 31, 2008
WILSHIRE/MAXAM DIVERSITY FUND
SHARES VALUE
------ -----
CASH EQUIVALENT -- 223.9%
446, 621 PNC Institutional Money
Market Trust, 0.05% +.......... $ 446,621
---------
Total Cash Equivalent (Cost $446,621) 446,621
---------
Total Investments-- 223.9%
(Cost $446,621) 446,621
---------
Other Assets & Liabilities, Net--(123.9)% (247,134)
---------
NET ASSETS -- 100.0% $ 199,487
=========
+ Rate shown is the 7-day effective yield as of December 31, 2008.
The accompanying notes are an integral part of the financial statements.
2
WILSHIRE MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES (IN LIQUIDATION)
DECEMBER 31, 2008
WILSHIRE/MAXAM
DIVERSITY FUND
--------------------
ASSETS:
Investment, at value (Note 2) $ 446,621
Receivable from investment advisor 62,070
Dividends and interest receivable 15,217
--------------
Total Assets 523,908
--------------
LIABILITIES:
Payable due to Custodian 229,818
Payable for Portfolio shares redeemed 17,590
Administration fees payable 833
Chief compliance officer fees payable 128
Directors' fees payable 131
Distribution fees payable (Note 4) 1
Accrued expenses and other payables 75,920
--------------
Total Liabilities 324,421
--------------
NET ASSETS $ 199,487
==============
NET ASSETS CONSIST OF:
Undistributed net investment income $ 37
Accumulated net realized loss on investments sold (4,330,260
Paid-in capital 4,529,710
--------------
NET ASSETS $ 199,487
==============
Investments, at cost (Note 2) $ 446,621
NET ASSETS:
Investment Class shares(1) $ 5,001
==============
(50,000,000 shares authorized, per class, par value
$.001 per share)
Institutional Class shares $ 194,486
==============
(50,000,000 shares authorized, per class, par value
$.001 per share)
SHARES OUTSTANDING:
Investment Class shares 137
==============
Institutional Class shares 5,306
==============
INVESTMENT CLASS SHARES:
Net asset value, Offering and redemption price per share $ 36.62
==============
INSTITUTIONAL CLASS SHARES:
Net asset value, Offering and redemption price per share $ 36.65
==============
(1) Net assets divided by shares do not calculate to the stated NAV because
these amounts are shown rounded.
The accompanying notes are an integral part of the financial statements.
3
WILSHIRE MUTUAL FUNDS
STATEMENT OF OPERATIONS (IN LIQUIDATION)
FOR THE PERIOD ENDED DECEMBER 31, 2008
WILSHIRE/MAXAM
DIVERSITY FUND(1)
-----------------
INVESTMENT INCOME:
Dividends $ 111,514
Foreign taxes withheld (63)
--------------
Total Income $ 111,451
--------------
EXPENSES
Investment advisory fee (Note 3) 39,421
Shareholder Service fees, Institutional Class (Note 4) 6,520
Administration and Accounting fees (Note 3) 3,090
Directors' fees and expenses (Note 3) 548
Chief compliance officer fees (Note 3) 464
Distribution (12b-1) fees (Note 4) 1
Professional fees 55,464
Registration and filing fees 34,107
Custodian fees 15,538
Offering Costs (Note 2) 10,500
Printing fees 3,557
Transfer agent fees (Note 3) 820
Other 1,728
--------------
Total Expenses
171,758
Fees waived and reimbursed by investment adviser (Note 3) (116,432)
--------------
Net expenses 55,326
--------------
NET INVESTMENT INCOME 56,125
--------------
NET REALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized loss from:
Investments (4,330,127)
--------------
NET REALIZED LOSS ON INVESTMENTS (4,330,127)
--------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS $(4,274,002)
==============
(1) Fund commenced operations on July 21, 2008.
The accompanying notes are an integral part of the financial statements.
4
WILSHIRE MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS (IN LIQUIDATION)
FOR THE PERIOD ENDED DECEMBER 31, 2008
WILSHIRE/MAXAM
DIVERSITY FUND(1)
------------------
OPERATIONS:
Net investment income $ 56,125
Net realized loss on investments (4,330,127)
--------------
Net decrease in net assets resulting from operations $(4,274,002)
--------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Investment Class shares (21)
Institutional Class shares (56,200)
--------------
Total distributions to shareholders (56,221)
--------------
CAPITAL STOCK TRANSACTIONS (DOLLARS):
Investment Class shares:
Shares sold 4,514
Shares issued as reinvestment of distributions 20
--------------
Total Investment Class shares 4,534
--------------
Institutional Class shares:
Shares sold 26,105,248
Shares issued as reinvestment of distributions 56,163
Shares redeemed (21,636,235)
--------------
Total Institutional Class shares
4,525,176
--------------
Net increase in net assets from Capital Stock transactions
4,529,710
--------------
NET INCREASE IN NET ASSETS
$ 199,487
--------------
NET ASSETS:
Beginning of period $ --
--------------
End of period $ 199,487
==============
Undistributed net investment income at end of period $ 37
==============
CAPITAL SHARE TRANSACTIONS:
Investment Class shares:
Shares sold 136
Shares issued as reinvestment of distributions 1
--------------
Net increase in Investment Class shares outstanding 137
==============
Institutional Class shares:
Shares sold 906,902
Shares issued as reinvestment of distributions 1,531
Shares redeemed (903,127)
--------------
Net increase in Institutional Class shares outstanding 5,306
==============
(1) Fund commenced operations on July 21, 2008.
The accompanying notes are an integral part of the financial statements.
5
WILSHIRE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS (IN LIQUIDATION)
FOR A FUND SHARE OUTSTANDING THROUGH THE PERIOD
WILSHIRE/MAXAM DIVERSITY FUND
INVESTMENT CLASS SHARES
PERIOD
ENDED
12/31/2008 (3)
------------------------------
Net asset value, beginning of period $ 10.00
-------------
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income loss(1) (0.20)
Net realized and unrealized gain on investments 26.97
-------------
Total from investment operations 26.77
-------------
LESS DISTRIBUTIONS:
From net investment income (0.15)
-------------
Net asset value, end of period $ 36.62
=============
Total return (2) 267.75 %
=============
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) $ 5
Operating expenses including reimbursement/waiver (4) 3.17 %
Operating expenses excluding reimbursement/waiver (4) 24.12 %
Net investment loss4 (1.46)%
Portfolio turnover rate 382 %
(1) The selected per share data was calculated using the average shares
outstanding method for the period.
(2) Return shown is cumulative since inception and is not annualized.
(3) The Fund commenced operations on July 21, 2008.
(4) Annualized.
The accompanying notes are an integral part of the financial statements.
6
WILSHIRE MUTUAL FUNDS
FINANCIAL HIGHLIGHTS (IN LIQUIDATION) CONTINUED
FOR A FUND SHARE OUTSTANDING THROUGH THE PERIOD
WILSHIRE/MAXAM DIVERSITY FUND
INSTITUTIONAL CLASS SHARES
PERIOD
ENDED
12/31/2008 (3)
------------------------------
Net asset value, beginning of period $ 10.00
-------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income(1) 0.14
Net realized and unrealized gain on investments 26.66
-------------
Total from investment operations 26.80
-------------
LESS DISTRIBUTIONS:
From net investment income (0.15)
-------------
Net asset value, end of period $ 36.65
=============
Total return (2) 267.97 %
=============
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) 194
Operating expenses including reimbursement/waiver (4) 1.25 %
Operating expenses excluding reimbursement/waiver (4) 3.88 %
Net investment income4 1.26 %
Portfolio turnover rate 382 %
(1) The selected per share data was calculated using the average
shares outstanding method for the period.
(2) Return shown is cumulative since inception and is not annualized.
(3) The Fund commenced operations on July 21, 2008.
(4) Annualized.
The accompanying notes are an integral part of the financial statements.
7
WILSHIRE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (IN LIQUIDATION)
DECEMBER 31, 2008
1. ORGANIZATION.
Wilshire Mutual Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end diversified
investment company, which was incorporated under Maryland law on July 30, 1992.
The Company operates as a series company and presently offers six series. The
series covered by this Report, Wilshire/MAXAM Diversity Fund (the "Fund"), is
not currently offered. The Fund commenced operations on July 21, 2008. The
Company's other series, whose financials are presented separately, are the
Wilshire Large Company Growth Portfolio, the Wilshire Large Company Value
Portfolio, the Wilshire Small Company Growth Portfolio, the Wilshire Small
Company Value Portfolio, the Dow Jones Wilshire 5000 Index Portfolios and the
Wilshire Large Cap 130/30 Fund. The Company accounts separately for the assets,
liabilities and operations of each series.
The Fund consists of Investment and Institutional Class shares, each of which
has equal rights as to voting privileges. The Investment Class has exclusive
voting rights with respect to its particular service and distribution plan.
Investment income, realized and unrealized capital gains and losses and the
common expenses of the Fund are allocated on a pro-rata basis to each class
based on the relative net assets of each class to the total net assets of the
Fund. Each class of shares differs in its respective service and distribution
expenses.
On December 22, 2008, the Board of Directors determined that it was in the best
interests of the Fund to redeem all the outstanding shares of the Fund on
January 15, 2009 and to terminate the Fund. Prior to January 15, 2009,
shareholders of the Fund could redeem their shares for shares of another
Wilshire fund. Any shares of the Fund that were not redeemed or exchanged prior
to January 15, 2009 were redeemed automatically at their net asset value on that
date.
In connection with the liquidation, the Fund has adopted the liquidation basis
of accounting, which among other things, requires the Fund to record assets and
liabilities at their net realizable value and to provide estimated costs of
liquidating the Fund to the extent that they are reasonably determinable.
2. SIGNIFICANT ACCOUNTING POLICIES.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
PORTFOLIO VALUATION: A security listed or traded on U.S. exchanges is valued at
its last sales price on the exchange where it is principally traded. In the
absence of a current quotation, the security is valued at the mean between the
last bid and asked prices on that exchange. Securities quoted on the National
Association of Securities Dealers Automatic Quotation (NASDAQ) System, for which
there have been sales, are valued at the NASDAQ official closing price. If there
are no such sales, the most recent bid quotation is used. Securities traded
over-the-counter (other than on NASDAQ) are valued at the last current sale
price. Debt securities that have a remaining maturity of 60 days or less are
valued at prices supplied by the Fund's pricing agent for such securities, if
available, and otherwise are valued at amortized cost. In the event market
quotations are not readily available, securities are valued at fair value
according to procedures established by the Board of Directors or as determined
in good faith by the Pricing Committee, whose members include at least two
representatives of the Adviser, one of whom is an officer of the Company, or by
the Company's Valuation Committee. Fair value is defined as the amount the owner
of a security might reasonably expect to receive upon a current sale. Securities
whose market value using the procedures outlined above does not reflect fair
value because a significant valuation event has occurred may be valued at fair
value by the Pricing Committee or by the Company's Valuation Committee.
Significant events include, but are not limited to the following: significant
fluctuations in domestic markets, foreign markets or foreign currencies;
occurrences not directly tied to the securities markets such as natural
disasters, armed conflicts or significant governmental actions; and major
announcements affecting a single issuer or an entire market or market sector.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on a trade date basis. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recognized on the ex-dividend date and interest income, including, where
applicable, accretion of discount and amortization of premium on investments, is
recognized on the accrual basis. Distributions received on securities that
represent a return of capital or capital gain are reclassed as a reduction of
cost of investments and/or as a realized gain. The actual character of income,
realized gain and return of capital distributions received from Real Estate
Investment Trusts are not known until after the end of the fiscal year, at which
time such distributions are appropriately adjusted.
8
WILSHIRE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (IN LIQUIDATION) (CONTINUED)
DECEMBER 31, 2008
EXPENSES: Distribution and Service fees directly attributable to a class of
shares are charged to that class' operations. Expenses of the Fund other than
Distribution and Service fees are prorated among the classes to which the
expense relates based on the relative net assets of each class of shares.
Expenses directly attributable to a fund are charged to that fund. Expenses not
directly attributable to a fund are allocated proportionately among all funds
daily in relation to the net assets of each fund or another reasonable basis.
Expenses which are attributable to the Company and the Wilshire Variable
Insurance Trust are allocated across the Company and the Wilshire Variable
Insurance Trust based upon relative net assets or another reasonable basis.
Expenses and fees, including the advisory fees, are accrued daily and taken into
account for the purpose of determining the net asset value of the Fund's shares.
OFFERING COSTS: Offering costs for the Fund are amortized on a straight-line
basis over one year from commencement of operations.
DISTRIBUTIONS TO SHAREHOLDERS: Distributions to shareholders are recorded on the
ex-dividend date. Distributions from net investment income, if any, are declared
and paid annually. The Fund's net realized capital gains, unless offset by any
available capital loss carryforward, are distributed to shareholders annually.
Additional distributions of net investment income and capital gains may be made
at the discretion of the Board of Directors in order to avoid the application of
a 4% non-deductible Federal excise tax.
3. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS.
Pursuant to the Advisory Agreement (the "Agreement") between the Company and
Wilshire Associates Incorporated ("Wilshire" or the "Adviser"), Wilshire charges
annual fees of 0.90% of average daily net assets for the Fund. Wilshire has
entered into a contractual expense limitation agreement with the Fund to waive a
portion of its management fee and/or reimburse expenses to limit expenses
(excluding taxes, brokerage expenses, dividend expenses on short securities and
extraordinary expenses) to 1.50% and 1.25% of average daily net assets for
Investment Class shares and Institutional Class shares, respectively. This
agreement to limit expenses continues through at least May 1, 2009. Wilshire may
recoup the amount of any management fee waived within three years after the year
in which Wilshire incurred the expense if the recoupment does not exceed the
existing expense limitation for the Fund. At December 31, 2008, the amounts of
waivers subject to recoupment for the Fund are $116,863.
For the period ended December 31, 2008, Wilshire waived fees of $39,421 and
reimbursed expenses of $77,011.
The Board of Directors of the Company has approved MAXAM Capital Management to
provide sub-advisory services with respect to the Fund. The fees of the
Sub-Adviser are paid by Wilshire.
SEI Investments Global Funds Services serves as the Company's administrator and
accounting agent pursuant to an administration agreement dated May 31, 2008. DST
Systems, Inc. serves as the Company's transfer agent and dividend disbursing
agent. PNC Global Investment Servicing serves as the Company's custodian. SEI
Investments Distribution Co. serves as the Company's distributor.
OFFICERS' AND DIRECTORS' EXPENSES The officers of the Company receive
remuneration from the Adviser. The Company does not pay any remuneration to its
officers with the exception of the Company's Chief Compliance Officer ("CCO").
The Company and Wilshire Variable Insurance Trust each pay a portion of the
CCO's compensation and related out of pocket expenses, and the Adviser pays the
remainder of such compensation. Effective April 1, 2008, the Company and
Wilshire Variable Insurance Trust together pay each independent director an
annual retainer of $14,000, an annual additional Board Chair retainer of
$12,000, a Board in-person meeting fee of $1,500, a Board telephonic meeting fee
of $1,000, an annual Committee Member retainer of $4,000, an annual Committee
Chairperson retainer of $8,000 in lieu of the $4,000 Committee Member retainer,
and a Committee telephonic meeting fee of $500. Prior to April 1, 2008, the
Company and the Wilshire Variable Insurance Trust together paid each independent
director an annual Board member retainer of $10,000, an annual additional Board
chair retainer of $16,000, a Board meeting fee of $1,500, a telephonic meeting
fee of $1,000, an annual Committee member retainer of $4,000, an annual
Committee chair retainer of $8,000 in lieu of the $4,000 Committee member
retainer, and a Committee telephonic meeting fee of $500.
9
WILSHIRE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (IN LIQUIDATION) (CONTINUED)
DECEMBER 31, 2008
4. DISTRIBUTION AND SHAREHOLDER SERVICES PLANS.
The Directors of the Company has adopted a shareholder services and/or
distribution plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act, with
respect to the Investment Class Shares of the Fund. Under the Plan, the Fund
reimburses SEI Investments Distribution Co. (the "Distributor"), at an annual
rate of up to 0.25% of the value of the average daily net assets attributable to
the Investment Class Shares for certain service fees provided by securities
dealers or other financial intermediaries ("service fees") or for certain
distribution expenses for the purpose of financing any activity intended to
result in the sale of Investment Class Shares. For the period ended December 31,
2008, the distribution and service fee expenses incurred for the Investment
Class Shares of the Fund was 0.11% of average net assets. In addition,
Investment Class Shares and Institutional Class Shares pay the expenses
associated with certain shareholder servicing arrangements with third parties,
provided that payment of such fees to any such shareholder service provider does
not exceed in any year 0.20% and 0.15% for the Investment and Institutional
Class Shares, respectively, of the Fund's average net assets attributable to the
shares whose holders are serviced by such provider. For the period ended
December 31, 2008, the shareholder service provider fees were 0.00% for
Investment Class Shares and 0.07% for Institutional Class Shares, as a percent
of average net assets of each class.
5. SECURITIES TRANSACTIONS.
For the period ended December 31, 2008, other than short-term investments, the
aggregate cost of purchases was $28,542,914 and proceeds from sales of
securities were $24,231,924.
In September, 2006, the Financial Accounting Standards Board ("FASB") released
STATEMENT OF FINANCIAL ACCOUNTING STANDARDS ("SFAS") No. 157, which provides
enhanced guidance for using fair value to measure assets and liabilities. The
Fund adopted SFAS No. 157 on January 1, 2008. SFAS No. 157 establishes a fair
value hierarchy and specifies that a valuation technique used to measure fair
value shall maximize the use of observable inputs and minimize the use of
unobservable inputs. The objective of a fair value measurement is to determine
the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the
measurement date (an exit price). Accordingly, the fair value hierarchy gives
the highest priority to quoted prices (unadjusted) in active markets for
identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). The three levels of the fair value hierarchy
under SFAS No. 157 are described below:
o Level 1 - quoted prices in active markets for identical securities.
o Level 2 - other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds,
credit risk, etc.).
o Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The summary of inputs used to value the Fund's net assets as of December 31,
2008 is as follows:
Level 1-Quoted Prices . . . . . . . . . . . . . . . . $446,621
Level 2-Other Significant Observable Inputs . . . . . .$ --
Level 3-Significant Unobservable Inputs . . . . . . . .$ --
--------
Total Market Value of Investments . . . . . . . .. . . $446,621
6. SIGNIFICANT SHAREHOLDER ACTIVITY.
On December 31, 2008, the Fund had 2 omnibus shareholders holding 10% or more of
the outstanding shares of the Portfolios. This represents omnibus shareholder
accounts comprised of many individual shareholders.
10
WILSHIRE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (IN LIQUIDATION) (CONTINUED)
DECEMBER 31, 2008
7. TAX INFORMATION.
No provision for federal income taxes is required because the Fund intends to
qualify as a regulated investment company under Subchapter M of the Internal
Revenue Code of 1986, as amended, and distribute to shareholders all of its
taxable income and gains. Federal income tax regulations differ from accounting
principles generally accepted in the United States of America; therefore,
distributions determined in accordance with tax regulations may differ in amount
or character from net investment income and realized gains for financial
reporting purposes. Financial reporting records are adjusted for permanent
book/tax differences to reflect tax character.
The Fund is not aware of any tax positions for which it is reasonably possible
that the total amounts of unrecognized tax benefits will significantly change in
the next twelve months. Management has completed their analysis and has
determined that the adoption of FIN 48 will not have an impact on the Fund's
financial statements, and therefore the Fund did not record any tax expense in
the current period. If the Fund were to record a tax expense as a result of the
adoption of FIN 48, the tax expense would include any interest and penalties.
The Fund files U.S. federal income tax returns and if applicable, returns in
various foreign jurisdictions in which it invests. While the statute of
limitations remains open to examine the Fund's U.S. federal income tax return to
be filed for the fiscal year 2008, no examinations are in progress or
anticipated at this time. However, management's conclusions regarding FIN 48 may
be subject to review and adjustment at a later date based on factors including,
but not limited to, further implementation guidance expected from the FASB, and
on-going analyses of and changes to tax laws, regulations and interpretations
thereof.
Under current tax law, capital and currency losses realized after October 31 may
be deferred and treated as occurring on the first day of the following fiscal
year. For the period ended December 31, 2008, the Fund had post-October capital
loss deferrals of $3,702,200.
The federal tax cost of the Fund was $446,621, with no unrealized appreciation
or depreciation at December 31, 2008.
The Fund intends to retain realized gains to the extent of available capital
loss carryforwards. At December 31, 2008, the Fund had $628,059 of unused
capital losses expiring December 31, 2016 available for federal income tax
purposes.
The tax character of distributions declared was as follows:
2008 2008
ORDINARY CAPITAL
PORTFOLIO INCOME GAINS
- --------------------------------------------------------------------------------
Wilshire/MAXAM Diversity Fund $56,221 $--
At December 31, 2008, the components of distributable accumulated losses on a
tax basis were as follows:
Undistributed ordinary income . . $ 36
Capital loss carryforwards . (628,059)
Post October losses . .. . .(3,702,200)
------------
Total accumulated losses .. (4,330,223)
8. RECLASSIFICATIONS.
Accounting principles generally accepted in the United States of America require
that certain components of net assets be reclassified between financial and tax
reporting. These reclassifications have no effect on net assets or net asset
values per share. The following permanent difference is primarily attributable
to the reclassification between dividend income and capital gain from REIT
investments.
INCREASE (DECREASE)
UNDISTRIBUTED NET REALIZED
INVESTMENT INCOME CAPITAL GAINS
- --------------------------------------------------------------------------------
Wilshire/MAXAM Diversity Fund $133 $(133)
11
WILSHIRE MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (IN LIQUIDATION) (CONTINUED)
DECEMBER 31, 2008
9. INDEMNIFICATIONS.
In the normal course of business, the Company, on behalf of the Fund, enters
into contracts that provide general indemnifications. The Fund's maximum
exposure under these arrangements is dependent on claims that may be made
against the Fund in the future and, therefore, cannot be estimated; however,
based on experience, the risk of material loss from such claims is considered
remote.
10. NEW ACCOUNTING PRONOUNCEMENT.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161,
"Disclosures about Derivative Instruments and Hedging Activities" ("FAS 161")
and is effective for fiscal years beginning after November 15, 2008. FAS 161 is
intended to improve financial reporting for derivative instruments by requiring
enhanced disclosure that enables investors to understand how and why an entity
uses derivatives, how derivatives are accounted for, and how derivative
instruments affect an entity's results of operations and financial position.
Management is currently evaluating the implications of FAS 161. The impact on
the Fund's financial statement disclosures, if any, is currently being assessed.
11. FUND RETURN
In these financial statements, the Statement of Operations for the fund reports
significant losses for the period . The Financial Highlights for the fund
reports a positive total return for the same period. The circumstances leading
to these results are as follows:
On trade date 9/29/2008, a 99% shareholder redeemed from the fund.This
redemption was processed by the transfer agent at the net asset value on
9/29/2008, or $8.64 per share. To fund the redemption, most (i.e. about 95% of
all securities) securities were sold by the underlying managers of the fund on
9/30/2008. During the day of these security sales, the market increased from the
previous day. This market increase accrued to the shares remaining in the fund.
As a result, the net asset value of the fund increased from $8.64 per share on
date 9/29/2008 to $48.43 per share on date 9/30/2008. This increase in net asset
value per share is causing the financial highlights of the fund to show positive
"net realized and unrealized gain on investments per share" and "total return"
despite the fact that the fund has experienced significant losses during the
period.
The Financial Highlights should not be used to evaluate the performance of this
fund.
12
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Directors
of Wilshire/MAXAM Diversity Fund:
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Wilshire/MAXAM Diversity Fund (in
liquidation) (one series of Wilshire Mutual Funds, Inc., hereafter referred to
as the "Fund") at December 31, 2008, the results of its operations, the changes
in its net assets and the financial highlights for the period indicated, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at December 31, 2008 by
correspondence with the custodians and brokers, provide a reasonable basis for
our opinion.
See note 1 to the financial statements regarding the Fund's closure, the ongoing
process of liquidation, and the Fund's change in its basis of accounting from
the going concern basis to the liquidation basis of accounting.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
March 2, 2009
13
WILSHIRE MUTUAL FUNDS
ADDITIONAL FUND INFORMATION
DECEMBER 31, 2008
The Board of Directors has responsibility for the overall management and
operations of the Company. The Board establishes the Company's policies and
meets regularly to review the activities of the officers, who are responsible
for the day-to-day operations of the Company.
Set forth below are the names of the Directors and executive officers of the
Company, their ages, positions and terms of office, their principal occupations
during the past five years, and other directorships held by them. The address of
each Director and Officer is 1299 Ocean Avenue, Suite 700, Santa Monica,
California 90401.
NUMBER OF
TERM OF FUNDS/
OFFICE(1) PRINCIPAL FUNDS IN
POSITION HELD AND LENGTH OCCUPATIONS COMPLEX OTHER
WITH THE OF TIME DURING THE PAST OVERSEEN DIRECTORSHIPS HELD
NAME AND AGE COMPANY SERVED FIVE YEARS BY DIRECTOR BY DIRECTOR
- --------------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
Lawrence E. Director and Since 2005 President, Wilshire Associates 15 Wilshire Variable
Davanzo, 55(2) President Incorporated, October 2007-Present; Senior Insurance Trust (9
Managing Director, October 2004-October Funds); Wilshire
2007, Wilshire Associates Incorporated; Associates
President, 2005- Present, Wilshire Variable Incorporated
Insurance Trust; Managing Director, August
2004- October 2004, Guggenheim Partners,
independent investor, August 2001-August
2004.
NON-INTERESTED
DIRECTORS
Theodore J. Beck, Director Since 2008 President and Chief Executive Officer, 15 Wilshire Variable
55 National Endowment for Financial Education Insurance Trust (9
(since 2005); Associate Dean for Executive Funds); Wilshire
Education and Corporate Relationships, and Associates
President for the Center for Advanced Incorporated
Studies in Business at the University of
Wisconsin (1999-2005)
Roger A. Director Since 2006 Vice President, University Medical Integrity Mutual
Formisano, 59 Foundation, 2006-Present; formerly 15 Insurance Company,
Director, The Center for Leadership and Wilshire Variable
Applied Business, UW-Madison School of Insurance Trust (9
Business; Principal, R.A. Formisano & Funds)
Company, LLC
14
WILSHIRE MUTUAL FUNDS
ADDITIONAL FUND INFORMATION
DECEMBER 31, 2008
NUMBER OF
TERM OF FUNDS/
OFFICE(1) PRINCIPAL FUNDS IN
POSITION HELD AND LENGTH OCCUPATIONS COMPLEX OTHER DIRECTORSHIPS
WITH THE OF TIME DURING THE PAST OVERSEEN HELD
NAME AND AGE COMPANY SERVED FIVE YEARS BY DIRECTOR BY DIRECTOR
- ----------------------------------------------------------------------------------------------- ------------------------------------
Richard A. Holt, Director Since 2006 Retired; formerly Senior Relationship Manager, 15 Wilshire Variable
66 Scudder Insurance Asset Management. Insurance Trust (9
Funds)
Suanne K. Luhn, Director Since 2008 Retired; formerly Chief Compliance Officer, 15 Wilshire Variable
53 Bahl & Gaynor (investment adviser) (1990 to Insurance Trust (9
2006) Funds)
Harriet A. Director Since 2006 President, Greater Cincinnati Credit Union; 15 Greater Cincinnati
Russell, 66 formerly Vice President, Cincinnati Board of Credit Union Board;
Education; formerly teacher, Walnut Hills High Wilshire Variable
School. Insurance Trust (9
Funds)
George J. Zock, Director, Since 2006 Independent Consultant; Consultant, Horace 15 Wilshire Variable
57 Chairman of the Mann Service Corporation (2004 to 2005); Insurance Trust (9
Board Executive Vice President, Horace Mann Life Funds)
Insurance Company and Horace Mann Service
Corporation (1997 to 2003).
OFFICERS
Helen Thompson, Chief Compliance Since 2004 Managing Director, Wilshire Associates N/A N/A
41 Officer and Incorporated. (since 2003); Associate
Secretary Director, First Quadrant, L.P. (2001 to 2003);
Vice President Chief Investment Accountant, Financial
and Treasurer Since 2008 Controller, Company Secretary, Associate
Director, Compliance Officer (1996 to 2003),
First Quadrant Limited
(1) Directors hold office until they resign or until death, resignation,
removal or retirement which takes effect no later than the May 1 following
his or her 70th birthday. Officers are elected by the Board on an annual
basis to serve until their successors have been elected and qualified.
(2) Mr. Davanzo is an interested person because of his position with the
Company's investment adviser, Wilshire Associates Incorporated.
INFORMATION ON PROXY VOTING
The Securities and Exchange Commission ("SEC") has adopted the requirement that
all funds file their complete proxy voting records with the SEC on an annual
basis on Form N-PX. Such filing, for the 12-month period ended June 30, must be
made no later than August 31 of each year. A description of policies and
procedures that the Portfolios use to determine how to vote proxies relating to
portfolio securities, along with each Portfolio's proxy voting record relating
to portfolio securities held during most recent 12-month period ended June 30 is
available at no charge, upon request by calling 1-888-200-6796, by e-mailing us
at www.wilfunds.com or on the SEC's website at HTTP://WWW.SEC.GOV.
INFORMATION ON FORM N-Q
The Company files its complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q within sixty days
after the end of period. The Company's Form N-Q is available on the SEC's
website at http://www.sec.gov, and may be reviewed and copied at the SEC's
Public Reference Room in Washington, DC. Information on the operation of the
Public Reference Room may be obtained by calling 1-202-551-8090.
15
WILSHIRE MUTUAL FUNDS
TAX INFORMATION (IN LIQUIDATION)
(UNAUDITED)
Of the distributions made by the Wilshire/MAXAM Diversity Fund, 100.00% of each
distribution will qualify for the dividends received deduction available to
corporate shareholders.
Pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003, the
Wilshire/MAXAM Diversity Fund designates 100.00% of its income dividends
distributed in 2008 as qualified dividend income as defined in Section 1(h)(II)
of the Internal Revenue Code.
Pursuant to the American Jobs Creation Act of 2004, the Fund designated 2.90% of
income distributions as qualified interest income that is exempt from U.S.
withholding tax when paid to foreign investors.
Pursuant to the American Jobs Creation Act of 2004, the Fund designated 0.00% of
short-term capital gain distributions as qualified short-term capital gain that
is exempt from U.S. withholding tax when paid to foreign investors.
16
ITEM 2. CODE OF ETHICS.
(a) The registrant, as of the end of the period covered by this report,
has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar
functions, regardless of whether these individuals are employed by
the registrant or a third party.
(c) During the period covered by this report, the code of ethics was
amended to address changes in the registrant's covered officers.
(d) The registrant has not granted any waivers, including an implicit
waiver, from a provision of the code of ethics that applies to the
registrant's principal executive officer, principal financial
officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, that
relates to one or more of the items set forth in paragraph (b) of
this item's instructions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant's Board of Directors has determined that the Registrant has at
least one "audit committee financial expert" (as defined by Item 3 of Form
N-CSR) serving on its audit committee. Mr. Roger A. Formisano, the Registrant's
audit committee financial expert, is "independent," for purposes of Item 3 of
Form N-CSR.
An "audit committee financial expert" is not an "expert" for any purpose,
including for purposes of Section 11 of the Securities Act of 1933, as a result
of being designated as an "audit committee financial expert." Further, the
designation of a person as an "audit committee financial expert" does not mean
that the person has any greater duties, obligations, or liability than those
imposed on the person without the "audit committee financial expert"
designation. Similarly, the designation of a person as an "audit committee
financial expert" does not affect the duties, obligations, or liability of any
other member of the audit committee or Board of Directors.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
AUDIT FEES
- ----------
(a) The aggregate fees billed for each of the last two fiscal years for
professional services rendered by the principal accountant for the
audit of the registrant's annual financial statements or services
that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal
years are $144,650 for 2007 and $178,540 for 2008.
AUDIT-RELATED FEES
- -------------------
(b) The aggregate fees billed in each of the last two fiscal years for
assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the
registrant's financial statements and are not reported under
paragraph (a) of this Item are $0 for 2007 and $18,016 for 2008.
Fees billed were for agrred upon procedures to review the Fund
Accounting conversion from PNC Global Investment Services to SEI
Investments Global Funds Services.
TAX FEES
- ---------
(c) The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax
compliance, tax advice, tax planning and tax training are $18,415
for 2007 and $26,750 for 2008. Such services consisted of quarterly
diversification review, annual distribution review and tax return
review.
ALL OTHER FEES
- ---------------
(d) The aggregate fees billed in each of the last two fiscal years for
products and services provided by the principal accountant, other
than the services reported in paragraphs (a) through (c) of this
Item are $0 for 2007 and $0 for 2008.
(e)(1) AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES.
-----------------------------------------------------
Pursuant to Registrant's Audit Committee Charter (the "Charter"),
the Audit Committee is responsible for pre-approving any
engagement of the principal accountant to provide non-prohibited
services to the Registrant, including the fees and other
compensation to be paid to the principal accountant, to the
extent required by Rule 2-01(c)(7) of Regulation S-X. The
Chairman of the Audit Committee may grant pre-approval for
engagements of less than $5,000. All such delegated pre-approvals
will be presented to the Audit Committee no later than the next
Audit Committee meeting.
Pursuant to the Charter, the Audit Committee is also responsible
for pre-approving any engagement of the principal accountant,
including the fees and other compensation to be paid to the
principal accountant, to provide non-audit services to the
Registrant's investment adviser (or any entity controlling,
controlled by, or under common control with the adviser that
provides ongoing services to the Registrant), if the engagement
relates directly to the operations and financial reporting of the
Registrant, to the extent required by Rule 2-01(c)(7) of
Regulation S-X. The Chairman of the Audit Committee may grant
pre-approval for engagements of less than $5,000. All such
delegated pre-approvals will be presented to the Audit Committee
no later than the next Audit Committee meeting.
(e)(2) The percentage of services described in each of paragraphs (b)
through (d) of this Item that were ( approved by the audit committee
pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X
are as follows:
(b) Not Applicable
(c) 100%
(d) Not Applicable
(f) The percentage of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the
most recent fiscal year that were attributed to work performed by
persons other than the principal accountant's full-time, permanent
employees was (0%) zero percent.
(g) The aggregate non-audit fees billed by the registrant's accountant
for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose
role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling,
controlled by, or under common control with the adviser that
provides ongoing services to the registrant for each of the last two
fiscal years of the registrant was $18,415 for 2007 and $0 for
2008.
(h) The registrant's audit committee of the board of directors has
considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by another investment adviser), and
any entity controlling, controlled by, or under common control with
the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
The Schedules of Investments in securities of unaffiliated issuers as of the
close of the reporting period for the Dow Jones Wilshire 5000 Index Portfolio,
the Large Company Growth Portfolio, the Large Company Value Portfolio, the Small
Company Growth Portfolio and the Small Company Value Portfolio are listed below.
The Schedule of Investments in securities of unaffiliated issuers as of the
close of the reporting period for the Wilshire Large Cap Core 130/30 Fund and
the Wilshire/MAXAM Diversity Fund is included as part of the report to
shareholders filed under Item 1 of this form.
Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
COMMON STOCK -- 97.7%
CONSUMER DISCRETIONARY -- 9.7%
6,100 Amazon.com, Inc. + .................................. $ 312,808
47,330 American Eagle Outfitters, Inc. ..................... 443,009
39,506 Apollo Group, Inc., Class A + ....................... 3,026,950
11,800 Bed Bath & Beyond, Inc. + ........................... 299,956
989 Best Buy Co., Inc. .................................. 27,801
4,000 Career Education Corp. + ............................ 71,760
63,500 Coach, Inc. + ....................................... 1,318,895
64,540 DIRECTV Group, Inc. (The) + ......................... 1,478,612
35,660 Dollar Tree, Inc. + ................................. 1,490,588
22,277 DreamWorks Animation SKG, Inc., Class A + ........... 562,717
21,500 GameStop Corp., Class A + ........................... 465,690
23,400 Gap, Inc. (The) ..................................... 313,326
2,546 Garmin, Ltd. ........................................ 48,807
2,415 HSN, Inc. + ......................................... 17,557
8,215 ITT Educational Services, Inc. + .................... 780,260
15,110 Kohl's Corp. + ...................................... 546,982
18,330 Lowe's Cos., Inc. ................................... 394,462
43,768 McDonald's Corp. .................................... 2,721,932
3,300 Morningstar, Inc. + ................................. 117,150
10,374 Newell Rubbermaid, Inc. ............................. 101,458
14,475 Nike, Inc., Class B ................................. 738,225
11,000 Omnicom Group, Inc. ................................. 296,120
15,200 O'Reilly Automotive, Inc. + ......................... 467,248
3,600 PetSmart, Inc. ...................................... 66,420
9,870 Ross Stores, Inc. ................................... 293,435
600 Sherwin-Williams Co. (The) .......................... 35,850
6,700 Starbucks Corp. + ................................... 63,382
2,417 Strayer Education, Inc. ............................. 518,229
45,411 TJX Cos., Inc. ...................................... 934,104
6,071 Urban Outfitters, Inc. + ............................ 90,943
2,500 Viacom, Inc., Class B + ............................. 47,650
21,480 Walt Disney Co. (The) ............................... 487,381
25,670 Yum! Brands, Inc. ................................... 808,605
------------
19,388,312
------------
CONSUMER STAPLES -- 10.3%
28,672 Altria Group, Inc. .................................. 431,800
41,428 Avon Products, Inc. ................................. 995,515
750 Brown-Forman Corp., Class B ......................... 38,618
35,844 Coca-Cola Co. (The) ................................. 1,622,658
6,850 Colgate-Palmolive Co. ............................... 469,499
8,600 Constellation Brands, Inc., Class A + ............... 135,622
12,665 Costco Wholesale Corp. .............................. 664,912
131,710 CVS/Caremark Corp. .................................. 3,785,345
20,063 General Mills, Inc. ................................. 1,218,827
5,900 Hansen Natural Corp. + .............................. 197,827
34 Kellogg Co. ......................................... 1,491
12,285 Kroger Co. (The) .................................... 324,447
4,074 Lorillard, Inc. ..................................... 229,570
56,346 PepsiCo, Inc. ....................................... 3,086,070
46,382 Philip Morris International, Inc. ................... 2,018,081
35,460 Procter & Gamble Co. ................................ 2,192,137
3,620 UST, Inc. ........................................... 251,156
12,631 Walgreen Co. ........................................ 311,607
46,397 Wal-Mart Stores, Inc. ............................... 2,601,016
------------
20,576,198
------------
ENERGY -- 8.7%
7,858 Apache Corp. ........................................ 585,657
18,663 Cameron International Corp. + ....................... 382,592
18,650 Chesapeake Energy Corp. ............................. 301,571
6,075 Chevron Corp. ....................................... 449,368
4,623 Cimarex Energy Co. .................................. 123,804
SHARES VALUE
------ -----
ENERGY -- 8.7% (CONTINUED)
12,600 Consol Energy, Inc. ................................. $ 360,108
6,697 Continental Resources, Inc. + ....................... 138,695
12,217 Denbury Resources, Inc. + ........................... 133,410
1,428 Devon Energy Corp. .................................. 93,834
891 ENSCO International, Inc. ........................... 25,295
7,440 EOG Resources, Inc. ................................. 495,355
48,168 Exxon Mobil Corp. ................................... 3,845,251
1,531 Forest Oil Corp. + .................................. 25,246
50,721 Halliburton Co. ..................................... 922,108
2,317 Hess Corp. .......................................... 124,284
65,945 National Oilwell Varco, Inc. + ...................... 1,611,696
7,825 Newfield Exploration Co. + .......................... 154,544
1,136 Noble Corp. ......................................... 25,094
4,074 Noble Energy, Inc. .................................. 200,522
39,094 Occidental Petroleum Corp. .......................... 2,345,249
5,889 Patterson-UTI Energy, Inc. .......................... 67,782
10,715 Peabody Energy Corp. ................................ 243,766
3,764 PetroHawk Energy Corp. + ............................ 58,831
13,400 Petroleo Brasileiro SA ADR .......................... 328,166
1,347 Pioneer Natural Resources Co. ....................... 21,795
2,985 Plains Exploration & Production Co. + ............... 69,371
10 Pride International, Inc. + ......................... 160
2,701 Range Resources Corp. ............................... 92,887
56,564 Schlumberger, Ltd. .................................. 2,394,354
14,520 Sunoco, Inc. ........................................ 631,039
4,591 Transocean, Ltd. + .................................. 216,925
5,009 Unit Corp. + ........................................ 133,840
23,574 XTO Energy, Inc. .................................... 831,455
------------
17,434,054
------------
FINANCIALS -- 6.7%
28,850 Aflac, Inc. ......................................... 1,322,484
3,900 AMB Property Corp. .................................. 91,338
17,200 American Express Co. ................................ 319,060
4,300 AmeriCredit Corp. + ................................. 32,852
8,942 Bank of Hawaii Corp. ................................ 403,910
1,690 BlackRock, Inc., Class A ............................ 226,713
10,600 Brown & Brown, Inc. ................................. 221,540
2,800 Camden Property Trust ............................... 87,752
85,075 Charles Schwab Corp. (The) .......................... 1,375,663
2,100 Cincinnati Financial Corp. .......................... 61,047
2,426 City National Corp. ................................. 118,146
9,576 CME Group, Inc., Class A ............................ 1,992,861
900 Duke Realty Corp. ................................... 9,864
5,900 Endurance Specialty Holdings, Ltd. .................. 180,127
300 Federated Investors, Inc., Class B .................. 5,088
25,900 Goldman Sachs Group, Inc. (The) ..................... 2,185,701
3,800 Hospitality Properties Trust ........................ 56,506
20,100 Hudson City Bancorp, Inc. ........................... 320,796
2,756 IntercontinentalExchange, Inc. + .................... 227,205
8,500 Invesco, Ltd. ....................................... 122,740
24,200 Janus Capital Group, Inc. ........................... 194,326
16,865 JPMorgan Chase & Co. ................................ 531,754
6,510 Kimco Realty Corp. .................................. 119,003
6,600 Macerich Co. (The) .................................. 119,856
6,200 Mack-Cali Realty Corp. .............................. 151,900
2,107 MSCI, Inc., Class A + ............................... 37,420
14,800 Nasdaq OMX Group (The) + ............................ 365,708
5,400 Plum Creek Timber Co., Inc. ......................... 187,596
7,338 Rayonier, Inc. ...................................... 230,046
2,500 StanCorp Financial Group, Inc. ...................... 104,425
787 State Street Corp. .................................. 30,953
7,675 T Rowe Price Group, Inc. ............................ 272,002
15,341 TD Ameritrade Holding Corp. + ....................... 218,609
3,000 Torchmark Corp. ..................................... 134,100
6,880 U.S. Bancorp ........................................ 172,069
Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
FINANCIALS -- 6.7% (CONTINUED)
4,600 Waddell & Reed Financial, Inc., Class A ............. $ 71,116
3,600 Washington Federal, Inc. ............................ 53,856
18,950 Wells Fargo & Co. ................................... 558,646
12,100 Whitney Holding Corp. ............................... 193,479
11,297 Wilmington Trust Corp. .............................. 251,245
------------
13,359,502
------------
HEALTH CARE -- 18.1%
52,102 Abbott Laboratories ................................. 2,780,684
6,641 Aetna, Inc. ......................................... 189,268
2,340 Alcon, Inc. ......................................... 208,705
43,700 Allergan, Inc. ...................................... 1,761,984
26,252 Amgen, Inc. + ....................................... 1,516,053
39,719 Baxter International, Inc. .......................... 2,128,541
2,668 Becton Dickinson & Co. .............................. 182,464
14,091 Biogen Idec, Inc. + ................................. 671,154
44,945 Bristol-Myers Squibb Co. ............................ 1,044,971
4,815 C.R. Bard, Inc. ..................................... 405,712
73,654 Celgene Corp. + ..................................... 4,071,593
9,400 Cephalon, Inc. + .................................... 724,176
3,310 Cerner Corp. + ...................................... 127,270
10,198 Dentsply International, Inc. ........................ 287,991
1,428 Edwards Lifesciences Corp. + ........................ 78,469
1,338 Endo Pharmaceuticals Holdings, Inc. + ............... 34,627
18,400 Express Scripts, Inc., Class A + .................... 1,011,632
9,953 Forest Laboratories, Inc. + ......................... 253,503
14,492 Genentech, Inc. + ................................... 1,201,532
11,913 Gen-Probe, Inc. + ................................... 510,353
7,291 Genzyme Corp. + ..................................... 483,904
106,996 Gilead Sciences, Inc. + ............................. 5,471,775
18,614 Idexx Laboratories, Inc. + .......................... 671,593
8,908 Intuitive Surgical, Inc. + .......................... 1,131,227
25,508 Johnson & Johnson ................................... 1,526,144
16,557 Laboratory Corp. of America Holdings + .............. 1,066,436
110 Life Technologies Corp. + ........................... 2,564
24,674 Medtronic, Inc. ..................................... 775,257
15,157 Merck & Co., Inc. ................................... 460,773
4,313 Patterson Cos., Inc. + .............................. 80,869
5,001 Pediatrix Medical Group, Inc. + ..................... 158,532
77,404 Pfizer, Inc. ........................................ 1,370,825
5,633 Resmed, Inc. + ...................................... 211,125
10,255 Schering-Plough Corp. ............................... 174,643
2,536 St. Jude Medical, Inc. + ............................ 83,587
5,000 Techne Corp. ........................................ 322,600
49,680 Teva Pharmaceutical Industries, Ltd. ADR ............ 2,114,877
11,750 Thermo Fisher Scientific, Inc. + .................... 400,322
1,208 Varian Medical Systems, Inc. + ...................... 42,328
1,500 Vertex Pharmaceuticals, Inc. + ...................... 45,570
1,215 Waters Corp. + ...................................... 44,530
4,538 WellPoint, Inc. + ................................... 191,186
5,742 Zimmer Holdings, Inc. + ............................. 232,092
------------
36,253,441
------------
INDUSTRIALS -- 11.1%
14,701 3M Co. .............................................. 845,895
18,400 Ametek, Inc. ........................................ 555,864
10,101 Boeing Co. .......................................... 431,010
2,508 Brink's Co. (The) ................................... 67,415
8,033 Burlington Northern Santa Fe Corp. .................. 608,179
1,700 Carlisle Cos., Inc. ................................. 35,190
9,325 Caterpillar, Inc. ................................... 416,548
4,396 CH Robinson Worldwide, Inc. ......................... 241,912
4,423 Corrections Corp. of America + ...................... 72,360
2,600 Crane Co. ........................................... 44,824
21,443 CSX Corp. ........................................... 696,254
10,850 Cummins, Inc. ....................................... 290,021
SHARES VALUE
------ -----
INDUSTRIALS -- 11.1% (CONTINUED)
28,715 Danaher Corp. ....................................... $ 1,625,556
12,970 Deere & Co. ......................................... 497,010
26,035 Delta Air Lines, Inc. + ............................. 298,361
62,550 Expeditors International of Washington, Inc. ........ 2,081,038
13,400 Fastenal Co. ........................................ 466,990
7,802 FedEx Corp. ......................................... 500,498
5,305 Flowserve Corp. ..................................... 273,208
6,000 Fluor Corp. ......................................... 269,220
879 FTI Consulting, Inc. + .............................. 39,274
10,200 General Dynamics Corp. .............................. 587,418
30,000 General Electric Co. ................................ 486,000
3,139 Hubbell, Inc., Class B .............................. 102,582
3,964 Illinois Tool Works, Inc. ........................... 138,938
4,781 ITT Corp. ........................................... 219,878
19,309 Jacobs Engineering Group, Inc. + .................... 928,763
21,668 JB Hunt Transport Services, Inc. .................... 569,218
6,466 Kansas City Southern + .............................. 123,177
6,408 L-3 Communications Holdings, Inc., Class 3 .......... 472,782
3,800 Lockheed Martin Corp. ............................... 319,504
29,320 Masco Corp. ......................................... 326,332
6,850 Norfolk Southern Corp. .............................. 322,293
4,093 Precision Castparts Corp. ........................... 243,452
17,300 Robert Half International, Inc. ..................... 360,186
53,988 Southwest Airlines Co. .............................. 465,377
7,600 Stericycle, Inc. + .................................. 395,808
28,720 Sunpower Corp., Class A + ........................... 1,062,640
52,609 Union Pacific Corp. ................................. 2,514,710
12,955 United Parcel Service, Inc., Class B ................ 714,598
28,654 United Technologies Corp. ........................... 1,535,854
600 WW Grainger, Inc. ................................... 47,304
------------
22,293,441
------------
INFORMATION TECHNOLOGY -- 27.5%
19,785 Accenture, Ltd., Class A ............................ 648,750
171,200 Activision Blizzard, Inc. + ......................... 1,479,168
22,753 Adobe Systems, Inc. + ............................... 484,411
239 Akamai Technologies, Inc. + ......................... 3,606
1,000 Alliance Data Systems Corp. + ....................... 46,530
32,249 Altera Corp. ........................................ 538,881
17,679 Amphenol Corp., Class A ............................. 423,942
30,610 Ansys, Inc. + ....................................... 853,713
53,522 Apple, Inc. + ....................................... 4,568,103
18,730 Automatic Data Processing, Inc. ..................... 736,838
7,179 BMC Software, Inc. + ................................ 193,187
14,017 Broadcom Corp., Class A + ........................... 237,868
192,826 Cisco Systems, Inc. + ............................... 3,143,064
96,000 Cognizant Technology Solutions Corp., Class A + ..... 1,733,760
210 Compuware Corp. + ................................... 1,418
38,370 Corning, Inc. ....................................... 365,666
35,025 Dell, Inc. + ........................................ 358,656
1,877 Dolby Laboratories, Inc., Class A + ................. 61,491
12,804 Electronic Arts, Inc. + ............................. 205,376
68,100 EMC Corp. + ......................................... 713,007
11,261 Flir Systems, Inc. + ................................ 345,487
100 Global Payments, Inc. ............................... 3,279
13,267 Google, Inc., Class A + ............................. 4,081,592
81,802 Hewlett-Packard Co. ................................. 2,968,595
226,360 Intel Corp. ......................................... 3,318,438
57,483 International Business Machines Corp. ............... 4,837,769
8,553 Intuit, Inc. + ...................................... 203,476
75,191 Juniper Networks, Inc. + ............................ 1,316,594
6,200 Lam Research Corp. + ................................ 131,936
4,294 Lexmark International, Inc., Class A + .............. 115,509
Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 27.5% (CONTINUED)
13,130 Linear Technology Corp. ............................. $ 290,436
36,800 Marvell Technology Group, Ltd. + .................... 245,456
13,000 Mastercard, Inc., Class A ........................... 1,858,090
32,966 MEMC Electronic Materials, Inc. + ................... 470,754
9,376 Microchip Technology, Inc. .......................... 183,113
301,854 Microsoft Corp. ..................................... 5,868,042
10 NetApp, Inc. + ...................................... 140
10,035 Nvidia Corp. + ...................................... 80,982
161,532 Oracle Corp. + ...................................... 2,863,962
1,200 Paychex, Inc. ....................................... 31,536
136,284 QUALCOMM, Inc. ...................................... 4,883,056
24,500 Research In Motion, Ltd. + .......................... 994,210
7,785 Salesforce.com, Inc. + .............................. 249,198
10,100 Symantec Corp. + .................................... 136,552
20,096 Synopsys, Inc. + .................................... 372,178
11,950 Teradata Corp. + .................................... 177,218
1 Teradyne, Inc. + .................................... 4
19,101 Texas Instruments, Inc. ............................. 296,448
3,500 Total System Services, Inc. ......................... 49,000
7,619 Trimble Navigation, Ltd. + .......................... 164,647
1,431 Varian Semiconductor Equipment Associates, Inc. + ... 25,930
10,600 Visa, Inc., Class A ................................. 555,970
1,800 VMware, Inc., Class A + ............................. 42,642
1,118 WebMD Health Corp., Class A + ....................... 26,374
2,436 Western Digital Corp. + ............................. 27,892
28,500 Western Union Co. (The) ............................. 408,690
53,509 Yahoo!, Inc. + ...................................... 652,810
1,861 Zebra Technologies Corp., Class A + ................. 37,704
------------
55,113,144
------------
MATERIALS -- 3.8%
1,500 Airgas, Inc. ........................................ 58,485
8,827 Ashland, Inc. ....................................... 92,772
8,400 Barrick Gold Corp. .................................. 308,868
3,195 BHP Billiton, Ltd. ADR .............................. 137,066
6,000 CF Industries Holdings, Inc. ........................ 294,960
5,890 Ecolab, Inc. ........................................ 207,034
521 FMC Corp. ........................................... 23,304
10,795 International Paper Co. ............................. 127,381
47,551 Monsanto Co. ........................................ 3,345,213
17,000 Nalco Holding Co. ................................... 196,180
7,509 Newmont Mining Corp. ................................ 305,616
3,105 Nucor Corp. ......................................... 143,451
15,730 Potash Corp of Saskatchewan ......................... 1,151,751
14,390 Praxair, Inc. ....................................... 854,190
4,184 Sigma-Aldrich Corp. ................................. 176,732
6,700 Titanium Metals Corp. ............................... 59,027
3,930 Weyerhaeuser Co. .................................... 120,297
------------
7,602,327
------------
TELECOMMUNICATION SERVICES -- 0.7%
6,730 American Tower Corp., Class A + ..................... 197,324
36,900 AT&T, Inc. .......................................... 1,051,650
3,100 China Mobile, Ltd. ADR .............................. 157,635
------------
1,406,609
------------
UTILITIES -- 1.1%
1,900 Duke Energy Corp. ................................... 28,519
6,503 Energen Corp. ....................................... 190,733
6,300 Equitable Resources, Inc. ........................... 211,365
13,663 Exelon Corp. ........................................ 759,800
5,145 FirstEnergy Corp. ................................... 249,944
6,125 FPL Group, Inc. ..................................... 308,271
8,190 PPL Corp. ........................................... 251,351
8,615 Southern Co. ........................................ 318,755
SHARES VALUE
------ -----
UTILITIES -- 1.1% (CONTINUED)
100 TECO Energy, Inc. ................................... $ 1,235
------------
2,319,973
------------
Total Common Stock (Cost $231,374,996) ........................ 195,747,001
------------
INVESTMENT COMPANY -- 0.4%
FINANCIALS -- 0.4%
21,500 iShares Russell 1000 + .............................. 796,790
------------
Total Investment Company (Cost $766,129) ...................... 796,790
------------
MONEY MARKET FUND -- 0.6%
1,227,162 PNC Institutional Money Market Trust,
0.05% (A) .......................................... 1,227,162
Total Money Market Fund (Cost $1,227,162) 1,227,162
------------
Total Investments-- 98.7%
(Cost $233,368,287)+ 197,770,953
Other Assets & Liabilities, Net-- 1.3% 2,591,848
------------
NET ASSETS-- 100.0% ........................................... $200,362,801
============
ADR -- American Depositary Receipt
+ Non-income producing security .
(A) Rate shown is the 7-day effective yield as of December 31, 2008
Wilshire Mutual Funds
Large Company Value Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
COMMON STOCK -- 89.7%
CONSUMER DISCRETIONARY -- 11.2%
1,000 Advance Auto Parts, Inc. .................. $ 33,650
1,200 Darden Restaurants, Inc. .................. 33,816
30,900 Home Depot, Inc. (The) .................... 711,318
10,728 HSN, Inc. + ............................... 77,993
15,725 J.C. Penney Co., Inc. ..................... 309,782
5,300 Kohl's Corp. + ............................ 191,860
957 Liberty Media Corp. - Capital, Ser A + .... 4,507
4,400 Lowe's Cos., Inc. ......................... 94,688
12,550 Magna International, Inc., Class A ........ 375,622
19,525 Mattel, Inc. .............................. 312,400
7,000 McDonald's Corp. .......................... 435,330
8,625 Omnicom Group, Inc. ....................... 232,185
2,200 Quiksilver, Inc. + ........................ 4,048
1,300 Shiloh Industries, Inc. ................... 3,900
1,100 Snap-On, Inc. ............................. 43,318
76 Sport Supply Group, Inc. .................. 532
100 Stoneridge, Inc. + ........................ 456
4,300 Time Warner, Inc. ......................... 43,258
21,833 Unifi, Inc. + ............................. 61,569
1,400 VF Corp. .................................. 76,678
6,400 Whirlpool Corp. ........................... 264,640
------------
3,311,550
------------
CONSUMER STAPLES -- 9.0%
24,100 Altria Group, Inc. ........................ 362,946
2,527 American Italian Pasta Co., Class A + ..... 56,453
2,700 Archer-Daniels-Midland Co. ................ 77,841
4,005 Bunge, Ltd. ............................... 207,339
1,400 Casey's General Stores, Inc. .............. 31,878
3,400 CVS/Caremark Corp. ........................ 97,716
5,100 Kimberly-Clark Corp. ...................... 268,974
8,300 Kraft Foods, Inc., Class A ................ 222,855
2,400 Kroger Co. (The) .......................... 63,384
1,200 Lorillard, Inc. ........................... 67,620
2,182 Oil-Dri Corp of America ................... 40,912
29,206 Parlux Fragrances, Inc. + ................. 85,282
7,400 Procter & Gamble Co. ...................... 457,468
23,900 Sara Lee Corp. ............................ 233,981
6,900 Wal-Mart Stores, Inc. ..................... 386,814
------------
2,661,463
------------
ENERGY -- 8.8%
14,800 BJ Services Co. ........................... 172,716
7,000 BP PLC ADR ................................ 327,180
6,700 Chevron Corp. ............................. 495,599
8,931 ConocoPhillips ............................ 462,626
400 Devon Energy Corp. ........................ 26,284
7,900 Exxon Mobil Corp. ......................... 630,657
1,100 Hess Corp. ................................ 59,004
2,900 Mariner Energy, Inc. + .................... 29,580
2,100 Noble Corp. ............................... 46,389
800 Noble Energy, Inc. ........................ 39,376
1,600 Occidental Petroleum Corp. ................ 95,984
1,600 PetroHawk Energy Corp. + .................. 25,008
1,600 Stone Energy Corp. + ...................... 17,632
100 Sunoco, Inc. .............................. 4,346
3,500 Valero Energy Corp. ....................... 75,740
2,000 W&T Offshore, Inc. ........................ 28,640
2,050 Walter Industries, Inc. ................... 35,895
700 Whiting Petroleum Corp. + ................. 23,422
------------
2,596,078
------------
FINANCIALS -- 22.5%
16,700 Allstate Corp. (The) ...................... 547,092
6,203 Anthracite Capital, Inc. .................. 13,833
SHARES VALUE
------ -----
FINANCIALS -- 22.5% (CONTINUED)
1,300 AON Corp. ................................. $ 59,384
600 Arch Capital Group, Ltd. + ................ 42,060
600 AvalonBay Communities, Inc. ............... 36,348
41,825 Bank of America Corp. ..................... 588,896
1,100 Boston Properties, Inc. ................... 60,500
13,500 Capital One Financial Corp. ............... 430,515
4,100 CapitalSource, Inc. ....................... 18,942
70,025 Citigroup, Inc. ........................... 469,867
8,575 Comerica, Inc. ............................ 170,214
881 CompuCredit Corp. + ....................... 4,872
4,000 Discover Financial Services ............... 38,120
12,939 Fidelity National Financial, Inc., Class A 229,667
1,100 Goldman Sachs Group, Inc. (The) ........... 92,829
2,600 Hartford Financial Services Group, Inc. ... 42,692
2,300 Health Care REIT, Inc. .................... 97,060
1,400 Interactive Brokers Group, Inc., Class A + 25,046
2,900 Invesco, Ltd. ............................. 41,876
23,275 JPMorgan Chase & Co. ...................... 733,861
900 Life Partners Holdings, Inc. .............. 39,276
2,700 Marsh & McLennan, Inc. .................... 65,529
4,500 MetLife, Inc. ............................. 156,870
12,825 Morgan Stanley ............................ 205,713
4,500 Nasdaq OMX Group (The) + .................. 111,195
78,546 National City Corp. ....................... 142,168
2,461 Newcastle Investment Corp. ................ 2,067
979 Platinum Underwriters Holdings, Ltd. ...... 35,322
1,400 PNC Financial Services Group, Inc. ........ 68,600
1,200 Principal Financial Group, Inc. ........... 27,084
2,400 Protective Life Corp. ..................... 34,440
1,200 Republic Bancorp, Inc., Class A ........... 32,640
1,100 Simon Property Group, Inc. ................ 58,443
3,800 State Street Corp. ........................ 149,454
600 TFS Financial Corp. ....................... 7,740
10,118 Torchmark Corp. ........................... 452,275
5,200 Travelers Cos., Inc. (The) ................ 235,040
4,896 U.S. Bancorp .............................. 122,449
26,675 UBS AG + .................................. 381,453
9,800 Unum Group ................................ 182,280
13,200 Wells Fargo & Co. ......................... 389,136
4,090 XL Capital, Ltd., Class A ................. 15,133
------------
6,657,981
------------
HEALTH CARE -- 13.2%
2,100 Aetna, Inc. ............................... 59,850
14,575 AmerisourceBergen Corp., Class A .......... 519,745
2,700 Amgen, Inc. + ............................. 155,925
10,100 Bristol-Myers Squibb Co. .................. 234,825
12,600 Continucare Corp. + ....................... 26,586
20,505 Depomed, Inc. + ........................... 33,833
9,500 Eli Lilly & Co. ........................... 382,565
12,125 Johnson & Johnson ......................... 725,439
2,600 Life Technologies Corp. + ................. 60,606
10,750 Merck & Co., Inc. ......................... 326,800
34,500 Pfizer, Inc. .............................. 610,995
900 Quest Diagnostics, Inc. ................... 46,719
1,300 Questcor Pharmaceuticals, Inc. + .......... 12,103
19,425 Schering-Plough Corp. ..................... 330,808
1,625 WellPoint, Inc. + ......................... 68,461
7,700 Wyeth ..................................... 288,827
------------
3,884,087
------------
INDUSTRIALS -- 8.1%
6,851 Baker (Michael) Corp. + ................... 252,871
5,325 Boeing Co. ................................ 227,218
24 Chart Industries, Inc. + .................. 255
1,600 CNH Global NV ............................. 24,960
Wilshire Mutual Funds
Large Company Value Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INDUSTRIALS -- 8.1% (CONTINUED)
5,400 Delta Air Lines, Inc. + ................... $ 61,884
3,900 General Dynamics Corp. .................... 224,601
11,000 General Electric Co. ...................... 178,200
3,900 Hawaiian Holdings, Inc. + ................. 24,882
3,625 L-3 Communications Holdings, Inc.,
Class 3 ................................. 267,452
22 Layne Christensen Co. + ................... 528
59 McDermott International, Inc. + ........... 583
10,900 Northrop Grumman Corp. .................... 490,936
1,700 Oshkosh Corp. ............................. 15,113
11,390 PRG-Schultz International, Inc. + ......... 46,471
33,400 Quanex Building Products Corp. ............ 312,958
1,800 Republic Services, Inc., Class A .......... 44,622
1,100 SPX Corp. ................................. 44,605
5,761 Standex International Corp. ............... 114,298
448 Tecumseh Products Co., Class A + .......... 4,292
550 Tecumseh Products Co., Class B + .......... 5,253
1,775 Tyco International, Ltd. .................. 38,340
2,600 United Rentals, Inc. + .................... 23,712
------------
2,404,034
------------
INFORMATION TECHNOLOGY -- 10.1%
4,600 3Com Corp. + .............................. 10,488
4,800 Adaptec, Inc. + ........................... 15,840
4,050 Affiliated Computer Services, Inc.,
Class A + ................................ 186,097
224,100 Alcatel-Lucent ADR ........................ 481,815
17,400 Amkor Technology, Inc. + .................. 37,932
300 Apple, Inc. + ............................. 25,605
24,525 CA, Inc. .................................. 454,449
4,000 Check Point Software Technologies + ....... 75,960
4,200 Convergys Corp. + ......................... 26,922
5,790 Global Cash Access Holdings, Inc. + ....... 12,854
5,500 Hewlett-Packard Co. ....................... 199,595
25,300 infoGROUP, Inc. ........................... 119,922
1,000 International Business Machines Corp. ..... 84,160
8,421 Lexmark International, Inc., Class A + .... 226,525
400 Mastercard, Inc., Class A ................. 57,172
15,773 Microsoft Corp. ........................... 306,627
79,000 Motorola, Inc. ............................ 349,970
58,979 OpenTV Corp., Class A + ................... 72,544
2,000 SAIC, Inc. + .............................. 38,960
3,507 Seagate Technology ........................ 15,536
1,300 TTM Technologies, Inc. + .................. 6,773
8,125 Tyco Electronics, Ltd. .................... 131,706
22,800 Unisys Corp. + ............................ 19,380
3,200 United Online, Inc. ....................... 19,424
------------
2,976,256
------------
MATERIALS -- 0.7%
1,400 Celanese Corp., Ser A, Class A ............ 17,402
36 Chemtura Corp. ............................ 50
1,400 Crown Holdings, Inc. + .................... 26,880
100 Eastman Chemical Co. ...................... 3,171
2,500 Freeport-McMoRan Copper & Gold, Inc. ...... 61,100
2,400 International Paper Co. ................... 28,320
2,300 Terra Industries, Inc. .................... 38,341
600 United States Steel Corp. ................. 22,320
----------
197,584
----------
TELECOMMUNICATION SERVICES -- 2.6%
10,900 AT&T, Inc. ................................ 310,650
13,800 Verizon Communications, Inc. .............. 467,820
----------
778,470
----------
UTILITIES -- 3.5%
1,200 American Electric Power Co., Inc. .......... 39,936
SHARES VALUE
------ -----
UTILITIES -- 3.5% (CONTINUED)
5,200 Dominion Resources, Inc. .................. $ 186,368
4,700 Northeast Utilities ....................... 113,082
3,400 NRG Energy, Inc. + ........................ 79,322
6,650 Sempra Energy ............................. 283,490
30,200 Star Gas Partners, LP + ................... 72,178
5,850 Wisconsin Energy Corp. .................... 245,583
------------
1,019,959
------------
Total Common Stock (Cost $34,250,002) 26,487,462
------------
MONEY MARKET FUND -- 0.2%
55,013 PNC Institutional Money Market Trust,
0.05% (A) ............................... 55,013
------------
Total Money Market Fund (Cost $55,013) 55,013
------------
Total Investments-- 89.9%
(Cost $34,305,015)+ 26,542,475
Other Assets & Liabilities, Net-- 10.1% 2,984,797
------------
NET ASSETS-- 100.0% $ 29,527,272
============
ADR -- American Depositary Receipt
PLC -- Public Limited Company
+ Non-income producing security
(A) Rate shown is the 7-day effective yield as of December 31, 2008.
Wilshire Mutual Funds
Small Company Growth Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
COMMON STOCK -- 99.0%
CONSUMER DISCRETIONARY -- 10.7%
6,700 99 Cents Only Stores + ......................... $ 73,231
175 Aaron Rents, Inc. .............................. 4,658
550 Aeropostale, Inc. + ............................ 8,855
737 American Public Education, Inc. + .............. 27,409
150 Bally Technologies, Inc. + ..................... 3,605
175 Blue Nile, Inc. + .............................. 4,286
853 Capella Education Co. + ........................ 50,122
1,500 Cato Corp. (The), Class A ...................... 22,650
500 Charlotte Russe Holding, Inc. + ................ 3,245
279 Chipotle Mexican Grill, Inc., Class B + ........ 15,984
175 Chipotle Mexican Grill, Inc., Class A + ........ 10,847
2,100 Christopher & Banks Corp. ...................... 11,760
875 Corinthian Colleges, Inc. + .................... 14,324
290 Deckers Outdoor Corp. + ........................ 23,162
430 DeVry, Inc. .................................... 24,687
1,170 Dick's Sporting Goods, Inc. + .................. 16,509
300 Exide Technologies + ........................... 1,587
604 Grand Canyon Education, Inc. + ................. 11,343
500 Marvel Entertainment, Inc. + ................... 15,375
125 Matthews International Corp., Class A .......... 4,585
987 NetFlix, Inc. + ................................ 29,501
400 NutriSystem, Inc. .............................. 5,836
163 Overstock.com, Inc. + .......................... 1,757
1,100 Pacific Sunwear of California + ................ 1,749
197 Panera Bread Co., Class A + .................... 10,291
411 Peet's Coffee & Tea, Inc. + .................... 9,556
325 Pre-Paid Legal Services, Inc. + ................ 12,119
300 Red Robin Gourmet Burgers, Inc. + .............. 5,049
15 Shuffle Master, Inc. + ......................... 74
425 Smith & Wesson Holding Corp. + ................. 965
2,025 Sotheby's ...................................... 18,002
50 Spartan Motors, Inc. ........................... 236
712 Stamps.com, Inc. + ............................. 6,999
1,620 Steven Madden, Ltd. + .......................... 34,539
361 Strayer Education, Inc. ........................ 77,402
400 Systemax, Inc. ................................. 4,308
50 Texas Roadhouse, Inc., Class A + ............... 387
1,569 Tween Brands, Inc. + ........................... 6,778
175 Universal Electronics, Inc. + .................. 2,839
127 Warnaco Group, Inc. (The) + .................... 2,493
275 Wonder Auto Technology, Inc. + ................. 1,078
-----------
580,182
-----------
CONSUMER STAPLES -- 1.5%
1,100 American Oriental Bioengineering, Inc. + ....... 7,469
75 Chattem, Inc. + ................................ 5,365
75 Green Mountain Coffee Roasters, Inc. + ......... 2,902
1,690 TreeHouse Foods, Inc. + ........................ 46,036
550 USANA Health Sciences, Inc. + .................. 18,832
-----------
80,604
-----------
ENERGY -- 7.2%
100 Approach Resources, Inc. + ..................... 731
2,392 Arena Resources, Inc. + ........................ 67,191
125 Bill Barrett Corp. + ........................... 2,641
5,684 Brigham Exploration Co. + ...................... 18,189
1,440 CARBO Ceramics, Inc. ........................... 51,163
250 Carrizo Oil & Gas, Inc. + ...................... 4,025
675 Comstock Resources, Inc. + ..................... 31,894
75 Contango Oil & Gas Co. + ....................... 4,222
300 Core Laboratories NV ........................... 17,958
75 Delta Petroleum Corp. + ........................ 357
SHARES VALUE
------ -----
ENERGY -- 7.2% (CONTINUED)
5,025 Endeavour International Corp. + ................ $ 2,512
25 ENGlobal Corp. + ............................... 81
3,474 EXCO Resources, Inc. + ......................... 31,474
125 FX Energy, Inc. + .............................. 349
175 GMX Resources, Inc. + .......................... 4,431
930 Goodrich Petroleum Corp. + ..................... 27,854
1,175 Gran Tierra Energy, Inc. + ..................... 3,290
50 Gulf Island Fabrication, Inc. .................. 721
1,100 Gulfport Energy Corp. + ........................ 4,345
100 Hercules Offshore, Inc. + ...................... 475
250 Lufkin Industries, Inc. ........................ 8,625
175 Matrix Service Co. + ........................... 1,342
1,825 McMoRan Exploration Co. + ...................... 17,885
1,075 Meridian Resource Corp. + ...................... 613
272 NATCO Group, Inc., Class A + ................... 4,129
100 Natural Gas Services Group, Inc. + ............. 1,013
825 Parallel Petroleum Corp. + ..................... 1,658
1,752 PetroHawk Energy Corp. + ....................... 27,384
150 Petroleum Development Corp. + .................. 3,611
1,200 Petroquest Energy, Inc. + ...................... 8,112
425 Rosetta Resources, Inc. + ...................... 3,009
184 Smith International, Inc. ...................... 4,212
98 Stone Energy Corp. + ........................... 1,080
400 Superior Well Services, Inc. + ................. 4,000
125 TXCO Resources, Inc. + ......................... 186
2,850 Vaalco Energy, Inc. + .......................... 21,204
50 Venoco, Inc. + ................................. 136
776 Warren Resources, Inc. + ....................... 1,544
200 World Fuel Services Corp. ...................... 7,400
-----------
391,046
-----------
FINANCIALS -- 7.9%
150 Anworth Mortgage Asset Corp.++ ................. 964
300 BioMed Realty Trust, Inc.++ .................... 3,516
100 Chemical Financial Corp. ....................... 2,788
500 Cohen & Steers, Inc. ........................... 5,495
400 Columbia Banking System, Inc. .................. 4,772
1,100 eHealth, Inc. + ................................ 14,608
200 Encore Capital Group, Inc. + ................... 1,440
300 Equity One, Inc.++ ............................. 5,310
100 Evercore Partners, Inc., Class A ............... 1,249
1,100 FCStone Group, Inc. + .......................... 4,873
1,350 Financial Federal Corp. ........................ 31,415
1,000 First Financial Bancorp ........................ 12,390
1,175 First Niagara Financial Group, Inc. ............ 19,000
2,800 Forestar Group, Inc. + ......................... 26,656
1,900 Frontier Financial Corp. ....................... 8,284
300 Hancock Holding Co. ............................ 13,638
200 Infinity Property & Casualty ................... 9,346
1,600 Inland Real Estate Corp.++ ..................... 20,768
200 Investment Technology Group, Inc. + ............ 4,544
800 LaSalle Hotel Properties++ ..................... 8,840
200 Life Partners Holdings, Inc. ................... 8,728
500 LTC Properties, Inc.++ ......................... 10,140
100 Mid-America Apartment Communities, Inc.++ ...... 3,716
2,000 Nationwide Health Properties, Inc.++ ........... 57,440
225 optionsXpress Holdings, Inc. ................... 3,006
175 Penson Worldwide, Inc. + ....................... 1,333
175 Pico Holdings, Inc. + .......................... 4,651
350 Prospect Capital Corp. ......................... 4,190
225 Provident Financial Services, Inc. ............. 3,442
350 Senior Housing Properties Trust++ .............. 6,272
475 Sterling Bancshares, Inc. ...................... 2,888
Wilshire Mutual Funds
Small Company Growth Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
FINANCIALS -- 7.9% (CONTINUED)
1,130 SVB Financial Group + .......................... $ 29,640
1,475 SWS Group, Inc. ................................ 27,951
300 Tower Group, Inc. .............................. 8,463
2,519 Trustco Bank Corp. ............................. 23,956
75 U.S. Global Investors, Inc., Class A ........... 367
1,209 United Community Banks, Inc. ................... 16,421
250 Westamerica Bancorporation ..................... 12,788
200 World Acceptance Corp. + ....................... 3,952
-----------
429,240
-----------
HEALTH CARE -- 30.4%
1,425 Abaxis, Inc. + ................................. 22,843
50 Acadia Pharmaceuticals, Inc. + ................. 45
1,950 Affymetrix, Inc. + ............................. 5,831
200 Air Methods Corp. + ............................ 3,198
875 Albany Molecular Research, Inc. + .............. 8,523
1,050 Alexion Pharmaceuticals, Inc. + ................ 38,000
1,350 Alexza Pharmaceuticals, Inc. + ................. 4,280
125 Align Technology, Inc. + ....................... 1,094
50 Alkermes, Inc. + ............................... 533
1,675 Allos Therapeutics, Inc. + ..................... 10,251
592 Allscripts-Misys Healthcare Solutions, Inc. .... 5,873
125 AMAG Pharmaceuticals, Inc. + ................... 4,481
524 Amedisys, Inc. + ............................... 21,662
700 American Medical Systems Holdings, Inc. + ...... 6,293
225 Amsurg Corp., Class A + ........................ 5,252
700 Angiodynamics, Inc. + .......................... 9,583
1,450 Arqule, Inc. + ................................. 6,119
825 Array Biopharma, Inc. + ........................ 3,341
350 Arthrocare Corp. + ............................. 1,670
700 Bio-Reference Labs, Inc. + ..................... 18,361
280 Bruker Corp. + ................................. 1,131
1,000 Cell Genesys, Inc. + ........................... 220
125 Centene Corp. + ................................ 2,464
625 Chemed Corp. ................................... 24,856
600 Columbia Laboratories, Inc. + .................. 762
425 Conmed Corp. + ................................. 10,175
375 Corvel Corp. + ................................. 8,243
650 CryoLife, Inc. + ............................... 6,311
1,475 Cubist Pharmaceuticals, Inc. + ................. 35,636
2,376 Cyberonics, Inc. + ............................. 39,370
350 Cynosure, Inc., Class A + ...................... 3,195
2,825 Cypress Bioscience, Inc. + ..................... 19,323
350 Dionex Corp. + ................................. 15,697
250 Discovery Laboratories, Inc. + ................. 280
742 Eclipsys Corp. + ............................... 10,529
1,350 Enzo Biochem, Inc. + ........................... 6,602
476 eResearchTechnology, Inc. + .................... 3,156
220 Facet Biotech Corp. + .......................... 2,110
1,905 Genoptix, Inc. + ............................... 64,922
1,280 Gen-Probe, Inc. + .............................. 54,835
425 Geron Corp. + .................................. 1,985
50 GTx, Inc. + .................................... 842
250 Haemonetics Corp. + ............................ 14,125
300 Halozyme Therapeutics, Inc. + .................. 1,680
400 Healthways, Inc. + ............................. 4,592
3,300 HMS Holdings Corp. + ........................... 104,016
1,120 Hologic, Inc. + ................................ 14,638
2,284 Icon PLC ADR + ................................. 44,972
250 ICU Medical, Inc. + ............................ 8,285
4,920 Immucor, Inc. + ................................ 130,774
325 Immunomedics, Inc. + ........................... 552
300 Inspire Pharmaceuticals, Inc. + ................ 1,080
SHARES VALUE
------ -----
HEALTH CARE -- 30.4% (CONTINUED)
500 inVentiv Health, Inc. + ........................ $ 5,770
29 Isis Pharmaceuticals, Inc. + ................... 411
1,809 Javelin Pharmaceuticals, Inc. + ................ 2,261
775 Kendle International, Inc. + ................... 19,933
125 Landauer, Inc. ................................. 9,162
950 LHC Group, Inc. + .............................. 34,200
1,425 Martek Biosciences Corp. ....................... 43,192
3,120 Masimo Corp. + ................................. 93,070
250 Medarex, Inc. + ................................ 1,395
1,300 Medicines Co. (The) + .......................... 19,149
1,300 Medicis Pharmaceutical Corp., Class A .......... 18,070
1,250 Mentor Corp. ................................... 38,662
1,650 Meridian Bioscience, Inc. ...................... 42,025
1,175 Merit Medical Systems, Inc. + .................. 21,068
215 Molina Healthcare, Inc. + ...................... 3,786
600 Myriad Genetics, Inc. + ........................ 39,756
2,930 Natus Medical, Inc. + .......................... 37,943
222 Neurocrine Biosciences, Inc. + ................. 710
1,400 Nighthawk Radiology Holdings, Inc. + ........... 6,804
2,050 Noven Pharmaceuticals, Inc. + .................. 22,550
1,100 Obagi Medical Products, Inc. + ................. 8,206
50 Odyssey HealthCare, Inc. + ..................... 463
551 Omnicell, Inc. + ............................... 6,728
350 Onyx Pharmaceuticals, Inc. + ................... 11,956
1,342 OSI Pharmaceuticals, Inc. + .................... 52,405
825 Pain Therapeutics, Inc. + ...................... 4,884
1,364 Palomar Medical Technologies, Inc. + ........... 15,727
450 Par Pharmaceutical Cos., Inc. + ................ 6,034
300 Parexel International Corp. + .................. 2,913
1,100 PDL BioPharma, Inc. ............................ 6,798
601 Perrigo Co. .................................... 19,418
1,250 PharmaNet Development Group, Inc. + ............ 1,137
4,030 Phase Forward, Inc. + .......................... 50,455
50 Progenics Pharmaceuticals, Inc. + .............. 516
1,338 Psychiatric Solutions, Inc. + .................. 37,263
1,525 Questcor Pharmaceuticals, Inc. + ............... 14,198
1,350 Quidel Corp. + ................................. 17,644
825 Regeneron Pharmaceuticals, Inc. + .............. 15,147
200 Salix Pharmaceuticals, Ltd. + .................. 1,766
950 Savient Pharmaceuticals, Inc. + ................ 5,500
550 Sirona Dental Systems, Inc. + .................. 5,775
250 SonoSite, Inc. + ............................... 4,770
50 Spectranetics Corp. + .......................... 131
525 STERIS Corp. ................................... 12,542
175 Symmetry Medical, Inc. + ....................... 1,395
250 United Therapeutics Corp. + .................... 15,637
875 Valeant Pharmaceuticals International + ........ 20,038
600 Varian, Inc. + ................................. 20,106
50 Viropharma, Inc. + ............................. 651
75 West Pharmaceutical Services, Inc. ............. 2,833
100 Wright Medical Group, Inc. + ................... 2,043
475 Zoll Medical Corp. + ........................... 8,973
-----------
1,648,560
-----------
INDUSTRIALS -- 19.0%
230 AAR Corp. + .................................... 4,234
625 Actuant Corp., Class A ......................... 11,888
675 Administaff, Inc. .............................. 14,634
1,700 Advanced Battery Technologies, Inc. + .......... 4,522
300 Advisory Board Co. (The) + ..................... 6,690
50 American Commercial Lines, Inc. + .............. 245
300 American Ecology Corp. ......................... 6,069
300 Astec Industries, Inc. + ....................... 9,399
75 Axsys Technologies, Inc. + ..................... 4,115
Wilshire Mutual Funds
Small Company Growth Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INDUSTRIALS -- 19.0% (CONTINUED)
175 Badger Meter, Inc. ............................. $ 5,078
725 Brady Corp., Class A ........................... 17,364
2,314 Briggs & Stratton Corp. ........................ 40,703
175 Ceradyne, Inc. + ............................... 3,554
100 China Fire & Security Group, Inc. + ............ 681
675 Clean Harbors, Inc. + .......................... 42,822
175 Columbus McKinnon Corp. + ...................... 2,389
50 Comfort Systems USA, Inc. ...................... 533
3,880 Cornell, Inc. + ................................ 72,129
1,310 Corrections Corp. of America + ................. 21,432
375 CRA International, Inc. + ...................... 10,099
50 Cubic Corp. .................................... 1,360
750 Dycom Industries, Inc. + ....................... 6,165
450 Eagle Bulk Shipping, Inc. ...................... 3,069
25 Energy Conversion Devices, Inc. + .............. 630
229 EnerNOC, Inc. + ................................ 1,704
833 EnerSys + ...................................... 9,163
875 Ennis, Inc. .................................... 10,596
257 Equifax, Inc. .................................. 6,816
8 ESCO Technologies, Inc. + ...................... 328
397 Flow International Corp. + ..................... 961
300 Forward Air Corp. .............................. 7,281
675 FTI Consulting, Inc. + ......................... 30,159
125 Genco Shipping & Trading, Ltd. ................. 1,850
1,418 GenCorp, Inc. + ................................ 5,218
1,162 Genessee & Wyoming, Inc., Class A +. ........... 35,441
3,110 Geo Group, Inc. (The) + ........................ 56,073
525 GrafTech International, Ltd. + ................. 4,368
334 Graham Corp. ................................... 3,614
510 Huron Consulting Group, Inc. + ................. 29,208
245 II-VI, Inc. + .................................. 4,677
489 Kaman Corp. .................................... 8,866
175 Knight Transportation, Inc. .................... 2,821
50 Ladish Co., Inc. + ............................. 693
200 Layne Christensen Co. + ........................ 4,802
1,359 LMI Aerospace, Inc. + .......................... 15,452
901 Lydall, Inc. + ................................. 5,181
533 Marten Transport, Ltd. + ....................... 10,106
50 Medis Technologies, Ltd. + ..................... 22
253 Middleby Corp. + ............................... 6,899
1,050 Mine Safety Appliances Co. ..................... 25,105
50 Navigant Consulting, Inc. + .................... 794
75 Nordson Corp. .................................. 2,422
700 Old Dominion Freight Line, Inc. + .............. 19,922
175 Resources Connection, Inc. + ................... 2,866
2,680 Ritchie Bros. Auctioneers, Inc. ................ 57,406
125 Robbins & Myers, Inc. .......................... 2,021
1,341 Rollins, Inc. .................................. 24,245
1,100 Standard Register Co. (The) .................... 9,823
175 Sun Hydraulics Corp. ........................... 3,297
100 Sunpower Corp., Class A + ...................... 3,700
250 Taser International, Inc. + .................... 1,320
1,650 Team, Inc. + ................................... 45,705
350 Teledyne Technologies, Inc. + .................. 15,593
43 Tetra Tech, Inc. + ............................. 1,038
426 Titan International, Inc. ...................... 3,514
50 TransDigm Group, Inc. + ........................ 1,678
875 Tredegar Corp. ................................. 15,907
590 Triumph Group, Inc. ............................ 25,051
580 TrueBlue, Inc. + ............................... 5,551
4,103 Wabtec Corp. ................................... 163,094
800 Watson Wyatt Worldwide, Inc., Class A .......... 38,256
600 Werner Enterprises, Inc. ....................... 10,404
-----------
1,030,815
-----------
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 18.9%
50 ACI Worldwide, Inc. + .......................... $ 795
825 Actuate Corp. + ................................ 2,442
1,004 Advanced Analogic Technologies, Inc. + ......... 3,032
200 Anixter International, Inc. + .................. 6,024
175 Ansys, Inc. + .................................. 4,881
2,594 Art Technology Group, Inc. + ................... 5,006
600 ATMI, Inc. + ................................... 9,258
200 Avid Technology, Inc. + ........................ 2,182
50 Avocent Corp. + ................................ 896
225 Bankrate, Inc. + ............................... 8,550
75 Benchmark Electronics, Inc. + .................. 958
450 Blue Coat Systems, Inc. + ...................... 3,780
320 Cabot Microelectronics Corp. + ................. 8,342
675 CACI International, Inc., Class A + ............ 30,436
825 Checkpoint Systems, Inc. + ..................... 8,118
550 Cirrus Logic, Inc. + ........................... 1,474
30 Cogent, Inc. + ................................. 407
350 Cognex Corp. ................................... 5,180
950 Cogo Group, Inc. + ............................. 4,617
556 CSG Systems International, Inc. + .............. 9,713
453 CTS Corp. ...................................... 2,496
1,482 Cybersource Corp. + ............................ 17,769
625 Cymer, Inc. + .................................. 13,694
475 Daktronics, Inc. ............................... 4,446
815 Digital River, Inc. + .......................... 20,212
100 Double-Take Software, Inc. + ................... 897
525 Earthlink, Inc. + .............................. 3,549
475 Emulex Corp. + ................................. 3,316
370 Equinix, Inc. + ................................ 19,680
63 Factset Research Systems, Inc. ................. 2,787
50 FARO Technologies, Inc. + ...................... 843
300 FEI Co. + ...................................... 5,658
2,001 Flir Systems, Inc. + ........................... 61,391
50 GSI Commerce, Inc. + ........................... 526
100 Harmonic, Inc. + ............................... 561
175 Hittite Microwave Corp. + ...................... 5,156
1,300 Infinera Corp. + ............................... 11,648
3,240 Informatica Corp. + ............................ 44,485
992 Integral Systems, Inc. + ....................... 11,953
272 InterDigital, Inc. + ........................... 7,480
1,200 Intermec, Inc. + ............................... 15,936
125 IPG Photonics Corp. + .......................... 1,647
675 j2 Global Communications, Inc. + ............... 13,527
50 Knot, Inc. (The) + ............................. 416
200 Littelfuse, Inc. + ............................. 3,320
650 LoopNet, Inc. + ................................ 4,433
650 Manhattan Associates, Inc. + ................... 10,277
600 Mantech International Corp., Class A + ......... 32,514
50 Marchex, Inc., Class B ......................... 291
1,700 Methode Electronics, Inc. ...................... 11,458
600 Micrel, Inc. ................................... 4,386
1,900 Microsemi Corp. + .............................. 24,016
475 MicroStrategy, Inc., Class A + ................. 17,637
750 MIPS Technologies, Inc., Class A + ............. 832
100 ModusLink Global Solutions, Inc. + ............. 289
4,360 Monolithic Power Systems, Inc. + ............... 54,980
538 Multi-Fineline Electronix, Inc. + .............. 6,289
328 Netgear, Inc. + ................................ 3,742
2,192 Netlogic Microsystems, Inc. + .................. 48,246
50 Netscout Systems, Inc. + ....................... 431
100 Neutral Tandem, Inc. + ......................... 1,622
1,740 Nice Systems, Ltd. ADR + ....................... 39,098
288 Omniture, Inc. + ............................... 3,064
36 Omnivision Technologies, Inc. + ................ 189
Wilshire Mutual Funds
Small Company Growth Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 18.9% (CONTINUED)
50 Perficient, Inc. + ............................. $ 239
488 Perot Systems Corp., Class A + ................. 6,671
1,220 Phoenix Technologies, Ltd. + ................... 4,270
175 Plexus Corp. + ................................. 2,966
50 PLX Technology, Inc. + ......................... 86
20 PMC - Sierra, Inc. + ........................... 97
925 Presstek, Inc. + ............................... 2,969
385 Progress Software Corp. + ...................... 7,415
1,410 Quality Systems, Inc. .......................... 61,504
2,377 Rackspace Hosting, Inc. + ...................... 12,788
805 RightNow Technologies, Inc. + .................. 6,223
50 Riverbed Technology, Inc. + .................... 569
350 Rogers Corp. + ................................. 9,720
300 Scansource, Inc. + ............................. 5,781
42 Silicon Image, Inc. + .......................... 176
3,038 Skyworks Solutions, Inc. + ..................... 16,831
80 Sohu.com, Inc. + ............................... 3,787
430 Solera Holdings, Inc. + ........................ 10,363
425 Sonic Solutions, Inc. + ........................ 748
51 Sonus Networks, Inc. + ......................... 81
350 SPSS, Inc. + ................................... 9,436
225 Standard Microsystems Corp. + .................. 3,676
175 Starent Networks Corp. + ....................... 2,088
925 Sybase, Inc. + ................................. 22,912
50 Symyx Technologies + ........................... 297
946 Synaptics, Inc. + .............................. 15,666
200 Synchronoss Technologies, Inc. + ............... 2,132
225 Syntel, Inc. ................................... 5,202
200 Take-Two Interactive Software, Inc. ............ 1,512
16 Tekelec + ...................................... 213
400 TeleCommunication Systems, Inc., Class A + ..... 3,436
1,625 TeleTech Holdings, Inc. + ...................... 13,569
50 Terremark Worldwide, Inc. + .................... 195
650 Tessera Technologies, Inc. + ................... 7,722
100 Trident Microsystems, Inc. + ................... 189
50 TTM Technologies, Inc. + ....................... 260
650 Tyler Technologies, Inc. + ..................... 7,787
50 Ultratech, Inc. + .............................. 598
250 United Online, Inc. ............................ 1,518
710 VASCO Data Security International, Inc. + ...... 7,334
590 Veeco Instruments, Inc. + ...................... 3,741
50 Vignette Corp. + ............................... 471
605 VistaPrint, Ltd. + ............................. 11,259
2,795 Vocus, Inc. + .................................. 50,897
747 Volterra Semiconductor Corp. + ................. 5,341
506 Websense, Inc. + ............................... 7,575
4,340 Yucheng Technologies, Ltd. + ................... 31,639
96 Zoran Corp. + .................................. 656
-----------
1,023,883
-----------
MATERIALS -- 1.1%
50 American Vanguard Corp. ........................ 585
325 Arch Chemicals, Inc. ........................... 8,473
250 Compass Minerals International, Inc. ........... 14,665
203 Flotek Industries, Inc. + ...................... 512
710 Haynes International, Inc. + ................... 17,480
550 HB Fuller Co. .................................. 8,860
550 RTI International Metals, Inc. + ............... 7,871
-----------
58,446
-----------
TELECOMMUNICATION SERVICES -- 1.8%
425 Cbeyond, Inc. + ................................ 6,792
1,451 Cincinnati Bell, Inc. + ........................ 2,800
SHARES VALUE
------ -----
TELECOMMUNICATION SERVICES -- 1.8% (CONTINUED)
5,442 Syniverse Holdings, Inc. + ..................... $ 64,977
2,586 tw telecom, Inc., Class A + .................... 21,903
50 USA Mobility, Inc. ............................. 579
-----------
97,051
-----------
UTILITIES -- 0.5%
550 Allete, Inc. ................................... 17,749
363 Black Hills Corp. .............................. 9,786
18 ITC Holdings Corp. ............................. 786
25 Ormat Technologies, Inc. ....................... 797
-----------
29,118
-----------
Total Common Stock (Cost $6,450,865) ..................... 5,368,945
-----------
PREFERRED STOCK -- 0.0%
HEALTH CARE -- 0.0%
28 Inverness Medical Innovations, Inc. ............ 3,429
Total Preferred Stock (Cost $3,970) ...................... 3,429
-----------
MONEY MARKET FUND -- 1.1%
58,486 PNC Institutional Money Market Trust,
0.05% (A) ..................................... 58,486
Total Money Market Fund (Cost $58,486) ................... 58,486
-----------
Total Investments-- 100.1%
(Cost $6,513,321) ........................................ 5,430,860
Other Assets & Liabilities, Net-- (0.1)% ................. (7,286)
-----------
NET ASSETS-- 100.0% ...................................... $ 5,423,574
===========
ADR -- American Depositary Receipt
PLC -- Public Limited Company
+ Non-income producing security.
(A) Rate shown is the 7-day effective yield as of December 31, 2008.
Wilshire Mutual Funds
Small Company Value Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
COMMON STOCK -- 99.2%
CONSUMER DISCRETIONARY -- 7.3%
200 Aaron Rents, Inc. ......................... $ 5,324
1,400 Blockbuster, Inc., Class A + .............. 1,764
500 Blue Nile, Inc. + ......................... 12,245
2,350 Bob Evans Farms, Inc. ..................... 48,011
700 Borders Group, Inc. ....................... 280
1,600 Build-A-Bear Workshop, Inc., Class A + .... 7,776
2,700 Cache, Inc. + ............................. 5,454
1,100 Casual Male Retail Group, Inc. + .......... 572
5,700 Cato Corp. (The), Class A ................. 86,070
3,700 Charlotte Russe Holding, Inc. + ........... 24,013
5,000 Christopher & Banks Corp. ................. 28,000
200 Churchill Downs, Inc. ..................... 8,084
100 Cooper Tire & Rubber Co. .................. 616
200 DeVry, Inc. ............................... 11,482
1,600 Dress Barn, Inc. + ........................ 17,184
500 Finish Line (The), Class A ................ 2,800
700 Genesco, Inc. + ........................... 11,844
8,000 Golfsmith International Holdings, Inc. + .. 5,600
2,200 Gray Television, Inc. ..................... 880
400 Helen of Troy, Ltd. + ..................... 6,944
4,050 Hooker Furniture Corp. .................... 31,023
2,400 HOT Topic, Inc. + ......................... 22,248
400 Iconix Brand Group, Inc. + ................ 3,912
250 Interactive Data Corp. .................... 6,165
2,100 Jackson Hewitt Tax Service, Inc. .......... 32,949
200 Jakks Pacific, Inc. + ..................... 4,126
400 Maidenform Brands, Inc. + ................. 4,060
900 Marvel Entertainment, Inc. + .............. 27,675
1,200 Men's Wearhouse, Inc. (The) ............... 16,248
200 Morningstar, Inc. + ....................... 7,100
600 NetFlix, Inc. + ........................... 17,934
1,500 New York & Co., Inc. + .................... 3,480
500 NutriSystem, Inc. ......................... 7,295
4,700 Pacific Sunwear of California + ........... 7,473
405 Peet's Coffee & Tea, Inc. + ............... 9,416
700 PetMed Express, Inc. + .................... 12,341
1,200 Rent-A-Center, Inc., Class A + ............ 21,180
1,000 Sotheby's ................................. 8,890
1,700 Stage Stores, Inc. ........................ 14,025
1,541 Stamps.com, Inc. + ........................ 15,148
100 Strayer Education, Inc. ................... 21,441
1,600 Systemax, Inc. ............................ 17,232
2,300 Tuesday Morning Corp. ..................... 3,749
5,900 Tween Brands, Inc. + ...................... 25,488
100 Wolverine World Wide, Inc. ................ 2,104
------------
627,645
------------
CONSUMER STAPLES -- 3.2%
400 Casey's General Stores, Inc. .............. 9,108
100 Chattem, Inc. + ........................... 7,153
5,500 Elizabeth Arden, Inc. + ................... 69,355
1,500 Flowers Foods, Inc. ....................... 36,540
1,500 Prestige Brands Holdings, Inc. + .......... 15,825
900 Ralcorp Holdings, Inc. + .................. 52,560
3,227 Smithfield Foods, Inc. + .................. 45,404
100 USANA Health Sciences, Inc. + ............. 3,424
1,300 WD-40 Co. ................................. 36,777
------------
276,146
------------
ENERGY -- 4.9%
10,400 Acergy SA ADR ............................. 60,112
5,775 Approach Resources, Inc. + ................ 42,215
762 Basic Energy Services, Inc. + ............. 9,936
2,200 Bill Barrett Corp. + ...................... 46,486
SHARES VALUE
------ -----
ENERGY -- 4.9% (CONTINUED)
1,400 Brigham Exploration Co. + ................. $ 4,480
1,400 Bristow Group, Inc. + ..................... 37,506
400 Callon Petroleum Co. + .................... 1,040
300 Comstock Resources, Inc. + ................ 14,175
1,100 Delek US Holdings, Inc. ................... 5,819
4,700 Denbury Resources, Inc. + ................. 51,324
200 Encore Acquisition Co. + .................. 5,104
300 Energy XXI Bermuda, Ltd. .................. 237
600 Gulfport Energy Corp. + ................... 2,370
150 Hercules Offshore, Inc. + ................. 713
190 McMoRan Exploration Co. + ................. 1,862
7,816 Meridian Resource Corp. + ................. 4,455
100 Nordic American Tanker Shipping ........... 3,375
369 PetroHawk Energy Corp. + .................. 5,768
2,800 Petroquest Energy, Inc. + ................. 18,928
661 Precision Drilling Trust .................. 5,548
1,100 Rosetta Resources, Inc. + ................. 7,788
2,000 TXCO Resources, Inc. + .................... 2,980
6,039 Vaalco Energy, Inc. + ..................... 44,930
7,250 Warren Resources, Inc. + .................. 14,428
800 World Fuel Services Corp. ................. 29,600
------------
421,179
------------
FINANCIALS -- 39.6%
534 Advanta Corp., Class B .................... 1,116
600 Anchor Bancorp Wisconsin, Inc. ............ 1,656
3,981 Anworth Mortgage Asset Corp. .............. 25,598
3,400 Aspen Insurance Holdings, Ltd. ............ 82,450
2,700 Assurant, Inc. ............................ 81,000
2,900 Bank Mutual Corp. ......................... 33,466
200 Bank of the Ozarks, Inc. .................. 5,928
2,900 BioMed Realty Trust, Inc. ................. 33,988
800 Brookline Bancorp, Inc. ................... 8,520
500 Calamos Asset Management, Inc., Class A ... 3,700
200 Capitol Bancorp, Ltd. ..................... 1,560
2,400 CapLease, Inc. ............................ 4,152
1,900 Central Pacific Financial Corp. ........... 19,076
2,500 Chemical Financial Corp. .................. 69,700
2,486 Citizens Republic Bancorp, Inc. ........... 7,408
800 Citizens, Inc. + .......................... 7,760
500 City Bank ................................. 2,600
400 Cohen & Steers, Inc. ...................... 4,396
5,400 Colonial BancGroup, Inc. (The) ............ 11,178
3,200 Columbia Banking System, Inc. ............. 38,176
1,000 Community Bank System, Inc. ............... 24,390
2,100 Delphi Financial Group, Inc., Class A ..... 38,724
100 East West Bancorp, Inc. ................... 1,597
2,800 eHealth, Inc. + ........................... 37,184
225 Enterprise Financial Services Corp. ....... 3,429
1,000 Entertainment Properties Trust ............ 29,800
4,757 Equity One, Inc. .......................... 84,199
5,700 Extra Space Storage, Inc. ................. 58,824
1,900 FCStone Group, Inc. + ..................... 8,417
2,010 Financial Federal Corp. ................... 46,773
1,100 First Bancorp ............................. 12,254
180 First Citizens BancShares, Inc., Class A .. 27,504
4,500 First Commonwealth Financial Corp. ........ 55,710
760 First Community Bancshares, Inc. .......... 26,501
6,800 First Financial Bancorp ................... 84,252
637 First Financial Bankshares, Inc. .......... 35,169
2,000 First Mercury Financial Corp. + ........... 28,520
600 First Midwest Bancorp, Inc. ............... 11,982
5,400 First Niagara Financial Group, Inc. ....... 87,318
1,200 Flagstar Bancorp, Inc. .................... 852
800 Flushing Financial Corp. .................. 9,568
3,500 FNB Corp. ................................. 46,200
Wilshire Mutual Funds
Small Company Value Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
FINANCIALS -- 39.6% (CONTINUED)
5,300 Forestar Group, Inc. + .................... $ 50,456
4,200 Frontier Financial Corp. .................. 18,312
435 GAMCO Investors, Inc., Class A ............ 11,884
1,100 Glacier Bancorp, Inc. ..................... 20,922
1,190 Hancock Holding Co. ....................... 54,097
174 Harleysville Group, Inc. .................. 6,043
2,700 Hercules Technology Growth Capital, Inc. .. 21,384
1,214 Highwoods Properties, Inc. ................ 33,215
400 Hilltop Holdings, Inc. + .................. 3,896
800 Home Properties, Inc. ..................... 32,480
1,251 IBERIABANK Corp. .......................... 60,048
261 Independent Bank Corp. .................... 6,828
1,100 Infinity Property & Casualty .............. 51,403
10,900 Inland Real Estate Corp. .................. 141,482
818 Jones Lang LaSalle, Inc. .................. 22,659
6,700 Kite Realty Group Trust ................... 37,252
4,100 Knight Capital Group, Inc., Class A + ..... 66,215
1,900 LaBranche & Co., Inc. + ................... 9,101
3,500 LaSalle Hotel Properties .................. 38,675
2,865 LTC Properties, Inc. ...................... 58,102
400 Max Capital Group, Ltd. ................... 7,080
4,100 MCG Capital Corp. ......................... 2,911
8,400 Meadowbrook Insurance Group, Inc. ......... 54,096
200 Medical Properties Trust, Inc. ............ 1,262
200 National Retail Properties, Inc. .......... 3,438
700 Nationwide Health Properties, Inc. ........ 20,104
590 Navigators Group, Inc. + .................. 32,397
716 NBT Bancorp, Inc. ......................... 20,019
100 NGP Capital Resources Co. ................. 837
4,355 Old National Bancorp ...................... 79,087
800 Pacific Capital Bancorp NA ................ 13,504
2,370 Pennsylvania Real Estate Investment Trust . 17,656
200 Penson Worldwide, Inc. + .................. 1,524
754 Phoenix Cos., Inc. (The) .................. 2,466
1,200 Pico Holdings, Inc. + ..................... 31,896
100 Piper Jaffray + ........................... 3,976
7,500 PMA Capital Corp., Class A + .............. 53,100
300 ProAssurance Corp. + ...................... 15,834
800 Prospect Capital Corp. .................... 9,576
1,622 Prosperity Bancshares, Inc. ............... 47,995
1,200 Provident Bankshares Corp. ................ 11,592
1,300 Provident Financial Services, Inc. ........ 19,890
250 Ramco-Gershenson Properties Trust ......... 1,545
200 Realty Income Corp. ....................... 4,630
1,300 Reinsurance Group of America, Inc., Class A 55,666
600 RLI Corp. ................................. 36,696
1,000 S&T Bancorp, Inc. ......................... 35,500
2,423 Safety Insurance Group, Inc. .............. 92,219
400 SeaBright Insurance Holdings, Inc. + ...... 4,696
2,050 Selective Insurance Group ................. 47,007
100 Senior Housing Properties Trust ........... 1,792
1,200 South Financial Group, Inc. (The) ......... 5,184
900 Sovran Self Storage, Inc. ................. 32,400
1,900 StanCorp Financial Group, Inc. ............ 79,363
3,300 Sterling Bancshares, Inc. ................. 20,064
815 Sterling Financial Corp. .................. 7,172
1,100 Susquehanna Bancshares, Inc. .............. 17,501
750 SVB Financial Group + ..................... 19,673
2,500 SWS Group, Inc. ........................... 47,375
3,900 Tower Group, Inc. ......................... 110,019
7,500 Trustco Bank Corp. ........................ 71,325
4,900 UCBH Holdings, Inc. ....................... 33,712
600 UMB Financial Corp. ....................... 29,484
SHARES VALUE
------ -----
FINANCIALS -- 39.6% (CONTINUED)
2,277 Umpqua Holdings Corp. ..................... $ 32,948
700 Unifirst Corp. ............................ 20,783
100 United Bankshares, Inc. ................... 3,322
2,721 United Community Banks, Inc. .............. 36,948
200 United Fire & Casualty Co. ................ 6,214
34 W Holding Co., Inc. ....................... 350
600 Westamerica Bancorporation ................ 30,690
3,705 Wilshire Bancorp, Inc. .................... 33,641
450 Wintrust Financial Corp. .................. 9,257
650 WSFS Financial Corp. ...................... 31,194
2,250 Zenith National Insurance Corp. ........... 71,032
------------
3,426,691
------------
HEALTH CARE -- 9.0%
400 Abaxis, Inc. + ............................ 6,412
2,100 Affymetrix, Inc. + ........................ 6,279
2,000 Albany Molecular Research, Inc. + ......... 19,480
500 American Medical Systems Holdings, Inc. + . 4,495
2,466 Amsurg Corp., Class A + ................... 57,556
100 Analogic Corp. ............................ 2,728
2,900 Angiodynamics, Inc. + ..................... 39,701
200 Arthrocare Corp. + ........................ 954
489 Bio-Rad Laboratories, Inc., Class A + ..... 36,827
100 Cantel Medical Corp. + .................... 1,467
1,057 Chemed Corp. .............................. 42,037
881 Conmed Corp. + ............................ 21,091
200 Cynosure, Inc., Class A + ................. 1,826
3,100 Cypress Bioscience, Inc. + ................ 21,204
700 Enzo Biochem, Inc. + ...................... 3,423
900 Hanger Orthopedic Group, Inc. + ........... 13,059
700 ICU Medical, Inc. + ....................... 23,198
100 Immucor, Inc. + ........................... 2,658
1,000 LHC Group, Inc. + ......................... 36,000
1,300 Magellan Health Services, Inc. + .......... 50,908
800 Martek Biosciences Corp. .................. 24,248
1,100 Medcath Corp. + ........................... 11,484
300 Medical Action Industries, Inc. + ......... 3,000
700 Medicis Pharmaceutical Corp., Class A ..... 9,730
400 Meridian Bioscience, Inc. ................. 10,188
1,500 Merit Medical Systems, Inc. + ............. 26,895
100 Myriad Genetics, Inc. + ................... 6,626
1,500 Nighthawk Radiology Holdings, Inc. + ...... 7,290
2,000 Obagi Medical Products, Inc. + ............ 14,920
700 Odyssey HealthCare, Inc. + ................ 6,475
1,900 OraSure Technologies, Inc. + .............. 6,992
3,900 Palomar Medical Technologies, Inc. + ...... 44,967
100 Parexel International Corp. + ............. 971
800 RehabCare Group, Inc. + ................... 12,128
600 Res-Care, Inc. + .......................... 9,012
3,100 Salix Pharmaceuticals, Ltd. + ............. 27,373
5,000 Sepracor, Inc. + .......................... 54,900
1,900 Skilled Healthcare Group, Inc., Class A + . 16,036
1,200 Somanetics Corp. + ........................ 19,812
100 Symmetry Medical, Inc. + .................. 797
4,400 Viropharma, Inc. + ........................ 57,288
1,000 Zoll Medical Corp. + ...................... 18,890
------------
781,325
------------
INDUSTRIALS -- 15.6%
1,550 Acuity Brands, Inc. ....................... 54,111
6,400 Advanced Battery Technologies, Inc. + ..... 17,024
1,400 Aircastle, Ltd. ........................... 6,692
3,300 Albany International Corp., Class A ....... 42,372
829 AO Smith Corp. ............................ 24,472
1,100 Arkansas Best Corp. ....................... 33,121
Wilshire Mutual Funds
Small Company Value Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INDUSTRIALS -- 15.6% (CONTINUED)
3,800 Belden, Inc. .............................. $ 79,344
644 Blount International, Inc. + .............. 6,105
300 Brady Corp., Class A ...................... 7,185
2,114 Briggs & Stratton Corp. ................... 37,185
516 Cascade Corp. ............................. 15,408
6,069 CBIZ, Inc. + .............................. 52,497
1,400 CDI Corp. ................................. 18,116
500 Ceradyne, Inc. + .......................... 10,155
1,000 China Fire & Security Group, Inc. + ....... 6,810
500 Columbus McKinnon Corp. + ................. 6,825
2,798 Corrections Corp. of America + ............ 45,775
200 Cubic Corp. ............................... 5,440
1,900 Dycom Industries, Inc. + .................. 15,618
1,100 Ennis, Inc. ............................... 13,321
500 EnPro Industries, Inc. + .................. 10,770
200 Forward Air Corp. ......................... 4,854
640 FTI Consulting, Inc. + .................... 28,595
180 G&K Services, Inc., Class A ............... 3,640
350 Gardner Denver, Inc. + .................... 8,169
2,400 General Cable Corp. + ..................... 42,456
3,950 Gibraltar Industries, Inc. ................ 47,163
8,800 Griffon Corp. + ........................... 82,104
800 Heartland Express, Inc. ................... 12,608
200 Heidrick & Struggles International, Inc. .. 4,308
1,400 Kadant, Inc. + ............................ 18,872
372 Kaman Corp. ............................... 6,744
1,850 Kennametal, Inc. .......................... 41,052
600 Korn/Ferry International + ................ 6,852
350 Ladish Co., Inc. + ........................ 4,847
1,000 Lincoln Electric Holdings, Inc. ........... 50,930
1,100 Lydall, Inc. + ............................ 6,325
4,350 Marten Transport, Ltd. + .................. 82,476
4,300 Mine Safety Appliances Co. ................ 102,813
1,000 Mueller Water Products, Inc., Class A ..... 8,400
600 Old Dominion Freight Line, Inc. + ......... 17,076
750 Otter Tail Corp. .......................... 17,498
1,000 RBC Bearings, Inc. + ...................... 20,280
900 Regal-Beloit Corp. ........................ 34,191
100 Robbins & Myers, Inc. ..................... 1,617
1,150 Rollins, Inc. ............................. 20,792
4,100 Sauer-Danfoss, Inc. ....................... 35,875
1,700 Standard Register Co. (The) ............... 15,181
1,600 Tredegar Corp. ............................ 29,088
400 Viad Corp. ................................ 9,896
250 Wabtec Corp. .............................. 9,937
400 Waste Connections, Inc. + ................. 12,628
600 Watson Wyatt Worldwide, Inc., Class A ..... 28,692
1,700 Werner Enterprises, Inc. .................. 29,478
------------
1,353,783
------------
INFORMATION TECHNOLOGY -- 8.8%
100 Acme Packet, Inc. + ....................... 526
4,569 Actel Corp. + ............................. 53,549
2,300 Acxiom Corp. .............................. 18,653
1,500 Advanced Energy Industries, Inc. + ........ 14,925
550 Anixter International, Inc. + ............. 16,566
333 Arris Group, Inc. + ....................... 2,647
2,800 Avocent Corp. + ........................... 50,148
100 BigBand Networks, Inc. + .................. 552
13,300 Brocade Communications Systems, Inc. + .... 37,240
642 Checkpoint Systems, Inc. + ................ 6,317
3,900 Cirrus Logic, Inc. + ...................... 10,452
1,000 Cogent, Inc. + ............................ 13,570
400 Cognex Corp. .............................. 5,920
3,800 Cogo Group, Inc. + ........................ 18,468
3,630 CTS Corp. ................................. 20,001
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 8.8% (CONTINUED)
1,200 Digi International, Inc. + ................ $ 9,732
799 Electronics for Imaging, Inc. + ........... 7,639
200 EMS Technologies, Inc. + .................. 5,174
1,500 ExlService Holdings, Inc. + ............... 12,855
600 Flir Systems, Inc. + ...................... 18,408
260 Imation Corp. ............................. 3,528
600 Integral Systems, Inc. + .................. 7,230
300 IXYS Corp. ................................ 2,478
10,100 Keithley Instruments, Inc. ................ 36,865
3,200 LoopNet, Inc. + ........................... 21,824
1,254 Marchex, Inc., Class B .................... 7,311
5,900 Mattson Technology, Inc. + ................ 8,319
5,400 Methode Electronics, Inc. ................. 36,396
1,900 Micrel, Inc. .............................. 13,889
1,200 MIPS Technologies, Inc., Class A + ........ 1,332
200 MTS Systems Corp. ......................... 5,328
844 Multi-Fineline Electronix, Inc. + ......... 9,867
1,300 Neutral Tandem, Inc. + .................... 21,086
1,000 Omnivision Technologies, Inc. + ........... 5,250
700 Perficient, Inc. + ........................ 3,346
1,910 Phoenix Technologies, Ltd. + .............. 6,685
2,000 Rogers Corp. + ............................ 55,540
424 Rudolph Technologies, Inc. + .............. 1,497
9,300 Sanmina-SCI Corp. + ....................... 4,371
1,600 Scansource, Inc. + ........................ 30,832
473 Silicon Storage Technology, Inc. + ........ 1,083
3,436 Standard Microsystems Corp. + ............. 56,144
1,400 Sybase, Inc. + ............................ 34,678
424 Symyx Technologies + ...................... 2,518
700 Synchronoss Technologies, Inc. + .......... 7,462
6,800 TIBCO Software, Inc. + .................... 35,292
1,840 United Online, Inc. ....................... 11,169
300 VASCO Data Security International, Inc. + . 3,099
8 Zoran Corp. + ............................. 54
------------
757,815
------------
MATERIALS -- 5.1%
1,150 Aptargroup, Inc. .......................... 40,526
918 Arch Chemicals, Inc. ...................... 23,932
100 Brush Engineered Materials, Inc. + ........ 1,272
4,900 Buckeye Technologies, Inc. + .............. 17,836
2,600 Century Aluminum Co. + .................... 26,000
650 CF Industries Holdings, Inc. .............. 31,954
1,900 Coeur d'Alene Mines Corp. + ............... 1,672
13,800 Domtar Corp. + ............................ 23,046
1,900 Ferro Corp. ............................... 13,395
1,690 HB Fuller Co. ............................. 27,226
200 Innospec, Inc. ............................ 1,178
1,600 Myers Industries, Inc. .................... 12,800
1,400 Packaging Corp of America ................. 18,844
600 RTI International Metals, Inc. + .......... 8,586
6,950 Temple-Inland, Inc. ....................... 33,360
6,900 Wausau Paper Corp. ........................ 78,936
9,900 Yamana Gold, Inc. ......................... 76,428
------------
436,991
------------
TELECOMMUNICATION SERVICES -- 1.0%
8,770 Cincinnati Bell, Inc. + ................... 16,926
1,500 Fairpoint Communications, Inc. ............ 4,920
3,397 FiberTower Corp. + ........................ 543
900 General Communication, Inc., Class A + .... 7,281
2,300 Iowa Telecommunications Services, Inc. .... 32,844
550 tw telecom, Inc., Class A + ............... 4,659
1,900 USA Mobility, Inc. ........................ 21,983
------------
89,156
------------
Wilshire Mutual Funds
Small Company Value Portfolio December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
UTILITIES -- 4.7%
1,250 Allete, Inc. .............................. $ 40,338
3,117 Black Hills Corp. ......................... 84,034
1,400 El Paso Electric Co. + .................... 25,326
800 Nicor, Inc. ............................... 27,792
1,374 Northwest Natural Gas Co. ................. 60,772
3,050 NorthWestern Corp. ........................ 71,583
800 Piedmont Natural Gas Co. .................. 25,336
1,070 PNM Resources, Inc. ....................... 10,786
400 Portland General Electric Co. ............. 7,788
1,950 Unisource Energy Corp. .................... 57,252
------------
411,007
------------
Total Common Stock (Cost $10,436,075) 8,581,738
------------
MONEY MARKET FUND -- 0.6%
52,866 PNC Institutional Money Market Trust,
0.05% (A) ............................... 52,866
Total Money Market Fund (Cost $52,866) 52,866
------------
Total Investments-- 99.8%
(Cost $10,488,941) 8,634,604
Other Assets & Liabilities, Net-- 0.2% 17,193
------------
NET ASSETS-- 100.0% $ 8,651,797
============
(A) -- Rate shown is the 7-day effective yield as of December 31, 2008.
ADR -- American Depositary Receipt
+ -- Non-income producing security.
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
COMMON STOCK -- 102.1%
CONSUMER DISCRETIONARY -- 8.9%
300 1-800-FLOWERS.COM, Inc., Class A + ........... $ 1,146
200 4Kids Entertainment, Inc. + .................. 392
3,600 99 Cents Only Stores + ....................... 39,348
250 Aaron Rents, Inc. ............................ 6,655
900 Abercrombie & Fitch Co., Class A ............. 20,763
300 Acme United Corp. ............................ 2,130
200 Advance Auto Parts, Inc. ..................... 6,730
825 Aeropostale, Inc. + .......................... 13,282
100 AFC Enterprises, Inc. + ...................... 469
90 AH Belo Corp., Class A ....................... 196
200 Aldila, Inc. ................................. 474
5,050 Amazon.com, Inc. + ........................... 258,964
400 Ambassadors Group, Inc. ...................... 3,680
500 Ambassadors International, Inc. + ............ 365
1,000 American Apparel, Inc. + ..................... 1,990
800 American Axle & Manufacturing Holdings, Inc. . 2,312
5,125 American Eagle Outfitters, Inc. .............. 47,970
450 American Greetings Corp., Class A ............ 3,407
700 America's Car-Mart, Inc. + ................... 9,667
450 Ameristar Casinos, Inc. ...................... 3,888
964 AnnTaylor Stores Corp. + ..................... 5,562
1,550 Apollo Group, Inc., Class A + ................ 118,761
550 ArvinMeritor, Inc. ........................... 1,567
200 Ascent Media Corp., Class A + ................ 4,368
100 ATC Technology Corp. + ....................... 1,463
2,250 AutoNation, Inc. + ........................... 22,230
1,300 Bally Technologies, Inc. + ................... 31,239
1,000 Beazer Homes USA, Inc. + ..................... 1,580
2,400 Bebe Stores, Inc. ............................ 17,928
4,125 Bed Bath & Beyond, Inc. + .................... 104,858
950 Belo Corp., Class A .......................... 1,482
5,800 Best Buy Co., Inc. ........................... 163,038
200 Big 5 Sporting Goods Corp. ................... 1,042
3,200 Big Lots, Inc. + ............................. 46,368
600 Black & Decker Corp. ......................... 25,086
600 Blockbuster, Inc., Class A + ................. 756
50 Blue Nile, Inc. + ............................ 1,224
300 Bluegreen Corp. + ............................ 939
50 Blyth, Inc. .................................. 392
400 Bon-Ton Stores, Inc. (The) ................... 412
100 Books-A-Million, Inc., Class A ............... 255
400 Borders Group, Inc. .......................... 160
1,280 BorgWarner, Inc. ............................. 27,866
500 Boyd Gaming Corp. ............................ 2,365
3,375 Brinker International, Inc. .................. 35,572
450 Brink's Home Security Holdings, Inc. + ....... 9,864
1,000 Brookfield Homes Corp. ....................... 4,320
500 Brunswick Corp. .............................. 2,105
2,800 Burger King Holdings, Inc. ................... 66,864
1,000 Cabela's, Inc. + ............................. 5,830
3,525 Cablevision Systems Corp., Class A ........... 59,361
200 Cache, Inc. + ................................ 404
400 California Coastal Communities, Inc. + ....... 200
375 California Pizza Kitchen, Inc. + ............. 4,020
500 Callaway Golf Co. ............................ 4,645
2,850 Career Education Corp. + ..................... 51,129
400 Caribou Coffee Co., Inc. + ................... 544
2,955 Carmax, Inc. + ............................... 23,285
7,600 Carnival Corp. ............................... 184,832
550 Carter's, Inc. + ............................. 10,593
10,237 CBS Corp., Class B ........................... 83,841
4,400 Centex Corp. ................................. 46,816
300 Champion Enterprises, Inc. + ................. 168
362 Charles & Colvard, Ltd. + .................... 72
SHARES VALUE
------ -----
CONSUMER DISCRETIONARY -- 8.9% (CONTINUED)
50 Charming Shoppes, Inc. + ..................... $ 122
650 Chico's FAS, Inc. + .......................... 2,717
800 Cinemark Holdings, Inc. ...................... 5,944
3,975 Circuit City Stores, Inc. .................... 517
299 Citadel Broadcasting Corp. + ................. 48
50 Citi Trends, Inc. + .......................... 736
200 CKE Restaurants, Inc. ........................ 1,736
700 CKX, Inc. + .................................. 2,569
1,000 Clear Channel Outdoor Holdings, Inc.,
Class A + .................................. 6,150
5,600 Coach, Inc. + ................................ 116,312
600 Coachmen Industries, Inc. + .................. 1,104
100 Cobra Electronics Corp. ...................... 105
650 Coldwater Creek, Inc. + ...................... 1,852
550 Collective Brands, Inc. + .................... 6,446
110 Collectors Universe .......................... 322
43,683 Comcast Corp. Special, Class A ............... 737,369
200 Comstock Homebuilding, Inc., Class A + ....... 38
500 Conn's, Inc. + ............................... 4,240
2,500 Cooper Tire & Rubber Co. ..................... 15,400
850 Corinthian Colleges, Inc. + .................. 13,914
100 Cox Radio, Inc., Class A ..................... 601
200 CROCS, Inc. + ................................ 248
200 Crown Media Holdings, Inc., Class A + ........ 570
50 CSS Industries, Inc. ......................... 887
300 Cumulus Media, Inc., Class A + ............... 747
1,000 Dana Holding Corp. + ......................... 740
1,500 Darden Restaurants, Inc. ..................... 42,270
50 Deckers Outdoor Corp. + ...................... 3,994
200 DEI Holdings, Inc. + ......................... 80
100 Design Within Reach, Inc. + .................. 68
1,675 DeVry, Inc. .................................. 96,162
1,800 Dick's Sporting Goods, Inc. + ................ 25,398
100 Dillard's, Inc., Class A ..................... 397
9,977 DIRECTV Group, Inc. (The) + .................. 228,573
3,500 Discovery Communications, Inc., Class A + .... 49,560
5,525 DISH Network Corp., Class A + ................ 61,272
100 Dixie Group, Inc. + .......................... 153
1,250 Dollar Tree, Inc. + .......................... 52,250
850 Domino's Pizza, Inc. + ....................... 4,004
650 Dover Downs Gaming & Entertainment, Inc. ..... 2,067
4,823 DR Horton, Inc. .............................. 34,099
1,500 DreamWorks Animation SKG, Inc., Class A + .... 37,890
6,225 Eastman Kodak Co. ............................ 40,960
219 Emmis Communications Corp., Class A + ........ 77
300 Empire Resorts, Inc. + ....................... 327
250 Entercom Communications Corp., Class A ....... 308
100 Entravision Communications Corp., Class A + .. 156
366 EW Scripps Co., Class A ...................... 809
600 Exide Technologies + ......................... 3,174
3,315 Expedia, Inc. + .............................. 27,316
2,900 Family Dollar Stores, Inc. ................... 75,603
200 Famous Dave's of America, Inc. + ............. 580
100 Finish Line (The), Class A ................... 560
400 Fleetwood Enterprises, Inc. + ................ 40
2,900 Foot Locker, Inc. ............................ 21,286
30,885 Ford Motor Co. + ............................. 70,726
3,000 Fortune Brands, Inc. ......................... 123,840
300 Forward Industries, Inc. + ................... 669
200 Fred's, Inc., Class A ........................ 2,152
200 Furniture Brands International, Inc. ......... 442
600 Gaiam, Inc., Class A + ....................... 2,772
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
CONSUMER DISCRETIONARY -- 8.9% (CONTINUED)
1,725 GameStop Corp., Class A + .................... $ 37,364
600 Gaming Partners International Corp. + ........ 3,078
1,900 Gannett Co., Inc. ............................ 15,200
7,150 Gap, Inc. (The) .............................. 95,739
2,625 Garmin, Ltd. ................................. 50,321
300 Gaylord Entertainment Co. + .................. 3,252
6,620 General Motors Corp. ......................... 21,184
2,810 Gentex Corp. ................................. 24,812
3,200 Genuine Parts Co. ............................ 121,152
5,375 Goodyear Tire & Rubber Co. (The) + ........... 32,089
1,000 Gray Television, Inc. ........................ 400
300 Great Wolf Resorts, Inc. + ................... 462
3,900 Guess?, Inc. ................................. 59,865
6,160 H&R Block, Inc. .............................. 139,955
100 Handleman Co. + .............................. 16
196 Hanesbrands, Inc. + .......................... 2,499
3,975 Harley-Davidson, Inc. ........................ 67,456
1,600 Harman International Industries, Inc. ........ 26,768
1,000 Harte-Hanks, Inc. ............................ 6,240
1,900 Hasbro, Inc. ................................. 55,423
2,000 Hearst-Argyle Television, Inc., Class A ...... 12,120
200 Hibbett Sports, Inc. + ....................... 3,142
300 Hillenbrand, Inc. ............................ 5,004
26,950 Home Depot, Inc. (The) ....................... 620,389
200 Hooker Furniture Corp. ....................... 1,532
100 HOT Topic, Inc. + ............................ 927
1,000 Hovnanian Enterprises, Inc., Class A + ....... 1,720
43 HSN, Inc. + .................................. 313
450 Iconix Brand Group, Inc. + ................... 4,401
1,399 Idearc, Inc. ................................. 119
100 Infosonics Corp. + ........................... 25
4,450 International Game Technology ................ 52,910
237 International Speedway Corp., Class A ........ 6,809
7,792 Interpublic Group of Cos., Inc. + ............ 30,856
43 Interval Leisure Group, Inc. + ............... 232
3,692 J.C. Penney Co., Inc. ........................ 72,733
775 Jackson Hewitt Tax Service, Inc. ............. 12,160
3,624 Jarden Corp. + ............................... 41,676
300 John Wiley & Sons, Inc., Class A ............. 10,674
9,550 Johnson Controls, Inc. ....................... 173,428
378 Jones Apparel Group, Inc. .................... 2,215
3,000 JOS A Bank Clothiers, Inc. + ................. 78,450
600 Journal Communications, Inc., Class A ........ 1,470
900 Journal Register Co. ......................... 3
700 KB Home ...................................... 9,534
2,200 Kenneth Cole Productions, Inc., Class A ...... 15,576
50 Knology, Inc. + .............................. 258
4,500 Kohl's Corp. + ............................... 162,900
300 Krispy Kreme Doughnuts, Inc. + ............... 504
550 K-Swiss, Inc., Class A ....................... 6,270
200 Lakes Entertainment, Inc. + .................. 794
500 Lamar Advertising Co., Class A + ............. 6,280
3,800 Las Vegas Sands Corp. + ...................... 22,534
200 La-Z-Boy, Inc., Class Z ...................... 434
100 Leapfrog Enterprises, Inc., Class A + ........ 350
450 Lear Corp. + ................................. 634
500 Learning Tree International, Inc. + .......... 4,260
750 Lee Enterprises, Inc. ........................ 308
3,910 Leggett & Platt, Inc. ........................ 59,393
4,700 Lennar Corp., Class A ........................ 40,749
500 Lenox Group, Inc. + .......................... 4
1,000 Libbey, Inc. ................................. 1,250
5,751 Liberty Global, Inc., Class A + .............. 91,556
2,035 Liberty Media Corp. - Capital, Ser A + ....... 9,585
8,590 Liberty Media Corp. - Entertainment, Ser A + . 150,153
SHARES VALUE
------ -----
CONSUMER DISCRETIONARY -- 8.9% (CONTINUED)
7,075 Liberty Media Corp. - Interactive,
Class A + .................................. $ 22,074
2,000 Life Time Fitness, Inc. + .................... 25,900
700 Lifetime Brands, Inc. ........................ 2,478
200 LIN TV Corp., Class A + ...................... 218
200 Lincoln Educational Services Corp. + ......... 2,650
898 Live Nation, Inc. + .......................... 5,155
800 Liz Claiborne, Inc. .......................... 2,080
2,800 LKQ Corp. + .................................. 32,648
900 Lodgian, Inc. + .............................. 1,917
23,981 Lowe's Cos., Inc. ............................ 516,071
5,340 Ltd. Brands, Inc. ............................ 53,614
2,000 Lumber Liquidators, Inc. + ................... 21,120
2,600 M/I Homes, Inc. .............................. 27,404
6,998 Macy's, Inc. ................................. 72,429
100 Marcus Corp. ................................. 1,623
700 Marine Products Corp. ........................ 3,934
4,925 Marriott International, Inc., Class A ........ 95,791
400 Martha Stewart Living Omnimedia, Class A + ... 1,040
400 Marvel Entertainment, Inc. + ................. 12,300
6,230 Mattel, Inc. ................................. 99,680
100 Matthews International Corp., Class A ........ 3,668
496 McClatchy Co., Class A ....................... 397
19,400 McDonald's Corp. ............................. 1,206,486
5,100 McGraw-Hill Cos., Inc. (The) ................. 118,269
371 MDC Holdings, Inc. ........................... 11,241
500 Media General, Inc., Class A ................. 875
467 Mediacom Communications Corp., Class A + ..... 2,008
1,029 Men's Wearhouse, Inc. (The) .................. 13,933
900 MGM Mirage + ................................. 12,384
677 Mohawk Industries, Inc. + .................... 29,091
100 Monarch Casino & Resort, Inc. + .............. 1,165
150 Morgans Hotel Group Co. + .................... 699
300 Morton's Restaurant Group, Inc. + ............ 858
700 MTR Gaming Group, Inc. + ..................... 1,176
591 Multimedia Games, Inc. + ..................... 1,407
50 Nautilus, Inc. + ............................. 111
100 Navarre Corp. + .............................. 40
900 New York & Co., Inc. + ....................... 2,088
4,600 New York Times Co., Class A .................. 33,718
7,426 Newell Rubbermaid, Inc. ...................... 72,626
36,538 News Corp., Class A .......................... 332,130
200 NexCen Brands, Inc. + ........................ 22
200 Nexstar Broadcasting Group, Inc., Class A + .. 102
3,950 Nike, Inc., Class B .......................... 201,450
400 Nitches, Inc. + .............................. 80
700 Noble International, Ltd. .................... 308
4,800 Nordstrom, Inc. .............................. 63,888
3,000 NutriSystem, Inc. ............................ 43,770
2,525 Office Depot, Inc. + ......................... 7,525
100 OfficeMax, Inc. .............................. 764
6,000 Omnicom Group, Inc. .......................... 161,520
400 Orbitz Worldwide, Inc. + ..................... 1,552
2,560 O'Reilly Automotive, Inc. + .................. 78,694
650 Orleans Homebuilders, Inc. ................... 767
500 Outdoor Channel Holdings, Inc. + ............. 3,745
300 Overstock.com, Inc. + ........................ 3,234
50 Oxford Industries, Inc. ...................... 438
200 Pacific Sunwear of California + .............. 318
600 Palm Harbor Homes, Inc. + .................... 2,988
400 PC Mall, Inc. + .............................. 1,604
2,500 Penn National Gaming, Inc. + ................. 53,450
2,500 Penske Auto Group, Inc. ...................... 19,200
2,300 Perry Ellis International, Inc. + ............ 14,582
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
CONSUMER DISCRETIONARY -- 8.9% (CONTINUED)
1,750 PetSmart, Inc. ............................... $ 32,287
100 Pier 1 Imports, Inc. + ....................... 37
500 Pinnacle Entertainment, Inc. + ............... 3,840
565 Playboy Enterprises, Inc., Class B + ......... 1,220
1,000 Polaris Industries, Inc. ..................... 28,650
1,400 Polo Ralph Lauren Corp., Class A ............. 63,574
275 Premier Exhibitions, Inc. + .................. 302
3,000 Pre-Paid Legal Services, Inc. + .............. 111,870
1,000 Primedia, Inc. ............................... 2,170
100 Princeton Review, Inc. + ..................... 493
94 Proliance International, Inc. + .............. 34
3,775 Pulte Homes, Inc. ............................ 41,261
50 Quiksilver, Inc. + ........................... 92
850 RadioShack Corp. ............................. 10,149
100 RCN Corp. + .................................. 590
200 Regis Corp. .................................. 2,906
250 Rent-A-Center, Inc., Class A + ............... 4,412
100 Retail Ventures, Inc. + ...................... 347
41 RH Donnelley Corp. + ......................... 15
2,500 Rick's Cabaret International, Inc. + ......... 9,975
500 Riviera Holdings Corp. + ..................... 1,500
100 Rocky Brands, Inc. + ......................... 395
1,950 Ross Stores, Inc. ............................ 57,973
1,625 Royal Caribbean Cruises, Ltd. ................ 22,344
500 Ruby Tuesday, Inc. + ......................... 780
200 Russ Berrie & Co., Inc. + .................... 594
1,300 Ryland Group, Inc. ........................... 22,971
3,600 Saks, Inc. + ................................. 15,768
100 Salem Communications Corp., Class A + ........ 75
2,450 Sally Beauty Holdings, Inc. + ................ 13,941
600 Scientific Games Corp., Class A + ............ 10,524
1,100 Scripps Networks Interactive, Inc., Class A .. 24,200
200 Sealy Corp. .................................. 502
4,025 Sears Holdings Corp. + ....................... 156,452
188 Select Comfort Corp. + ....................... 47
4,775 Service Corp. International .................. 23,732
2,300 Sherwin-Williams Co. (The) ................... 137,425
400 Shoe Carnival, Inc. + ........................ 3,820
100 Shuffle Master, Inc. + ....................... 496
1,876 Signet Jewelers, Ltd. ........................ 16,265
900 Sinclair Broadcast Group, Inc., Class A ...... 2,790
37,175 Sirius XM Radio, Inc. + ...................... 4,461
600 Six Flags, Inc. + ............................ 186
2,000 Skechers U.S.A., Inc., Class A + ............. 25,640
1,425 Snap-On, Inc. ................................ 56,117
1,000 Sonic Automotive, Inc., Class A .............. 3,980
3,400 Sonic Corp. + ................................ 41,378
603 Sotheby's .................................... 5,361
200 Source Interlink, Inc. + ..................... 27
200 Spanish Broadcasting System, Inc., Class A + . 19
75 Spartan Motors, Inc. ......................... 355
400 Speedway Motorsports, Inc. ................... 6,444
100 Stage Stores, Inc. ........................... 825
200 Stanley Furniture Co., Inc. .................. 1,584
700 Stanley Works (The) .......................... 23,870
11,375 Staples, Inc. ................................ 203,840
10,700 Starbucks Corp. + ............................ 101,222
2,373 Starwood Hotels & Resorts Worldwide, Inc. .... 42,477
50 Steak N Shake Co. (The) + .................... 297
100 Steinway Musical Instruments + ............... 1,751
900 Stewart Enterprises, Inc., Class A ........... 2,709
150 Superior Industries International, Inc. ...... 1,578
1,300 Syms Corp. + ................................. 11,544
300 Talbots, Inc. ................................ 717
SHARES VALUE
------ -----
CONSUMER DISCRETIONARY -- 8.9% (CONTINUED)
12,800 Target Corp. ................................. $ 441,984
729 Tarragon Corp. + ............................. 58
450 Tenneco, Inc. + .............................. 1,328
1,000 Texas Roadhouse, Inc., Class A + ............. 7,750
700 thinkorswim Group, Inc. + .................... 3,934
43 Ticketmaster Entertainment, Inc. + ........... 276
2,500 Tiffany & Co. ................................ 59,075
400 Timberland Co., Class A + .................... 4,620
2,225 Time Warner Cable, Inc., Class A + ........... 47,726
61,074 Time Warner, Inc. ............................ 614,404
7,500 TJX Cos., Inc. ............................... 154,275
1,600 Toll Brothers, Inc. + ........................ 34,288
637 TOUSA, Inc. .................................. 12
200 Trans World Entertainment + .................. 262
100 TravelCenters of America LLC + ............... 240
1,000 TRW Automotive Holdings Corp. + .............. 3,600
200 Tuesday Morning Corp. ........................ 326
750 Tupperware Brands Corp. ...................... 17,025
500 Ulta Salon Cosmetics & Fragrance, Inc. + ..... 4,140
200 Universal Electronics, Inc. + ................ 3,244
1,000 Urban Outfitters, Inc. + ..................... 14,980
200 Value Line, Inc. ............................. 6,904
300 Valuevision Media, Inc., Class A + ........... 99
950 VF Corp. ..................................... 52,032
9,237 Viacom, Inc., Class B + ...................... 176,057
4,625 Virgin Media Inc. ............................ 23,079
50 Visteon Corp. + .............................. 17
591 WABCO Holdings, Inc. ......................... 9,332
600 Walking Co. Holdings, Inc. (The) + ........... 1,200
28,220 Walt Disney Co. (The) ........................ 640,312
100 Warnaco Group, Inc. (The) + .................. 1,963
150 Warner Music Group Corp. ..................... 453
650 WCI Communities, Inc. + ...................... 25
296 Weight Watchers International, Inc. .......... 8,708
2,400 Wendy's/Arby's Group, Inc., Class A .......... 11,856
900 Westwood One, Inc. + ......................... 50
1,872 Whirlpool Corp. .............................. 77,407
3,100 Williams-Sonoma, Inc. ........................ 24,366
500 Winnebago Industries ......................... 3,015
1,300 WMS Industries, Inc. + ....................... 34,970
400 Wolverine World Wide, Inc. ................... 8,416
100 World Wrestling Entertainment, Inc., Class A . 1,108
100 WorldSpace, Inc., Class A + .................. 1
795 WPT Enterprises, Inc. + ...................... 342
5,485 Wyndham Worldwide Corp. ...................... 35,927
700 Wynn Resorts, Ltd. + ......................... 29,582
100 Young Broadcasting, Inc., Class A + .......... 3
8,950 Yum! Brands, Inc. ............................ 281,925
------------
13,721,004
------------
CONSUMER STAPLES -- 11.5%
200 Alico, Inc. .................................. 8,198
33,075 Altria Group, Inc. ........................... 498,109
50 Andersons, Inc. (The) ........................ 824
10,186 Archer-Daniels-Midland Co. ................... 293,662
6,750 Avon Products, Inc. .......................... 162,203
300 Bare Escentuals, Inc. + ...................... 1,569
700 BJ's Wholesale Club, Inc. + .................. 23,982
1,000 Brown-Forman Corp., Class B .................. 51,490
2,300 Bunge, Ltd. .................................. 119,071
3,000 Cal-Maine Foods, Inc. ........................ 86,100
4,475 Campbell Soup Co. ............................ 134,295
1,500 Casey's General Stores, Inc. ................. 34,155
1,050 Church & Dwight Co., Inc. .................... 58,926
2,200 Clorox Co. ................................... 122,232
36,020 Coca-Cola Co. (The) .......................... 1,630,625
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
CONSUMER STAPLES -- 11.5% (CONTINUED)
4,920 Coca-Cola Enterprises, Inc. .................. $ 59,188
9,380 Colgate-Palmolive Co. ........................ 642,905
6,673 ConAgra Foods, Inc. .......................... 110,104
2,550 Constellation Brands, Inc., Class A + ........ 40,213
800 Corn Products International, Inc. ............ 23,080
7,550 Costco Wholesale Corp. ....................... 396,375
23,142 CVS/Caremark Corp. ........................... 665,101
650 Darling International, Inc. + ................ 3,569
1,734 Dean Foods Co. + ............................. 31,160
6,205 Del Monte Foods Co. .......................... 44,304
3,900 Dr. Pepper Snapple Group, Inc. + ............. 63,375
1,300 Energizer Holdings, Inc. + ................... 70,382
1,100 Estee Lauder Cos., Inc. (The), Class A ....... 34,056
4,325 Flowers Foods, Inc. .......................... 105,357
5,000 General Mills, Inc. .......................... 303,750
300 Great Atlantic & Pacific Tea Co. + ........... 1,881
3,200 Hershey Co. (The) ............................ 111,168
6,150 HJ Heinz Co. ................................. 231,240
850 Hormel Foods Corp. ........................... 26,418
50 Ingles Markets, Inc., Class A ................ 879
1,000 Inter Parfums, Inc. .......................... 7,680
50 J&J Snack Foods Corp. ........................ 1,794
1,400 JM Smucker Co. (The) ......................... 60,704
4,550 Kellogg Co. .................................. 199,517
5,574 Kimberly-Clark Corp. ......................... 293,973
20,571 Kraft Foods, Inc., Class A ................... 552,331
11,025 Kroger Co. (The) ............................. 291,170
3,925 Lorillard, Inc. .............................. 221,174
700 Mannatech, Inc. .............................. 1,715
1,650 McCormick & Co., Inc. ........................ 52,569
200 MGP Ingredients, Inc. ........................ 134
2,200 Molson Coors Brewing Co., Class B ............ 107,624
600 National Beverage Corp. + .................... 5,400
100 Natural Health Trends Corp. + ................ 30
650 NBTY, Inc. + ................................. 10,172
1,970 Pepsi Bottling Group, Inc. ................... 44,345
24,040 PepsiCo, Inc. ................................ 1,316,671
33,125 Philip Morris International, Inc. ............ 1,441,269
2,200 Prestige Brands Holdings, Inc. + ............. 23,210
50,352 Procter & Gamble Co. ......................... 3,112,761
1,600 Ralcorp Holdings, Inc. + ..................... 93,440
100 Reliv International, Inc. .................... 450
3,314 Reynolds American, Inc. ...................... 133,587
6,950 Rite Aid Corp. + ............................. 2,155
70 Rocky Mountain Chocolate Factory, Inc. ....... 372
8,500 Safeway, Inc. ................................ 202,045
50 Sanderson Farms, Inc. ........................ 1,728
9,520 Sara Lee Corp. ............................... 93,201
700 SIRVA, Inc. + ................................ --
900 Smithfield Foods, Inc. + ..................... 12,663
2,100 Spartan Stores, Inc. ......................... 48,825
200 Spectrum Brands, Inc. + ...................... 18
3,236 SUPERVALU, Inc. .............................. 47,246
9,800 SYSCO Corp. .................................. 224,812
3,405 Tyson Foods, Inc., Class A ................... 29,828
2,500 UST, Inc. .................................... 173,450
15,450 Walgreen Co. ................................. 381,151
41,595 Wal-Mart Stores, Inc. ........................ 2,331,816
4,025 Whole Foods Market, Inc. ..................... 37,996
------------
17,748,972
------------
ENERGY -- 12.7%
750 Allis-Chalmers Energy, Inc. + ................ 4,125
2,400 Alon USA Energy, Inc. ........................ 21,960
550 Alpha Natural Resources, Inc. + .............. 8,905
100 American Oil & Gas, Inc. + ................... 80
9,256 Anadarko Petroleum Corp. ..................... 356,819
SHARES VALUE
------ -----
ENERGY -- 12.7% (CONTINUED)
6,406 Apache Corp. ................................. $ 477,439
2,000 Approach Resources, Inc. + ................... 14,620
2,000 Arch Coal, Inc. .............................. 32,580
2,000 Atlas Energy Resources LLC ................... 25,540
1,000 ATP Oil & Gas Corp. + ........................ 5,850
1,500 Atwood Oceanics, Inc. + ...................... 22,920
8,150 Baker Hughes, Inc. ........................... 261,371
600 Barnwell Industries, Inc. .................... 2,670
2,300 Berry Petroleum Co., Class A ................. 17,388
900 BioFuel Energy Corp. + ....................... 315
5,072 BJ Services Co. .............................. 59,190
900 Bolt Technology Corp. + ...................... 6,264
2,600 BPZ Resources, Inc. + ........................ 16,640
1,000 Brigham Exploration Co. + .................... 3,200
2,375 Bronco Drilling Co., Inc. + .................. 15,342
2,400 Cabot Oil & Gas Corp. ........................ 62,400
2,218 Cal Dive International, Inc. + ............... 14,439
100 Callon Petroleum Co. + ....................... 260
3,500 Calumet Specialty Products Partners, LP ...... 30,660
3,100 Cameron International Corp. + ................ 63,550
50 CARBO Ceramics, Inc. ......................... 1,776
3,050 Carrizo Oil & Gas, Inc. + .................... 49,105
200 Cheniere Energy, Inc. + ...................... 570
8,000 Chesapeake Energy Corp. ...................... 129,360
31,999 Chevron Corp. ................................ 2,366,966
747 Cimarex Energy Co. ........................... 20,005
100 Clean Energy Fuels Corp. + ................... 604
600 Complete Production Services, Inc. + ......... 4,890
1,500 Concho Resources, Inc. + ..................... 34,230
23,301 ConocoPhillips ............................... 1,206,992
3,000 Consol Energy, Inc. .......................... 85,740
2,000 Continental Resources, Inc. + ................ 41,420
200 Cross Timbers Royalty Trust .................. 5,570
1,300 Crosstex Energy, Inc. ........................ 5,070
1,000 CVR Energy, Inc. + ........................... 4,000
1,000 Delek US Holdings, Inc. ...................... 5,290
400 Delta Petroleum Corp. + ...................... 1,904
6,050 Denbury Resources, Inc. + .................... 66,066
6,936 Devon Energy Corp. ........................... 455,765
500 DHT Maritime, Inc. ........................... 2,770
1,550 Diamond Offshore Drilling, Inc. .............. 91,357
2,000 Dresser-Rand Group, Inc. + ................... 34,500
11,964 El Paso Corp. ................................ 93,678
350 Encore Acquisition Co. + ..................... 8,932
250 Energy Partners, Ltd. + ...................... 337
1,750 Energy Transfer Equity, LP ................... 28,367
3,100 Energy Transfer Partners, LP ................. 105,431
5,300 ENSCO International, Inc. .................... 150,467
5,275 EOG Resources, Inc. .......................... 351,210
400 Evergreen Energy, Inc. + ..................... 116
3,200 EXCO Resources, Inc. + ....................... 28,992
1,608 Exterran Holdings, Inc. + .................... 34,250
83,900 Exxon Mobil Corp. ............................ 6,697,737
5,078 FMC Technologies, Inc. + ..................... 121,009
950 Forest Oil Corp. + ........................... 15,665
100 Frontier Oil Corp. ........................... 1,263
600 Geokinetics, Inc. + .......................... 1,482
100 GeoMet, Inc. + ............................... 172
500 Georesources, Inc. + ......................... 4,345
250 Global Industries, Ltd. + .................... 873
650 Gulfport Energy Corp. + ...................... 2,568
16,450 Halliburton Co. .............................. 299,061
400 Harvest Natural Resources, Inc. + ............ 1,720
3,250 Helix Energy Solutions Group, Inc. + ......... 23,530
2,000 Helmerich & Payne, Inc. ...................... 45,500
2,100 Hercules Offshore, Inc. + .................... 9,975
5,950 Hess Corp. ................................... 319,158
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
ENERGY -- 12.7% (CONTINUED)
250 IHS, Inc., Class A + ......................... $ 9,355
625 International Coal Group, Inc. + ............. 1,437
250 ION Geophysical Corp. + ...................... 858
750 James River Coal Co. + ....................... 11,498
2,200 Key Energy Services, Inc. + .................. 9,702
2,600 Kinder Morgan Energy Partners, LP ............ 118,950
667 Kinder Morgan Management LLC + ............... 26,667
1,300 Linn Energy, LLC ............................. 19,461
550 Magellan Midstream Holdings, LP .............. 7,628
12,922 Marathon Oil Corp. ........................... 353,546
200 Martin Midstream Partners, LP ................ 2,940
2,700 Massey Energy Co. ............................ 37,233
450 Matrix Service Co. + ......................... 3,452
500 McMoRan Exploration Co. + .................... 4,900
3,000 Murphy Oil Corp. ............................. 133,050
3,700 Nabors Industries, Ltd. + .................... 44,289
400 National Coal Corp. + ........................ 508
7,145 National Oilwell Varco, Inc. + ............... 174,624
2,500 Natural Gas Services Group, Inc. + ........... 25,325
3,625 Newfield Exploration Co. + ................... 71,594
575 Newpark Resources + .......................... 2,128
100 NGAS Resources, Inc. + ....................... 164
4,020 Noble Corp. .................................. 88,802
2,700 Noble Energy, Inc. ........................... 132,894
1,500 NuStar GP Holdings LLC ....................... 26,520
12,610 Occidental Petroleum Corp. ................... 756,474
400 Oceaneering International, Inc. + ............ 11,656
1,300 Oil States International, Inc. + ............. 24,297
100 Omni Energy Services Corp. + ................. 119
100 Pacific Ethanol, Inc. + ...................... 44
150 Parallel Petroleum Corp. + ................... 302
200 Parker Drilling Co. + ........................ 580
730 Patriot Coal Corp. + ......................... 4,562
950 Patterson-UTI Energy, Inc. ................... 10,934
5,350 Peabody Energy Corp. ......................... 121,712
3,647 PetroHawk Energy Corp. + ..................... 57,003
500 Petroquest Energy, Inc. + .................... 3,380
2,450 Pioneer Drilling Co. + ....................... 13,646
1,325 Pioneer Natural Resources Co. ................ 21,438
2,453 Plains Exploration & Production Co. + ........ 57,008
910 Precision Drilling Trust ..................... 7,631
1,950 Pride International, Inc. + .................. 31,161
200 Pyramid Oil Co. + ............................ 850
4,600 Quicksilver Resources, Inc. + ................ 25,622
2,100 Range Resources Corp. ........................ 72,219
500 Rosetta Resources, Inc. + .................... 3,540
1,500 Rowan, Inc. .................................. 23,850
2,250 RPC, Inc. .................................... 21,960
3,600 Sandridge Energy + ........................... 22,140
19,300 Schlumberger, Ltd. ........................... 816,969
2,000 Ship Finance International, Ltd. ............. 22,100
5,200 Smith International, Inc. .................... 119,028
6,600 Southwestern Energy Co. + .................... 191,202
10,541 Spectra Energy Corp. ......................... 165,915
1,550 St. Mary Land & Exploration Co. .............. 31,480
90 Stone Energy Corp. + ......................... 992
2,565 Sunoco, Inc. ................................. 111,475
950 Superior Energy Services, Inc. + ............. 15,133
150 Superior Well Services, Inc. + ............... 1,500
500 T-3 Energy Services, Inc. + .................. 4,720
1,300 Teekay Corp. ................................. 25,545
2,800 Tesoro Corp. ................................. 36,876
1,150 Tetra Technologies, Inc. + ................... 5,589
193 TGC Industries, Inc. + ....................... 400
1,350 Tidewater, Inc. .............................. 54,364
500 Toreador Resources Corp. + ................... 2,745
500 Trico Marine Services, Inc. + ................ 2,235
SHARES VALUE
------ -----
ENERGY -- 12.7% (CONTINUED)
750 TXCO Resources, Inc. + ....................... $ 1,118
1,865 Ultra Petroleum Corp. + ...................... 64,361
200 Union Drilling, Inc. + ....................... 1,038
1,300 Unit Corp. + ................................. 34,736
850 Uranium Resources, Inc. + .................... 654
450 USEC, Inc. + ................................. 2,020
100 Vaalco Energy, Inc. + ........................ 744
9,714 Valero Energy Corp. .......................... 210,211
50 Venoco, Inc. + ............................... 136
462 VeraSun Energy Corp. + ....................... 25
100 Verenium Corp. + ............................. 88
300 Walter Industries, Inc. ...................... 5,253
300 Warren Resources, Inc. + ..................... 597
11,550 Weatherford International, Ltd. + ............ 124,971
1,000 Western Refining, Inc. ....................... 7,760
500 Westmoreland Coal Co. + ...................... 5,550
1,300 Whiting Petroleum Corp. + .................... 43,498
8,150 Williams, Inc. ............................... 118,012
10,010 XTO Energy, Inc. ............................. 353,053
------------
19,666,061
------------
FINANCIALS -- 15.8%
200 21st Century Holding Co. ..................... 926
900 Abington Bancorp, Inc. ....................... 8,325
600 ACA Capital Holdings, Inc. + ................. 11
3,050 Acadia Realty Trust .......................... 43,524
600 Advance America Cash Advance Centers, Inc. ... 1,134
300 Advanta Corp., Class B ....................... 627
200 Affirmative Insurance Holdings, Inc. ......... 290
6,750 Aflac, Inc. .................................. 309,420
9,175 Allstate Corp. (The) ......................... 300,573
2,225 AMB Property Corp. ........................... 52,110
519 AMBAC Financial Group, Inc. .................. 675
411 Amcore Financial, Inc. ....................... 1,488
7 American Campus Communities, Inc.++ .......... 143
100 American Equity Investment Life Holding Co. .. 700
16,150 American Express Co. ......................... 299,582
100 American Financial Group, Inc. ............... 2,288
33,700 American International Group, Inc. ........... 52,909
300 American Physicians Capital, Inc. ............ 14,430
550 AmeriCredit Corp. + .......................... 4,202
3,080 Ameriprise Financial, Inc. ................... 71,949
3,000 Amerisafe, Inc. + ............................ 61,590
310 Anchor Bancorp Wisconsin, Inc. ............... 856
9,525 Annaly Capital Management, Inc. .............. 151,162
200 Anworth Mortgage Asset Corp. ................. 1,286
3,850 AON Corp. .................................... 175,868
223 Apartment Investment & Management Co., Class A 2,576
200 Arbor Realty Trust, Inc. ..................... 590
300 Arch Capital Group, Ltd. + ................... 21,030
1,100 Arthur J. Gallagher & Co. .................... 28,501
544 Ashford Hospitality Trust, Inc. .............. 626
1,700 Aspen Insurance Holdings, Ltd. ............... 41,225
400 Asset Acceptance Capital Corp. + ............. 2,044
3,354 Associated Banc-Corp ......................... 70,199
300 Associated Estates Realty Corp. .............. 2,739
900 Assurant, Inc. ............................... 27,000
2,750 Astoria Financial Corp. ...................... 45,320
725 AvalonBay Communities, Inc. .................. 43,920
3,000 Avatar Holdings, Inc. + ...................... 79,560
2,000 Axis Capital Holdings, Ltd. .................. 58,240
50 Bancorp, Inc. + .............................. 188
1,850 Bancorpsouth, Inc. ........................... 43,216
3,150 Bank Mutual Corp. ............................ 36,351
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
FINANCIALS -- 15.8% (CONTINUED)
83,443 Bank of America Corp. ........................ $ 1,174,877
550 Bank of Hawaii Corp. ......................... 24,843
17,663 Bank of New York Mellon Corp. (The) .......... 500,393
80 BankAtlantic Bancorp, Inc., Class A .......... 464
700 BankFinancial Corp. .......................... 7,133
300 Banner Corp. ................................. 2,823
10,025 BB&T Corp. ................................... 275,286
500 Beneficial Mutual Bancorp, Inc. + ............ 5,625
624 Berkshire Hathaway, Inc., Class B + .......... 2,005,536
1,000 BGC Partners, Inc., Class A .................. 2,760
3,500 BioMed Realty Trust, Inc. .................... 41,020
1,000 Boston Private Financial Holdings, Inc. ...... 6,840
1,425 Boston Properties, Inc. ...................... 78,375
288 Brandywine Realty Trust ...................... 2,220
1,325 BRE Properties, Inc. ......................... 37,073
1,675 Brookfield Properties Corp. .................. 12,948
3,749 Brookline Bancorp, Inc. ...................... 39,927
1,400 Brown & Brown, Inc. .......................... 29,260
100 Camden National Corp. ........................ 2,698
1,425 Camden Property Trust ........................ 44,660
350 Capital City Bank Group, Inc. ................ 9,534
200 Capital Corp of the West ..................... 188
7,250 Capital One Financial Corp. .................. 231,203
2,639 CapitalSource, Inc. .......................... 12,192
700 CapLease, Inc. ............................... 1,211
200 Capstead Mortgage Corp. ...................... 2,154
100 Cardinal Financial Corp. ..................... 569
1,000 Cascade Bancorp .............................. 6,750
400 Castlepoint Holdings, Ltd. ................... 5,424
288 Cathay General Bancorp ....................... 6,840
3,125 CB Richard Ellis Group, Inc., Class A + ...... 13,500
50 CBL & Associates Properties, Inc.++ .......... 325
650 Cedar Shopping Centers, Inc. ................. 4,602
700 Centerline Holding Co., LP ................... 104
14,814 Charles Schwab Corp. (The) ................... 239,542
400 Charter Financial Corp. ...................... 3,600
7,000 Chubb Corp. .................................. 357,000
3,094 Cincinnati Financial Corp. ................... 89,943
871 CIT Group, Inc. .............................. 3,954
88,450 Citigroup, Inc. .............................. 593,500
657 Citizens Republic Bancorp, Inc. .............. 1,958
1,775 CME Group, Inc., Class A ..................... 369,395
3,000 CNA Financial Corp. .......................... 49,320
3,000 CNA Surety Corp. + ........................... 57,600
750 CoBiz Financial, Inc. ........................ 7,305
1,000 Cogdell Spencer, Inc. ........................ 9,360
350 Cohen & Steers, Inc. ......................... 3,846
950 Colonial BancGroup, Inc. (The) ............... 1,966
429 Colonial Properties Trust .................... 3,574
276 Columbia Banking System, Inc. ................ 3,293
1,973 Comerica, Inc. ............................... 39,164
563 Community Bancorp + .......................... 1,954
200 CompuCredit Corp. + .......................... 1,106
1,400 Conseco, Inc. + .............................. 7,252
450 Corporate Office Properties Trust ............ 13,815
800 Corus Bankshares, Inc. ....................... 888
500 Crawford & Co., Class B + .................... 7,270
1,300 Credit Acceptance Corp. + .................... 17,368
450 Cullen/Frost Bankers, Inc. ................... 22,806
3,355 CVB Financial Corp. .......................... 39,925
2,750 DCT Industrial Trust, Inc. ................... 13,915
23 Deerfield Capital Corp. ...................... 82
322 Delphi Financial Group, Inc., Class A ........ 5,938
1,451 Developers Diversified Realty Corp. .......... 7,081
400 DiamondRock Hospitality Co. .................. 2,028
500 Digital Realty Trust, Inc. ................... 16,425
1,000 Dime Community Bancshares .................... 13,300
SHARES VALUE
------ -----
FINANCIALS -- 15.8% (CONTINUED)
6,925 Discover Financial Services .................. $ 65,995
1,100 Donegal Group, Inc., Class A ................. 18,447
100 Douglas Emmett, Inc. ....................... 1,306
4,101 Duke Realty Corp. .......................... 44,947
2,087 E*Trade Financial Corp. + .................... 2,400
500 East West Bancorp, Inc. ...................... 7,985
2,525 Eaton Vance Corp. ............................ 53,050
1,000 Education Realty Trust, Inc. ............... 5,220
200 Encore Capital Group, Inc. + ................. 1,440
50 Enterprise Financial Services Corp. .......... 762
3,979 Equity Residential ......................... 118,654
400 Everest Re Group, Ltd. ....................... 30,456
1,500 Extra Space Storage, Inc. .................... 15,480
10,725 Fannie Mae ................................... 8,151
500 FBL Financial Group, Inc., Class A ........... 7,725
300 Federal Realty Investment Trust++ ............ 18,624
900 Federated Investors, Inc., Class B ........... 15,264
1,000 FelCor Lodging Trust, Inc. ................... 1,840
2,100 FFD Financial Corp. .......................... 22,071
4,791 Fidelity National Financial, Inc., Class A ... 85,040
9,001 Fifth Third Bancorp .......................... 74,348
1,200 Financial Institutions, Inc. ................. 17,220
100 First Acceptance Corp. + ..................... 290
992 First American Corp. ......................... 28,659
3,650 First Bancorp ................................ 40,661
300 First Bancorp ................................ 5,505
650 First Cash Financial Services, Inc. + ........ 12,389
3,300 First Commonwealth Financial Corp. ........... 40,854
425 First Community Bancshares, Inc. ............. 14,820
100 First Financial Corp. ........................ 4,099
4,566 First Horizon National Corp. ................. 48,267
650 First Industrial Realty Trust, Inc. .......... 4,907
50 First Marblehead Corp. (The) + ............... 65
3,000 First Merchants Corp. ........................ 66,630
1,608 First Niagara Financial Group, Inc. .......... 26,001
200 First State Bancorporation ................... 330
200 Flagstar Bancorp, Inc. ....................... 142
2,150 Flagstone Reinsurance Holdings, Ltd. ......... 21,006
3,800 FNB Corp. .................................... 50,160
2,600 Forest City Enterprises, Inc., Class A ....... 17,420
1,000 Forestar Group, Inc. + ....................... 9,520
1,000 Fortress Investment Group LLC, Class A ....... 1,000
350 Franklin Bank Corp. + ........................ 1
3,650 Franklin Resources, Inc. ..................... 232,797
550 Franklin Street Properties Corp.++ ........... 8,113
6,725 Freddie Mac .................................. 4,909
150 Fremont General Corp. + ...................... 7
85 Friedman Billings Ramsey Group, Inc.,
Class A ................................... 14
634 Fulton Financial Corp. ....................... 6,099
440 FX Real Estate and Entertainment, Inc. + ..... 66
1,450 General Growth Properties, Inc.++ ............ 1,870
2,000 Genpact, Ltd. + .............................. 16,440
5,950 Genworth Financial, Inc., Class A ............ 16,838
1,000 GFI Group, Inc. .............................. 3,540
2,000 GLG Partners, Inc. ........................... 4,540
800 Glimcher Realty Trust ........................ 2,248
7,520 Goldman Sachs Group, Inc. (The) .............. 634,613
435 Gramercy Capital Corp.++ ..................... 557
338 Green Bankshares, Inc. ....................... 4,577
1,750 Greenhill & Co., Inc. ........................ 122,098
300 Grubb & Ellis Co. ............................ 372
1,000 Guaranty Bancorp + ........................... 2,000
708 Guaranty Financial Group, Inc. + ............. 1,848
100 Hallmark Financial Services + ................ 877
550 Hanmi Financial Corp. ........................ 1,133
1,400 Hanover Insurance Group, Inc. (The) .......... 60,158
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments (UNAUDITED)
SHARES VALUE
------ -----
FINANCIALS -- 15.8% (CONTINUED)
3,000 Harleysville Group, Inc. ..................... $ 104,190
1,320 Harleysville National Corp. .................. 19,061
6,850 Hartford Financial Services Group, Inc. ...... 112,477
875 HCC Insurance Holdings, Inc. ................. 23,406
3,625 HCP, Inc.++ .................................. 100,666
2,500 Health Care REIT, Inc. ....................... 105,500
50 Heritage Commerce Corp. ...................... 562
700 Hersha Hospitality Trust ..................... 2,100
350 Highwoods Properties, Inc. ................... 9,576
2,200 Hilltop Holdings, Inc. + ..................... 21,428
3,000 Home Bancshares, Inc. ........................ 80,850
500 Horace Mann Educators Corp. .................. 4,595
1,000 Hospitality Properties Trust ................. 14,870
7,800 Host Hotels & Resorts, Inc. .................. 59,046
2,175 HRPT Properties Trust++ ...................... 7,330
6,126 Hudson City Bancorp, Inc. .................... 97,771
6,351 Huntington Bancshares, Inc. .................. 48,649
850 IMPAC Mortgage Holdings, Inc. ................ 51
1,200 Imperial Capital Bancorp, Inc. ............... 2,700
3,000 Independent Bank Corp. ....................... 78,480
150 Independent Bank Corp. ....................... 324
2,225 IndyMac Bancorp, Inc. ........................ 323
300 Inland Real Estate Corp. ..................... 3,894
1,475 IntercontinentalExchange, Inc. + ............. 121,599
500 International Assets Holding Corp. + ......... 4,290
550 Intervest Bancshares Corp., Class A .......... 2,194
4,200 Invesco, Ltd. ................................ 60,648
300 Investment Technology Group, Inc. + .......... 6,816
300 Investors Real Estate Trust .................. 3,213
100 Irwin Financial Corp. ........................ 129
1,564 iStar Financial, Inc. ........................ 3,488
5,475 Janus Capital Group, Inc. .................... 43,964
1,500 Jefferies Group, Inc. ........................ 21,090
150 JER Investors Trust, Inc. .................... 140
60,059 JPMorgan Chase & Co. ......................... 1,893,660
600 Kearny Financial Corp. ....................... 7,680
8,473 Keycorp ...................................... 72,190
3,025 Kimco Realty Corp. ........................... 55,297
800 Kite Realty Group Trust++ .................... 4,448
1,800 KKR Financial Holdings LLC ................... 2,844
200 LaBranche & Co., Inc. + ...................... 958
2,000 LaSalle Hotel Properties ..................... 22,100
4,300 Lazard, Ltd., Class A ........................ 127,882
1,200 Legg Mason, Inc. ............................. 26,292
3,505 Leucadia National Corp. ...................... 69,399
450 Lexington Realty Trust ....................... 2,250
950 Liberty Property Trust ....................... 21,689
3,000 Life Partners Holdings, Inc. ................. 130,920
4,000 Lincoln National Corp. ....................... 75,360
8,900 Loews Corp. .................................. 251,425
3,000 LTC Properties, Inc. ......................... 60,840
1,125 M&T Bank Corp. ............................... 64,586
25 Macerich Co. (The) ........................... 454
1,000 Maguire Properties, Inc. ..................... 1,460
700 Market Leader, Inc. + ........................ 1,190
9,470 Marsh & McLennan, Inc. ....................... 229,837
3,732 Marshall & Ilsley Corp. ...................... 50,904
244 MB Financial, Inc. ........................... 6,820
1,900 MBIA, Inc. ................................... 7,733
2,000 Meadowbrook Insurance Group, Inc. ............ 12,880
600 Medallion Financial Corp. .................... 4,578
500 Medical Properties Trust, Inc. ............... 3,155
21,996 Merrill Lynch & Co., Inc. .................... 256,033
9,121 MetLife, Inc. ................................ 317,958
100 MF Global, Ltd. + ............................ 204
6,200 MFA Mortgage Investments, Inc. ............... 36,518
600 MGIC Investment Corp. ........................ 2,088
SHARES VALUE
------ -----
FINANCIALS -- 15.8% (CONTINUED)
100 Mid-America Apartment Communities, Inc. ...... $ 3,716
250 Midwest Banc Holdings, Inc. .................. 350
2,700 Montpelier Re Holdings, Ltd. ................. 45,333
2,275 Moody's Corp. ................................ 45,705
16,725 Morgan Stanley ............................... 268,269
3,000 MSCI, Inc., Class A + ........................ 53,280
600 Nara Bancorp, Inc. ........................... 5,898
2,450 Nasdaq OMX Group (The) + ..................... 60,540
8,938 National City Corp. .......................... 16,178
400 National Interstate Corp. .................... 7,148
2,595 National Retail Properties, Inc. ............. 44,608
570 Nationwide Financial Services, Class A ....... 29,760
3,050 Nationwide Health Properties, Inc.++ ......... 87,596
3,312 New York Community Bancorp, Inc. ............. 39,612
2,100 NewAlliance Bancshares, Inc. ................. 27,657
350 Newcastle Investment Corp. ................... 294
50 North Valley Bancorp ......................... 187
3,850 Northern Trust Corp. ......................... 200,739
150 NorthStar Realty Finance Corp. ............... 586
500 Northwest Bancorp, Inc. ...................... 10,690
4,450 NYSE Euronext ................................ 121,841
300 Ocwen Financial Corp. + ...................... 2,754
6,012 Old Republic International Corp. ............. 71,663
400 Old Second Bancorp, Inc. ..................... 4,640
800 Omega Healthcare Investors, Inc. ............. 12,776
2,000 OneBeacon Insurance Group, Ltd., Class A ..... 20,880
432 Oriental Financial Group, Inc. ............... 2,614
3,000 Oritani Financial Corp. + .................... 50,550
283 Pacific Capital Bancorp NA ................... 4,777
400 PartnerRe, Ltd. .............................. 28,508
1,000 Penn Treaty American Corp. + ................. 75
3,347 People's United Financial, Inc. .............. 59,677
2,623 PHH Corp. + .................................. 33,391
3,150 Phoenix Cos., Inc. (The) ..................... 10,300
2,684 Plum Creek Timber Co., Inc. .................. 93,242
25 PMI Group, Inc. .............................. 49
2,975 Popular, Inc. ................................ 15,351
1,000 Preferred Bank ............................... 6,000
400 Presidential Life Corp. ...................... 3,956
100 Primus Guaranty, Ltd. + ...................... 114
4,100 Principal Financial Group, Inc. .............. 92,537
265 ProAssurance Corp. + ......................... 13,987
10,225 Progressive Corp. (The) ...................... 151,432
3,844 Prologis++ ................................... 53,393
1,550 Protective Life Corp. ........................ 22,243
800 Provident Bankshares Corp. ................... 7,728
2,050 Provident New York Bancorp ................... 25,420
6,250 Prudential Financial, Inc. ................... 189,125
1,539 Public Storage++ ............................. 122,350
500 Pzena Investment Management, Inc., Class A ... 2,110
70 Radian Group, Inc. ........................... 258
200 RAIT Financial Trust ......................... 520
1,000 Ramco-Gershenson Properties Trust++ .......... 6,180
2,400 Raymond James Financial, Inc. ................ 41,112
801 Rayonier, Inc. ............................... 25,111
3,100 Realty Income Corp. .......................... 71,765
1,500 Redwood Trust, Inc. .......................... 22,365
1,625 Regency Centers Corp. ........................ 75,887
9,206 Regions Financial Corp. ...................... 73,280
1,500 Reinsurance Group of America, Inc., Class A .. 64,230
1,800 RenaissanceRe Holdings, Ltd. ................. 92,808
50 Renasant Corp. ............................... 852
250 Resource America, Inc., Class A .............. 1,000
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
FINANCIALS -- 15.8% (CONTINUED)
200 Resource Capital Corp. ....................... $ 766
3,000 Riskmetrics Group, Inc. + .................... 44,670
1,200 Roma Financial Corp. ......................... 15,108
1,500 S.Y. Bancorp, Inc. ........................... 41,250
3,000 Sandy Spring Bancorp, Inc. ................... 65,490
600 Santander BanCorp ............................ 7,494
3,000 Saul Centers, Inc. ........................... 118,500
700 SeaBright Insurance Holdings, Inc. + ......... 8,218
750 Seacoast Banking Corp of Florida ............. 4,950
1,450 Senior Housing Properties Trust .............. 25,984
3,716 Simon Property Group, Inc.++ ................. 197,431
397 SL Green Realty Corp. ........................ 10,282
6,900 SLM Corp. + .................................. 61,410
150 South Financial Group, Inc. (The) ............ 648
1,000 Southern Missouri Bancorp, Inc. .............. 11,090
50 Southwest Bancorp, Inc. ...................... 648
6,327 Sovereign Bancorp, Inc. ...................... 18,854
2,200 St. Joe Co. (The) + .......................... 53,504
490 StanCorp Financial Group, Inc. ............... 20,467
3,000 State Auto Financial Corp. ................... 90,180
8,015 State Street Corp. ........................... 315,230
50 Sterling Bancorp, Class N .................... 701
2,100 Sterling Bancshares, Inc. .................... 12,768
394 Sterling Financial Corp. ..................... 3,467
300 Stewart Information Services Corp. ........... 7,047
100 Strategic Hotels & Resorts, Inc. ............. 168
50 Suffolk Bancorp .............................. 1,796
783 Sun Bancorp, Inc. + .......................... 5,865
1,000 Sunstone Hotel Investors, Inc.++ ............. 6,190
6,580 SunTrust Banks, Inc. ......................... 194,373
150 Superior Bancorp + ........................... 475
4,190 Susquehanna Bancshares, Inc. ................. 66,663
350 SVB Financial Group + ........................ 9,180
2,831 Synovus Financial Corp. ...................... 23,497
4,325 T Rowe Price Group, Inc. ..................... 153,278
500 Taubman Centers, Inc. ........................ 12,730
500 Taylor Capital Group, Inc. ................... 2,925
2,400 TCF Financial Corp. .......................... 32,784
3,825 TD Ameritrade Holding Corp. + ................ 54,506
50 Tejon Ranch Co. + ............................ 1,237
400 Texas Capital Bancshares, Inc. + ............. 5,344
3,550 TFS Financial Corp. .......................... 45,795
200 Thomas Weisel Partners Group, Inc. + ......... 944
225 Thornburg Mortgage, Inc. ..................... 35
700 Tompkins Financial Corp. ..................... 40,565
1,000 Torchmark Corp. .............................. 44,700
100 TowneBank .................................... 2,479
100 TradeStation Group, Inc. + ................... 645
9,759 Travelers Cos., Inc. (The) ................... 441,107
90 Tree.com, Inc. + ............................. 234
950 Triad Guaranty, Inc. + ....................... 361
3,000 Trico Bancshares ............................. 74,910
1,208 Trustco Bank Corp. ........................... 11,488
27,709 U.S. Bancorp ................................. 693,002
3,425 UCBH Holdings, Inc. .......................... 23,564
2,450 UDR, Inc. .................................... 33,786
160 UMB Financial Corp. .......................... 7,862
650 United America Indemnity, Ltd., Class A + .... 8,326
1,300 United Bankshares, Inc. ...................... 43,186
2,323 United Community Banks, Inc. ................. 31,543
317 United Community Financial Corp. ............. 285
400 United PanAm Financial Corp. + ............... 640
303 United Security Bancshares ................... 3,509
350 Unitrin, Inc. ................................ 5,579
3,000 Universal Health Realty Income Trust ......... 98,730
6,507 Unum Group ................................... 121,030
SHARES VALUE
------ -----
FINANCIALS -- 15.8% (CONTINUED)
937 U-Store-It Trust ............................. $ 4,170
1,507 Valley National Bancorp ...................... 30,517
3,075 Ventas, Inc. ................................. 103,228
25 Vineyard National Bancorp .................... 4
565 Virginia Commerce Bancorp + .................. 2,921
3,375 Vornado Realty Trust ......................... 203,681
15 W Holding Co., Inc. .......................... 155
2,187 W.R. Berkley Corp. ........................... 67,797
34,252 Wachovia Corp. ............................... 189,756
300 Waddell & Reed Financial, Inc., Class A ...... 4,638
1,033 Washington Federal, Inc. ..................... 15,454
250 Washington Real Estate Investment Trust ...... 7,075
400 Washington Trust Bancorp, Inc. ............... 7,900
550 Waterstone Financial, Inc. + ................. 1,842
1,900 Weingarten Realty Investors++ ................ 39,311
57,004 Wells Fargo & Co. ............................ 1,680,478
550 Western Alliance Bancorp + ................... 5,549
200 Westfield Financial, Inc. .................... 2,064
1,675 Whitney Holding Corp. ........................ 26,783
700 Wilmington Trust Corp. ....................... 15,568
700 Wilshire Bancorp, Inc. ....................... 6,356
3,000 Wintrust Financial Corp. ..................... 61,710
10 WP Stewart & Co., Ltd. + ..................... 21
4,925 XL Capital, Ltd., Class A .................... 18,222
1,630 Zions Bancorporation ......................... 39,951
400 ZipRealty, Inc. + ............................ 1,060
------------
24,400,821
------------
HEALTH CARE -- 14.7%
26,100 Abbott Laboratories .......................... 1,392,957
100 Abraxis Bioscience, Inc. + ................... 6,592
100 Acadia Pharmaceuticals, Inc. + ............... 90
100 ADAM, Inc. + ................................. 400
100 Adolor Corp. + ............................... 166
981 Advanced Medical Optics, Inc. + .............. 6,484
6,500 Aetna, Inc. .................................. 185,250
200 Affymetrix, Inc. + ........................... 598
300 Air Methods Corp. + .......................... 4,797
400 Akorn, Inc. + ................................ 920
700 Albany Molecular Research, Inc. + ............ 6,818
4,500 Alexion Pharmaceuticals, Inc. + .............. 162,855
450 Align Technology, Inc. + ..................... 3,938
4,075 Alkermes, Inc. + ............................. 43,399
5,380 Allergan, Inc. ............................... 216,922
100 Alliance Imaging, Inc. + ..................... 797
100 Allos Therapeutics, Inc. + ................... 612
100 Altus Pharmaceuticals, Inc. + ................ 53
1 Amedisys, Inc. + ............................. 41
3,400 American Medical Systems Holdings, Inc. + .... 30,566
600 AMERIGROUP Corp. + ........................... 17,712
2,540 AmerisourceBergen Corp., Class A ............. 90,576
18,302 Amgen, Inc. + ................................ 1,056,941
300 Amicus Therapeutics, Inc. + .................. 2,394
250 AMN Healthcare Services, Inc. + .............. 2,115
2,250 Amylin Pharmaceuticals, Inc. + ............... 24,412
600 Angeion Corp. + .............................. 1,800
500 Anika Therapeutics, Inc. + ................... 1,520
300 Arena Pharmaceuticals, Inc. + ................ 1,251
400 Artes Medical, Inc. + ........................ 1
900 Aspect Medical Systems, Inc. + ............... 3,033
500 AspenBio Pharma, Inc. + ...................... 3,085
200 Atherogenics, Inc. + ......................... 20
10,788 Baxter International, Inc. ................... 578,129
500 Beckman Coulter, Inc. ........................ 21,970
3,875 Becton Dickinson & Co. ....................... 265,011
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
HEALTH CARE -- 14.7% (CONTINUED)
800 Biodel, Inc. + ............................... $ 3,856
200 BioForm Medical, Inc. + ...................... 182
4,455 Biogen Idec, Inc. + .......................... 212,192
4,500 BioMarin Pharmaceutical, Inc. + .............. 80,100
24,439 Boston Scientific Corp. + .................... 189,158
32,950 Bristol-Myers Squibb Co. ..................... 766,087
2,000 Brookdale Senior Living, Inc. ................ 11,160
200 BSD Medical Corp. + .......................... 732
1,125 C.R. Bard, Inc. .............................. 94,792
100 Candela Corp. + .............................. 53
1,500 Cantel Medical Corp. + ....................... 22,005
100 Capital Senior Living Corp. + ................ 298
2,150 Caraco Pharmaceutical Laboratories, Ltd. + ... 12,728
6,886 Cardinal Health, Inc. ........................ 237,360
3,700 Celera Corp. + ............................... 41,181
8,250 Celgene Corp. + .............................. 456,060
1,725 Cephalon, Inc. + ............................. 132,894
500 Cepheid, Inc. + .............................. 5,190
550 Cerner Corp. + ............................... 21,147
5,400 Cigna Corp. .................................. 90,990
200 Cleveland Biolabs, Inc. + .................... 426
1,100 Community Health Systems, Inc. + ............. 16,038
3,000 Conceptus, Inc. + ............................ 45,660
1,450 Covance, Inc. + .............................. 66,744
2,216 Coventry Health Care, Inc. + ................. 32,974
8,337 Covidien, Ltd. ............................... 302,133
500 Cubist Pharmaceuticals, Inc. + ............... 12,080
100 CuraGen Corp. + .............................. 46
100 CV Therapeutics, Inc. + ...................... 921
700 Cynosure, Inc., Class A + .................... 6,391
2,375 DaVita, Inc. + ............................... 117,729
200 Dendreon Corp. + ............................. 916
2,075 Dentsply International, Inc. ................. 58,598
100 Dialysis Corp. of America + .................. 700
100 Dyax Corp. + ................................. 364
2,300 Eclipsys Corp. + ............................. 32,637
550 Edwards Lifesciences Corp. + ................. 30,222
14,895 Eli Lilly & Co. .............................. 599,822
350 Emergent Biosolutions, Inc. + ................ 9,138
1,650 Endo Pharmaceuticals Holdings, Inc. + ........ 42,702
200 eResearchTechnology, Inc. + .................. 1,326
700 ev3, Inc. + .................................. 4,270
800 Exelixis, Inc. + ............................. 4,016
2,900 Express Scripts, Inc., Class A + ............. 159,442
60 Facet Biotech Corp. + ........................ 575
100 Five Star Quality Care, Inc. + ............... 153
4,800 Forest Laboratories, Inc. + .................. 122,256
8,650 Genentech, Inc. + ............................ 717,172
600 Genomic Health, Inc. + ....................... 11,688
3,000 Genoptix, Inc. + ............................. 102,240
1,375 Gen-Probe, Inc. + ............................ 58,905
50 Gentiva Health Services, Inc. + .............. 1,463
4,105 Genzyme Corp. + .............................. 272,449
15,300 Gilead Sciences, Inc. + ...................... 782,442
450 GTx, Inc. + .................................. 7,578
2,700 Halozyme Therapeutics, Inc. + ................ 15,120
2,150 Health Management Associates, Inc.,
Class A + .................................. 3,848
200 Health Net, Inc. + ........................... 2,178
3,750 Healthsouth Corp. + .......................... 41,100
1,500 Healthspring, Inc. + ......................... 29,955
800 Henry Schein, Inc. + ......................... 29,352
300 Hill-Rom Holdings, Inc. ...................... 4,938
95 HLTH Corp. + ................................. 994
2,452 Hologic, Inc. + .............................. 32,048
2,340 Hospira, Inc. + .............................. 62,759
SHARES VALUE
------ -----
HEALTH CARE -- 14.7% (CONTINUED)
650 Human Genome Sciences, Inc. + ................ $ 1,378
3,000 Humana, Inc. + ............................... 111,840
200 Hythiam, Inc. + .............................. 78
2,300 Idenix Pharmaceuticals, Inc. + ............... 13,317
1,500 Idexx Laboratories, Inc. + ................... 54,120
3,888 Illumina, Inc. + ............................. 101,282
100 Immtech Pharmaceuticals, Inc., Class A + ..... 15
1,680 Immucor, Inc. + .............................. 44,654
2,500 IMS Health, Inc. ............................. 37,900
200 Incyte Corp., Ltd. + ......................... 758
900 Indevus Pharmaceuticals, Inc. + .............. 2,826
600 Infinity Pharmaceuticals, Inc. + ............. 4,794
650 InterMune, Inc. + ............................ 6,877
181 Inverness Medical Innovations, Inc. + ........ 3,423
200 IRIS International, Inc. + ................... 2,788
700 Isis Pharmaceuticals, Inc. + ................. 9,926
400 Jazz Pharmaceuticals, Inc. + ................. 772
45,585 Johnson & Johnson ............................ 2,727,351
300 Kendle International, Inc. + ................. 7,716
300 Keryx Biopharmaceuticals, Inc. + ............. 69
2,000 Kindred Healthcare, Inc. + ................... 26,040
3,850 Kinetic Concepts, Inc. + ..................... 73,843
1,724 King Pharmaceuticals, Inc. + ................. 18,309
2,775 Laboratory Corp. of America Holdings + ....... 178,738
200 LCA-Vision, Inc. ............................. 822
2,633 Life Technologies Corp. + .................... 61,375
565 LifePoint Hospitals, Inc. + .................. 12,905
100 Ligand Pharmaceuticals, Inc., Class B + ...... 274
700 Lincare Holdings, Inc. + ..................... 18,851
200 Luminex Corp. + .............................. 4,272
500 MAKO Surgical Corp. + ........................ 3,340
100 MannKind Corp. + ............................. 343
200 Maxygen, Inc. + .............................. 1,784
5,500 McKesson Corp. ............................... 213,015
200 MDRNA, Inc. + ................................ 68
3,025 Medarex, Inc. + .............................. 16,879
8,448 Medco Health Solutions, Inc. + ............... 354,056
1,500 Medicines Co. (The) + ........................ 22,095
300 Medicis Pharmaceutical Corp., Class A ........ 4,170
18,868 Medtronic, Inc. .............................. 592,833
35,958 Merck & Co., Inc. ............................ 1,093,123
100 Merge Healthcare, Inc. ....................... 128
800 Micrus Endovascular Corp. + .................. 9,288
250 Millipore Corp. + ............................ 12,880
3,000 Molina Healthcare, Inc. + .................... 52,830
2,200 Momenta Pharmaceuticals, Inc. + .............. 25,520
3,650 Mylan, Inc. + ................................ 36,098
1,300 Myriad Genetics, Inc. + ...................... 86,138
950 Nektar Therapeutics + ........................ 5,282
200 Neurocrine Biosciences, Inc. + ............... 640
300 Nighthawk Radiology Holdings, Inc. + ......... 1,458
100 Northstar Neuroscience, Inc. + ............... 121
400 Novacea, Inc. + .............................. 600
900 Oculus Innovative Sciences, Inc. + ........... 1,278
200 Odyssey HealthCare, Inc. + ................... 1,850
3,250 Omnicare, Inc. ............................... 90,220
1,325 Onyx Pharmaceuticals, Inc. + ................. 45,262
750 Orexigen Therapeutics, Inc. + ................ 4,185
1,350 OSI Pharmaceuticals, Inc. + .................. 52,717
50 Palomar Medical Technologies, Inc. + ......... 576
450 Patterson Cos., Inc. + ....................... 8,438
800 PDI, Inc. + .................................. 3,208
2,300 PDL BioPharma, Inc. .......................... 14,214
500 Pediatrix Medical Group, Inc. + .............. 15,850
1,517 PerkinElmer, Inc. ............................ 21,102
2,850 Perrigo Co. .................................. 92,084
109,261 Pfizer, Inc. ................................. 1,935,012
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
HEALTH CARE -- 14.7% (CONTINUED)
1,400 Pharmaceutical Product Development, Inc. ..... $ 40,614
400 Pozen, Inc. + ................................ 2,016
800 Progenics Pharmaceuticals, Inc. + ............ 8,248
200 Providence Service Corp. (The) + ............. 290
500 PSS World Medical, Inc. + .................... 9,410
2,450 Psychiatric Solutions, Inc. + ................ 68,232
200 Pure Bioscience + ............................ 616
3,025 Quest Diagnostics, Inc. ...................... 157,028
2,000 Questcor Pharmaceuticals, Inc. + ............. 18,620
2,700 Regeneron Pharmaceuticals, Inc. + ............ 49,572
400 Repros Therapeutics, Inc. + .................. 4,208
600 Res-Care, Inc. + ............................. 9,012
800 Resmed, Inc. + ............................... 29,984
100 Rigel Pharmaceuticals, Inc. + ................ 800
418 RTI Biologics, Inc. + ........................ 1,154
500 RXi Pharmaceuticals Corp. + .................. 2,875
700 Salix Pharmaceuticals, Ltd. + ................ 6,181
300 Sangamo Biosciences, Inc. + .................. 1,044
800 Savient Pharmaceuticals, Inc. + .............. 4,632
25,725 Schering-Plough Corp. ........................ 438,097
100 Senomyx, Inc. + .............................. 279
3,700 Sepracor, Inc. + ............................. 40,626
1,500 Sequenom, Inc. + ............................. 29,760
450 Sirona Dental Systems, Inc. + ................ 4,725
700 Skilled Healthcare Group, Inc., Class A + .... 5,908
100 Somaxon Pharmaceuticals, Inc. + .............. 127
6,350 St. Jude Medical, Inc. + ..................... 209,296
650 STERIS Corp. ................................. 15,529
5,470 Stryker Corp. ................................ 218,526
3,000 SurModics, Inc. + ............................ 75,810
200 Symmetry Medical, Inc. + ..................... 1,594
400 Synta Pharmaceuticals Corp. + ................ 2,448
900 Techne Corp. ................................. 58,068
400 Telik, Inc. + ................................ 152
4,626 Tenet Healthcare Corp. + ..................... 5,320
500 Theravance, Inc. + ........................... 6,195
600 Thermage, Inc. + ............................. 822
6,859 Thermo Fisher Scientific, Inc. + ............. 233,686
1,000 TranS1, Inc. + ............................... 7,210
50 Transcend Services, Inc. + ................... 491
600 United American Healthcare Corp. + ........... 888
200 United Therapeutics Corp. + .................. 12,510
19,412 UnitedHealth Group, Inc. ..................... 516,359
500 Universal American Corp. + ................... 4,410
1,300 Universal Health Services, Inc., Class B ..... 48,841
750 Valeant Pharmaceuticals International + ...... 17,175
2,600 Varian Medical Systems, Inc. + ............... 91,104
1,100 VCA Antech, Inc. + ........................... 21,868
2,100 Vertex Pharmaceuticals, Inc. + ............... 63,798
800 Viropharma, Inc. + ........................... 10,416
500 Virtual Radiologic Corp. + ................... 4,240
2,850 Warner Chilcott, Ltd., Class A + ............. 41,325
2,100 Waters Corp. + ............................... 76,965
1,350 Watson Pharmaceuticals, Inc. + ............... 35,869
7,391 WellPoint, Inc. + ............................ 311,383
20,450 Wyeth ........................................ 767,079
4,700 Zimmer Holdings, Inc. + ...................... 189,974
300 Zymogenetics, Inc. + ......................... 900
----------
22,687,205
----------
INDUSTRIALS -- 11.6%
9,400 3M Co. ....................................... 540,876
3,000 AAON, Inc. ................................... 62,640
200 Accuride Corp. + ............................. 46
240 Actuant Corp., Class A ....................... 4,565
100 Acuity Brands, Inc. .......................... 3,491
SHARES VALUE
------ -----
INDUSTRIALS -- 11.6% (CONTINUED)
1,100 Aecom Technology Corp. + ..................... $ 33,803
1,200 AeroCentury Corp. + .......................... 10,920
850 AGCO Corp. + ................................. 20,052
200 Aircastle, Ltd. .............................. 956
2,000 Albany International Corp., Class A .......... 25,680
350 Alexander & Baldwin, Inc. .................... 8,771
150 Alliant Techsystems, Inc. + .................. 12,864
250 Amerco, Inc. + ............................... 8,633
300 American Commercial Lines, Inc. + ............ 1,470
50 Ameron International Corp. ................... 3,146
1,050 Ametek, Inc. ................................. 31,720
4,875 AMR Corp. + .................................. 52,016
1,500 Amrep Corp. + ................................ 46,920
500 Apogee Enterprises, Inc. ..................... 5,180
100 Applied Energetics, Inc. + ................... 32
200 Applied Signal Technology, Inc. .............. 3,588
300 Armstrong World Industries, Inc. ............. 6,486
250 Ascent Solar Technologies, Inc. + ............ 940
1,100 Avery Dennison Corp. ......................... 36,003
592 Avis Budget Group, Inc. + .................... 414
200 Baker (Michael) Corp. + ...................... 7,382
400 Basin Water, Inc. + .......................... 208
3,575 BE Aerospace, Inc. + ......................... 27,492
500 Blount International, Inc. + ................. 4,740
900 BlueLinx Holdings, Inc. + .................... 1,701
11,500 Boeing Co. ................................... 490,705
550 Brady Corp., Class A ......................... 13,172
450 Brink's Co. (The) ............................ 12,096
100 BTU International, Inc. + .................... 400
1,000 Bucyrus International, Inc., Class A ......... 18,520
450 Builders FirstSource, Inc. + ................. 689
150 Building Materials Holding Corp. ............. 55
4,540 Burlington Northern Santa Fe Corp. ........... 343,723
100 C&D Technologies, Inc. + ..................... 313
500 Carlisle Cos., Inc. .......................... 10,350
100 Casella Waste Systems, Inc., Class A + ....... 408
9,900 Caterpillar, Inc. ............................ 442,233
2,300 CBIZ, Inc. + ................................. 19,895
400 CDI Corp. .................................... 5,176
400 Ceco Environmental Corp. + ................... 968
300 Celadon Group, Inc. + ........................ 2,559
800 Cenveo, Inc. + ............................... 3,560
3,450 CH Robinson Worldwide, Inc. .................. 189,854
1,832 Cintas Corp. ................................. 42,557
400 Clarcor, Inc. ................................ 13,272
300 Coleman Cable, Inc. + ........................ 1,359
1,000 Colfax Corp. + ............................... 10,390
400 Columbus McKinnon Corp. + .................... 5,460
900 Comfort Systems USA, Inc. .................... 9,594
300 Commercial Vehicle Group, Inc. + ............. 279
100 Competitive Technologies, Inc. + ............. 99
750 COMSYS IT Partners, Inc. + ................... 1,680
2,000 Continental Airlines, Inc., Class B + ........ 36,120
450 Con-way, Inc. ................................ 11,970
2,725 Cooper Industries, Ltd., Class A ............. 79,652
700 Copart, Inc. + ............................... 19,033
200 Cornell, Inc. + .............................. 3,718
1,700 Corrections Corp. of America + ............... 27,812
3,350 Covanta Holding Corp. + ...................... 73,566
100 Covenant Transportation Group, Inc., Class A + 201
300 Crane Co. .................................... 5,172
6,750 CSX Corp. .................................... 219,173
2,500 Cummins, Inc. ................................ 66,825
300 Curtiss-Wright Corp. ......................... 10,017
3,918 Danaher Corp. ................................ 221,798
8,750 Deere & Co. .................................. 335,300
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INDUSTRIALS -- 11.6% (CONTINUED)
8,850 Delta Air Lines, Inc. + ...................... $ 101,421
200 Diamond Management & Technology
Consultants, Inc., Class A ................. 842
200 Document Security Systems, Inc. + ............ 366
500 Dollar Thrifty Automotive Group, Inc. + ...... 545
900 Donaldson Co., Inc. .......................... 30,285
3,850 Dover Corp. .................................. 126,742
3,000 Duff & Phelps Corp., Class A + ............... 57,360
1,525 Dun & Bradstreet Corp. ....................... 117,730
100 DXP Enterprises, Inc. + ...................... 1,461
1,000 Dycom Industries, Inc. + ..................... 8,220
400 Dynamic Materials Corp. ...................... 7,724
3,000 DynCorp International, Inc., Class A + ....... 45,510
200 Eagle Bulk Shipping, Inc. .................... 1,364
3,100 Eaton Corp. .................................. 154,101
13,100 Emerson Electric Co. ......................... 479,591
700 Empire Resources, Inc. ....................... 875
550 Encore Wire Corp. ............................ 10,428
500 Ener1, Inc. + ................................ 3,575
500 Energy Recovery, Inc. + ...................... 3,790
1,500 EnergySolutions, Inc. ........................ 8,475
2,000 EnerSys + .................................... 22,000
50 Ennis, Inc. .................................. 605
1,975 Equifax, Inc. ................................ 52,377
225 Evergreen Solar, Inc. + ...................... 718
3,725 Expeditors International of Washington,
Inc. ....................................... 123,931
400 Exponent, Inc. + ............................. 12,032
10 ExpressJet Holdings, Inc., Class A + ......... 17
1,950 Fastenal Co. ................................. 67,958
2,000 Federal Signal Corp. ......................... 16,420
5,382 FedEx Corp. .................................. 345,255
750 First Advantage Corp., Class A + ............. 10,613
1,750 First Solar, Inc. + .......................... 241,430
200 Flanders Corp. + ............................. 938
500 Flowserve Corp. .............................. 25,750
2,600 Fluor Corp. .................................. 116,662
100 Force Protection, Inc. + ..................... 598
3,000 Foster (L.B.) Co., Class A + ................. 93,840
1,750 Foster Wheeler, Ltd. + ....................... 40,915
600 Frontier Airlines Holdings, Inc. + ........... 108
100 Frozen Food Express Industries ............... 568
1,425 FTI Consulting, Inc. + ....................... 63,669
500 FuelCell Energy, Inc. + ...................... 1,940
300 Furmanite Corp. + ............................ 1,617
550 Gardner Denver, Inc. + ....................... 12,837
200 GATX Corp. ................................... 6,194
300 GenCorp, Inc. + .............................. 1,104
1,425 General Cable Corp. + ........................ 25,208
6,840 General Dynamics Corp. ....................... 393,916
162,646 General Electric Co. ......................... 2,634,865
2,800 Geo Group, Inc. (The) + ...................... 50,484
1,825 Goodrich Corp. ............................... 67,561
3,125 Gorman-Rupp Co. (The) ........................ 97,250
487 Graco, Inc. .................................. 11,557
3,850 GrafTech International, Ltd. + ............... 32,032
550 Greenbrier, Inc. ............................. 3,778
350 Griffon Corp. + .............................. 3,265
850 Hardinge, Inc. ............................... 3,442
1,500 Harsco Corp. ................................. 41,520
200 Herley Industries, Inc. + .................... 2,456
2,650 Herman Miller, Inc. .......................... 34,530
3,250 Hertz Global Holdings, Inc. + ................ 16,478
550 Hexcel Corp. + ............................... 4,065
1,400 HI Shear Technology Corp. .................... 12,838
300 Hill International, Inc. + ................... 2,112
600 Hoku Scientific, Inc. + ...................... 1,602
SHARES VALUE
------ -----
INDUSTRIALS -- 11.6% (CONTINUED)
9,825 Honeywell International, Inc. ................ $ 322,555
2,050 Horizon Lines, Inc., Class A ................. 7,154
400 Hubbell, Inc., Class B ....................... 13,072
400 Hurco Cos., Inc. + ........................... 4,800
100 Huron Consulting Group, Inc. + ............... 5,727
300 ICT Group, Inc. + ............................ 1,374
675 IDEX Corp. ................................... 16,301
6,166 Illinois Tool Works, Inc. .................... 216,118
50 Imperial Industries, Inc. + .................. 17
950 Industrial Services of America, Inc. ......... 5,007
5,984 Ingersoll-Rand Co., Ltd., Class A ............ 103,822
100 Innovative Solutions & Support, Inc. ......... 395
500 Integrated Electrical Services, Inc. + ....... 4,380
300 Interface, Inc., Class A ..................... 1,392
500 Interline Brands, Inc. + ..................... 5,315
450 International Shipholding Corp. .............. 11,399
400 Intersections, Inc. + ........................ 2,080
2,650 Iron Mountain, Inc. + ........................ 65,534
2,500 ITT Corp. .................................... 114,975
1,300 Jacobs Engineering Group, Inc. + ............. 62,530
1,275 JB Hunt Transport Services, Inc. ............. 33,494
1,025 JetBlue Airways Corp. + ...................... 7,278
251 John Bean Technologies Corp. ................. 2,051
475 Joy Global, Inc. ............................. 10,873
50 Kadant, Inc. + ............................... 674
923 Kansas City Southern + ....................... 17,583
5,650 KBR, Inc. .................................... 85,880
400 Kelly Services, Inc., Class A ................ 5,204
2,000 Kennametal, Inc. ............................. 44,380
150 Kforce, Inc. + ............................... 1,152
700 Kimball International, Inc., Class B ......... 6,027
2,450 Kirby Corp. + ................................ 67,032
387 Knight Transportation, Inc. .................. 6,238
500 Knoll, Inc. .................................. 4,510
7,000 Kreisler Manufacturing Corp. + ............... 34,090
2,675 L-3 Communications Holdings, Inc., Class 3 ... 197,361
100 LaBarge, Inc. + .............................. 1,435
100 LECG Corp. + ................................. 671
650 Lennox International, Inc. ................... 20,988
3,000 Lindsay Corp. ................................ 95,370
6,250 Lockheed Martin Corp. ........................ 525,500
700 LSI Industries, Inc. ......................... 4,809
200 Macquarie Infrastructure Co. LLC ............. 754
400 Manitowoc Co., Inc. (The) .................... 3,464
1,928 Manpower, Inc. ............................... 65,533
100 Marten Transport, Ltd. + ..................... 1,896
6,250 Masco Corp. .................................. 69,563
2,500 MasTec, Inc. + ............................... 28,950
3,875 McDermott International, Inc. + .............. 38,285
600 Meadow Valley Corp. + ........................ 4,758
800 Medis Technologies, Ltd. + ................... 360
300 Mesa Air Group, Inc. + ....................... 78
150 Metalico, Inc. + ............................. 233
300 Mfri, Inc. + ................................. 1,299
4,150 Monster Worldwide, Inc. + .................... 50,173
3,450 MPS Group, Inc. + ............................ 25,978
300 MSC Industrial Direct Co., Class A ........... 11,049
2,400 Mueller Water Products, Inc., Class B ........ 20,256
100 NACCO Industries, Inc., Class A .............. 3,741
400 Navigant Consulting, Inc. + .................. 6,348
1,500 Navistar International Corp. + ............... 32,070
3,000 NCI Building Systems, Inc. + ................. 48,900
7,400 Norfolk Southern Corp. ....................... 348,170
200 North American Galvanizing & Coating, Inc. + . 766
6,150 Northrop Grumman Corp. ....................... 276,996
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INDUSTRIALS -- 11.6% (CONTINUED)
100 On Assignment, Inc. + ........................ $ 567
500 Orion Energy Systems, Inc. + ................. 2,705
1,000 Orion Marine Group, Inc. + ................... 9,660
300 Oshkosh Corp. ................................ 2,667
950 Owens Corning, Inc. + ........................ 16,435
6,955 PACCAR, Inc. ................................. 198,913
500 Pacer International, Inc. .................... 5,215
550 Pall Corp. ................................... 15,637
5,693 Parker Hannifin Corp. ........................ 242,180
1,300 Pentair, Inc. ................................ 30,771
600 Pike Electric Corp. + ........................ 7,380
3,825 Pitney Bowes, Inc. ........................... 97,461
200 Portec Rail Products, Inc. ................... 1,446
200 Power-One, Inc. + ............................ 238
1,250 PowerSecure International, Inc. + ............ 4,113
2,000 Precision Castparts Corp. .................... 118,960
220 PRG-Schultz International, Inc. + ............ 898
1,000 Quanex Building Products Corp. ............... 9,370
2,450 Quanta Services, Inc. + ...................... 48,510
6,600 Raytheon Co. ................................. 336,864
3,000 RBC Bearings, Inc. + ......................... 60,840
5,118 Republic Services, Inc., Class A ............. 126,875
200 Resources Connection, Inc. + ................. 3,276
3,200 Robert Half International, Inc. .............. 66,624
2,500 Rockwell Automation, Inc. .................... 80,600
3,025 Rockwell Collins, Inc. ....................... 118,247
1,150 Roper Industries, Inc. ....................... 49,922
2,450 RR Donnelley & Sons Co. ...................... 33,271
2,200 RSC Holdings, Inc. + ......................... 18,744
75 Rush Enterprises, Inc., Class A + ............ 643
400 Ryder System, Inc. ........................... 15,512
150 Saia, Inc. + ................................. 1,629
500 Sauer-Danfoss, Inc. .......................... 4,375
300 Shaw Group, Inc. (The) + ..................... 6,141
300 SIFCO Industries, Inc. + ..................... 1,785
1,600 Simclar, Inc. + .............................. 400
50 Simpson Manufacturing Co., Inc. .............. 1,388
500 Skywest, Inc. ................................ 9,300
12,218 Southwest Airlines Co. ....................... 105,319
500 Spherion Corp. + ............................. 1,105
900 Spire Corp. + ................................ 4,626
3,600 Spirit Aerosystems Holdings, Inc.,
Class A + .................................. 36,612
484 SPX Corp. .................................... 19,626
3,100 Standard Parking Corp. + ..................... 59,954
2,350 Standard Register Co. (The) .................. 20,985
50 Standex International Corp. .................. 992
1,000 Steelcase, Inc., Class A ..................... 5,620
1,875 Stericycle, Inc. + ........................... 97,650
637 Sunpower Corp., Class B + .................... 19,390
3,000 Sunpower Corp., Class A + .................... 111,000
100 Sypris Solutions, Inc. ....................... 62
200 Taser International, Inc. + .................. 1,056
2,200 TBS International, Ltd., Class A + ........... 22,066
500 Tecumseh Products Co., Class A + ............. 4,790
250 Tennant Co. .................................. 3,850
4,400 Terex Corp. + ................................ 76,208
443 Tetra Tech, Inc. + ........................... 10,698
2,800 Textron, Inc. ................................ 38,836
1,575 Thomas & Betts Corp. + ....................... 37,832
600 Thomas Group, Inc. ........................... 330
800 Timken Co. ................................... 15,704
312 Titan International, Inc. .................... 2,574
300 Toro Co. ..................................... 9,900
100 TRC, Inc. + .................................. 194
300 Trex Co., Inc. + ............................. 4,938
100 Trimas Corp. + ............................... 138
SHARES VALUE
------ -----
INDUSTRIALS -- 11.6% (CONTINUED)
800 Trinity Industries, Inc. ..................... $ 12,608
2,525 TRM Corp. + .................................. 278
1,000 TurboChef Technologies, Inc. + ............... 4,910
400 Twin Disc, Inc. .............................. 2,756
6,662 Tyco International, Ltd. ..................... 143,899
125 UAL Corp. .................................... 1,378
200 Ultralife Corp. + ............................ 2,682
8,150 Union Pacific Corp. .......................... 389,570
12,000 United Parcel Service, Inc., Class B ......... 661,920
100 United Rentals, Inc. + ....................... 912
150 United Stationers, Inc. + .................... 5,024
15,344 United Technologies Corp. .................... 822,438
400 Universal Forest Products, Inc. .............. 10,764
850 URS Corp. + .................................. 34,654
991 US Airways Group, Inc. + ..................... 7,660
200 US Home Systems, Inc. + ...................... 518
500 UTEK Corp. + ................................. 4,450
900 UTi Worldwide, Inc. .......................... 12,906
300 Vicor Corp. .................................. 1,983
450 Volt Information Sciences, Inc. + ............ 3,253
50 Wabash National Corp. ........................ 225
300 Wabtec Corp. ................................. 11,925
4,575 Waste Connections, Inc. + .................... 144,433
9,450 Waste Management, Inc. ....................... 313,173
1,300 Watson Wyatt Worldwide, Inc., Class A ........ 62,166
250 Werner Enterprises, Inc. ..................... 4,335
1,500 Woodward Governor Co. ........................ 34,530
300 WW Grainger, Inc. ............................ 23,652
500 Xerium Technologies, Inc. .................... 330
650 YRC Worldwide, Inc. + ........................ 1,866
------------
17,930,900
------------
INFORMATION TECHNOLOGY -- 15.5%
800 3Com Corp. + ................................. 1,824
300 Acacia Research-Acacia Technologies + ........ 912
7,850 Accenture, Ltd., Class A ..................... 257,401
200 Access Integrated Technologies, Inc.,
Class A .................................... 74
1,500 ACI Worldwide, Inc. + ........................ 23,850
100 Actel Corp. + ................................ 1,172
8,938 Activision Blizzard, Inc. + .................. 77,224
1,781 ADC Telecommunications, Inc. + ............... 9,742
600 ADDvantage Technologies Group, Inc. + ........ 1,068
9,184 Adobe Systems, Inc. + ........................ 195,527
700 Adtran, Inc. ................................. 10,416
500 Advanced Analogic Technologies, Inc. + ....... 1,510
700 Advanced Energy Industries, Inc. + ........... 6,965
5,950 Advanced Micro Devices, Inc. + ............... 12,852
3,000 Advent Software, Inc. + ...................... 59,910
500 Aehr Test Systems + .......................... 1,025
900 Affiliated Computer Services, Inc.,
Class A + .................................. 41,355
4,746 Agilent Technologies, Inc. + ................. 74,180
500 Agilysys, Inc. ............................... 2,145
500 Airvana, Inc. + .............................. 3,060
2,259 Akamai Technologies, Inc. + .................. 34,088
650 Alliance Data Systems Corp. + ................ 30,245
4,550 Altera Corp. ................................. 76,030
100 American Technology Corp. + .................. 85
150 Amkor Technology, Inc. + ..................... 327
3,625 Amphenol Corp., Class A ...................... 86,927
300 Anadigics, Inc. + ............................ 444
4,450 Analog Devices, Inc. ......................... 84,639
200 Anaren, Inc. + ............................... 2,390
700 Answers Corp. + .............................. 4,809
922 Ansys, Inc. + ................................ 25,715
15,500 Apple, Inc. + ................................ 1,322,925
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 15.5% (CONTINUED)
21,683 Applied Materials, Inc. ...................... $ 219,649
4,500 Ariba, Inc. + ................................ 32,445
3,854 Arris Group, Inc. + .......................... 30,639
1,450 Arrow Electronics, Inc. + .................... 27,318
700 Aspen Technology, Inc. + ..................... 5,194
100 Astea International, Inc. + .................. 206
400 Atheros Communications, Inc. + ............... 5,724
4,650 Atmel Corp. + ................................ 14,554
3,000 Autodesk, Inc. + ............................. 58,950
7,125 Automatic Data Processing, Inc. .............. 280,297
1,825 Avnet, Inc. + ................................ 33,233
350 Avocent Corp. + .............................. 6,269
800 AVX Corp. .................................... 6,352
289 Axcelis Technologies, Inc. + ................. 147
3,300 Bankrate, Inc. + ............................. 125,400
22 BearingPoint, Inc. + ......................... 30
300 Bel Fuse, Inc., Class B ...................... 6,360
1,150 Benchmark Electronics, Inc. + ................ 14,686
150 BigBand Networks, Inc. + ..................... 828
600 Bitstream, Inc., Class A + ................... 2,778
300 Blackbaud, Inc. .............................. 4,050
200 Blue Coat Systems, Inc. + .................... 1,680
3,242 BMC Software, Inc. + ......................... 87,242
100 Brightpoint, Inc. + .......................... 435
8,065 Broadcom Corp., Class A + .................... 136,863
950 Broadridge Financial Solutions, Inc. ......... 11,913
4,450 Brocade Communications Systems, Inc. + ....... 12,460
106 Brooks Automation, Inc. + .................... 616
7,122 CA, Inc. ..................................... 131,971
3,902 Cadence Design Systems, Inc. + ............... 14,281
200 Callidus Software, Inc. + .................... 598
200 Cascade Microtech, Inc. + .................... 390
600 Catapult Communications Corp. + .............. 3,942
2,000 Checkpoint Systems, Inc. + ................... 19,680
900 Ciber, Inc. + ................................ 4,329
4,197 Ciena Corp. + ................................ 28,120
400 Cirrus Logic, Inc. + ......................... 1,072
96,323 Cisco Systems, Inc. + ........................ 1,570,065
2,625 Citrix Systems, Inc. + ....................... 61,871
5,625 Cognizant Technology Solutions Corp.,
Class A + .................................. 101,587
791 CommScope, Inc. + ............................ 12,292
3,280 Computer Sciences Corp. + .................... 115,259
6,325 Compuware Corp. + ............................ 42,694
400 comScore, Inc. + ............................. 5,100
100 Comtech Telecommunications Corp. + ........... 4,582
1,300 Concur Technologies, Inc. + .................. 42,666
2,300 Convergys Corp. + ............................ 14,743
25,069 Corning, Inc. ................................ 238,908
500 CPI International, Inc. + .................... 4,330
100 Cray, Inc. + ................................. 208
700 Cree, Inc. + ................................. 11,109
100 CTS Corp. .................................... 551
3,509 Cybersource Corp. + .......................... 42,073
25 Cypress Semiconductor Corp. + ................ 112
600 Datalink Corp. + ............................. 1,866
2,000 DealerTrack Holdings, Inc. + ................. 23,780
30,000 Dell, Inc. + ................................. 307,200
403 Deltek, Inc. + ............................... 1,870
388 Dice Holdings, Inc. + ........................ 1,583
550 Diebold, Inc. ................................ 15,449
400 Digital Ally, Inc. + ......................... 1,236
1,000 Diodes, Inc. + ............................... 6,060
300 Ditech Networks, Inc. + ...................... 246
1,000 DivX, Inc. + ................................. 5,230
1,300 Dolby Laboratories, Inc., Class A + .......... 42,588
3,721 Earthlink, Inc. + ............................ 25,154
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 15.5% (CONTINUED)
18,750 eBay, Inc. + ................................. $ 261,750
150 Echelon Corp. + .............................. 1,222
100 EF Johnson Technologies, Inc. + .............. 134
100 Electro Scientific Industries, Inc. + ........ 679
4,800 Electronic Arts, Inc. + ...................... 76,992
450 Electronics for Imaging, Inc. + .............. 4,302
32,279 EMC Corp. + .................................. 337,961
500 Emcore Corp. + ............................... 650
3,000 EMS Technologies, Inc. + ..................... 77,610
3,250 Emulex Corp. + ............................... 22,685
200 En Pointe Technologies, Inc. + ............... 120
100 EndWave Corp. + .............................. 240
836 Entegris, Inc. + ............................. 1,831
200 Entorian Technologies, Inc. + ................ 58
400 Epicor Software Corp. + ...................... 1,920
500 Exar Corp. + ................................. 3,335
200 Extreme Networks + ........................... 468
900 F5 Networks, Inc. + .......................... 20,574
450 Factset Research Systems, Inc. ............... 19,908
1,444 Fair Isaac Corp. ............................. 24,346
1,950 Fairchild Semiconductor International,
Inc., Class A + ............................ 9,535
900 FalconStor Software, Inc. + .................. 2,502
200 FARO Technologies, Inc. + .................... 3,372
2,118 Fidelity National Information Services,
Inc. ....................................... 34,460
2,128 Fiserv, Inc. + ............................... 77,395
1,500 Flir Systems, Inc. + ......................... 46,020
350 Formfactor, Inc. + ........................... 5,110
3,000 Forrester Research, Inc. + ................... 84,630
1,700 Gartner, Inc. + .............................. 30,311
150 Gevity HR, Inc. .............................. 227
12 GigOptix, Inc. + ............................. 12
350 Global Cash Access Holdings, Inc. + .......... 777
850 Global Payments, Inc. ........................ 27,872
200 Globecomm Systems, Inc. + .................... 1,098
400 Glu Mobile, Inc. + ........................... 200
3,650 Google, Inc., Class A + ...................... 1,122,923
450 GSI Commerce, Inc. + ......................... 4,734
200 Guidance Software, Inc. + .................... 816
800 Harmonic, Inc. + ............................. 4,488
1,925 Harris Corp. ................................. 73,246
2,300 Harris Stratex Networks, Inc., Class A + ..... 11,868
2,870 Hewitt Associates, Inc., Class A + ........... 81,451
40,577 Hewlett-Packard Co. .......................... 1,472,539
500 Hypercom Corp. + ............................. 540
100 ID Systems, Inc. + ........................... 405
100 iGO, Inc. + .................................. 70
50 Ikanos Communications, Inc. + ................ 63
200 Imergent, Inc. ............................... 830
1,600 Infinera Corp. + ............................. 14,336
400 infoGROUP, Inc. .............................. 1,896
2,875 Informatica Corp. + .......................... 39,474
250 Infospace, Inc. .............................. 1,888
1,100 Ingram Micro, Inc., Class A + ................ 14,729
760 Integrated Device Technology, Inc. + ......... 4,264
400 Integrated Silicon Solution, Inc. + .......... 652
90,466 Intel Corp. .................................. 1,326,232
350 Interactive Intelligence, Inc. + ............. 2,243
300 InterDigital, Inc. + ......................... 8,250
200 Intermec, Inc. + ............................. 2,656
371 Internap Network Services Corp. + ............ 928
21,770 International Business Machines Corp. ........ 1,832,163
1,350 International Rectifier Corp. + .............. 18,225
100 Internet Capital Group, Inc. + ............... 545
600 Interphase Corp. + ........................... 996
3,850 Intersil Corp., Class A ...................... 35,382
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 15.5% (CONTINUED)
450 Interwoven, Inc. + ........................... $ 5,670
4,525 Intuit, Inc. + ............................... 107,650
300 INX, Inc. + .................................. 1,290
2,000 IPG Photonics Corp. + ........................ 26,360
200 Isilon Systems, Inc. + ....................... 658
400 Ixia + ....................................... 2,312
800 IXYS Corp. ................................... 6,608
450 j2 Global Communications, Inc. + ............. 9,018
1,100 Jabil Circuit, Inc. .......................... 7,425
2,750 Jack Henry & Associates, Inc. ................ 53,377
550 JDA Software Group, Inc. + ................... 7,222
3,403 JDS Uniphase Corp. + ......................... 12,421
8,365 Juniper Networks, Inc. + ..................... 146,471
300 Jupitermedia Corp. + ......................... 111
100 Keithley Instruments, Inc. ................... 365
700 Kemet Corp. + ................................ 189
600 KEY Tronic Corp. + ........................... 582
100 Keynote Systems, Inc. + ...................... 771
3,525 Kla-Tencor Corp. ............................. 76,810
800 Knot, Inc. (The) + ........................... 6,656
400 Kulicke & Soffa Industries, Inc. + ........... 680
73 L-1 Identity Solutions, Inc. + ............... 492
1,125 Lam Research Corp. + ......................... 23,940
600 LaserCard Corp. + ............................ 2,184
200 Lattice Semiconductor Corp. + ................ 302
2,250 Lawson Software, Inc. + ...................... 10,665
200 Leadis Technology, Inc. + .................... 66
100 LeCroy Corp. + ............................... 305
359 Lender Processing Services, Inc. ............. 10,573
1,875 Lexmark International, Inc., Class A + ....... 50,438
400 Limelight Networks, Inc. + ................... 980
3,625 Linear Technology Corp. ...................... 80,185
2,450 Liquidity Services, Inc. + ................... 20,409
100 LiveWire Mobile, Inc. + ...................... 11
193 Local.com Corp. + ............................ 309
200 LoJack Corp. + ............................... 824
700 LoopNet, Inc. + .............................. 4,774
300 Loral Space & Communications, Inc. + ......... 4,359
9,410 LSI Corp. + .................................. 30,959
3,701 Macrovision Solutions Corp. + ................ 46,818
50 Magma Design Automation, Inc. + .............. 51
100 Majesco Entertainment Co. + .................. 56
600 MakeMusic, Inc. + ............................ 1,506
200 Marchex, Inc., Class B ....................... 1,166
7,750 Marvell Technology Group, Ltd. + ............. 51,692
2,425 Mastercard, Inc., Class A .................... 346,605
400 Mattson Technology, Inc. + ................... 564
4,000 Maxim Integrated Products, Inc. .............. 45,680
2,450 McAfee, Inc. + ............................... 84,696
200 Measurement Specialties, Inc. + .............. 1,390
3,075 MEMC Electronic Materials, Inc. + ............ 43,911
2,250 Mentor Graphics Corp. + ...................... 11,632
100 Mercury Computer Systems, Inc. + ............. 631
500 Merix Corp. + ................................ 150
2,702 Metavante Technologies, Inc. + ............... 43,529
400 Methode Electronics, Inc. .................... 2,696
600 Micrel, Inc. ................................. 4,386
3,637 Microchip Technology, Inc. ................... 71,031
8,952 Micron Technology, Inc. + .................... 23,633
1,400 Micronetics, Inc. + .......................... 4,704
200 Micros Systems, Inc. + ....................... 3,264
650 Microsemi Corp. + ............................ 8,216
129,540 Microsoft Corp. .............................. 2,518,258
900 Midway Games, Inc. + ......................... 171
200 MIPS Technologies, Inc., Class A + ........... 222
3,675 Molex, Inc. .................................. 53,251
300 MoneyGram International, Inc. ................ 303
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 15.5% (CONTINUED)
600 Monolithic Power Systems, Inc. + ............. $ 7,566
100 MoSys, Inc. + ................................ 210
32,666 Motorola, Inc. ............................... 144,710
4 Move, Inc. + ................................. 6
3,000 MTS Systems Corp. ............................ 79,920
900 Multi-Fineline Electronix, Inc. + ............ 10,521
200 Nanometrics, Inc. + .......................... 232
900 Napco Security Systems, Inc. + ............... 1,161
1,475 National Instruments Corp. ................... 35,931
3,825 National Semiconductor Corp. ................. 38,518
200 NaviSite, Inc. + ............................. 80
3,000 NCI, Inc., Class A + ......................... 90,390
1,225 NCR Corp. + .................................. 17,322
4,350 NetApp, Inc. + ............................... 60,770
2,000 Netgear, Inc. + .............................. 22,820
500 NetList, Inc. + .............................. 150
400 Netlogic Microsystems, Inc. + ................ 8,804
200 Netscout Systems, Inc. + ..................... 1,724
2,000 NetSuite, Inc. + ............................. 16,880
100 Network Equipment Technologies, Inc. + ....... 288
750 NeuStar, Inc., Class A + ..................... 14,347
3,000 Neutral Tandem, Inc. + ....................... 48,660
200 Newport Corp. + .............................. 1,356
50 Novatel Wireless, Inc. + ..................... 232
4,859 Novell, Inc. + ............................... 18,902
1,923 Novellus Systems, Inc. + ..................... 23,730
5,550 Nuance Communications, Inc. + ................ 57,498
100 NVE Corp. + .................................. 2,613
7,825 Nvidia Corp. + ............................... 63,148
600 Occam Networks, Inc. + ....................... 1,440
147 Omniture, Inc. + ............................. 1,564
500 Omnivision Technologies, Inc. + .............. 2,625
8,105 ON Semiconductor Corp. + ..................... 27,557
100 Online Resources Corp. + ..................... 474
311 Openwave Systems, Inc. + ..................... 202
100 Opnet Technologies, Inc. + ................... 986
50 Opnext, Inc. + ............................... 87
700 Optelecom-NKF, Inc. + ........................ 2,947
65,330 Oracle Corp. + ............................... 1,158,301
200 OSI Systems, Inc. + .......................... 2,770
100 Overland Storage, Inc. + ..................... 25
480 Palm, Inc. + ................................. 1,474
100 PAR Technology Corp. + ....................... 555
240 Parametric Technology Corp. + ................ 3,036
200 Parkervision, Inc. + ......................... 494
4,850 Paychex, Inc. ................................ 127,458
150 Pegasystems, Inc. ............................ 1,854
100 Pericom Semiconductor Corp. + ................ 548
1,850 Perot Systems Corp., Class A + ............... 25,289
8 Pfsweb, Inc. + ............................... 6
100 Phoenix Technologies, Ltd. + ................. 350
100 Photronics, Inc. + ........................... 195
33 Pixelworks, Inc. + ........................... 24
100 Planar Systems, Inc. + ....................... 61
350 Plantronics, Inc. ............................ 4,620
100 PLATO Learning, Inc. + ....................... 120
350 Plexus Corp. + ............................... 5,932
100 PLX Technology, Inc. + ....................... 172
1,825 PMC - Sierra, Inc. + ......................... 8,869
950 Polycom, Inc. + .............................. 12,835
380 Powerwave Technologies, Inc. + ............... 190
400 QAD, Inc. .................................... 1,676
2,650 QLogic Corp. + ............................... 35,616
26,625 QUALCOMM, Inc. ............................... 953,974
300 Rackspace Hosting, Inc. + .................... 1,614
100 Radiant Systems, Inc. + ...................... 337
3,000 Rambus, Inc. + ............................... 47,760
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 15.5% (CONTINUED)
126 RealNetworks, Inc. + ......................... $ 445
4,990 Red Hat, Inc. + .............................. 65,968
600 Relm Wireless Corp. + ........................ 432
89 Remec, Inc. .................................. 53
600 Renaissance Learning, Inc. ................... 5,394
727 RF Micro Devices, Inc. + ..................... 567
200 RightNow Technologies, Inc. + ................ 1,546
340 Rudolph Technologies, Inc. + ................. 1,200
2,400 S1 Corp. + ................................... 18,936
2,025 SAIC, Inc. + ................................. 39,447
2,000 Salesforce.com, Inc. + ....................... 64,020
6,525 SanDisk Corp. + .............................. 62,640
3,001 Sanmina-SCI Corp. + .......................... 1,410
150 Sapient Corp. + .............................. 666
1,000 SAVVIS, Inc. + ............................... 6,890
3,000 Scansource, Inc. + ........................... 57,810
5,159 Seagate Technology ........................... 22,854
100 Semitool, Inc. + ............................. 305
3,500 Semtech Corp. + .............................. 39,445
1,400 Sento Corp. + ................................ 17
300 ShoreTel, Inc. + ............................. 1,347
100 Silicon Image, Inc. + ........................ 420
100 Silicon Storage Technology, Inc. + ........... 229
600 Simulations Plus, Inc. + ..................... 552
350 SiRF Technology Holdings, Inc. + ............. 448
5,607 Skyworks Solutions, Inc. + ................... 31,063
200 Smart Modular Technologies WWH, Inc. + ....... 308
300 Smith Micro Software, Inc. + ................. 1,668
200 Soapstone Networks, Inc. + ................... 516
4,500 Solera Holdings, Inc. + ...................... 108,450
200 Sonic Solutions, Inc. + ...................... 352
400 SonicWALL, Inc. + ............................ 1,592
625 Sonus Networks, Inc. + ....................... 987
500 Spansion, Inc., Class A + .................... 95
3,000 SPSS, Inc. + ................................. 80,880
200 SRA International, Inc., Class A + ........... 3,450
500 Starent Networks Corp. + ..................... 5,965
200 STEC, Inc. + ................................. 852
1,000 SuccessFactors, Inc. + ....................... 5,740
9,950 Sun Microsystems, Inc. + ..................... 38,009
950 Sybase, Inc. + ............................... 23,531
400 Sycamore Networks, Inc. + .................... 1,076
13,683 Symantec Corp. + ............................. 184,994
100 Symmetricom, Inc. + .......................... 395
700 Symyx Technologies + ......................... 4,158
2,917 Synopsys, Inc. + ............................. 54,023
1,550 Take-Two Interactive Software, Inc. .......... 11,718
2,350 Tech Data Corp. + ............................ 41,924
800 TechTarget, Inc. + ........................... 3,456
1,000 TeleTech Holdings, Inc. + .................... 8,350
4,904 Tellabs, Inc. + .............................. 20,204
2,400 Teradata Corp. + ............................. 35,592
2,425 Teradyne, Inc. + ............................. 10,233
200 Terremark Worldwide, Inc. + .................. 778
1,600 Tessco Technologies, Inc. + .................. 13,936
400 Tessera Technologies, Inc. + ................. 4,752
20,572 Texas Instruments, Inc. ...................... 319,277
1,000 THQ, Inc. + .................................. 4,190
1,425 TIBCO Software, Inc. + ....................... 7,396
800 TiVo, Inc. + ................................. 5,728
200 TNS, Inc. + .................................. 1,878
2,937 Total System Services, Inc. .................. 41,118
700 Travelzoo, Inc. + ............................ 3,892
150 Trident Microsystems, Inc. + ................. 284
1,667 Trimble Navigation, Ltd. + ................... 36,024
500 Trio Tech International ...................... 900
SHARES VALUE
------ -----
INFORMATION TECHNOLOGY -- 15.5% (CONTINUED)
600 TriQuint Semiconductor, Inc. + ............... $ 2,064
100 Trx, Inc. + .................................. 48
200 TTM Technologies, Inc. + ..................... 1,042
6,437 Tyco Electronics, Ltd. ....................... 104,344
1,000 Tyler Technologies, Inc. + ................... 11,980
700 Unica Corp. + ................................ 3,836
2,570 Unisys Corp. + ............................... 2,185
1,000 United Online, Inc. .......................... 6,070
700 Universal Display Corp. + .................... 6,615
200 Utstarcom, Inc. + ............................ 370
4,505 Valueclick, Inc. + ........................... 30,814
850 Varian Semiconductor Equipment
Associates, Inc. + ......................... 15,402
450 VASCO Data Security International, Inc. + .... 4,649
900 VeriFone Holdings, Inc. + .................... 4,410
3,916 VeriSign, Inc. + ............................. 74,717
425 Vicon Industries, Inc. + ..................... 2,372
50 Vignette Corp. + ............................. 470
200 Virage Logic Corp. + ......................... 598
8,950 Visa, Inc., Class A .......................... 469,428
1,106 Vishay Intertechnology, Inc. + ............... 3,783
300 Volterra Semiconductor Corp. + ............... 2,145
200 Web.com Group, Inc. + ........................ 732
250 WebMD Health Corp., Class A + ................ 5,897
2,025 Western Digital Corp. + ...................... 23,186
10,054 Western Union Co. (The) ...................... 144,174
3,200 Wind River Systems, Inc. + ................... 28,896
200 Wireless Ronin Technologies, Inc. + .......... 164
200 Wireless Xcessories Group + .................. 108
100 WPCS International, Inc. + ................... 197
14,950 Xerox Corp. .................................. 119,151
3,775 Xilinx, Inc. ................................. 67,270
900 X-Rite, Inc. + ............................... 1,341
19,500 Yahoo!, Inc. + ............................... 237,900
725 Zebra Technologies Corp., Class A + .......... 14,689
800 Zoran Corp. + ................................ 5,464
1,000 Zygo Corp. + ................................. 6,910
------------
23,944,442
------------
MATERIALS -- 3.2%
126 AbitibiBowater, Inc. + ....................... 59
4,300 Air Products & Chemicals, Inc. ............... 216,161
4,120 Airgas, Inc. ................................. 160,639
875 AK Steel Holding Corp. ....................... 8,155
1,000 Albemarle Corp. .............................. 22,300
11,298 Alcoa, Inc. .................................. 127,216
1,350 Allegheny Technologies, Inc. ................. 34,466
500 AM Castle & Co. .............................. 5,415
750 Aptargroup, Inc. ............................. 26,430
50 Arch Chemicals, Inc. ......................... 1,303
517 Ashland, Inc. ................................ 5,434
200 Ball Corp. ................................... 8,318
1,350 Bemis Co., Inc. .............................. 31,968
300 Buckeye Technologies, Inc. + ................. 1,092
1,400 Cabot Corp. .................................. 21,420
1,500 Carpenter Technology Corp. ................... 30,810
1,000 Celanese Corp., Ser A, Class A ............... 12,430
2,000 Century Aluminum Co. + ....................... 20,000
1,300 CF Industries Holdings, Inc. ................. 63,908
270 Chemtura Corp. ............................... 378
1,900 Cliffs Natural Resources, Inc. ............... 48,659
3,200 Coeur d'Alene Mines Corp. + .................. 2,816
300 Commercial Metals Co. ........................ 3,561
1,800 Core Molding Technologies, Inc. + ............ 4,680
3,500 Crown Holdings, Inc. + ....................... 67,200
3,600 Domtar Corp. + ............................... 6,012
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
MATERIALS -- 3.2% (CONTINUED)
15,261 Dow Chemical Co. (The) ....................... $ 230,288
3,200 Eagle Materials, Inc. ........................ 58,912
400 Eastman Chemical Co. ......................... 12,684
3,400 Ecolab, Inc. ................................. 119,510
15,350 EI Du Pont de Nemours & Co. .................. 388,355
1,000 Ferro Corp. .................................. 7,050
7,001 Freeport-McMoRan Copper & Gold, Inc. ......... 171,104
1,000 Friedman Industries .......................... 6,680
800 Glatfelter ................................... 7,440
400 Graphic Packaging Holding Co. + .............. 456
400 HB Fuller Co. ................................ 6,444
800 Headwaters, Inc. + ........................... 5,400
600 Hecla Mining Co. + ........................... 1,680
300 Horsehead Holding Corp. + .................... 1,410
750 Huntsman Corp. ............................... 2,580
450 ICO, Inc. + .................................. 1,422
1,000 International Flavors & Fragrances, Inc. ..... 29,720
4,942 International Paper Co. ...................... 58,316
500 Kronos Worldwide, Inc. ....................... 5,825
794 Louisiana-Pacific Corp. ...................... 1,239
850 Lubrizol Corp. ............................... 30,931
4,476 MeadWestvaco Corp. ........................... 50,086
8,330 Monsanto Co. ................................. 586,015
3,000 Mosaic Co. (The) ............................. 103,800
200 Myers Industries, Inc. ....................... 1,600
700 Nalco Holding Co. ............................ 8,078
400 Nanophase Technologies Corp. + ............... 420
8,450 Newmont Mining Corp. ......................... 343,915
2,200 NL Industries, Inc. .......................... 29,480
4,270 Nucor Corp. .................................. 197,274
1,670 Olin Corp. ................................... 30,194
3,475 Owens-Illinois, Inc. + ....................... 94,972
1,550 Packaging Corp of America .................... 20,863
1,450 Pactiv Corp. + ............................... 36,076
1,000 Polyone Corp. + .............................. 3,150
3,300 PPG Industries, Inc. ......................... 140,019
5,000 Praxair, Inc. ................................ 296,800
2,808 Rohm & Haas Co. .............................. 173,506
1,300 RPM International, Inc. ...................... 17,277
2,000 RTI International Metals, Inc. + ............. 28,620
2,100 Sealed Air Corp. ............................. 31,374
1,300 Sensient Technologies Corp. .................. 31,044
1,200 Sigma-Aldrich Corp. .......................... 50,688
2,625 Smurfit-Stone Container Corp. + .............. 669
800 Solutia, Inc. + .............................. 3,600
2,275 Sonoco Products Co. .......................... 52,689
2,800 Southern Copper Corp. ........................ 44,968
500 Spartech Corp. ............................... 3,130
4,700 Steel Dynamics, Inc. ......................... 52,546
350 Stillwater Mining Co. + ...................... 1,729
425 Temple-Inland, Inc. .......................... 2,040
1,050 Terra Industries, Inc. ....................... 17,504
250 Texas Industries, Inc. ....................... 8,625
3,373 Titanium Metals Corp. ........................ 29,716
100 Tronox, Inc., Class A ........................ 3
500 UFP Technologies, Inc. + ..................... 2,645
50 United States Lime & Minerals, Inc. + ........ 1,197
2,500 United States Steel Corp. .................... 93,000
1,000 US Energy Corp. Wyoming + .................... 1,640
500 Valhi, Inc. .................................. 5,350
1,400 Valspar Corp. ................................ 25,326
1,000 Verso Paper Corp. + .......................... 1,030
586 Vista Gold Corp. + ........................... 656
2,044 Vulcan Materials Co. ......................... 142,222
100 Wausau Paper Corp. ........................... 1,144
400 Westlake Chemical Corp. ...................... 6,516
6,550 Weyerhaeuser Co. ............................. 200,496
SHARES VALUE
------ -----
MATERIALS -- 3.2% (CONTINUED)
400 WR Grace & Co. + ............................. $ 2,388
50 Zep, Inc. .................................... 966
------------
5,055,322
------------
TELECOMMUNICATION SERVICES -- 3.6%
600 Alaska Communications Systems Group, Inc. .... 5,628
6,775 American Tower Corp., Class A + .............. 198,643
97,624 AT&T, Inc. ................................... 2,782,284
350 Cbeyond, Inc. + .............................. 5,593
100 Centennial Communications Corp. + ............ 806
2,200 CenturyTel, Inc. ............................. 60,126
425 Cincinnati Bell, Inc. + ...................... 820
100 Clearwire Corp., Class A + ................... 493
200 Cogent Communications Group, Inc. + .......... 1,306
707 Consolidated Communications Holdings, Inc. ... 8,399
4,700 Crown Castle International Corp. + ........... 82,626
100 D&E Communications, Inc. ..................... 670
1,957 Embarq Corp. ................................. 70,374
159 Fairpoint Communications, Inc. ............... 521
200 Fibernet Telecom Group, Inc. + ............... 2,100
100 FiberTower Corp. + ........................... 16
3,251 Frontier Communications Corp. ................ 28,414
600 General Communication, Inc., Class A + ....... 4,854
2,150 Global Crossing, Ltd. + ...................... 17,071
600 Globalstar, Inc. + ........................... 120
1,800 Goamerica, Inc. + ............................ 8,298
300 Ibasis, Inc. + ............................... 423
50 IDT Corp., Class B + ......................... 20
100 Kratos Defense & Security Solutions, Inc. + .. 140
1,300 Leap Wireless International, Inc. + .......... 34,957
20,036 Level 3 Communications, Inc. + ............... 14,025
4,600 MetroPCS Communications, Inc. + .............. 68,310
2,225 NII Holdings, Inc. + ......................... 40,451
400 PAETEC Holding Corp. + ....................... 576
2,300 Premiere Global Services, Inc. + ............. 19,803
18,820 Qwest Communications International, Inc. ..... 68,505
1,200 SBA Communications Corp., Class A + .......... 19,584
42,754 Sprint Nextel Corp. .......................... 78,240
200 SureWest Communications ...................... 2,284
800 Syniverse Holdings, Inc. + ................... 9,552
3,070 Telephone & Data Systems, Inc. ............... 97,472
400 TerreStar Corp. + ............................ 160
5,475 tw telecom, Inc., Class A + .................. 46,373
400 USA Mobility, Inc. ........................... 4,628
50,059 Verizon Communications, Inc. ................. 1,697,000
600 Vonage Holdings Corp. + ...................... 396
5,528 Windstream Corp. ............................. 50,858
------------
5,532,919
------------
UTILITIES -- 4.6%
11,760 AES Corp. (The) + ............................ 96,902
1,000 AGL Resources, Inc. .......................... 31,350
2,400 Allegheny Energy, Inc. ....................... 81,264
1,200 Alliant Energy Corp. ......................... 35,016
6,600 Ameren Corp. ................................. 219,516
7,680 American Electric Power Co., Inc. ............ 255,590
1,500 American Water Works Co., Inc. ............... 31,320
2,721 Aqua America, Inc. ........................... 56,025
1,100 Atmos Energy Corp. ........................... 26,070
6,000 Calpine Corp. + .............................. 43,680
3,700 Centerpoint Energy, Inc. ..................... 46,694
400 Cleco Corp. .................................. 9,132
5,950 CMS Energy Corp. ............................. 60,155
4,450 Consolidated Edison, Inc. .................... 173,238
Wilshire Mutual Funds
Dow Jones Wilshire 5000 Index December 31, 2008
Schedule of Investments
SHARES VALUE
------ -----
UTILITIES -- 4.6% (CONTINUED)
3,400 Constellation Energy Gr$up, Inc. ............. 85,306
10,840 Dominion Resources, Inc. ..................... 388,506
1,500 DPL, Inc. .................................... 34,260
3,300 DTE Energy Co. ............................... 117,711
20,882 Duke Energy Corp. ............................ 313,439
3,300 Dynegy, Inc., Class A + ...................... 6,600
4,450 Edison International ......................... 142,934
2,150 El Paso Electric Co. + ....................... 38,894
690 Energen Corp. ................................ 20,238
2,850 Entergy Corp. ................................ 236,921
5,400 Equitable Resources, Inc. .................... 181,170
10,024 Exelon Corp. ................................. 557,435
6,100 FirstEnergy Corp. ............................ 296,338
5,110 FPL Group, Inc. .............................. 257,186
2,805 Great Plains Energy, Inc. .................... 54,221
750 Hawaiian Electric Industries, Inc. ........... 16,605
1,900 Integrys Energy Group, Inc. .................. 81,662
1,325 ITC Holdings Corp. ........................... 57,876
2,125 MDU Resources Group, Inc. .................... 45,857
1,325 Mirant Corp. + ............................... 25,003
750 National Fuel Gas Co. ........................ 23,497
1,300 Nicor, Inc. .................................. 45,162
3,215 NiSource, Inc. ............................... 35,269
3,100 Northeast Utilities .......................... 74,586
7,025 NRG Energy, Inc. + ........................... 163,893
2,190 NSTAR ........................................ 79,913
2,150 NV Energy, Inc. .............................. 21,264
1,100 OGE Energy Corp. ............................. 28,358
1,325 Oneok, Inc. .................................. 38,584
2,650 Pepco Holdings, Inc. ......................... 47,064
4,550 PG&E Corp. ................................... 176,131
1,700 Piedmont Natural Gas Co. ..................... 53,839
1,400 Pinnacle West Capital Corp. .................. 44,982
700 PNM Resources, Inc. .......................... 7,056
7,050 PPL Corp. .................................... 216,364
4,691 Progress Energy, Inc. ........................ 186,936
10,050 Public Service Enterprise Group, Inc. ........ 293,159
3,800 Puget Energy, Inc. ........................... 103,626
3,500 Questar Corp. ................................ 114,415
6,179 Reliant Energy, Inc. + ....................... 35,715
1,379 SCANA Corp. .................................. 49,092
2,450 Sempra Energy ................................ 104,443
16,100 Southern Co. ................................. 595,700
2,172 Southern Union Co. ........................... 28,323
1,300 Southwest Gas Corp. .......................... 32,786
530 Southwest Water Co. .......................... 1,707
3,700 TECO Energy, Inc. ............................ 45,695
1,300 UGI Corp. .................................... 31,746
933 Vectren Corp. ................................ 23,334
2,450 Westar Energy, Inc. .......................... 50,249
350 WGL Holdings, Inc. ........................... 11,441
1,650 Wisconsin Energy Corp. ....................... 69,267
7,225 Xcel Energy, Inc. ............................ 134,024
------------
7,091,734
------------
Total Common Stock (Cost $168,314,204) 157,779,380
------------
RIGHTS -- 0.0%
900 Fresenius Kabi Pharmaceuticals Holding,
Inc. ....................................... 315
------------
Total Rights (Cost $900) 315
------------
SHARES VALUE
------ -----
PREFERRED STOCK -- 0.0%
HEALTH CARE -- 0.0%
4 Inverness Medical Innovations, Inc. .......... $ 490
------------
Total Preferred Stock (Cost $1,147) 490
------------
Total Investments-- 102.1%
(Cost $168,316,251) 157,780,185
Other Assets & Liabilities, Net-- (2.1)% (3,276,914)
------------
NET ASSETS-- 100.0% $154,503,271
============
+ Non-income producing security.
REIT--Real Estate Investment Trust
[GRAPHIC OMITTED]
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
of Wilshire Mutual Funds, Inc.:
We have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the financial statements of Large
Company Growth Portfolio, Large Company Value Portfolio, Small Company Growth
Portfolio, Small Company Value Portfolio and Dow Jones Wilshire 5000 Index,
(five of the funds constituting Wilshire Mutual Funds, Inc., hereafter referred
to as the "Funds") as of December 31, 2008, and for the year then ended and have
issued our unqualified report thereon dated March 2, 2009 (which report and
financial statements are included in item 1 of this Certified Shareholder Report
on Form N-CSR). Our audits included an audit of the Funds' schedule of
investments (the "Statement") as of December 31, 2008 appearing in Item 6 of
this Form N-CSR. This Statement is the responsibility of the Funds' management.
Our responsibility is to express an opinion on this Statement based on our
audits.
In our opinion, the Statement referred to above, when read in conjunction with
the financial statements of the Funds referred to above, presents fairly, in all
material aspects, the information set forth therein.
/s/ PriceWaterhouseCoopers LLP
Philadelphia, Pennsylvania
March 2, 2009
ITEM 7 DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no changes to the procedures by which shareholders may recommend
nominees to the registrant's Board of Directors since the registrant last
disclosed such procedures in the definitive proxy statement filed with the SEC
on January 10, 2006.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial
officers, or persons performing similar functions, have concluded
that the registrant's disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940, as
amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of
a date within 90 days of the filing date of the report that includes
the disclosure required by this paragraph, based on their evaluation
of these controls and procedures required by Rule 30a-3(b) under the
1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b)
under the Securities Exchange Act of 1934, as amended (17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's second
fiscal quarter of the period covered by this report that has
materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is attached hereto.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act ( of 2002 are attached
hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Wilshire Mutual Funds, Inc.
By (Signature and Title)* /s/ Lawrence E. Davanzo
------------------------------
Lawrence E. Davanzo, President
(principal executive officer)
Date: March 11, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Lawrence E. Davanzo
------------------------------
Lawrence E. Davanzo, President
(principal executive officer)
Date: March 11, 2009
By (Signature and Title)* /s/ Helen Thompson
------------------------------
Helen Thompson, Treasurer
(principal financial officer)
Date: March 11, 2009
* Print the name and title of each signing officer under his or her signature.