N-Q 1 fp0029360_nq.htm WILSHIRE VARIABLE INSURANCE TRUST - FORM N-Q
 
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number
811-07917
  

Wilshire Variable Insurance Trust
(Exact name of registrant as specified in charter)

1299 Ocean Avenue, Suite 700 Santa Monica, California
90401-1085
Address of principal executive offices)
(Zip code)

Jason A. Schwarz
 
1299 Ocean Avenue, Suite 700 Santa Monica, California 90401-1085
(Name and address of agent for service)
 
Registrant's telephone number, including area code:
(310) 451-3051
  

Date of fiscal year end:
December 31
  
     
Date of reporting period:
September 30, 2017
  

Form N-Q is to be used by management investment companies other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to Rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments.
 
WILSHIRE 2015 ETF FUND
SCHEDULE OF INVESTMENTS
September 30, 2017 (Unaudited)
 
AFFILIATED REGISTERED INVESTMENT COMPANIES - 80.3%
  
Shares
    
Value
  
Wilshire Income Opportunities Fund - Institutional Class
    
785,939
    
$
8,346,668
  
Wilshire International Equity Fund - Institutional Class
    
414,990
      
4,403,038
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
74,164
      
3,230,600
  
Wilshire Large Company Value Portfolio - Institutional Class
    
148,492
      
3,246,028
  
Wilshire Small Company Growth Portfolio - Institutional Class
    
13,041
      
376,366
  
Wilshire Small Company Value Portfolio - Institutional Class
    
14,930
      
378,637
  
Total Affiliated Registered Investment Companies (Cost $18,208,986)
    
$
19,981,337
  
 
OTHER OPEN-END FUNDS - 18.7%
  
Shares
    
Value
  
Vanguard Total Bond Market Index - Admiral Shares (Cost $4,668,836)
    
432,047
    
$
4,657,461
  
 
MONEY MARKET FUNDS - 1.1%
  
Shares
    
Value
  
Northern Trust Institutional Government Select Portfolio - Institutional Class, 0.89% (a) (Cost $264,946)
    
264,946
    
$
264,946
  
                 
Total Investments at Value - 100.1% (Cost $23,142,768)
    
$
24,903,744
  
                 
Liabilities in Excess of Other Assets - (0.1%)
      
(24,910
)
                 
Net Assets - 100.0%
    
$
24,878,834
  
 
(a)
The rate shown is the 7-day effective yield as of September 30, 2017.
 
See accompanying notes to Schedules of Investments.
 
WILSHIRE 2025 ETF FUND
SCHEDULE OF INVESTMENTS
September 30, 2017 (Unaudited)
 
AFFILIATED REGISTERED INVESTMENT COMPANIES - 86.1%
  
Shares
    
Value
  
Wilshire Income Opportunities Fund - Institutional Class
    
1,302,042
    
$
13,827,679
  
Wilshire International Equity Fund - Institutional Class
    
1,445,450
      
15,336,226
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
213,990
      
9,321,413
  
Wilshire Large Company Value Portfolio - Institutional Class
    
428,401
      
9,364,850
  
Wilshire Small Company Growth Portfolio - Institutional Class
    
40,701
      
1,174,614
  
Wilshire Small Company Value Portfolio - Institutional Class
    
46,644
      
1,182,900
  
Total Affiliated Registered Investment Companies (Cost $45,061,147)
    
$
50,207,682
  

OTHER OPEN-END FUNDS - 13.1%
  
Shares
    
Value
  
Vanguard Total Bond Market Index - Institutional Class (Cost $7,677,328)
    
710,425
    
$
7,658,386
  

MONEY MARKET FUNDS - 0.8%
  
Shares
    
Value
  
Northern Trust Institutional Government Select Portfolio - Institutional Class, 0.89% (a) (Cost $459,067)
    
459,067
    
$
459,067
  
                 
Total Investments at Value - 100.0% (Cost $53,197,542)
    
$
58,325,135
  
                 
Other Assets in Excess of Liabilities - 0.0% (b)
      
26,850
  
                 
Net Assets - 100.0%
    
$
58,351,985
  
 
(a)
The rate shown is the 7-day effective yield as of September 30, 2017.
(b)
Percentage rounds to less than 0.1%.
 
See accompanying notes to Schedules of Investments.
 
WILSHIRE 2035 ETF FUND
SCHEDULE OF INVESTMENTS
September 30, 2017 (Unaudited)
 
AFFILIATED REGISTERED INVESTMENT COMPANIES - 92.2%
  
Shares
    
Value
  
Wilshire Income Opportunities Fund - Institutional Class
    
922,219
    
$
9,793,964
  
Wilshire International Equity Fund - Institutional Class
    
2,343,281
      
24,862,214
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
360,071
      
15,684,685
  
Wilshire Large Company Value Portfolio - Institutional Class
    
720,832
      
15,757,385
  
Wilshire Small Company Growth Portfolio - Institutional Class
    
66,027
      
1,905,540
  
Wilshire Small Company Value Portfolio - Institutional Class
    
75,692
      
1,919,552
  
Total Affiliated Registered Investment Companies (Cost $62,106,277)
    
$
69,923,340
  

OTHER OPEN-END FUNDS - 6.9%
  
Shares
    
Value
  
Vanguard Total Bond Market Index - Institutional Class (Cost $5,237,886)
    
485,439
    
$
5,233,032
  

MONEY MARKET FUNDS - 1.0%
  
Shares
    
Value
  
Northern Trust Institutional Government Select Portfolio - Institutional Class, 0.89% (a) (Cost $780,562)
    
780,562
    
$
780,562
  
                 
Total Investments at Value - 100.1% (Cost $68,124,725)
    
$
75,936,934
  
                 
Liabilities in Excess of Other Assets - (0.1%)
      
(120,867
)
                 
Net Assets - 100.0%
    
$
75,816,067
  
 
(a)
The rate shown is the 7-day effective yield as of September 30, 2017.
 
See accompanying notes to Schedules of Investments.
 
WILSHIRE VARIABLE INSURANCE TRUST
NOTES TO SCHEDULES OF INVESTMENTS
September 30, 2017 (Unaudited)
 
1. Securities valuation
 
The Wilshire Variable Insurance Trust (the “Trust”) consists of four separate investment portfolios. The portfolios presented in these statements are: 2015 Fund, 2025 Fund and 2035 Fund (collectively the “Funds,” each a “Fund” of the Trust). A security listed or traded on a domestic exchange is valued at its last sales price on the exchange where it is principally traded. Securities traded on National Association of Securities Dealers Automatic Quotation (“NASDAQ”) System are valued at the NASDAQ official closing price. Securities traded over-the-counter (other than on NASDAQ) are valued at the last current sales price. In the absence of a current quotation, the security is valued at the mean between the last bid and asked prices on the respective exchange.
 
Investments in open-end registered investment companies, including affiliated registered investment funds, are valued at the end of day based on its net asset value (“NAV”) per share as reported by such funds. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
 
A Fund’s investment in an exchange-traded fund (“ETF”) is valued at the ETF’s NAV or is valued at market price, depending upon whether a Fund purchased the ETF directly from the ETF in “creation units” or on an exchange, as applicable. During the period ended September 30, 2017, no creation units were purchased by the Funds.
 
When market quotations are not readily available, securities are valued according to procedures adopted by the Board of Trustees or are valued at fair value as determined in good faith by the Pricing Committee, whose members include at least two representatives of Wilshire Associates Incorporated (the “Adviser”), one of whom is an officer of the Trust, or the Trust’s Valuation Committee. Securities whose market value using the procedures outlined above do not reflect fair value because a significant valuation event has occurred may be valued at fair value by the Pricing Committee or the Valuation Committee in accordance with the Trust’s valuation procedures. The value of fair valued securities may be different from the last sales price (or the mean between the last bid and asked prices), and there is no guarantee that a fair valued security will be sold at the price at which a Fund is carrying the security.
 
In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. generally accepted accounting principles (“GAAP”), the Funds disclose fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. 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 guidance establishes three levels of the fair value hierarchy as follows:
 
•
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;
 
•
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and
 
•
Level 3 – Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level of input that is significant to the fair value measurement.
WILSHIRE VARIABLE INSURANCE TRUST
NOTES TO SCHEDULES OF INVESTMENTS (Continued)
 
The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2017:
 
2015 Fund
  
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Affiliated Registered Investment Companies
  
$
19,981,337
    
$
-
    
$
-
    
$
19,981,337
  
Other Open-End Funds
    
4,657,461
      
-
      
-
      
4,657,461
  
Money Market Funds
    
264,946
      
-
      
-
      
264,946
  
 Total
  
$
24,903,744
    
$
-
    
$
-
    
$
24,903,744
  
 
2025 Fund
  
Level 1
    
Level 2
    
Level 3
    
Total
  
                                 
Affiliated Registered Investment Companies
  
$
50,207,682
    
$
-
    
$
-
    
$
50,207,682
  
Other Open-End Funds
    
7,658,386
      
-
      
-
      
7,658,386
  
Money Market Funds
    
459,067
      
-
      
-
      
459,067
  
 Total
  
$
58,325,135
    
$
-
    
$
-
    
$
58,325,135
  
 
2035 Fund
  
Level 1
    
Level 2
    
Level 3
    
Total
  
                                 
Affiliated Registered Investment Companies
  
$
69,923,340
    
$
-
    
$
-
    
$
69,923,340
  
Other Open-End Funds
    
5,233,032
      
-
      
-
      
5,233,032
  
Money Market Funds
    
780,562
      
-
      
-
      
780,562
  
 Total
  
$
75,936,934
    
$
-
    
$
-
    
$
75,936,934
  
 
As of September 30, 2017, the Funds did not have any transfers between any Level. In addition, the Funds did not hold derivative instruments or assets or liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2017. It is the Funds’ policy to recognize transfers between levels at the end of the reporting period.
 
2. Security transactions
 
Security transactions are recorded on a trade date basis. Realized gains and losses on securities sold are determined on the basis of identified cost.
 
3. Federal income tax
 
The following information is computed on a tax basis for each item as of September 30, 2017:
 
   
2015 Fund
    
2025 Fund
    
2035 Fund
  
Cost of portfolio investments
  
$
23,152,017
    
$
53,217,194
    
$
68,138,526
  
                         
Gross unrealized appreciation
  
$
1,763,326
    
$
5,127,665
    
$
7,803,943
  
Gross unrealized depreciation
    
(11,599
)
    
(19,724
)
    
(5,535
)
                         
Net unrealized appreciation
  
$
1,751,727
    
$
5,107,941
    
$
7,798,408
  
 
The difference between the federal income tax cost of portfolio investments and the Schedules of Investments cost is due to certain timing differences in recognition of capital gains and losses under income tax regulations and GAAP. These “book/tax” differences are temporary in nature and are due to the tax deferral of losses on wash sales.
WILSHIRE VARIABLE INSURANCE TRUST
NOTES TO SCHEDULES OF INVESTMENTS (Continued)
4. Affiliated investments
 
The following is a summary of the transactions with affiliates for the period ended September 30, 2017:
 
Fund
  
Value as of
December
31, 2016
    
Cost of
Purchases
    
Proceeds from
Sales
    
Realized Gains
    
Change in
Unrealized Appreciation (Depreciation)
    
Value as of
September
30, 2017
    
Income
Distributions
  
2015 Fund
                                          
Wilshire Income Opportunities Fund -
Institutional Class
  
$
11,410,270
    
$
3,231,302
    
$
(954,508
)
  
$
8,025
    
$
(5,348,421
)
  
$
8,346,668
    
$
-
  
Wilshire International Equity Fund -
Institutional Class
    
3,659,137
      
786,918
      
(514,025
)
    
43,044
      
427,964
      
4,403,038
      
-
  
Wilshire Large Company Growth Portfolio -
Institutional Class
    
3,477,309
      
151,220
      
(1,048,868
)
    
44,551
      
606,388
      
3,230,600
      
-
  
Wilshire Large Company Value Portfolio -
Institutional Class
    
4,058,237
      
202,380
      
(1,291,458
)
    
121,115
      
155,754
      
3,246,028
      
-
  
Wilshire Small Company Growth Portfolio -
Institutional Class
    
558,038
      
36,743
      
(261,387
)
    
26,732
      
16,240
      
376,366
      
-
  
Wilshire Small Company Value Portfolio -
Institutional Class
    
559,228
      
59,707
      
(256,506
)
    
24,089
      
(7,881
)
    
378,637
      
-
  
 
2025 Fund
                                                        
Wilshire Income Opportunities Fund -
Institutional Class
  
$
18,595,536
    
$
3,504,686
    
$
(4,787,700
)
  
$
114,243
    
$
(3,599,086
)
  
$
13,827,679
    
$
-
  
Wilshire International Equity Fund -
Institutional Class
    
12,682,217
      
2,848,629
      
(1,563,167
)
    
131,976
      
1,236,571
      
15,336,226
      
-
  
Wilshire Large Company Growth Portfolio -
Institutional Class
    
10,023,368
      
432,767
      
(3,018,225
)
    
126,696
      
1,756,807
      
9,321,413
      
-
  
Wilshire Large Company Value Portfolio -
Institutional Class
    
11,977,912
      
578,468
      
(3,997,983
)
    
367,318
      
439,135
      
9,364,850
      
-
  
Wilshire Small Company Growth Portfolio -
Institutional Class
    
1,257,294
      
84,500
      
(282,809
)
    
28,256
      
87,373
      
1,174,614
      
-
  
Wilshire Small Company Value Portfolio -
Institutional Class
    
1,261,441
      
62,737
      
(195,993
)
    
18,661
      
36,054
      
1,182,900
      
-
  
 
2035 Fund
                                          
Wilshire Income Opportunities Fund -
Institutional Class
  
$
14,334,657
    
$
6,608,519
    
$
(6,204,330
)
  
$
168,455
    
$
(5,113,337
)
  
$
9,793,964
    
$
-
  
Wilshire International Equity Fund -
Institutional Class
    
20,754,944
      
5,665,076
      
(3,328,121
)
    
296,462
      
1,473,853
      
24,862,214
      
-
  
Wilshire Large Company Growth Portfolio -
Institutional Class
    
17,233,007
      
939,514
      
(5,714,468
)
    
250,690
      
2,975,942
      
15,684,685
      
-
  
Wilshire Large Company Value Portfolio -
Institutional Class
    
19,814,498
      
1,087,385
      
(6,476,141
)
    
592,144
      
739,499
      
15,757,385
      
-
  
Wilshire Small Company Growth Portfolio -
Institutional Class
    
2,470,388
      
177,702
      
(945,944
)
    
96,213
      
107,181
      
1,905,540
      
-
  
Wilshire Small Company Value Portfolio -
Institutional Class
    
2,475,457
      
224,583
      
(864,191
)
    
79,455
      
4,248
      
1,919,552
      
-
  
WILSHIRE GLOBAL ALLOCATION FUND
SCHEDULE OF INVESTMENTS
September 30, 2017 (Unaudited)
 
AFFILIATED REGISTERED INVESTMENT COMPANIES - 86.5%
  
Shares
    
Value
  
Wilshire Income Opportunities Fund - Institutional Class
    
9,441,118
    
$
100,264,670
  
Wilshire International Equity Fund - Institutional Class
    
13,677,425
      
145,117,483
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
1,021,200
      
44,483,462
  
Wilshire Large Company Value Portfolio - Institutional Class
    
2,043,612
      
44,673,362
  
Wilshire Small Company Growth Portfolio - Institutional Class
    
282,391
      
8,149,794
  
Wilshire Small Company Value Portfolio - Institutional Class
    
323,674
      
8,208,370
  
Total Affiliated Registered Investment Companies (Cost $326,961,510)
    
$
350,897,141
  

OTHER OPEN-END FUNDS - 13.5%
  
Shares
    
Value
  
DFA Emerging Markets Core Equity Portfolio - Institutional Class
    
658,705
    
$
14,287,302
  
Vanguard Total Bond Market Index Fund - Institutional Shares
    
1,128,161
      
12,161,578
  
Vanguard Total International Bond Index Fund - Admiral Shares
    
873,344
      
28,523,420
  
Total Open-End Funds (Cost $55,552,317)
    
$
54,972,300
  

MONEY MARKET FUNDS - 0.1%
  
Shares
    
Value
  
Northern Trust Institutional Government Select Portfolio - Institutional Class, 0.89% (a) (Cost $295,858)
    
295,858
    
$
295,858
  
                 
Total Investments at Value - 100.1% (Cost $382,809,685)
    
$
406,165,299
  
                 
Liabilities in Excess of Other Assets - (0.1%)
      
(476,560
)
                 
Net Assets - 100.0%
    
$
405,688,739
  
 
(a)
The rate shown is the 7-day effective yield as of September 30, 2017.
 
See accompanying notes to Schedule of Investments.
 
WILSHIRE GLOBAL ALLOCATION FUND
NOTES TO SCHEDULE OF INVESTMENTS
September 30, 2017 (Unaudited)
 
1. Securities valuation
 
A security of Wilshire Global Allocation Fund (the “Fund”) that is listed or traded on a domestic exchange is valued at its last sales price on the exchange where it is principally traded. Securities traded on National Association of Securities Dealers Automatic Quotation (“NASDAQ”) system are valued at the NASDAQ official closing price. Securities traded over-the-counter (other than on NASDAQ) are valued at the last current sales price. In the absence of a current quotation, the security is valued at the mean between the last bid and asked prices on the respective exchange. Values of debt securities are generally reported at the last sales price if the security is actively traded. If a debt security is not actively traded it is valued at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Third-party valuation providers often utilize proprietary models that are subjective and require the use of judgment and the application of various assumptions including, but not limited to, interest rates, prepayment speeds, and default rate assumptions. 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, or otherwise are valued at amortized cost if the Pricing Committee concludes amortized cost approximates fair value. When market quotations are not readily available, securities are valued according to procedures adopted by the Board of Trustees or are valued at fair value as determined in good faith by the Pricing Committee, whose members include at least two representatives of Wilshire Associates Incorporated (the “Adviser”), one of whom is an officer of Wilshire Variable Insurance Trust (the “Trust”), or the Trust’s Valuation Committee. Securities whose market value using the procedures outlined above do not reflect fair value because a significant valuation event has occurred may be valued at fair value by the Pricing Committee or the Valuation Committee in accordance with the Trust’s valuation procedures. The value of fair valued securities may be different from the last sales price (or the mean between the last bid and asked prices), and there is no guarantee that a fair valued security will be sold at the price at which the Fund is carrying the security.
 
Investments in open-end registered investment companies, including affiliated registered investment funds, are valued at the end of day based on its net asset value (“NAV”) per share as reported by such funds. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
 
The Fund’s investment in an exchange-traded fund (“ETF”), if any, is valued at the ETF’s NAV or is valued at market price, depending upon whether the Fund purchased the ETF directly from the ETF in “creation units” or on an exchange, as applicable. During the period ended September 30, 2017, no creation units were purchased by the Fund.
 
In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. generally accepted accounting principles (“GAAP”), the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. 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 guidance establishes three levels of the fair value hierarchy as follows:
 
•
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the fund has the ability to access at the measurement date;
 
•
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, etc.); and
 
•
Level 3 – Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level of input that is significant to the fair value measurement.
WILSHIRE GLOBAL ALLOCATION FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued)
 
The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2017:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Affiliated Registered Investment Companies
  
$
350,897,141
    
$
-
    
$
-
    
$
350,897,141
  
Other Open-End Funds
    
54,972,300
      
-
      
-
      
54,972,300
  
Money Market Funds
    
295,858
      
-
      
-
      
295,858
  
 Total
  
$
406,165,299
    
$
-
    
$
-
    
$
406,165,299
  
 
As of September 30, 2017, the Fund did not have any transfers between any Level. In addition, the Fund did not hold derivative instruments or assets or liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2017. It is the Fund’s policy to recognize transfers between levels at the end of the reporting period.
 
2. Security transactions
 
Security transactions are recorded on a trade date basis. Realized gains and losses on securities sold are determined on the basis of identified cost.
 
3. Federal income tax
 
The following information is computed on a tax basis for each item as of September 30, 2017:
 
Cost of portfolio investments
  
$
383,858,026
  
     
 
  
Gross unrealized appreciation
  
$
25,431,217
  
Gross unrealized depreciation
    
(3,123,944
)
         
Net unrealized appreciation
  
$
22,307,273
  
 
The difference between the federal income tax cost of portfolio investments and the Schedule of Investments cost is due to certain timing differences in recognition of capital gains and losses under income tax regulations and GAAP. These “book/tax” differences are temporary in nature and are due to the tax deferral of losses on wash sales.
4. Affiliated investments
 
The Fund operates under a fund-of-funds structure and invests a significant portion of its assets in certain underlying affiliated funds, which are registered investment companies advised by the Adviser. The following is a summary of the transactions in such affiliated investments for the period ended September 30, 2017:
 
Fund
  
Value as of December 31, 2016
    
Cost of Purchases
    
Proceeds from Sales
    
Realized Gain (Loss)
    
Change in Unrealized Appreciation (Depreciation)
    
Value as of September 30, 2017
    
Income Distributions
  
Wilshire Income Opportunities Fund -
Institutional Class
  
$
132,933,909
    
$
352,300
    
$
(39,248,332
)
  
$
1,704,952
    
$
4,521,841
    
$
100,264,670
    
$
-
  
Wilshire International Equity Fund -
Institutional Class
    
119,802,761
      
7,112,306
      
(6,131,152
)
    
247,939
      
24,085,629
      
145,117,483
      
-
  
Wilshire Large Company Growth Portfolio -
Institutional Class
    
45,047,267
      
539,457
      
(13,635,112
)
    
(1,402,848
)
    
13,934,698
      
44,483,462
      
-
  
Wilshire Large Company Value Portfolio -
Institutional Class
    
59,123,645
      
1,526,278
      
(33,690,085
)
    
(4,405,484
)
    
22,119,008
      
44,673,362
      
-
  
Wilshire Small Company Growth Portfolio -
Institutional Class
    
11,902,935
      
417,882
      
(9,034,903
)
    
400,813
      
4,463,067
      
8,149,794
      
-
  
Wilshire Small Company Value Portfolio -
Institutional Class
    
12,365,816
      
441,552
      
(9,107,779
)
    
(321,033
)
    
4,829,814
      
8,208,370
      
-
  

Item 2. Controls and Procedures.

(a) Based on their evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the registrant’s principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that such information is recorded, processed, summarized, and reported on a timely basis.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): 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 Variable Insurance Trust 
    
       
By (Signature and Title)*
/s/ Jason A. Schwarz
  
   
Jason A. Schwarz, President
  
 
 
    
       
Date
November 29, 2017
    
       
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/ Jason A. Schwarz
  
   
Jason A. Schwarz, President
  
       
Date
November 29, 2017
    
       
By (Signature and Title)*
/s/ Michael Wauters
  
   
Michael Wauters, Treasurer and Principal Accounting Officer
  
       
Date
November 29, 2017
    

*
Print the name and title of each signing officer under his or her signature.