Wilshire Mutual Fds, Inc. Wilshire Large Company Value Portf Inv Cl · NASDAQ:DTLVX

Wilshire Mutual Fds, Inc. Wilshire Large Company Value Portf Inv Cl — Wilshire Associates — Investor Presentation (September 2008)

50 slides from Wilshire Mutual Fds, Inc. Wilshire Large Company Value Portf Inv Cl's investor presentation, Sep 18, 2008

1. Slide 1: Wilshire Axiom Version 13.00 New Features and Enhancements

   Wilshire AxiomSM Version 13.00 New Features and Enhancements September 18, 2008

2. Slide 2: Overview

   Overview  Wilshire Axiom APISM  Wilshire Axiom Global Credit Risk ModelSM enhancements  New N Wilshire Wil hi Axiom A i P f Performance tSM D2 and Att ib ti Report Attribution R d D3 Crossover C option  Tender Option Bonds (TOB) and Currency Option changes  New Emerging Market Debt Unmeasured F

3. Slide 3: Wilshire Axiom API

   Wilshire Axiom APISM  Wilshire Axiom is available with an application programming interface (API) option to use Wilshire Axiom functionalities without starting the application directly  For example, write code in Microsoft® Visual Basic® for Applications pp ((VBA)) to directlyy access the results

4. Slide 4: Wilshire Axiom API: Benefits

   Wilshire Axiom API: Benefits  Use Wilshire Axiom characteristics, risk and performance attribution data directly in third party applications  Deliver analytics to users in familiar tools: for example, example Microsoft® Excel®, MATLAB®, Microsoft® Office applications, Microsoft® Windows® applicati

5. Slide 5: Wilshire Axiom API: Benefits (2)

   Wilshire Axiom API: Benefits (2)  Expedite and facilitate effective customization  Formal data model encapsulates characteristics, risk and performance data meaningfully • API handles subtotaling for portfolio-level characteristics—e.g., client staff does not have to sort out issues related to not

6. Slide 6: Wilshire Axiom API Subscription Standard Features

   Wilshire Axiom API Subscription Standard Features  Access to the h Wilshire il hi Axiom i API  The Wilshire Axiom API User’s Guide and Programming Manual, with descriptions of all classes, classes properties and methods, methods including coding examples in Microsoft® Visual Basic® for Application

7. Slide 7: Wilshire Axiom Risk Report - Customized

   Wilshire Axiom Risk Report - Customized  Build sophisticated, custom graphics for client reporting PAGE 7

8. Slide 8: Wilshire Axiom GC Performance Attribution Report

   Wilshire Axiom GC Performance Attribution Report PAGE 8

9. Slide 9: State of the Wilshire Axiom Global Credit Risk Model

   State of the Wilshire Axiom Global Credit Risk Model PAGE 9

10. Slide 10: Local EMD Treasury Market Coverage

    Local EMD Treasury Market Coverage  Currencies added in last six months:  Brazil  Colombia  India  Peru  Russia  Slovakia  Turkey P A G E 10

11. Slide 11: Treasury Bond Count

    Treasury Bond Count  Australia, A t li 9  Norway, N 5  Brazil, 13  Peru, 6  Canada, 29  Philippines, 41  China, China 40  Poland, Poland 11  Colombia, 10  Russia, 16  Czech Republic, 14  Singapore, 11  Denmark, 7  Slovakia, 7  Euro, 355  South Africa, 30  Hong Kong, 58  South Korea

12. Slide 12: Wilshire Axiom Global Credit Risk Model Enhancements

    Wilshire Axiom Global Credit Risk Model Enhancements  New covariance matrices  Seven covariance matrix series constructed using the latest version of the Wilshire Axiom Global Credit Risk Model  New 889 by 889 factor matrices estimated using: 1. Standard equally and exponentially weighted times s

13. Slide 13: New Covariance Matrices

    New Covariance Matrices  Wilshire Axiom report availability  Wilshire Axiom Global Credit Risk Report  Wilshire Axiom Risk Summary Report P A G E 13

14. Slide 14: D2 and D3 Crossover Option Enhancement for Run-Time

    D2 and D3 Crossover Option Enhancement for Run-Time  Ability to redefine the location of the parallel shift D1 component of sovereign curve attribution effects has been enhanced to a run run-time time option  Wilshire Axiom report availability  Wilshire Axiom Performance Attribution Report  Wils

15. Slide 15: New D2 and D3 Crossover Option: GUIs

    New D2 and D3 Crossover Option: GUIs P A G E 15

16. Slide 16: D2 and D3 Crossover Explained

    D2 and D3 Crossover Explained  Recall the definitions of the d2 and d3 shapes: d 2(t )  1  e  t / 7 t 1t / 7 d 3(t )  e 7  Because the d2 and d3 shapes are zero at maturity 0, the native functionality of the risk model explains movements at the short end of the curve with the D1 factor, facto

17. Slide 17: D2 and D3 Shifts: Examples

    D2 and D3 Shifts: Examples P A G E 17

18. Slide 18: D2 and D3 Crossover Explained (2)

    D2 and D3 Crossover Explained (2)  Algebraically, when we shift d2 and d3 we change the d2 and d3 shapes: ~ d 2(t )  1  e t / 7   ~ t 1t / 7 d 3(t )  e  7  This changes the D2 and D3 durations: ~ D 2  D 2  D1 ~ D3  D3  D1  And the D1 factor effect: f D~1  f D1  f D 2  f D 3 P

19. Slide 19: D2 and D3 Crossover Explained (3)

    D2 and D3 Crossover Explained (3)  This changes the attribution allocation of yield curve changes, but leaves the total attribution unchanged: Unshifted Shifted D1 Effect D1 f D1 D1 f D~1  D1 ( f D1  f D 2   f D 3 ) D2  f D 2 ~ D2 Effect D 2  f D 2  ( D 2  D1)  f D 2 ~ ~ D3  f D 3 D3

20. Slide 20: New D2 and D3 Crossover Option

    New D2 and D3 Crossover Option  The first screen illustrates T2 and T3 as 0.0; the second screen illustrates T2 and T3 as 7.0 P A G E 20

21. Slide 21: New Asset Type – Municipal Inverse Floater/Tender Option Bond

    New Asset Type – Municipal Inverse Floater/Tender Option Bond  Municipal Inverse Floater/Tender Option Bonds (TOB)  Fully articulated data model developed in consultation with clients  TOB analytics capture leverage effects and actual analysis from collateral ll t l  TOB specific data, such as d

22. Slide 22: Municipal Inverse Floater/TOB – Main Data Tab

    Municipal Inverse Floater/TOB – Main Data Tab P A G E 22

23. Slide 23: Currency Option Asset Type Enhancements

    Currency Option Asset Type Enhancements  Currency Option  Enhancements  Long Currency and Short Currency renamed to Base Currency and Underlying Currency  Redefinition of the Option p Premium to be denominated in base currencyy (consistent with other currency derivatives in Wilshire Axiom and ma

24. Slide 24: Currency Option – Information Tab

    Currency Option – Information Tab P A G E 24

25. Slide 25: Currency Option – Option Valuation Tab

    Currency Option – Option Valuation Tab P A G E 25

26. Slide 26: New Emerging Market Unmeasured Factor Option

    New Emerging Market Unmeasured Factor Option  Estimate all emerging market factor returns  Wilshire Axiom Version 12.00 introduced the Emerging Market Debt (EMD) Risk Model with the option to estimate unmeasured markets  Wilshire Wil hi Axiom A i V i Version 13 00 includes 13.00 i l d theth new o

27. Slide 27: New Emerging Market Unmeasured Factor Option (2)

    New Emerging Market Unmeasured Factor Option (2) P A G E 27

28. Slide 28: New Emerging Market Unmeasured Factor Option: Example

    New Emerging Market Unmeasured Factor Option: Example  Wilshire Axiom Global Performance Attribution Report containing a portfolio of two bonds denominated in Euro and issued by the following countries:  Brazil (parameterized by Wilshire Associates using the Merrill Lynch universe)  Philippines (

29. Slide 29: Example: Global Credit Performance Attribution

    Example: Global Credit Performance Attribution P A G E 29

30. Slide 30: Example: Global Credit Performance Attribution (2)

    Example: Global Credit Performance Attribution (2) P A G E 30

31. Slide 31: Example: Global Credit Performance Attribution (3)

    Example: Global Credit Performance Attribution (3)  Brazil factor return estimated using the benchmark  Philippine factor return estimated: the performance of the Philippine bond can be explained p by y a countryy component p  A factor return is calculated for all the countries to which IP00 is e

32. Slide 32: New Data Loading Utility and Procedures

    New Data Loading Utility and Procedures  New data load process  Starting with Version 13.00, the Wilshire Axiom data loading utility, AXCONVSM, is i enhanced h d to t facility f ilit standard, t d d comprehensive h i data d t feed f d to load pricing data, portfolio data and security master data 

33. Slide 33: New Wilshire Axiom Menu Report Items

    New Wilshire Axiom Menu Report Items  New Wilshire Axiom Menu Report data items  Provides additional security-level details for portfolios  Convexity contribution (swap curve)  Effective duration contribution (swap curve)  Lower rating of the Moody Quality Blended and Standard & Poor’s Quality

34. Slide 34: New Benchmarks

    New Benchmarks  New fixed income index family  DEX (Scotia)  New benchmarks from fixed income index families  HSBC  iBoxx  Merrill Lynch  Lehman Brothers  Complete list in Appendix P A G E 34

35. Slide 35: Additional Enhancements

    Additional Enhancements  Faster report generation for Wilshire Axiom Global Credit Performance Attribution  Previously on-the-fly calculated items now stored in Wilshire Axiom database to facilitate faster data access ((includingg market value, notional value, pprice, accrue and more))  Previousl

36. Slide 36: Additional Enhancements (2)

    Additional Enhancements (2)  For future dated interest rate swaps, new option to allow the floating side coupon rate to change on a daily basis  For the Wilshire Axiom Performance Attribution Report, p , the USPERF_PRECISION flag is now available to control the displayed decimal places for numeric

37. Slide 37: Additional Enhancements (3)

    Additional Enhancements (3)  Additional countries/currencies  Bahamas  Belize  Fiji Island  Serbia  Additional CPI indices/inflation-linked bonds  Iceland  Ireland  Mexico P A G E 37

38. Slide 38: Additional Enhancements (4)

    Additional Enhancements (4)  New futures contract  Government of Canada Bond (CGZ) futures (2-year) P A G E 38

39. Slide 39: Summary

    Summary  Wilshire Fixed Income Analytics continually develops new and innovative technologies for fixed income portfolio management  Wilshire Fixed Income Analytics assigns a personal Relationship Manager to provide a high level of personalized service, includingg installation, implementation, p d

40. Slide 40: Contact Information

    Contact Information  Please contact me with any questions, or if you want additional information about Wilshire Axiom or the products/services offered by Wilshire Fixed Income Analytics y  Need a username/password for online Resource Library access? Contact your Wilshire Axiom Relationship Manager

41. Slide 41: Appendix – New Benchmarks – DEX

    Appendix – New Benchmarks – DEX  DEX Universe Overall Index  DEX Short Corp BBB Index  DEX Long Overall Index  DEX Universe Communication Index  DEX Mid Overall Index  DEX Long Communication Index  DEX Short Sh t Overall O ll Index I d  DEX Mid Communication C i i Index I d  DEX Universe Co

42. Slide 42: Appendix – New Benchmarks – DEX (2)

    Appendix – New Benchmarks – DEX (2)  DEX Short Industrial Index  DEX Universe Municipal Index  DEX Long Corp Index  DEX Long Municipal Index  DEX Mid Corp Index  DEX Mid Municipal Index  DEX Short Sh t Corp C I d Index  DEX Short Sh Municipal M i i l Index I d  DEX Universe Agency Index  D

43. Slide 43: Appendix – New Benchmarks – iBoxx

    Appendix – New Benchmarks – iBoxx  iBoxx EUR Other Financials Subordinated  iBoxx EUR Eurozone AAA (Legacy)  iBoxx GBP Corporates 1-15  iBoxx EUR Tier I  iBoxx GBP Corporates 25+  iBoxx EUR Lower Tier II  iBoxx iB GBP Gilts Gil 1-10 1 10  iBoxx EUR Upper Tier II  iBoxx GBP Gilts 25+  iBoxx

44. Slide 44: Appendix – New Benchmarks – Merrill Lynch

    Appendix – New Benchmarks – Merrill Lynch  ML - EMU Direct Govt Inflation-Linked  ML - US Agcy Bullet Structure 1-5 Yrs  ML - EMU Direct Govt 0-3 Yrs  ML - US Agcy Bullet Structure 3-5 Yrs  ML - EMU Direct Govt 1-6 Mon  ML - US Agcy AAA Option Structure 1-3 Yrs  ML - EMU Securitized/Collatera

45. Slide 45: Appendix – New Benchmarks – HSBC

    Appendix – New Benchmarks – HSBC  HSBC ADBI - Vietnam  HSBC ADBI - Sri Lanka P A G E 45

46. Slide 46: Appendix – New Benchmarks – Lehman Brothers (Constituent)

    Appendix – New Benchmarks – Lehman Brothers (Constituent)  LB Multiverse CMBS  LB Multiverse Industrial  LB Multiverse Covered  LB Multiverse Local Authorities  LB Multiverse Global Index (Constituents)  LB Multiverse MBS Passthrough  LB Multiverse Agencies  LB Multiverse Sovereigns  LB Mul

47. Slide 47: Appendix – New Benchmarks – Lehman Brothers (Optimized)

    Appendix – New Benchmarks – Lehman Brothers (Optimized)  Lehman Municipal Bond: 1 Year (1-2)  Lehman Municipal Bond: 3 Year (2-4)  Lehman Municipal Bond: 5 Year (4-6)  Lehman Municipal Bond: 7 Year (6-8)  Lehman Municipal Bond: 10 Year (8-12)  Lehman Municipal Bond: 15 Year (12 (12-17) 17)  L

48. Slide 48: Wilshire Associates

    Wilshire Associates  Since 1972, Wilshire Associates Incorporated has delivered solutions to portfolio managers for analytics, performance attribution and risk management. For more than 20 years, Wilshire Axiom has been one of the world’s leading solutions in fixed income portfolio management and a

49. Slide 49: Wilshire Fixed Income Analytics

    Wilshire Fixed Income Analytics  Mark Lewis, Managing Director and Principal – Head of Global Business Development and Global Client Relationship Management, FIA  Mark Lewis joined Wilshire in 2006 and is based in the Santa Monica office. Prior to his current role, role Mr. Mr Lewis spent more tha

50. Slide 50: Copyrights/Trademarks

    Copyrights/Trademarks Copyright © 2008 Wilshire Associates Incorporated. All rights reserved. Information in this document is subject to change without notice. No part of this publication may be stored in a retrieval system, transmitted, or reproduced in any way, including but not limited to, photoc

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