Asset Allocation

Whether developing an asset allocation strategy or conducting an annual assessment of an existing policy, Wilshire Compass has the tools to help fund sponsors formulate the optimal asset allocation mix. Developed to incorporate and consider all of the unique considerations of a fund sponsor, Wilshire Compass has simplified one of the most important investment policy decisions.

For defined benefit pension plans, Wilshire Compass can calculate various hurdle rates which represent the required rates of return on existing plan assets to satisfy various plan liabilities, including, Accumulated Benefit Obligation (ABO) and Projected Benefit Obligation (PBO).

For foundations and endowments, Wilshire Compass offers a dynamic Monte Carlo simulation model to consider the impact of a specific spending policy, even a spending step down or hybrid spending policy, which has become more common in recent years.

Regardless of where you may find yourself in the strategic asset allocation process,

  • defining investment objectives,
  • identifying and establishing capital market assumptions for viable asset classes,
  • specifying asset allocation constraints,
  • calculating optimal asset allocation mixes, or,
  • selecting the policy portfolio,

Wilshire Compass provides a comprehensive database of both asset and sub-asset classes, along with the necessary analytic tools to evaluate the asset allocation process consistent with your investment philosophy.

Family offices and other taxable investors benefit from the ability to use the analytics within Wilshire Compass to better understand the impact the tax structure has on expected returns and risk levels, thus potentially redefining the relative relationship across asset classes.

And, for those institutional investors desiring to be more nimble and active, the integrated tactical asset allocation quantitative modeling tools provide an ideal method to explore this investment style.