N-CSR 1 wvit_ncsr.txt 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 811-07917 WILSHIRE VARIABLE INSURANCE TRUST (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. -------------------------------------------------------------------------------- [LOGO] WILSHIRE VARIABLE INSURANCE TRUST ANNUAL REPORT EQUITY FUND BALANCED FUND INCOME FUND SMALL CAP GROWTH FUND INTERNATIONAL EQUITY FUND SOCIALLY RESPONSIBLE FUND DECEMBER 31, 2008 --------------- -------------------------------------------------------------------------------- TABLE OF CONTENTS Shareholder Letter ....................................................... 1 Fund Commentaries ........................................................ 2 Disclosure of Fund Expenses .............................................. 14 Schedules of Investments ................................................. 16 Statements of Assets and Liabilities ..................................... 52 Statements of Operations ................................................. 53 Statements of Changes in Net Assets ...................................... 54 Financial Highlights ..................................................... 56 Notes to the Financial Statements ........................................ 62 Report of Independent Registered Public Accounting Firm .................. 72 Additional Fund Information .............................................. 73 Shareholder Voting Results ............................................... 76 Board Approval of Advisory and Sub-Advisory Agreements ................... 78 Tax Information .......................................................... 82
--------------- SHARES OF THE WILSHIRE VARIABLE INSURANCE TRUST ARE SOLD ONLY AS THE UNDERLYING INVESTMENT FOR VARIABLE ANNUITY CONTRACTS ISSUED BY INSURANCE COMPANIES.THIS REPORT IS AUTHORIZED FOR USE IN CONNECTION WITH ANY OFFERING OF THE TRUST'S SHARES ONLY IF ACCOMPANIED OR PRECEDED BY THE TRUST'S CURRENT PROSPECTUS. Shares of the Wilshire Variable Insurance Trust are distributed by SEI Investments Distribution Co. Dear Wilshire Variable Insurance Trust Shareholder: We are pleased to present this annual report to shareholders of the Wilshire Variable Insurance Trust (the "Trust"). This report covers the period from January 1, 2008 to December 31, 2008 (the "Period"), for the Equity, Balanced, Income, Small Cap Growth, International Equity and Socially Responsible Funds (the "Funds"). 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 the 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 Index, 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%. The volatility in the equities markets was mirrored in the bond market for the year. Investors' persistent flight to quality from risky assets into U.S. Treasury bonds materially affected fixed income market returns. For the year, the Barclays Capital Aggregate Bond Index returned 5.24%. Except for Treasury bonds, virtually all fixed income securities performed poorly for the year with non-investment grade bonds declining 26% for the year. The market's immediate haste to raise liquidity has created value opportunities for disciplined investors. However, the lack of broad market commitment has penalized long-term investors as we evidenced many largest bond funds in the country underperform the broad fixed income market. 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 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. While we are disappointed by the performance of the market and our Funds, we are encouraged by the activities of our sub-advisers who continue to follow through with the disciplined investment approaches that have made them successful. While the immediate terrain our sub-advisers 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 1 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 ................................... (40.19)% FIVE YEARS ENDED 12/31/08 ................................. (3.57)% TEN YEARS ENDED 12/31/08 .................................. (2.67)%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE EQUITY FUND AND THE STANDARD & POOR'S 500 INDEX FROM DECEMBER 31, 1998 THROUGH DECEMBER 31, 2008. [LINE GRAPH]
12/31/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Equity Fund $10,000 $ 9,746 $ 9,294 $8,903 $7,175 $9,152 $10,080 $10,675 $12,481 $12,755 $7,630 S&P 500 Index $10,000 $12,104 $11,002 $9,694 $7,552 $9,718 $10,775 $11,304 $13,090 $13,809 $8,700
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. RECENT PERFORMANCE CAN BE FOUND AT YOUR PARTICULAR INSURANCE COMPANY. THE STANDARD & POOR'S 500 INDEX IS AN UNMANAGED INDEX CONSISTING OF 500 STOCKS. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. DURING CERTAIN PERIODS, CERTAIN FEES AND EXPENSES WERE WAIVED AND REIMBURSED. FOR THE YEAR ENDED DECEMBER 31, 2008, FEES TOTALING LESS THAN 0.01% OF AVERAGE NET ASSETS WERE WAIVED.WITHOUT SUCH WAIVERS AND REIMBURSEMENTS, TOTAL RETURNS FOR THE PERIODS WOULD HAVE BEEN LOWER. 2 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] INFORMATION TECHNOLOGY 21.0% HEALTH CARE 18.7% FINANCIALS 15.3% CONSUMER STAPLES 10.8% CONSUMER DISCRETIONARY 10.4% ENERGY 9.3% INDUSTRIALS 8.5% UTILITIES 2.1% MATERIALS 1.7% TELECOMMUNICATION SERVICES 1.6% U.S. TREASURY OBLIGATIONS 0.6%
The Equity Fund, (the "Fund"), returned (40.19)% for the year ended December 31, 2008. For the year, the Fund's benchmark, the S&P 500 Index returned (36.99)%. As panicked investors overlooked investment fundamentals and hastily focused exclusively on liquidity, the Fund underperformed against its benchmark for the year. The U.S. was at the core of the market collapse this year as credit dissolved, investment banks flopped, and housing and consumer spending broke down. No industry was immune to the wreckage of the financial crisis this year -- all ten economic sectors posted negative returns, with the Financials sector falling the most. The Fund's performance was hampered by stock selections in Financials, Information Technology and Energy sectors. Its overweight position to the Financials sector and underweight position to Consumer Staples sector, also detracted from performance. On the other hand, positive stock selection in Health Care and Consumer Staples sectors helped to add value. Although we are disappointed by the performance of the market and the Fund, we are encouraged by the activities of our sub-advisers 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.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.ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. * BASED ON PERCENT OF THE FUND'S TOTAL LONG-TERM INVESTMENTS IN SECURITIES MARKET VALUE. 3 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST BALANCED FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 ................................... (26.68)% FIVE YEARS ENDED 12/31/08 ................................. (0.99)% TEN YEARS ENDED 12/31/08 .................................. 0.55%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BALANCED FUND AND THE STOCK/BOND INDEX FROM DECEMBER 31, 1998 THROUGH DECEMBER 31, 2008. [LINE GRAPH]
12/31/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Balanced Fund $10,000 $ 9,889 $10,017 $10,118 $9,283 $11,098 $12,007 $12,522 $13,973 $14,403 $10,560 Stock/Bond Index (1) $10,000 $11,200 $11,088 $10,677 $9,628 $11,408 $12,354 $12,849 $14,277 $15,165 $11,819
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. RECENT PERFORMANCE CAN BE FOUND AT YOUR PARTICULAR INSURANCE COMPANY. (1) STOCK/BOND INDEX: A BLEND OF 60% STANDARD & POOR'S 500 INDEX AND 40% BARCLAYS CAPITAL AGGREGATE BOND INDEX. THE STANDARD & POOR'S 500 INDEX IS AN UNMANAGED INDEX CONSISTING OF 500 STOCKS. THE BARCLAYS CAPITAL AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED INDEX OF INVESTMENT GRADE FIXED-RATED DEBT ISSUES, INCLUDING GOVERNMENT, CORPORATE, ASSET-BACKED AND MORTGAGE-BACKED SECURITIES WITH A MATURITY OF ONE YEAR OR MORE. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. DURING CERTAIN PERIODS, CERTAIN FEES AND EXPENSES WERE WAIVED AND REIMBURSED. FOR THE YEAR ENDED DECEMBER 31, 2008, FEES TOTALING LESS THAN 0.01% OF AVERAGE NET ASSETS WERE WAIVED.WITHOUT SUCH WAIVERS AND REIMBURSEMENTS, TOTAL RETURNS FOR THE PERIODS WOULD HAVE BEEN LOWER. 4 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST BALANCED FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND 39.9% WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND 39.6% WILSHIRE LARGE CAP CORE 130/30 FUND 20.5%
The Balanced Fund (the "Fund") allocates its assets 60% and 40% respectively to the Equity VIT and the Income VIT. The Fund's allocations between fixed income and equities serve to diversify and protect investors' assets from concentration risk. The Fund returned (26.68)% for the year and its benchmark index returned (22.06)% While the Fund protected investors from the sharper declines of the stock market, the Fund wasn't able to maintain its value. The challenging market environment and the persistent downward spiral of investor confidence will take time to heal. Although we are disappointed by the performance of the market and the Fund, we are encouraged by the activities of its sub-adviser who continues to follow through with the disciplined investment approach. 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 BALANCED FUND ATTEMPTS TO ACHIEVE ITS OBJECTIVE BY INVESTING IN OTHER FUNDS.YOU MAY INVEST IN THE UNDERLYING FUNDS DIRECTLY.BY INVESTING IN THE UNDERLYING FUNDS INDIRECTLY THROUGH THE BALANCED FUND, YOU WILL INCUR NOT ONLY THE EXPENSES OF THE UNDERLYING FUNDS, BUT ALSO THE EXPENSES OF THE BALANCED FUND.THE BALANCED FUND IS SUBJECT TO THE RISKS OF THE UNDERLYING FUNDS IT HOLDS.THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER.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.ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURns. * BASED ON PERCENT OF THE FUND'S TOTAL LONG-TERM INVESTMENTS IN SECURITIES MARKET VALUE. 5 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 ................................... (6.44)% FIVE YEARS ENDED 12/31/08 ................................. 1.64% TEN YEARS ENDED 12/31/08 .................................. 4.02%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INCOME FUND AND THE BARCLAYS CAPITAL AGGREGATE BOND INDEX FROM DECEMBER 31, 1998 THROUGH DECEMBER 31, 2008. [LINE GRAPH]
12/31/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Income Fund $10,000 $9,843 $10,719 $11,668 $12,737 $13,673 $14,349 $14,632 $15,216 $15,856 $14,835 Barclays Capital Aggregate Bond Index $10,000 $9,918 $11,071 $12,006 $13,237 $13,780 $14,378 $14,727 $15,366 $16,435 $17,297
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. RECENT PERFORMANCE CAN BE FOUND AT YOUR PARTICULAR INSURANCE COMPANY. THE BARCLAYS CAPITAL AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED INDEX OF INVESTMENT GRADE FIXED-RATED DEBT ISSUES, INCLUDING GOVERNMENT, CORPORATE, ASSET-BACKED AND MORTGAGE-BACKED SECURITIES WITH A MATURITY OF ONE YEAR OR MORE. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. DURING CERTAIN PERIODS, CERTAIN FEES AND EXPENSES WERE WAIVED AND REIMBURSED. FOR THE YEAR ENDED DECEMBER 31, 2008, FEES TOTALING LESS THAN 0.01% OF AVERAGE NET ASSETS WERE WAIVED. WITHOUT SUCH WAIVERS AND REIMBURSEMENTS, TOTAL RETURNS FOR THE PERIODS WOULD HAVE BEEN LOWER. 6 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] PREFERRED STOCK 0.1% COLLATERALIZED MORTGAGE OBLIGATIONS 43.8% CORPORATE BONDS 21.9% U.S. GOVERNMENT & AGENCY OBLIGATIONS 17.7% FOREIGN BONDS 10.3% U.S. TREASURY OBLIGATIONS 3.1% ASSET BACKED SECURITIES 3.1%
The Income Fund (the "Fund") posted negative returns of (6.44)% for the year. The Fund's benchmark, the Barclays Capital Aggregate Bond Index, returned 5.24%. As confidence in the markets plummeted and risk aversion soared, investors shied away from anything with perceived credit risk in 2008. The flight to quality sent Treasury yields to their lowest levels in 50 years. On the other side of the spectrum, high yield spreads hit historic highs. The Fund's overweight to investment grade credits over Treasuries hurt performance as the economy continued to worsen and spreads between investment grade credits and Treasuries widened significantly during the year. The Fund's negative relative performance was also attributable to its overweight exposure to investment grade agency mortgages as these issues sold off due to persistent lack of market liquidity. On the positive end, the Fund gained relative performance from its longer duration portfolio as interest rates continued to decline throughout the year. Although we are disappointed by the performance of the market and the Fund, we are encouraged by the activities of its sub-adviser who continues to follow through with the disciplined investment approach. 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. 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. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. * BASED ON PERCENT OF THE FUND'S TOTAL INVESTMENTS IN SECURITIES MARKET VALUE. 7 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 ................................... (46.36)% FIVE YEARS ENDED 12/31/08 ................................. (5.93)% TEN YEARS ENDED 12/31/08 .................................. (2.60)%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE SMALL CAP GROWTH FUND AND THE RUSSELL 2000 GROWTH INDEX FROM DECEMBER 31, 1998 THROUGH DECEMBER 31, 2008. [LINE GRAPH]
12/31/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Small Cap Growth Fund $10,000 $17,155 $15,295 $10,736 $6,556 $10,435 $10,895 $11,292 $12,582 $14,332 $7,687 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. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. RECENT PERFORMANCE CAN BE FOUND AT YOUR PARTICULAR INSURANCE COMPANY. THE RUSSELL 2000 GROWTH INDEX IS AN UNMANAGED INDEX COMPRISED OF THE RUSSELL 2000 GROWTH SECURITIES WITH A GREATER-THAN-AVERAGE GROWTH ORIENTATION. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. DURING CERTAIN PERIODS, CERTAIN FEES AND EXPENSES WERE WAIVED AND REIMBURSED. FOR THE YEAR ENDED DECEMBER 31, 2008, FEES TOTALING 0.24% OF AVERAGE NET ASSETS WERE WAIVED AND REIMBURSED. WITHOUT SUCH WAIVERS AND REIMBURSEMENTS, TOTAL RETURNS FOR THE PERIODS WOULD HAVE BEEN LOWER. 8 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] EXCHANGE TRADED FUND 0.9% HEALTH CARE 25.5% INFORMATION TECHNOLOGY 21.0% INDUSTRIALS 19.6% CONSUMER DISCRETIONARY 15.7% ENERGY 7.0% FINANCIALS 5.5% TELECOMMUNICATION SERVICES 1.5% CONSUMER STAPLES 1.3% MATERIALS 1.1% UTILITIES 0.9%
The Small Cap Growth Fund (the "Fund") returned (46.36)% for the year ended December 31, 2008. The Fund's benchmark, the Russell 2000 Growth Index, returned (38.53)% for the year. The U.S. was at the core of the market collapse as credit dissolved, investment banks flopped, and housing and consumer spending broke down. No industry was immune to the wreckage of the financial crisis this year -- all ten economic sectors posted negative results in 2008. As investors hastily neglected growth prospects of rapidly expanding companies, small growth stocks came under great pressure. Oriented to invest in companies that experience rapid growth, the Fund's less defensive profile detracted from performance. The Fund's underperformance was primarily driven by stock selection in the Financials, Industrials and Information Technology sectors. However, the Fund benefitted from positive stock selection in the Health Care sector, driven by several key holdings that continue to experience business acceleration despite the gloomy macro environment. Although we are disappointed by the performance of the market and the Fund, we are encouraged by the activities of our sub-advisers 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. 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. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. 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. * BASED ON PERCENT OF THE FUND'S TOTAL LONG-TERM INVESTMENTS IN SECURITIES MARKET VALUE. 9 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 ................................... (43.75)% FIVE YEARS ENDED 12/31/08 ................................. (1.61)% TEN YEARS ENDED 12/31/08 .................................. (1.16)%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE INTERNATIONAL EQUITY FUND AND THE MSCI EAFE INDEX FROM DECEMBER 31, 1998 THROUGH DECEMBER 31, 2008. [LINE GRAPH]
12/31/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ International Equity Fund $10,000 $15,184 $12,525 $9,224 $7,288 $9,655 $10,679 $11,760 $14,555 $15,825 $ 8,901 MSCI EAFE Index $10,000 $12,696 $10,898 $8,561 $7,196 $9,973 $11,992 $13,615 $17,202 $19,124 $10,827
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. RECENT PERFORMANCE CAN BE FOUND AT YOUR PARTICULAR INSURANCE COMPANY. THE MSCI EAFE INDEX IS AN UNMANAGED CAPITALIZATION-WEIGHTED MEASURE OF STOCK MARKETS IN EUROPE, AUSTRALIA AND THE FAR EAST. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. DURING CERTAIN PERIODS, CERTAIN FEES AND EXPENSES WERE WAIVED AND REIMBURSED. FOR THE YEAR ENDED DECEMBER 31, 2008, FEES TOTALING 0.22% OF AVERAGE NET ASSETS WERE WAIVED.WITHOUT SUCH WAIVERS AND REIMBURSEMENTS, TOTAL RETURNS FOR THE PERIODS WOULD HAVE BEEN LOWER. 10 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] EXCHANGE TRADED FUND 1.3% FINANCIALS 20.5% CONSUMER STAPLES 11.9% INDUSTRIALS 11.7% HEALTH CARE 10.5% ENERGY 9.5% UTILITIES 8.5% CONSUMER DISCRETIONARY 8.0% TELECOMMUNICATION SERVICES 7.0% MATERIALS 7.0% INFORMATION TECHNOLOGY 4.1%
The International Equity Fund (the "Fund") slightly underperformed the MSCI EAFE Index by 0.37% in 2008. The Fund returned (43.75)% for the year ended December 31, 2008 while its benchmark, the MSCI EAFE Index, returned (43.38)%. International stocks crumbled in 2008 as the financial crisis spread beyond the United States, sending investors fleeing from markets worldwide. The MSCI EAFE Index recorded the worst calendar year loss in its history. The Fund's relative underperformance was driven primarily by stock selection in the Utilities and Energy sectors. Also affecting its performance was its exposure to the rapidly growing emerging economies, such as Brazil, Russia, India, and China. On the positive end, significant value was added through sector positioning, notably underweight positions to Materials and Financial sectors, and overweight position to Telecommunication Services sector. Stock selection in Euro-pean countries, particularly within Germany and the United Kingdom contributed to the Fund's performance. Avoiding pitfalls, such as Royal Bank of Scotland, Rio Tinto, and British Petroleum, also helped the Fund's performance. While we are disappointed by the performance of the market and the Fund, we are encouraged by the activities of our sub-advisers 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. FOREIGN SECURITIES MAY BE SUBJECT TO A HIGHER DEGREE OF MARKET RISK DUE TO CURRENCY FLUCTUATIONS, LACK OF LIQUIDITY, AND POLITICAL AND ECONOMIC INSTABILITY. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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.ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. * BASED ON PERCENT OF THE FUND'S TOTAL LONG-TERM INVESTMENTS IN SECURITIES MARKET VALUE. 11 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 ................................... (40.39)% FIVE YEARS ENDED 12/31/08 ................................. (3.59)% TEN YEARS ENDED 12/31/08 .................................. 0.12%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE SOCIALLY RESPONSIBLE FUND AND THE S&P 500 INDEX FROM DECEMBER 31, 1998 THROUGH DECEMBER 31, 2008. [LINE GRAPH]
12/31/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Socially Responsible Fund $10,000 $10,839 $11,792 $10,929 $9,458 $12,146 $13,761 $14,467 $17,436 $16,978 $10,120 S&P 500 Index $10,000 $12,104 $11,002 $ 9,694 $7,552 $ 9,718 $10,775 $11,304 $13,090 $13,809 $8,700
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. RECENT PERFORMANCE CAN BE FOUND AT YOUR PARTICULAR INSURANCE COMPANY. THE STANDARD & POOR'S 500 INDEX IS AN UNMANAGED INDEX CONSISTING OF 500 STOCKS. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. DURING CERTAIN PERIODS SINCE INCEPTION, CERTAIN FEES AND EXPENSES WERE WAIVED AND REIMBURSED. FOR THE YEAR ENDED DECEMBER 31, 2008, FEES TOTALING LESS THAN 0.01% OF AVERAGE NET ASSETS WERE WAIVED. WITHOUT SUCH WAIVERS AND REIMBURSEMENTS, TOTAL RETURNS SINCE INCEPTION WOULD HAVE BEEN LOWER. 12 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] FINANCIALS 19.2% CONSUMER STAPLES 17.6% INFORMATION TECHNOLOGY 16.5% HEALTH CARE 16.4% CONSUMER DISCRETIONARY 9.8% INDUSTRIALS 6.3% ENERGY 5.8% UTILITIES 3.8% MATERIALS 3.4% TELECOMMUNICATION SERVICES 1.2%
The Socially Responsible Fund, (the "Fund"), returned (40.39)% for the year ended December 31, 2008. The Fund's benchmark, the S&P 500 Index returned (36.99)% for the same period. All ten economic sectors posted negative returns, with Financials falling in most dramatic fashion. An overweight to financial companies detracted from performance and served as the top contributor to the Fund's underperformance against the S&P 500 Index. The Fund's stock selections in Information Technology and Industrial sectors helped to add value and partially offset its underperformance. Although we are disappointed by the performance of the market and the Fund, we believe 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. 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. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. * BASED ON PERCENT OF THE FUND'S TOTAL LONG-TERM INVESTMENTS IN SECURITIES MARKET VALUE. 13 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 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 mutual 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 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. Wilshire Variable Insurance Trust has no such charges or fees, but they 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 costs of owning different funds. 14 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 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 07/01/2008 12/31/2008 Ratio(1) 07/01/2008-12/31/2008(2)(3) ---------- ---------- -------- ---------------------------- EQUITY FUND -------------------------------------------------------------------------------------------------------------- Actual Fund Return ....................... $ 1,000.00 $ 691.10 1.20% $ 5.10 Hypothetical 5% Return ................... $ 1,000.00 $ 1,019.10 1.20% $ 6.09 BALANCED FUND (4) -------------------------------------------------------------------------------------------------------------- Actual Fund Return ....................... $ 1,000.00 $ 805.40 0.20% $ 0.91 Hypothetical 5% Return ................... $ 1,000.00 $ 1,024.13 0.20% $ 1.02 INCOME FUND -------------------------------------------------------------------------------------------------------------- Actual Fund Return ....................... $ 1,000.00 $ 955.10 1.05% $ 5.16 Hypothetical 5% Return ................... $ 1,000.00 $ 1,019.86 1.05% $ 5.33 SMALL CAP GROWTH FUND -------------------------------------------------------------------------------------------------------------- Actual Fund Return ....................... $ 1,000.00 $ 642.80 1.68% $ 6.94 Hypothetical 5% Return ................... $ 1,000.00 $ 1,016.69 1.68% $ 8.52 INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------------------------------------- Actual Fund Return ....................... $ 1,000.00 $ 620.50 1.35% $ 5.50 Hypothetical 5% Return ................... $ 1,000.00 $ 1,018.35 1.35% $ 6.85 SOCIALLY RESPONSIBLE FUND -------------------------------------------------------------------------------------------------------------- Actual Fund Return ....................... $ 1,000.00 $ 706.20 1.27% $ 5.45 Hypothetical 5% Return ................... $ 1,000.00 $ 1,018.75 1.27% $ 6.44
---------- (1) ANNUALIZED, BASED ON THE FUND'S MOST RECENT FISCAL HALF-YEAR 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. (3) EXPENSES SHOWN DO NOT INCLUDE ANNUITY CONTRACT FEES. (4) THE EXPENSE RATIO DOES NOT INCLUDE THE EXPENSES OF THE UNDERLYING FUNDS. 15 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
Shares Value ---------- --------------- COMMON STOCK -- 99.1% Consumer Discretionary -- 10.4% 2,632 Advance Auto Parts, Inc......................... $ 88,567 5,332 American Eagle Outfitters, Inc.................. 49,908 4,619 Apollo Group, Inc., Class A+ ................... 353,908 1,715 Autozone, Inc.+ ................................ 239,191 20,834 Best Buy Co., Inc............................... 585,644 5,715 Big Lots, Inc.+ ................................ 82,811 420 Black & Decker Corp............................. 17,560 3,202 BorgWarner, Inc................................. 69,707 3,599 Carnival Corp................................... 87,528 5,292 Centex Corp..................................... 56,307 18,710 Coach, Inc.+ ................................... 388,607 42,008 Comcast Corp. Special Class A .................. 709,095 7,560 Darden Restaurants, Inc......................... 213,041 660 DeVry, Inc...................................... 37,890 17,794 DIRECTV Group, Inc. (The)+ ..................... 407,660 4,679 Dollar Tree, Inc.+ ............................. 195,582 13,935 DR Horton, Inc.................................. 98,520 2,210 DreamWorks Animation SKG, Inc., Class A+ ....... 55,825 9,150 Eastman Kodak Co................................ 60,207 9,495 Family Dollar Stores, Inc....................... 247,535 6,379 Foot Locker, Inc................................ 46,822 1,124 Fortune Brands, Inc............................. 46,399 334 GameStop Corp., Class A+ ....................... 7,234 30,843 Gap, Inc. (The) ................................ 412,988 1,145 Harman International Industries, Inc............ 19,156 8,722 Hasbro, Inc..................................... 254,421 66,653 Home Depot, Inc. (The) ......................... 1,534,352 23,565 Interpublic Group of Cos., Inc.+ ............... 93,317 47 ITT Educational Services, Inc.+ ................ 4,464 107,883 J.C. Penney Co., Inc............................ 2,125,295 6,156 Johnson Controls, Inc........................... 111,793 4,855 Jones Apparel Group, Inc........................ 28,450 4,051 KB Home ........................................ 55,175 61,450 Kohl's Corp.+ .................................. 2,224,490 11,187 Leggett & Platt, Inc............................ 169,931 9,099 Lennar Corp., Class A .......................... 78,888 32,410 Lowe's Cos., Inc................................ 697,463 10,202 Ltd. Brands, Inc................................ 102,428 8,169 Macy's, Inc..................................... 84,549 60,200 Magna International, Inc., Class A ............. 1,801,786 101,550 Mattel, Inc..................................... 1,624,800 56,586 McDonald's Corp................................. 3,519,083 1,494 McGraw-Hill Cos., Inc. (The) ................... 34,646 783 Mohawk Industries, Inc.+ ....................... 33,645 7,900 Nike, Inc., Class B ............................ 402,900 299 NVR, Inc.+ ..................................... 136,419 36,850 Omnicom Group, Inc.............................. 992,002 925 PetSmart, Inc................................... 17,066 3,942 Polo Ralph Lauren Corp., Class A ............... 179,006 55 priceline.com, Inc.+ ........................... 4,051 14,248 Pulte Homes, Inc................................ 155,731 9,044 RadioShack Corp................................. 107,985 Shares Value ---------- --------------- Consumer Discretionary (continued) 6,263 Ross Stores, Inc................................ $ 186,199 1,076 Sears Holdings Corp.+ .......................... 41,824 6,734 Sherwin-Williams Co. (The) ..................... 402,357 2,513 Stanley Works (The) ............................ 85,693 13,033 Starbucks Corp.+ ............................... 123,292 161,294 Time Warner, Inc................................ 1,622,618 7,935 TJX Cos., Inc................................... 163,223 6,597 Toll Brothers, Inc.+ ........................... 141,374 60,787 Walt Disney Co. (The) .......................... 1,379,257 28,650 Whirlpool Corp.................................. 1,184,677 --------------- 26,482,342 --------------- Consumer Staples -- 10.7% 39,083 Altria Group, Inc............................... 588,590 2,175 Archer-Daniels-Midland Co....................... 62,705 2,035 BJ's Wholesale Club, Inc.+ ..................... 69,719 307 Brown-Forman Corp., Class B .................... 15,807 2,055 Campbell Soup Co................................ 61,671 3,703 Church & Dwight Co., Inc........................ 207,812 5,875 Clorox Co....................................... 326,415 39,240 Coca-Cola Co. (The) ............................ 1,776,395 697 Coca-Cola Enterprises, Inc...................... 8,385 29,675 Colgate-Palmolive Co............................ 2,033,925 7,866 Constellation Brands, Inc., Class A+ ........... 124,047 1,504 Corn Products International, Inc................ 43,390 33,400 CostCo Wholesale Corp........................... 1,753,500 544 CVS/Caremark Corp............................... 15,635 1,330 Dean Foods Co.+ ................................ 23,900 571 Estee Lauder Cos., Inc. (The), Class A ......... 17,678 21,453 General Mills, Inc.............................. 1,303,270 1,341 Hershey Co. (The) .............................. 46,586 2,211 HJ Heinz Co..................................... 83,134 400 JM Smucker Co. (The) ........................... 17,344 2,343 Kellogg Co...................................... 102,741 2,658 Kimberly-Clark Corp............................. 140,183 24,258 Kraft Foods, Inc., Class A ..................... 651,327 9,175 Kroger Co. (The) ............................... 242,312 14,100 Molson Coors Brewing Co., Class B .............. 689,772 8,214 Pepsi Bottling Group, Inc....................... 184,897 51,625 PepsiCo, Inc.................................... 2,827,501 59,275 Philip Morris International, Inc................ 2,579,055 75,303 Procter & Gamble Co............................. 4,655,231 17,003 Safeway, Inc.................................... 404,161 114,000 Sara Lee Corp................................... 1,116,060 13,844 SYSCO Corp...................................... 317,581 1,494 UST, Inc........................................ 103,654 83,294 Wal-Mart Stores, Inc............................ 4,669,462 --------------- 27,263,845 --------------- Energy -- 9.3% 1,470 Anadarko Petroleum Corp......................... 56,669 10,247 Apache Corp..................................... 763,709 87,850 BJ Services Co.................................. 1,025,209 20,950 BP PLC ADR ..................................... 979,203 21,670 Cameron International Corp.+ ................... 444,235
See Notes to Financial Statements. 16 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Energy (continued) 27,705 Chevron Corp.................................... $ 2,049,339 2,912 Cimarex Energy Co............................... 77,983 1,264 Comstock Resources, Inc.+ ...................... 59,724 28,169 ConocoPhillips ................................. 1,459,154 7,920 Devon Energy Corp............................... 520,423 365 Encore Acquisition Co.+ ........................ 9,315 9,933 ENSCO International, Inc........................ 281,998 32,775 EOG Resources, Inc.............................. 2,182,159 74,411 Exxon Mobil Corp................................ 5,940,230 5,037 FMC Technologies, Inc.+ ........................ 120,032 2,901 Helmerich & Payne, Inc.......................... 65,998 754 Hess Corp....................................... 40,445 9,865 Marathon Oil Corp............................... 269,906 3,820 Massey Energy Co................................ 52,678 12,899 Murphy Oil Corp................................. 572,071 2,413 Nabors Industries, Ltd.+ ....................... 28,884 19,934 National Oilwell Varco, Inc.+ .................. 487,187 18,563 Noble Corp...................................... 410,057 7,573 Noble Energy, Inc............................... 372,743 20,886 Occidental Petroleum Corp....................... 1,252,951 3,268 Patterson-UTI Energy, Inc....................... 37,615 1,256 Pride International, Inc.+ ..................... 20,071 79,195 Schlumberger, Ltd............................... 3,352,324 4,022 Sunoco, Inc..................................... 174,796 556 Superior Energy Services, Inc.+ ................ 8,857 2,528 Tidewater, Inc.................................. 101,802 1,617 Valero Energy Corp.............................. 34,992 11,100 XTO Energy, Inc................................. 391,497 --------------- 23,644,256 --------------- Financials -- 15.2% 35,659 Aflac, Inc...................................... 1,634,609 97,608 Allstate Corp. (The) ........................... 3,197,638 22,311 American Express Co............................. 413,869 2,057 American Financial Group, Inc................... 47,064 13,556 Ameriprise Financial, Inc....................... 316,668 2,057 AON Corp........................................ 93,964 1,416 Arthur J. Gallagher & Co........................ 36,689 937 Assurant, Inc................................... 28,110 966 Bancorpsouth, Inc............................... 22,566 106,325 Bank of America Corp............................ 1,497,056 639 Bank of Hawaii Corp............................. 28,864 17,312 Bank of New York Mellon Corp. (The) ............ 490,449 7,767 BB&T Corp....................................... 213,282 16,700 Blackstone Group LP (The) ...................... 109,051 4,778 Brown & Brown, Inc.............................. 99,860 75,337 Capital One Financial Corp...................... 2,402,497 95,788 Charles Schwab Corp. (The) ..................... 1,548,892 8,519 Chubb Corp...................................... 434,469 6,529 Cincinnati Financial Corp....................... 189,798 263,611 Citigroup, Inc.................................. 1,768,830 403 City National Corp.............................. 19,626 11,353 CME Group, Inc., Class A ....................... 2,362,673 50,525 Comerica, Inc................................... 1,002,921 1,808 Commerce Bancshares, Inc........................ 79,462 Shares Value ---------- --------------- Financials (continued) 2,822 Cullen/Frost Bankers, Inc....................... $ 143,019 10,239 Discover Financial Services .................... 97,578 861 Everest Re Group, Ltd........................... 65,557 2,998 Federated Investors, Inc., Class B ............. 50,846 66,675 Fidelity National Financial, Inc., Class A .................................. 1,183,481 1,158 Fifth Third BanCorp............................. 9,565 1,583 First Niagara Financial Group, Inc.............. 25,597 1,634 FirstMerit Corp................................. 33,644 16,127 Franklin Resources, Inc......................... 1,028,580 3,528 Genworth Financial, Inc., Class A .............. 9,984 27,808 Goldman Sachs Group, Inc. (The) ................ 2,346,717 2,416 HCC Insurance Holdings, Inc..................... 64,628 1,133 Hudson City Bancorp, Inc........................ 18,082 3,310 Huntington Bancshares, Inc...................... 25,354 13,627 Invesco, Ltd.................................... 196,774 737 Jefferies Group, Inc............................ 10,362 134,907 JPMorgan Chase & Co............................. 4,253,618 16,327 Loews Corp...................................... 461,238 58,522 Merrill Lynch & Co., Inc........................ 681,196 27,504 MetLife, Inc.................................... 958,789 1,017 Moody's Corp.................................... 20,431 34,875 Morgan Stanley ................................. 559,395 496,764 National City Corp.............................. 899,143 3,773 Northern Trust Corp............................. 196,724 9,578 Old Republic International Corp................. 114,170 8,360 People's United Financial, Inc.................. 149,059 10,067 Principal Financial Group, Inc.................. 227,212 13,902 Prudential Financial, Inc....................... 420,674 2,637 Raymond James Financial, Inc.................... 45,172 1,691 Regions Financial Corp.......................... 13,460 317 StanCorp Financial Group, Inc................... 13,241 7,370 State Street Corp............................... 289,862 336 SunTrust Banks, Inc............................. 9,925 810 TCF Financial Corp.............................. 11,065 38,900 Torchmark Corp.................................. 1,738,830 9,062 Travelers Cos., Inc. (The) ..................... 409,602 4,474 U.S. BanCorp.................................... 111,895 124,425 UBS AG+ ........................................ 1,779,278 12,196 Unum Group ..................................... 226,846 7,765 W.R. Berkley Corp............................... 240,715 282,071 Wachovia Corp................................... 1,562,673 --------------- 38,742,888 --------------- Health Care -- 18.7% 63,865 Abbott Laboratories ............................ 3,408,475 24,877 Aetna, Inc...................................... 708,994 18,750 Alcon, Inc...................................... 1,672,313 60,375 AmerisourceBergen Corp., Class A ............... 2,152,973 25,133 Amgen, Inc.+ ................................... 1,451,431 34,772 Baxter International, Inc....................... 1,863,431 16,200 Becton Dickinson & Co........................... 1,107,918 7,462 Biogen Idec, Inc.+ ............................. 355,415 16,192 Boston Scientific Corp.+ ....................... 125,326 64,820 Bristol-Myers Squibb Co......................... 1,507,065
See Notes to Financial Statements. 17 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Health Care (continued) 49,900 Celgene Corp.+ ................................. $ 2,758,472 3,623 Cephalon, Inc.+ ................................ 279,116 341 Cerner Corp.+ .................................. 13,112 11,888 Cigna Corp...................................... 200,313 3,158 Covidien, Ltd................................... 114,446 2,448 DaVita, Inc.+ .................................. 121,347 2,586 Edwards Lifesciences Corp.+ .................... 142,101 26,418 Eli Lilly & Co.................................. 1,063,853 6,548 Endo Pharmaceuticals Holdings, Inc.+ ................................ 169,462 18,204 Forest Laboratories, Inc.+ ..................... 463,656 45,750 Genentech, Inc.+ ............................... 3,793,132 759 Gen-Probe, Inc.+ ............................... 32,516 105,157 Gilead Sciences, Inc.+ ......................... 5,377,729 5,716 Humana, Inc.+ .................................. 213,092 1,096 IMS Health, Inc................................. 16,615 59,428 Johnson & Johnson .............................. 3,555,577 17,039 King Pharmaceuticals, Inc.+ .................... 180,954 978 Laboratory Corp. of America Holdings+ .............................. 62,993 6,951 Life Technologies Corp.+ ....................... 162,028 4,090 Lincare Holdings, Inc.+ ........................ 110,144 39,900 Medco Health Solutions, Inc.+ .................. 1,672,209 4,971 Medtronic, Inc.................................. 156,189 76,593 Merck & Co., Inc................................ 2,328,427 5,852 Omnicare, Inc................................... 162,452 123,304 Pfizer, Inc..................................... 2,183,714 58 Pharmaceutical Product Development, Inc................................ 1,683 4,406 Quest Diagnostics, Inc.......................... 228,715 96,198 Schering-Plough Corp............................ 1,638,252 65 St. Jude Medical, Inc.+ ........................ 2,142 2,445 STERIS Corp..................................... 58,411 2,098 Teleflex, Inc................................... 105,110 75,650 Teva Pharmaceutical Industries, Ltd. ADR ....................................... 3,220,421 3,144 Thermo Fisher Scientific, Inc.+ ................ 107,116 4,700 UnitedHealth Group, Inc......................... 125,020 1,033 Universal Health Services, Inc., Class B .................................. 38,810 1,567 Valeant Pharmaceuticals International+ ................................. 35,885 5,507 Varian Medical Systems, Inc.+ .................. 192,965 31 Vertex Pharmaceuticals, Inc.+ .................. 942 945 Waters Corp.+ .................................. 34,634 3,432 Watson Pharmaceuticals, Inc.+ .................. 91,188 41,903 WellPoint, Inc.+ ............................... 1,765,373 1,571 Wyeth .......................................... 58,928 1,351 Zimmer Holdings, Inc.+ ......................... 54,607 --------------- 47,447,192 --------------- Industrials -- 8.5% 12,786 3M Co........................................... 735,706 2,408 AGCo Corp.+ .................................... 56,805 37,247 Boeing Co....................................... 1,589,330 Shares Value ---------- --------------- Industrials (continued) 1,204 Brink's Co. (The) .............................. $ 32,364 816 Burlington Northern Santa Fe Corp............... 61,779 5,750 Caterpillar, Inc................................ 256,852 7,514 Cooper Industries, Ltd., Class A ............... 219,634 7,103 CSX Corp........................................ 230,634 9,368 Cummins, Inc.................................... 250,407 13,042 Dover Corp...................................... 429,343 223 Dun & Bradstreet Corp........................... 17,216 65,686 Emerson Electric Co............................. 2,404,765 12,557 FedEx Corp...................................... 805,532 11,637 Fluor Corp...................................... 522,152 7,892 General Dynamics Corp........................... 454,500 123,163 General Electric Co............................. 1,995,241 230 Granite Construction, Inc....................... 10,104 37,942 Honeywell International, Inc.................... 1,245,636 1,963 Hubbell, Inc., Class B ......................... 64,151 9,138 Illinois Tool Works, Inc........................ 320,287 18,582 Iron Mountain, Inc.+ ........................... 459,533 1,202 ITT Corp........................................ 55,280 10,000 Jacobs Engineering Group, Inc.+ ................ 481,000 1,747 JB Hunt Transport Services, Inc................. 45,894 134 Kansas City Southern+ .......................... 2,553 14,800 L-3 Communications Holdings, Inc., Class 3 .................................. 1,091,944 17,516 Lockheed Martin Corp............................ 1,472,745 1,660 Manpower, Inc................................... 56,423 12,169 Masco Corp...................................... 135,441 4,536 Monster Worldwide, Inc.+ ....................... 54,840 13,017 Norfolk Southern Corp........................... 612,450 59,362 Northrop Grumman Corp........................... 2,673,664 11,590 Parker Hannifin Corp............................ 493,038 712 Precision Castparts Corp........................ 42,350 9,456 Robert Half International, Inc.................. 196,874 1,518 Rockwell Automation, Inc........................ 48,940 5,831 RR Donnelley & Sons Co.......................... 79,185 2,611 Ryder System, Inc............................... 101,255 48,828 Southwest Airlines Co........................... 420,897 1,098 Stericycle, Inc.+ .............................. 57,184 13,259 Union Pacific Corp.............................. 633,780 3,319 United Parcel Service, Inc., Class B ........... 183,076 6,960 United Technologies Corp........................ 373,056 1,207 URS Corp.+ ..................................... 49,209 670 Wabtec Corp..................................... 26,632 539 Waste Connections, Inc.+ ....................... 17,016 392 Waste Management, Inc........................... 12,991 526 WW Grainger, Inc................................ 41,470 --------------- 21,621,158 --------------- Information Technology -- 20.9% 139,000 Activision Blizzard, Inc.+ ..................... 1,200,960 12,298 Adobe Systems, Inc.+ ........................... 261,824 17,543 Affiliated Computer Services, Inc., Class A+ ................................. 806,101 8,258 Agilent Technologies, Inc.+ .................... 129,073 734,966 Alcatel-Lucent ADR ............................. 1,580,177
See Notes to Financial Statements. 18 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Information Technology (continued) 2,879 Alliance Data Systems Corp.+ ................... $ 133,960 2,580 Altera Corp..................................... 43,112 6,364 Analog Devices, Inc............................. 121,043 69,376 Apple, Inc.+ ................................... 5,921,242 838 Arrow Electronics, Inc.+ ....................... 15,788 2,156 Atmel Corp.+ ................................... 6,748 11,701 Autodesk, Inc.+ ................................ 229,925 4,969 BMC Software, Inc.+ ............................ 133,716 8,971 Broadcom Corp., Class A+ ....................... 152,238 3,053 Broadridge Financial Solutions, Inc............. 38,285 94,755 CA, Inc......................................... 1,755,810 281,388 Cisco Systems, Inc.+ ........................... 4,586,624 8,085 Computer Sciences Corp.+ ....................... 284,107 16,960 Compuware Corp.+ ............................... 114,480 132,546 Dell, Inc.+ .................................... 1,357,271 49,962 eBay, Inc.+ .................................... 697,470 78,247 EMC Corp.+ ..................................... 819,246 1,654 F5 Networks, Inc.+ ............................. 37,811 5,035 Fidelity National Information Services, Inc................................... 81,919 8,723 Fiserv, Inc.+ .................................. 317,256 1,937 Global Payments, Inc............................ 63,514 20,345 Google, Inc., Class A+ ......................... 6,259,139 210,993 Hewlett-Packard Co.............................. 7,656,936 2,316 Ingram Micro, Inc., Class A+ ................... 31,011 131,408 Intel Corp...................................... 1,926,441 24,368 International Business Machines Corp................................... 2,050,811 12,493 Jabil Circuit, Inc.............................. 84,328 36,700 Juniper Networks, Inc.+ ........................ 642,617 2,816 Kla-Tencor Corp................................. 61,361 4,281 Lam Research Corp.+ ............................ 91,100 3,546 Lender Processing Services, Inc................. 104,430 5,009 Lexmark International, Inc., Class A+ ....................................... 134,742 32,370 LSI Corp.+ ..................................... 106,497 38 McAfee, Inc.+ .................................. 1,314 187,759 Microsoft Corp.................................. 3,650,035 7,723 Molex, Inc...................................... 111,906 419,775 Motorola, Inc................................... 1,859,603 8,670 National Semiconductor Corp..................... 87,307 22,609 NetApp, Inc.+ .................................. 315,848 424 NeuStar, Inc., Class A+ ........................ 8,111 6,969 Novellus Systems, Inc.+ ........................ 85,998 23,012 Oracle Corp.+ .................................. 408,003 584 Polycom, Inc.+ ................................. 7,890 2,362 QLogic Corp.+ .................................. 31,745 90,751 QUALCOMM, Inc................................... 3,251,608 2,851 SAIC, Inc.+ .................................... 55,537 4,474 Sybase, Inc.+ .................................. 110,821 51,354 Symantec Corp.+ ................................ 694,306 5,699 Synopsys, Inc.+ ................................ 105,545 13,924 Tellabs, Inc.+ ................................. 57,367 5,103 Teradata Corp.+ ................................ 75,677 47,916 Texas Instruments, Inc.......................... 743,656 Shares Value ---------- --------------- Information Technology (continued) 519 Total System Services, Inc...................... $ 7,266 53,425 Tyco Electronics, Ltd........................... 866,019 7,812 VeriSign, Inc.+ ................................ 149,053 9,327 Western Digital Corp.+ ......................... 106,794 15,021 Western Union Co. (The) ........................ 215,401 13,080 Yahoo!, Inc.+ .................................. 159,576 --------------- 53,205,499 --------------- Materials -- 1.7% 6,110 Air Products & Chemicals, Inc................... 307,150 3,451 Airgas, Inc..................................... 134,555 1,927 Ashland, Inc.................................... 20,253 1,740 Bemis Co., Inc.................................. 41,203 1,575 CF Industries Holdings, Inc..................... 77,427 1,527 Eastman Chemical Co............................. 48,421 4,316 Freeport-McMoRan Copper & Gold, Inc....................................... 105,483 7,326 International Paper Co.......................... 86,447 7,904 MeadWestvaco Corp............................... 88,445 44,738 Monsanto Co..................................... 3,147,318 1,773 Pactiv Corp.+ .................................. 44,112 866 Reliance Steel & Aluminum Co.................... 17,268 1,077 Rohm & Haas Co.................................. 66,548 1,841 Sealed Air Corp................................. 27,505 2,344 Sonoco Products Co.............................. 54,287 3,402 Terra Industries, Inc........................... 56,711 --------------- 4,323,133 --------------- Telecommunication Services -- 1.7% 64,843 AT&T, Inc....................................... 1,848,025 2,538 CenturyTel, Inc................................. 69,363 647 Embarq Corp..................................... 23,266 3,104 Qwest Communications International, Inc.............................. 11,299 91,378 Sprint Nextel Corp.............................. 167,222 1,519 Telephone & Data Systems, Inc................... 48,228 59,223 Verizon Communications, Inc..................... 2,007,660 --------------- 4,175,063 --------------- Utilities -- 2.0% 9,407 AES Corp. (The)+ ............................... 77,513 2,232 Consolidated Edison, Inc........................ 86,892 1,175 Constellation Energy Group, Inc................. 29,481 5,680 Edison International ........................... 182,442 571 Entergy Corp.................................... 47,467 612 Equitable Resources, Inc........................ 20,533 2,421 Exelon Corp..................................... 134,632 10,109 FPL Group, Inc.................................. 508,786 151 Hawaiian Electric Industries, Inc............... 3,343 1,906 Nicor, Inc...................................... 66,214 2,891 NSTAR .......................................... 105,492 21,004 PG&E Corp....................................... 813,065 1,759 Pinnacle West Capital Corp...................... 56,517 4,972 Progress Energy, Inc............................ 198,134 899 Puget Energy, Inc............................... 24,516
See Notes to Financial Statements. 19 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Utilities (continued) 36,575 Sempra Energy .................................. $ 1,559,192 5,862 Southern Co. ................................... 216,894 1,506 UGI Corp. ...................................... 36,777 1,129 Vectren Corp.................................... 28,236 23,700 Wisconsin Energy Corp. ......................... 994,926 --------------- 5,191,052 --------------- Total Common Stock (Cost $334,079,639) 252,096,428 --------------- Maturity Date Par -------- --------- U.S. TREASURY OBLIGATIONS -- 0.6% U.S. Treasury Bill 0.000%(a) 04/09/09 $ 600,000 599,822 0.000%(a) 01/08/09 200,000 200,000 0.193%(a)(c) 01/29/09 600,000 599,987 --------------- Total U.S. Treasury Obligations (Cost $1,399,903) 1,399,809 --------------- Shares ---------- CASH EQUIVALENT -- 0.4% 1,095,080 PNC Institutional Money Market Trust, 0.050%(b) (Cost $1,095,080) .............................. 1,095,080 --------------- Total Investments -- 100.1% (Cost $336,574,622) 254,591,317 Other Assets & Liabilities, Net -- (0.1)% (257,483) --------------- NET ASSETS -- 100.0% $ 254,333,834 ===============
FUTURES CONTRACTS - LONG POSITIONS
Number of Unrealized Contracts Appreciation ---------- --------------- 34 CME E-Mini S&P 500, Expires March 2009 ............................. $ 28,928 ===============
---------- ADR - American Depositary Receipt + Non-income producing security. (a) The rate reported is the effective yield at time of purchase. (b) The rate shown is the 7-day effective yield as of December 31, 2008. (c) Security held at broker as collateral for open futures contracts. See Notes to Financial Statements. 20 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST BALANCED FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
Shares Value ---------- --------------- INVESTMENTS IN UNDERLYING FUNDS -- 100.2% 5,117,519 Wilshire Large Cap Core 130/30 Fund* ................................... $ 31,882,146 4,557,525 Wilshire Variable Insurance Trust Equity Fund* ................................... 61,617,738 5,836,582 Wilshire Variable Insurance Trust Income Fund* ................................... 62,042,868 --------------- Total Investments in Underlying Funds -- 100.2% (Cost $179,132,682) 155,542,752 Other Assets & Liabilities, Net -- (0.2)% (284,996) --------------- NET ASSETS -- 100.0% $ 155,257,756 ===============
---------- * Affiliated Fund See Notes to Financial Statements. 21 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
Maturity Date Par Value -------- ------------- ------------- ASSET BACKED SECURITIES -- 3.5% Amortizing Residential Collateral Trust 0.751%(a) 01/01/32 $ 37,014 $ 18,426 Bayview Financial Acquisition Trust 1.146%(a) 02/28/44 104,230 85,197 Conseco Finance Securitization Corp. 8.500%(a) 03/01/33 393,798 38,013 Countrywide Home Equity Loan Trust 1.365%(a) 05/15/36 394,936 156,556 Delta Funding Home Equity Loan Trust 7.040% 06/25/27 6,072 6,078 Green Tree Financial Corp. 9.150% 01/15/18 19,574 13,623 Green Tree Home Improvement Loan Trust 7.600% 07/15/20 5,375 4,010 Green Tree Recreational Equipment & Consumer Trust 7.250% 03/15/29 31,845 12,957 Lehman XS Trust 0.731%(a)(e) 02/25/46 316,588 128,879 Morgan Stanley Mortgage Loan Trust 0.621%(a) 03/25/36 175,638 41,308 MSCC Heloc Trust 0.661%(a) 07/25/17 22,048 14,790 Nelnet Student Loan Trust 5.015%(a) 04/25/24 200,000 162,027 SACO I Trust 0.601%(a) 06/25/36 275,189 45,759 0.641%(a) 03/25/36 211,670 45,079 0.751%(a) 09/25/35 67,946 44,300 Salomon Brothers Mortgage Securities VII, Inc. 0.771%(a) 03/25/32 37,902 34,632 Securitized Asset Backed Receivables LLC Trust 0.701%(a) 02/25/37 976,649 452,746 SG Mortgage Securities Trust 0.711%(a) 12/25/36 938,784 535,229 WAMU Asset-Backed Certificates 0.561%(a) 05/25/47 785,043 680,118 0.641%(a) 05/25/47 1,300,000 825,664 0.761%(a) 05/25/47 1,300,000 267,667 ------------- Total Asset Backed Securities (Cost $7,235,547) 3,613,058 ------------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 50.3% Agency Mortgage-Backed Obligations -- 39.6% Federal Home Loan Mortgage Corp. 5.000% 09/01/33 292,405 299,545 5.000% 08/01/33 907,332 929,487 5.000% 09/01/33 273,291 279,964 5.000% 09/01/33 606,485 621,294 5.000% 10/01/33 590,682 605,105 Maturity Date Par Value -------- ------------- ------------- Agency Mortgage-Backed Obligations (continued) 5.572%(a) 01/01/38 $ 1,159,733 $ 1,185,897 5.637%(a) 05/01/37 1,175,277 1,198,477 Federal Home Loan Mortgage Corp. TBA 5.000% 01/01/38 500,000 510,937 Federal National Mortgage Association 5.000% 06/01/35 756,084 773,482 5.000% 12/01/35 2,769,628 2,833,361 5.382%(a) 08/01/37 456,104 462,375 5.500% 11/01/21 91,116 94,005 5.500% 04/01/36 1,242,908 1,249,292 5.500% 09/01/35 2,723,935 2,795,554 5.500% 02/01/22 91,796 94,702 5.500% 11/01/36 797,149 818,108 5.500% 08/01/37 889,899 913,297 6.035%(a) 01/01/37 675,464 693,841 6.500% 11/01/37 134,042 139,375 7.000% 05/01/32 60,335 64,266 Federal National Mortgage Association TBA 4.000% 02/01/39 800,000 796,000 5.000% 01/01/18 4,300,000 4,412,875 5.000% 01/01/38 14,200,000 14,497,320 5.500% 01/01/38 500,000 512,500 Government National Mortgage Association 5.500% 05/15/36 162,976 168,259 6.000% 03/15/35 913,796 944,628 6.000% 03/15/37 298,743 308,776 6.000% 05/15/33 160,233 165,815 Government National Mortgage Association TBA 6.500% 01/22/33 1,800,000 1,868,629 ------------- 40,237,166 ------------- Non-Agency Mortgage-Backed Obligations -- 10.7% American Home Mortgage Assets 0.701%(a) 05/25/46 275,639 58,213 Asset Securitization Corp. 6.815%(a) 02/14/43 100,000 95,859 Banc of America Commercial Mortgage, Inc. 5.620% 02/10/51 10,000 6,426 5.658%(a) 06/10/49 60,000 39,221 Banc of America Funding Corp. 4.966%(a) 09/20/35 1,654,199 824,175 Banc of America Mortgage Securities, Inc. 6.740%(a) 02/25/34 19,843 17,008 Bear Stearns Adjustable Rate Mortgage Trust 5.322%(a) 11/25/34 100,856 71,825 6.105%(a) 02/25/34 80,367 44,566 Bear Stearns Commercial Mortgage Securities 5.405%(a) 12/11/40 500,000 425,205
See Notes to Financial Statements. 22 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Maturity Date Par Value -------- ------------- ------------- Non-Agency Mortgage-Backed Obligations (continued) Citigroup Mortgage Loan Trust, Inc. 4.461%(a) 09/25/34 $ 84,440 $ 48,001 6.710%(a) 02/25/34 76,618 61,254 Countrywide Alternative Loan Trust 0.718%(a) 03/20/46 85,458 35,166 0.781%(a) 10/25/35 131,732 59,708 5.058%(a) 09/25/34 137,992 81,072 First Horizon Mortgage Pass-Through Certificates 5.468%(a) 02/25/35 441,893 323,745 GE Capital Commercial Mortgage Corp. 5.543% 12/10/49 210,000 156,523 Greenpoint Mortgage Funding Trust 0.681%(a) 04/25/36 708,602 287,194 Harborview Mortgage Loan Trust 0.731%(a) 01/25/47 1,096,748 435,499 0.801%(a) 05/19/35 147,681 68,784 Homebanc Mortgage Trust 0.771%(a) 05/25/37 184,225 137,222 Impac CMB Trust 0.741%(a) 05/25/35 145,946 62,293 Indymac Index Mortgage Loan Trust 0.591%(a) 07/25/36 417,251 155,433 0.671%(a) 06/25/47 382,045 166,884 0.731%(a) 06/25/35 611,374 314,386 5.099%(a) 09/25/35 88,551 42,516 5.707%(a) 03/25/35 147,229 126,210 6.176%(a) 11/25/37 133,224 82,131 JPMorgan Chase Commercial Mortgage Securities Corp. 5.280%(a) 01/12/43 100,000 80,324 5.420% 01/15/49 100,000 70,697 5.429% 12/12/43 450,000 341,557 LB-UBS Commercial Mortgage Trust 4.954% 09/15/30 500,000 408,151 Luminent Mortgage Trust 0.661%(a) 05/25/46 321,479 142,455 Master Adjustable Rate Mortgages Trust 0.671%(a) 05/25/47 999,721 385,451 3.279%(a) 12/25/46 313,696 64,003 4.811%(a) 02/25/35 384,940 199,577 5.737%(a) 12/25/34 22,414 11,886 Morgan Stanley Capital I 4.989% 08/13/42 240,000 196,074 5.692%(a) 04/15/49 1,200,000 900,543 Morgan Stanley Mortgage Loan Trust 0.791%(a) 01/25/35 318,468 151,869 4.886%(a) 08/25/34 146,035 68,102 5.063%(a) 07/25/35 200,145 108,555 Prime Mortgage Trust 8.000% 07/25/34 213,483 197,471 RBSGC Mortgage Pass Through Certificates 0.921%(a) 01/25/37 360,121 182,272 Maturity Date Par Value -------- ------------- ------------- Non-Agency Mortgage-Backed Obligations (continued) Residential Accredit Loans, Inc. 0.561%(a) 10/25/46 $ 343,189 $ 265,901 0.831%(a) 01/25/37 395,759 92,183 Residential Asset Securitization Trust 4.750% 02/25/19 764,372 652,844 Structured Adjustable Rate Mortgage Loan Trust 5.135%(a) 11/25/34 144,432 74,222 5.191%(a) 01/25/35 161,210 94,119 Thornburg Mortgage Securities Trust 0.641%(a) 01/25/46 237,560 236,654 6.203%(a) 09/25/37 390,494 299,593 6.216%(a) 09/25/37 412,187 291,918 WAMU Mortgage Pass-Through Certificates 0.701%(a) 04/25/45 144,888 68,400 4.834%(a) 10/25/35 414,238 327,635 Washington Mutual MSC Mortgage Pass-Through Certificates 5.231%(a) 01/25/35 73,302 53,828 Wells Fargo Mortgage Backed Securities Trust 3.741%(a) 09/25/34 470,000 460,907 5.240%(a) 04/25/36 112,466 81,453 Zuni Mortgage Loan Trust 0.601%(a) 08/25/36 147,487 139,809 ------------- 10,874,972 ------------- Total Collateralized Mortgage Obligations (Cost $56,997,301) 51,112,138 ------------- CORPORATE BONDS -- 25.2% Consumer Discretionary -- 2.1% Boyd Gaming Corp. 6.750% 04/15/14 10,000 6,300 7.125% 02/01/16 10,000 5,900 Caesars Entertainment, Inc. 8.125% 05/15/11 12,000 5,880 CCH I LLC/CCH I Capital 11.000% 10/01/15 50,000 8,750 Clear Channel Communications, Inc. 4.250% 05/15/09 50,000 44,000 4.900% 05/15/15 10,000 1,100 5.500% 09/15/14 80,000 9,600 Comcast Corp. 6.500% 01/15/17 200,000 197,543 6.500% 01/15/15 665,000 653,649 CSC Holdings, Inc. 7.625% 04/01/11 20,000 18,850 Daimler Finance NA LLC 6.500% 11/15/13 30,000 23,400 7.300% 01/15/12 135,000 116,691
See Notes to Financial Statements. 23 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Maturity Date Par Value -------- ------------- ------------- Consumer Discretionary (continued) DI Finance/DynCorp International 9.500% 02/15/13 $ 10,000 $ 8,713 DirecTV Holdings LLC/DirecTV Financing Co. 8.375% 03/15/13 20,000 19,900 Eastman Kodak Co. 7.250% 11/15/13 35,000 22,575 Echostar DBS Corp. 7.000% 10/01/13 20,000 17,350 7.125% 02/01/16 20,000 16,700 7.750% 05/31/15 20,000 17,000 Ford Motor Co. 7.450% 07/16/31 200,000 56,000 Ford Motor Co. Cnv. 4.250%(h) 12/15/36 20,000 5,150 General Motors Corp. 8.250% 07/15/23 70,000 11,550 8.375% 07/05/33 30,000 6,703 Hertz Corp. 8.875% 01/01/14 35,000 21,525 10.500% 01/01/16 15,000 6,844 Idearc, Inc. 8.000%(c) 11/15/16 95,000 7,125 Inn of the Mountain Gods Resort & Casino 12.000% 11/15/10 10,000 3,300 J.C. Penney Corp., Inc. 7.400% 04/01/37 10,000 6,584 McDonald's Corp. MTN 5.350% 03/01/18 80,000 83,253 MGM Mirage, Inc. 6.750% 09/01/12 10,000 7,000 7.625% 01/15/17 60,000 38,700 8.500% 09/15/10 50,000 42,000 Mohegan Tribal Gaming Authority 8.000% 04/01/12 5,000 3,050 Oxford Industries, Inc. 8.875% 06/01/11 10,000 7,550 RH Donnelley Corp. 8.875%(b) 10/15/17 10,000 1,500 Service Corp. International 6.750% 04/01/16 30,000 22,800 7.500% 04/01/27 30,000 19,200 Station Casinos, Inc. 6.000% 04/01/12 20,000 4,000 7.750% 08/15/16 70,000 13,300 Suburban Propane Partners LP 6.875% 12/15/13 30,000 24,600 Time Warner Cable, Inc. 7.300% 07/01/38 130,000 135,053 Time Warner, Inc. 6.875% 05/01/12 400,000 384,278 TL Acquisitions, Inc. 10.500%(b) 01/15/15 40,000 16,400 Maturity Date Par Value -------- ------------- ------------- Consumer Discretionary (continued) Visteon Corp. 8.250% 08/01/10 $ 12,000 $ 3,720 12.250%(b) 12/31/16 28,000 6,720 ------------- 2,131,806 ------------- CONSUMER STAPLES -- 0.8% Altria Group, Inc. 9.700% 11/10/18 380,000 411,376 Dr. Pepper Snapple Group, Inc. 6.820%(b) 05/01/18 110,000 108,683 PepsiCo, Inc. 7.900% 11/01/18 190,000 233,289 Reynolds American, Inc. 6.750% 06/15/17 90,000 71,441 ------------- 824,789 ------------- ENERGY -- 4.6% Anadarko Petroleum Corp. 2.396%(a) 09/15/09 150,000 143,524 5.950% 09/15/16 20,000 17,666 6.450% 09/15/36 350,000 276,092 Apache Corp. 6.000% 09/15/13 180,000 186,673 Baker Hughes, Inc. 7.500% 11/15/18 250,000 277,164 Chesapeake Energy Corp. 6.250% 01/15/18 25,000 18,500 6.375% 06/15/15 10,000 7,900 7.250% 12/15/18 55,000 42,900 Complete Production Services, Inc. 8.000% 12/15/16 75,000 47,250 ConocoPhillips 4.750% 10/15/12 80,000 79,738 5.900% 05/15/38 210,000 206,246 Dynegy Holdings, Inc. 7.750% 06/01/19 115,000 79,350 El Paso Corp. 7.000% 06/15/17 280,000 219,129 7.750% 01/15/32 40,000 25,965 7.800% 08/01/31 611,000 398,068 Energy Transfer Partners LP 6.700% 07/01/18 160,000 134,863 Hess Corp. 7.300% 08/15/31 297,000 270,227 7.875% 10/01/29 60,000 57,599 Kerr-McGee Corp. 6.950% 07/01/24 10,000 8,768 7.875% 09/15/31 155,000 142,685 Kinder Morgan Energy Partners LP 5.000% 12/15/13 25,000 21,801 5.850% 09/15/12 10,000 9,158 5.950% 02/15/18 180,000 153,624 6.000% 02/01/17 150,000 130,226 6.300% 02/01/09 20,000 19,981
See Notes to Financial Statements. 24 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Maturity Date Par Value -------- ------------- ------------- Energy (continued) 6.750% 03/15/11 $ 10,000 $ 9,726 6.950% 01/15/38 200,000 161,749 7.125% 03/15/12 5,000 4,829 Occidental Petroleum Corp. 7.000% 11/01/13 320,000 349,262 Peabody Energy Corp. 6.875% 03/15/13 28,000 26,530 Pemex Project Funding Master Trust 6.625% 06/15/35 207,000 175,226 Pride International, Inc. 7.375% 07/15/14 20,000 18,600 Southern Natural Gas Co. 5.900% (b) 04/01/17 30,000 23,774 8.000% 03/01/32 75,000 62,495 Tennessee Gas Pipeline Co. 7.625% 04/01/37 150,000 119,062 Williams Cos., Inc. 7.500% 01/15/31 363,000 243,210 7.750% 06/15/31 80,000 54,800 XTO Energy, Inc. 5.500% 06/15/18 88,000 79,664 6.750% 08/01/37 30,000 28,097 7.500% 04/15/12 296,000 292,554 ------------- 4,624,675 ------------- Financials -- 9.8% Allstate Life Global Funding Trust MTN 5.375% 04/30/13 100,000 98,440 American Express Co. 6.800%(a) 09/01/66 115,000 59,530 American Express Credit Corp. MTN 5.875% 05/02/13 70,000 67,198 American General Finance Corp. MTN 6.900% 12/15/17 320,000 138,487 American International Group, Inc. 5.850% 01/16/18 40,000 26,812 6.250% 03/15/37 200,000 74,754 BAC Capital Trust XIV 5.630%(a) 03/15/12 10,000 4,007 Bank of America Corp. 8.125%(a) 05/15/18 310,000 231,880 Bear Stearns Co., Inc. 7.250% 02/01/18 350,000 383,550 Citigroup, Inc. 4.125% 02/22/10 400,000 394,170 5.000% 09/15/14 315,000 277,068 6.500% 08/19/13 60,000 60,605 6.875% 03/05/38 320,000 364,124 Countrywide Financial Corp. 6.250% 05/15/16 50,000 47,475 Countrywide Home Loans, Inc. MTN 5.625% 07/15/09 500,000 497,801 Maturity Date Par Value -------- ------------- ------------- Financials (continued) Ford Motor Credit Co. LLC 5.800% 01/12/09 $ 80,000 $ 79,774 7.246%(a) 06/15/11 103,000 67,980 7.375% 02/01/11 60,000 45,628 7.375% 10/28/09 270,000 237,119 8.000% 12/15/16 420,000 273,574 12.000% 05/15/15 340,000 253,898 Forest City Enterprises, Inc. 6.500% 02/01/17 8,000 2,800 General Electric Capital Corp. 5.625% 05/01/18 260,000 262,356 6.375%(a) 11/15/67 420,000 263,999 GMAC LLC 5.625%(b) 05/15/09 800,000 768,773 5.850%(b) 01/14/09 210,000 208,631 6.875%(b) 09/15/11 354,000 290,018 7.250%(b) 03/02/11 104,000 89,377 7.500%(b)(m) 12/31/13 69,000 51,405 7.750%(b) 01/19/10 384,000 345,450 8.000%(b)(m) 12/31/18 41,000 21,115 Goldman Sachs Capital II 5.793%(a) 12/29/49 20,000 7,688 Goldman Sachs Group, Inc. 6.600% 01/15/12 290,000 286,133 HSBC Finance Corp. MTN 4.625% 09/15/10 400,000 394,852 6.375% 11/27/12 40,000 39,135 JPMorgan Chase & Co. 5.125% 09/15/14 595,000 576,601 5.150% 10/01/15 200,000 188,851 5.750% 01/02/13 195,000 197,837 Lehman Brothers Holdings Capital Trust VII MTN 5.857%(a)(e) 11/29/49 200,000 20 Lehman Brothers Holdings, Inc. MTN 6.200%(e) 09/26/14 80,000 7,600 6.500%(e) 07/19/17 160,000 16 6.750%(e) 12/28/17 340,000 34 MetLife, Inc. 6.400% 12/15/36 40,000 24,000 Morgan Stanley MTN 4.952%(a) 10/18/16 40,000 27,522 5.625% 01/09/12 300,000 284,492 5.750% 08/31/12 70,000 65,269 6.625% 04/01/18 100,000 87,729 SLM Corp. MTN 5.000% 10/01/13 355,000 254,010 5.000% 04/15/15 10,000 6,344 5.050% 11/14/14 50,000 33,274 5.375% 05/15/14 345,000 232,832 5.625% 08/01/33 35,000 21,233
See Notes to Financial Statements. 25 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Maturity Date Par Value -------- ------------- ------------- Financials (continued) SunTrust Capital VIII 6.100%(a) 12/15/36 $ 50,000 $ 35,200 SunTrust Preferred Capital I 5.853%(a) 12/15/11 60,000 32,400 Travelers Cos., Inc. (The) 6.250%(a) 03/15/37 270,000 176,860 Unilever Capital Corp. 7.125% 11/01/10 55,000 58,819 Ventas Realty LP/Ventas Capital Corp. 6.750% 06/01/10 10,000 9,462 8.750% 05/01/09 10,000 9,850 9.000% 05/01/12 10,000 8,900 Wachovia Capital Trust III 5.800%(a) 03/15/11 80,000 47,200 Wachovia Corp. 5.625% 10/15/16 690,000 630,313 Wells Fargo & Co. 5.000% 11/15/14 5,000 5,005 5.300% 08/26/11 90,000 91,268 Wells Fargo Capital X 5.950% 12/15/36 100,000 85,705 ------------- 9,914,252 ------------- Health Care -- 1.1% AmerisourceBergen Corp. 5.875% 09/15/15 20,000 17,480 Community Health Systems, Inc. 8.875% 07/15/15 70,000 64,400 DaVita, Inc. 6.625% 03/15/13 45,000 42,750 GlaxoSmithKline Capital, Inc. 5.650% 05/15/18 380,000 399,125 HCA, Inc. 6.250% 02/15/13 14,000 8,750 6.300% 10/01/12 59,000 41,595 7.500% 11/15/95 20,000 8,474 7.690% 06/15/25 30,000 14,084 9.125% 11/15/14 10,000 9,275 9.250% 11/15/16 60,000 55,200 HCA, Inc. PIK 9.625% 11/15/16 20,000 15,600 Humana, Inc. 7.200% 06/15/18 60,000 48,251 Tenet Healthcare Corp. 6.375% 12/01/11 121,000 93,472 9.250% 02/01/15 71,000 57,155 UnitedHealth Group, Inc. 6.000% 02/15/18 40,000 36,905 WellPoint, Inc. 5.875% 06/15/17 20,000 18,203 Wyeth 5.950% 04/01/37 200,000 222,057 ------------- 1,152,776 ------------- Maturity Date Par Value -------- ------------- ------------- Industrials -- 1.4% Caterpillar Financial Services Corp. MTN 6.200% 09/30/13 $ 260,000 $ 268,039 Delta Air Lines, Inc. 6.821% 08/10/22 93,493 55,628 7.570% 11/18/10 200,000 168,000 DRS Technologies, Inc. 6.625% 02/01/16 10,000 10,000 Graham Packaging Co., Inc. 8.500% 10/15/12 40,000 28,500 Norfolk Southern Corp. 6.200% 04/15/09 90,000 90,115 Terex Corp. 7.375%(c) 01/15/14 20,000 17,400 United Parcel Service, Inc. 4.500% 01/15/13 380,000 391,986 Waste Management, Inc. 6.875% 05/15/09 425,000 423,028 ------------- 1,452,696 ------------- Information Technology -- 0.0% Electronic Data Systems Corp. 7.125% 10/15/09 10,000 10,166 Freescale Semiconductor, Inc. 8.875% 12/15/14 20,000 8,800 Xerox Corp. 6.750% 02/01/17 10,000 7,257 ------------- 26,223 ------------- Materials -- 0.7% Alcoa, Inc. 6.000% 07/15/13 210,000 189,878 Freeport-McMoRan Copper & Gold, Inc. 8.375% 04/01/17 345,000 282,900 Georgia Gulf Corp. 9.500% 10/15/14 10,000 3,000 PPG Industries, Inc. 5.750% 03/15/13 30,000 29,668 6.650% 03/15/18 30,000 29,552 Steel Dynamics, Inc. 6.750% 04/01/15 60,000 41,400 7.375% 11/01/12 15,000 10,950 Westlake Chemical Corp. 6.625% 01/15/16 12,000 6,960 Weyerhaeuser Co. 6.750% 03/15/12 125,000 111,894 ------------- 706,202 ------------- Telecommunication Services -- 1.4% AT&T, Inc. 5.100% 09/15/14 80,000 78,639 BellSouth Capital Funding Corp. 7.875% 02/15/30 160,000 175,545
See Notes to Financial Statements. 26 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Maturity Date Par Value -------- ------------- ------------- Telecommunication Services (continued) BellSouth Corp. 4.750% 11/15/12 $ 10,000 $ 9,811 Citizens Communications Co. 7.875% 01/15/27 55,000 31,900 9.250% 05/15/11 10,000 9,500 Level 3 Financing, Inc. 9.250% 11/01/14 25,000 14,500 New Cingular Wireless Services, Inc. 8.125% 05/01/12 85,000 91,151 News America, Inc. 6.650% 11/15/37 10,000 9,898 Nextel Communications, Inc. 5.950% 03/15/14 15,000 6,300 7.375% 08/01/15 20,000 8,400 Qwest Communications International, Inc. 5.649%(a) 02/15/09 13,000 12,935 7.500% 02/15/14 28,000 20,020 Qwest Corp. 6.875% 09/15/33 20,000 11,900 Sprint Capital Corp. 6.900% 05/01/19 230,000 163,300 8.375% 03/15/12 40,000 32,021 8.750% 03/15/32 25,000 16,875 Verizon Communications, Inc. 4.375% 06/01/13 35,000 33,812 5.500% 02/15/18 210,000 201,988 6.100% 04/15/18 165,000 164,404 8.950% 03/01/39 200,000 259,136 Windstream Corp. 8.625% 08/01/16 85,000 75,225 ------------- 1,427,260 ------------- Utilities -- 3.3% AES Corp. (The) 7.750% 10/15/15 70,000 58,800 7.750% 03/01/14 3,000 2,640 8.000%(b) 10/15/17 400,000 330,000 8.000%(b) 06/01/20 310,000 240,250 8.875% 02/15/11 19,000 17,765 9.375% 09/15/10 63,000 59,850 Dominion Resources, Inc. 4.750% 12/15/10 30,000 29,663 5.700% 09/17/12 260,000 257,447 Duke Energy Carolinas LLC 5.625% 11/30/12 380,000 386,995 Edison Mission Energy 7.000% 05/15/17 60,000 52,200 7.200% 05/15/19 80,000 65,600 7.625% 05/15/27 40,000 31,000 Energy Future Holdings Corp. 5.550% 11/15/14 40,000 18,689 6.500% 11/15/24 70,000 24,765 6.550% 11/15/34 170,000 57,391 Energy Future Holdings Corp. PIK 11.250%(b) 11/01/17 1,420,000 688,700 Maturity Date Par Value -------- ------------- ------------- Utilities (continued) Exelon Corp. 5.625% 06/15/35 $ 210,000 $ 132,565 FirstEnergy Corp. 6.450% 11/15/11 150,000 141,788 7.375% 11/15/31 360,000 340,566 NRG Energy, Inc. 7.250% 02/01/14 55,000 51,425 7.375% 01/15/17 20,000 18,400 7.375% 02/01/16 35,000 32,550 Pacific Gas & Electric Co. 5.800% 03/01/37 10,000 10,372 6.050% 03/01/34 220,000 233,653 8.250% 10/15/18 20,000 24,029 ------------- 3,307,103 ------------- Total Corporate Bonds (Cost $30,888,463) 25,567,782 ------------- FOREIGN BONDS -- 11.8% Australia -- 0.2% Rio Tinto Finance USA, Ltd. 6.500%(j) 07/15/18 250,000 183,293 ------------- Canada -- 0.5% Anadarko Finance Co. 6.750%(j) 05/01/11 200,000 200,072 Canadian Government 4.000%(k) 12/01/31 37,628 41,001 Conoco Funding Co. 7.250%(j) 10/15/31 35,000 37,656 6.350%(j) 10/15/11 70,000 73,642 Hydro Quebec 6.300%(j) 05/11/11 60,000 63,713 OPTI Canada, Inc. 8.250%(b)(j) 12/15/14 45,000 24,300 7.875%(b)(j) 12/15/14 70,000 35,700 Rogers Cable, Inc. 6.750%(j) 03/15/15 10,000 9,738 Rogers Wireless, Inc. 6.375%(j) 03/01/14 10,000 9,506 Sun Media Corp. 7.625%(j) 02/15/13 10,000 8,050 ------------- 503,378 ------------- Cayman Islands -- 0.8% MUFG Capital Finance 1, Ltd. 6.346%(a)(j) 07/25/49 100,000 69,672 Petrobras International Finance Co. 6.125%(j) 10/06/16 100,000 97,500 Systems 2001 Asset Trust LLC 6.664%(b)(j) 09/15/13 317,550 314,375 Vale Overseas, Ltd. 6.875%(j) 11/21/36 385,000 349,465 ------------- 831,012 -------------
See Notes to Financial Statements. 27 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Maturity Date Par Value -------- ------------- ------------- France -- 2.1% Cie Generale de Geophysique-Veritas 7.750%(j) 05/15/17 $ 70,000 $ 40,600 7.500%(j) 05/15/15 25,000 15,500 France Government OAT 3.750%(k) 04/25/17 1,430,000 2,063,982 ------------- 2,120,082 ------------- Germany -- 0.7% Bundesrepublik Deutschland 3.750%(k) 01/04/17 250,000 370,056 3.750%(k) 01/04/15 240,000 357,238 ------------- 727,294 ------------- Japan -- 0.1% Aiful Corp. 6.000%(b)(j) 12/12/11 200,000 81,008 ------------- Luxembourg -- 1.2% FMC Finance III SA 6.875%(b)(j) 07/15/17 145,000 135,575 Telecom Italia Capital SA 6.999%(j) 06/04/18 30,000 24,338 5.250%(j) 10/01/15 210,000 159,863 5.250%(j) 11/15/13 35,000 26,688 4.950%(j) 09/30/14 40,000 30,450 Tyco International Group SA 6.750%(j) 02/15/11 80,000 79,519 6.375%(j) 10/15/11 100,000 98,294 6.125%(j) 01/15/09 10,000 9,987 6.000%(j) 11/15/13 220,000 206,429 Tyco International, Ltd. 7.000%(j) 12/15/19 378,000 310,516 6.875%(j) 01/15/21 150,000 115,991 ------------- 1,197,650 ------------- Marshall Islands -- 0.0% Teekay Corp. 8.875%(j) 07/15/11 19,000 16,055 ------------- Mexico -- 0.8% America Movil SAB de CV 5.625%(j) 11/15/17 120,000 106,683 Kansas City Southern de Mexico SA de CV 9.375%(j) 05/01/12 20,000 18,300 Mexico Government MTN 6.750%(j) 09/27/34 642,000 677,310 ------------- 802,293 ------------- Netherlands -- 0.4% Deutsche Telekom International Finance BV 5.750%(j) 03/23/16 195,000 186,661 Maturity Date Par Value -------- ------------- ------------- Netherlands (continued) Koninklijke KPN NV 8.000%(j) 10/01/10 $ 230,000 $ 232,117 ------------- 418,778 ------------- Norway -- 1.9% Eksportfinans A/S MTN 5.500%(j) 06/26/17 1,800,000 1,965,346 ------------- Russia -- 0.8% Russia Federation 7.500%(g)(j) 03/31/30 984,900 858,990 ------------- Sweden -- 1.3% Svensk Exportkredit AB MTN 4.875%(j) 09/29/11 1,300,000 1,353,534 ------------- United Kingdom -- 1.0% BP Capital Markets PLC 5.250%(j) 11/07/13 360,000 375,817 British Telecommunications PLC 8.625%(g)(j) 12/15/10 140,000 144,018 Diageo Capital PLC 7.375%(j) 01/15/14 390,000 415,448 Royal Bank of Scotland Group PLC MTN 7.640%(a)(j) 09/29/17 100,000 39,828 ------------- 975,111 ------------- Total Foreign Bonds (Cost $12,289,365) 12,033,824 ------------- Shares ---------- PREFERRED STOCK -- 0.1% 14,850 Federal Home Loan Mortgage Corporation ........................................... 5,791 500 Federal National Mortgage Association, Series O ................................. 391 10,775 Federal National Mortgage Association ........................................... 8,943 6,250 General Motors Corp. Cnv, Series B, 5.250% (h) .................................. 21,875 2,000 General Motors Corp. Cnv, Series C, 6.250% (h) .................................. 6,400 164 GMAC LLC Preferred Blocker, Inc. Cnv, 9.000%(m) ........................................ 49,200 ------------- Total Preferred Stock (Cost $878,186) 92,600 -------------
See Notes to Financial Statements. 28 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Maturity Date Par Value -------- ------------- ------------- U.S. GOVERNMENT & AGENCY OBLIGATIONS -- 20.3% Federal Home Loan Mortgage Corporation 5.625% 11/23/35 $ 190.000 $ 197,754 Federal National Mortgage Association 0.000%(f) 05/05/09 5,300,000 5,295,495 0.000%(f) 05/29/09 15,000,000 14,984,583 5.250% 08/01/12 130,000 137,023 ------------- Total U.S. Government & Agency Obligations (Cost $20,572,891) 20,614,855 ------------- U.S.TREASURY OBLIGATIONS -- 3.6% U.S. Inflationary Protection Securities 3.875%(i) 04/15/29 501,110 618,910 3.625%(i) 04/15/28 415,505 495,003 2.375%(i) 01/15/27 553,620 556,171 2.000%(i) 01/15/26 1,261,549 1,188,320 1.750%(i) 01/15/28 827,840 764,846 ------------- Total U.S. Treasury Obligations (Cost $3,703,531) 3,623,250 -------------
Shares ---------- CASH EQUIVALENT -- 6.2% 6,279,865 PNC Institutional Money Market Trust, 0.050%(l) (Cost $6,279,865) ....................................... 6,279,865 ------------- Total Investments -- 121.0% (Cost $138,845,149) 122,937,372 Other Assets & Liabilities, Net -- (21.0)% (21,333,408) ------------- NET ASSETS -- 100.0% $ 101,603,964 =============
---------- Cnv - Convertible MTN - Medium Term Note PIK - Payment-in-Kind TBA - To Be Announced (a) Variable Rate Security - The rate reported on the Schedule of Investments is the rate in effect as of December 31, 2008. (b) Securities sold within terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. (c) Security considered illiquid. The total value of such securities as of December 31, 2008 was $24,525 and represented 0.02% of Net Assets. (e) Security in default on interest payments. (f) Zero coupon bond. The rate reported on the Schedule of Investments is the effective yield at time of purchase. (g) Step Bonds - The rate reflected on the Schedule of Investments is the effective yield as of December 31, 2008. The coupon on a step bond changes on a specified date. (h) When issued. (i) Inflation protected security. Principal amount periodically adjusted for inflation. (j) Foreign security denominated in U.S. dollars. (k) Investment in non-U.S. dollars. Par amount reflects principal in local currency. (l) The rate shown is the 7-day effective yield as of December 31, 2008. (m) Security fair valued using methods determined in good faith by the Pricing Committee. As of December 31, 2008, the total market value of these securities was $121,720 representing 0.1% of net assets. At December 31, 2008, the Income Fund had the following open forward currency contracts:
CURRENT UNREALIZED LOCAL EXPIRATION VALUE APPRECIATION FOREIGN CURRENCY CURRENCY DATE U.S. DOLLAR (DEPRECIATION) ----------------- ----------- ---------- ----------- -------------- Short Contracts: Canadian Dollar 214,469 02/03/09 $ 179,547 $ 3,292 Euro Currency 1,855,538 02/03/09 2,462,819 (124,278) Long Contracts: Canadian Dollar 186,822 02/03/09 156,769 (3,235) Euro Currency 78,804 02/03/09 100,922 8,951 -------------- Net Unrealized Depreciation $ (115,270) ==============
See Notes to Financial Statements. 29 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
Shares Value ---------- --------------- COMMON STOCK -- 97.5% Consumer Discretionary -- 15.4% 936 1-800-FLOWERS.COM, Inc., Class A+ .............. $ 3,576 934 99 Cents Only Stores+ .......................... 10,209 2,390 Aeropostale, Inc.+ ............................. 38,479 475 AFC Enterprises, Inc.+ ......................... 2,228 683 Ambassadors Group, Inc. ........................ 6,284 1,215 American Apparel, Inc.+ ........................ 2,418 17,609 American Eagle Outfitters, Inc. ................ 164,820 5,454 American Public Education, Inc.+ ............... 202,834 745 Amerigon, Inc.+ ................................ 2,429 967 Arbitron, Inc. ................................. 12,842 40 Aristotle Corp. (The)+ ......................... 145 1,955 Bally Technologies, Inc.+ ...................... 46,979 308 Bebe Stores, Inc. .............................. 2,301 489 BJ's Restaurants, Inc.+ ........................ 5,266 474 Blue Nile, Inc.+ ............................... 11,608 1,085 Borders Group, Inc. ............................ 434 820 Buckle, Inc. (The) ............................. 17,892 634 Buffalo Wild Wings, Inc.+ ...................... 16,262 235 Cache, Inc.+ ................................... 475 557 California Pizza Kitchen, Inc.+ ................ 5,971 2,390 Capella Education Co.+ ......................... 140,436 188 Cato Corp. (The), Class A ...................... 2,839 180 Cavco Industries, Inc.+ ........................ 4,840 629 CEC Entertainment, Inc.+ ....................... 15,253 1,354 Champion Enterprises, Inc.+ .................... 758 113 Charlotte Russe Holding, Inc.+ ................. 733 6,125 Charter Communications, Inc., Class A+ ......... 501 2,122 Cheesecake Factory (The)+ ...................... 21,432 148 Cherokee, Inc. ................................. 2,568 1,935 Chico's FAS, Inc.+ ............................. 8,088 862 Christopher & Banks Corp. ...................... 4,827 388 Cinemark Holdings, Inc. ........................ 2,883 514 Citi Trends, Inc.+ ............................. 7,566 1,857 CKE Restaurants, Inc. .......................... 16,119 1,086 CKX, Inc.+ ..................................... 3,986 995 Coinstar, Inc.+ ................................ 19,412 1,995 Coldwater Creek, Inc.+ ......................... 5,686 14,842 Corinthian Colleges, Inc.+ ..................... 242,964 527 Cracker Barrel Old Country Store, Inc. ......... 10,851 2,720 CROCS, Inc.+ ................................... 3,373 165 Crown Media Holdings, Inc., Class A+ ........... 470 466 Deckers Outdoor Corp.+ ......................... 37,219 3,340 Denny's Corp.+ ................................. 6,647 625 DineEquity, Inc. ............................... 7,225 914 Dolan Media Co.+ ............................... 6,023 500 Dover Downs Gaming & Entertainment, Inc. ....... 1,590 495 Dover Motorsports, Inc. ........................ 643 12,015 DreamWorks Animation SKG, Inc., Class A+ ....... 303,499 Shares Value ---------- --------------- Consumer Discretionary (continued) 60 Drew Industries, Inc.+ ......................... $ 720 2,905 Drugstore.com, Inc.+ ........................... 3,602 273 DSW, Inc., Class A+ ............................ 3,402 80 Einstein Noah Restaurant Group, Inc.+ .......... 460 986 Entravision Communications Corp., Class A+ ..... 1,538 2,662 Exide Technologies+ ............................ 14,082 493 FGX International Holdings, Ltd.+ .............. 6,774 480 Finish Line (The), Class A ..................... 2,688 2,641 Fleetwood Enterprises, Inc.+ ................... 264 1,621 Fossil, Inc.+ .................................. 27,071 407 Fuel Systems Solutions, Inc.+ .................. 13,333 350 Fuqi International, Inc.+ ...................... 2,191 645 Gaiam, Inc., Class A+ .......................... 2,980 306 G-III Apparel Group, Ltd.+ ..................... 1,955 607 Global Sources, Ltd.+ .......................... 3,308 425 Global Traffic Network, Inc.+ .................. 2,482 9,057 Grand Canyon Education, Inc.+ .................. 170,091 100 Great Wolf Resorts, Inc.+ ...................... 154 12,285 Guess?, Inc. ................................... 188,575 7,749 Gymboree Corp.+ ................................ 202,171 165 Harte-Hanks, Inc. .............................. 1,030 170 Haverty Furniture Cos., Inc. ................... 1,586 1,512 Hayes Lemmerz International, Inc.+ ............. 680 447 hhgregg, Inc.+ ................................. 3,880 1,008 Hibbett Sports, Inc.+ .......................... 15,836 20 Hooker Furniture Corp. ......................... 153 1,450 Iconix Brand Group, Inc.+ ...................... 14,181 624 Interactive Data Corp. ......................... 15,388 642 iRobot Corp.+ .................................. 5,797 1,500 J. Crew Group, Inc.+ ........................... 18,300 1,296 Jack in the Box, Inc.+ ......................... 28,629 138 JOS A Bank Clothiers, Inc.+ .................... 3,609 6,068 K12, Inc.+ ..................................... 113,775 1,974 Krispy Kreme Doughnuts, Inc.+ .................. 3,316 1,160 Leapfrog Enterprises, Inc., Class A+ ........... 4,060 320 Learning Tree International, Inc.+ ............. 2,726 444 Libbey, Inc. ................................... 555 1,242 Life Time Fitness, Inc.+ ....................... 16,084 72 Lincoln Educational Services Corp.+ ............ 954 645 Lululemon Athletica, Inc.+ ..................... 5,115 335 Lumber Liquidators, Inc.+ ...................... 3,538 401 Maidenform Brands, Inc.+ ....................... 4,070 119 Marine Products Corp. .......................... 669 907 Martha Stewart Living Omnimedia, Class A+ ...... 2,358 1,748 Marvel Entertainment, Inc.+ .................... 53,751 1,054 Matthews International Corp., Class A .......... 38,661 209 Men's Wearhouse, Inc. (The) .................... 2,830 498 Midas, Inc.+ ................................... 5,224 171 Monarch Casino & Resort, Inc.+ ................. 1,992 47 Monro Muffler Brake, Inc. ...................... 1,198 871 Morgans Hotel Group Co.+ ....................... 4,059
See Notes to Financial Statements. 30 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Consumer Discretionary (continued) 1,484 National CineMedia, Inc. ....................... $ 15,048 15 National Presto Industries, Inc. ............... 1,155 1,442 NetFlix, Inc.+ ................................. 43,101 2,945 New Oriental Education & Technology Group ADR+ ..................................... 161,710 130 New York & Co., Inc.+ .......................... 302 1,086 NutriSystem, Inc. .............................. 15,845 82 Orbitz Worldwide, Inc.+ ........................ 318 556 Overstock.com, Inc.+ ........................... 5,994 9,044 Papa John's International, Inc.+ ............... 166,681 325 PC Mall, Inc.+ ................................. 1,303 492 Peet's Coffee & Tea, Inc.+ ..................... 11,439 235 Perry Ellis International, Inc.+ ............... 1,490 852 PetMed Express, Inc.+ .......................... 15,021 7,207 PF Chang's China Bistro, Inc.+ ................. 150,914 6,967 Phillips-Van Heusen Corp. ...................... 140,246 525 Pier 1 Imports, Inc.+ .......................... 194 440 Playboy Enterprises, Inc., Class B+ ............ 950 1,039 Polaris Industries, Inc. ....................... 29,767 1,383 Pool Corp. ..................................... 24,853 286 Pre-Paid Legal Services, Inc.+ ................. 10,665 430 Princeton Review, Inc.+ ........................ 2,120 2,945 Quantum Fuel Systems Technologies Worldwide, Inc.+ ............................... 2,503 995 Raser Technologies, Inc.+ ...................... 3,711 720 RCN Corp.+ ..................................... 4,248 530 Red Robin Gourmet Burgers, Inc.+ ............... 8,920 51 Retail Ventures, Inc.+ ......................... 177 78 RHI Entertainment, Inc.+ ....................... 633 235 Rick's Cabaret International, Inc.+ ............ 938 285 Riviera Holdings Corp.+ ........................ 855 352 Ruth's Hospitality Group, Inc.+ ................ 486 3,137 Sally Beauty Holdings, Inc.+ ................... 17,849 25,756 Scientific Games Corp., Class A+ ............... 451,760 1,851 Shuffle Master, Inc.+ .......................... 9,181 703 Shutterfly, Inc.+ .............................. 4,914 612 Sinclair Broadcast Group, Inc., Class A ........ 1,897 81 Skechers U.S.A., Inc., Class A+ ................ 1,038 1,300 Smith & Wesson Holding Corp.+ .................. 2,951 1,799 Sonic Corp.+ ................................... 21,894 2,384 Sotheby's ...................................... 21,194 86 Spartan Motors, Inc. ........................... 407 522 Stamps.com, Inc.+ .............................. 5,131 339 Steiner Leisure, Ltd.+ ......................... 10,007 535 Strayer Education, Inc. ........................ 114,709 162 Systemax, Inc. ................................. 1,745 1,629 Tempur-Pedic International, Inc. ............... 11,550 1,849 Texas Roadhouse, Inc., Class A+ ................ 14,330 1,868 thinkorswim Group, Inc.+ ....................... 10,498 627 Town Sports International Holdings, Inc.+ ...... 2,000 892 Tractor Supply Co.+ ............................ 32,237 612 True Religion Apparel, Inc.+ ................... 7,613 Shares Value ---------- --------------- Consumer Discretionary (continued) 2,215 Tupperware Brands Corp. ........................ $ 50,281 703 Tween Brands, Inc.+ ............................ 3,037 729 Ulta Salon Cosmetics & Fragrance, Inc.+ ........ 6,036 1,177 Under Armour, Inc., Class A+ ................... 28,060 472 Universal Electronics, Inc.+ ................... 7,656 287 Universal Technical Institute, Inc.+ ........... 4,928 1,046 Vail Resorts, Inc.+ ............................ 27,824 845 Valassis Communications, Inc.+ ................. 1,115 48 Value Line, Inc. ............................... 1,657 1,167 Visteon Corp.+ ................................. 409 10,454 Volcom, Inc.+ .................................. 113,949 1,628 Warnaco Group, Inc. (The)+ ..................... 31,958 10,014 Wendy's/Arby's Group, Inc., Class A ............ 49,469 3,258 Wet Seal, Inc. (The), Class A+ ................. 9,676 150 Weyco Group, Inc. .............................. 4,957 1,042 Winnebago Industries ........................... 6,283 12,436 WMS Industries, Inc.+ .......................... 334,528 1,778 Wolverine World Wide, Inc. ..................... 37,409 525 Wonder Auto Technology, Inc.+ .................. 2,058 760 World Wrestling Entertainment, Inc., Class A ... 8,421 702 Zumiez, Inc.+ .................................. 5,230 --------------- 4,753,161 --------------- Consumer Staples -- 1.2% 710 AgFeed Industries, Inc.+ ....................... 1,143 100 Alico, Inc. .................................... 4,099 2,243 Alliance One International, Inc.+ .............. 6,595 177 American Dairy, Inc.+ .......................... 2,662 2,195 American Oriental Bioengineering, Inc.+ ........ 14,904 38 Arden Group, Inc., Class A ..................... 4,788 300 Boston Beer Co., Inc., Class A+ ................ 8,520 370 Calavo Growers, Inc. ........................... 4,255 418 Cal-Maine Foods, Inc. .......................... 11,997 577 Chattem, Inc.+ ................................. 41,273 282 China Sky One Medical, Inc.+ ................... 4,509 143 Coca-Cola Bottling Co. Consolidated ............ 6,572 2,906 Darling International, Inc.+ ................... 15,954 582 Diamond Foods, Inc. ............................ 11,727 1,666 Flowers Foods, Inc. ............................ 40,584 453 Great Atlantic & Pacific Tea Co.+ .............. 2,840 614 Green Mountain Coffee Roasters, Inc.+ .......... 23,762 160 Hain Celestial Group, Inc.+ .................... 3,054 238 HQ Sustainable Maritime Industries, Inc.+ ...... 1,864 26 Inter Parfums, Inc. ............................ 199 720 Lancaster Colony Corp. ......................... 24,696 206 Lance, Inc. .................................... 4,726 170 Lifeway Foods, Inc.+ ........................... 1,527 86 Mannatech, Inc. ................................ 211 24 National Beverage Corp.+ ....................... 216
See Notes to Financial Statements. 31 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Consumer Staples (continued) 1,156 Nu Skin Enterprises, Inc., Class A ............. $ 12,057 137 Pantry, Inc. (The)+ ............................ 2,939 521 Pricesmart, Inc. ............................... 10,764 205 Ralcorp Holdings, Inc.+ ........................ 11,972 85 Ruddick Corp. .................................. 2,350 117 Sanderson Farms, Inc. .......................... 4,043 67 Schiff Nutrition International, Inc.+ .......... 400 1,719 Smart Balance, Inc.+ ........................... 11,689 94 Spartan Stores, Inc. ........................... 2,185 480 Star Scientific, Inc.+ ......................... 1,838 372 Synutra International, Inc.+ ................... 4,099 288 Tootsie Roll Industries, Inc. .................. 7,376 472 United Natural Foods, Inc.+ .................... 8,411 246 USANA Health Sciences, Inc.+ ................... 8,423 1,169 Vector Group, Ltd. ............................. 15,922 275 WD-40 Co. ...................................... 7,780 1,118 Winn-Dixie Stores, Inc.+ ....................... 18,000 660 Zhongpin, Inc.+ ................................ 7,920 --------------- 380,845 --------------- Energy -- 6.9% 1,435 Abraxas Petroleum Corp.+ ....................... 1,033 245 American Oil & Gas, Inc.+ ...................... 196 139 APCO Argentina, Inc. ........................... 3,702 323 Approach Resources, Inc.+ ...................... 2,361 7,793 Arena Resources, Inc.+ ......................... 218,905 1,234 Atlas America, Inc. ............................ 18,325 987 ATP Oil & Gas Corp.+ ........................... 5,774 277 Aventine Renewable Energy Holdings, Inc.+ ...... 180 1,469 Basic Energy Services, Inc.+ ................... 19,156 966 Berry Petroleum Co., Class A ................... 7,303 610 Bill Barrett Corp.+ ............................ 12,889 392 BMB Munai, Inc.+ ............................... 545 310 Bolt Technology Corp.+ ......................... 2,158 2,137 BPZ Resources, Inc.+ ........................... 13,677 112 Cal Dive International, Inc.+ .................. 729 1,625 Cano Petroleum, Inc.+ .......................... 715 732 CARBO Ceramics, Inc. ........................... 26,008 976 Carrizo Oil & Gas, Inc.+ ....................... 15,714 1,348 Cheniere Energy, Inc.+ ......................... 3,842 189 Clayton Williams Energy, Inc.+ ................. 8,588 882 Clean Energy Fuels Corp.+ ...................... 5,327 7,257 Comstock Resources, Inc.+ ...................... 342,893 11,363 Concho Resources, Inc.+ ........................ 259,304 469 Contango Oil & Gas Co.+ ........................ 26,405 6,874 Continental Resources, Inc.+ ................... 142,361 1,436 Crosstex Energy, Inc. .......................... 5,600 826 CVR Energy, Inc.+ .............................. 3,304 183 Dawson Geophysical Co.+ ........................ 3,259 2,214 Delta Petroleum Corp.+ ......................... 10,539 658 DHT Maritime, Inc. ............................. 3,645 290 Double Eagle Petroleum Co.+ .................... 2,036 1,095 Dril-Quip, Inc.+ ............................... 22,458 3,965 Endeavour International Corp.+ ................. 1,982 Shares Value ---------- --------------- Energy (continued) 1,145 Energy Partners, Ltd.+ ......................... $ 1,546 800 Energy XXI Bermuda, Ltd. ....................... 632 970 ENGlobal Corp.+ ................................ 3,153 4,407 Evergreen Energy, Inc.+ ........................ 1,278 21,654 EXCO Resources, Inc.+ .......................... 196,185 1,447 FX Energy, Inc.+ ............................... 4,037 3,295 Gasco Energy, Inc.+ ............................ 1,285 1,745 General Maritime Corp. ......................... 18,846 1,362 GeoGlobal Resources, Inc.+ ..................... 2,179 91 Geokinetics, Inc.+ ............................. 225 289 GeoMet, Inc.+ .................................. 497 215 Georesources, Inc.+ ............................ 1,868 228 GMX Resources, Inc.+ ........................... 5,773 1,064 Golar LNG, Ltd. ................................ 7,193 805 Goodrich Petroleum Corp.+ ...................... 24,110 7,853 Gran Tierra Energy, Inc.+ ...................... 21,988 155 GreenHunter Energy, Inc.+(c) ................... 763 438 Gulf Island Fabrication, Inc. .................. 6,312 609 Gulfmark Offshore, Inc.+ ....................... 14,488 301 Gulfport Energy Corp.+ ......................... 1,189 535 Houston American Energy Corp. .................. 1,808 5,062 IHS, Inc., Class A+ ............................ 189,420 4,515 International Coal Group, Inc.+ ................ 10,384 3,194 ION Geophysical Corp.+ ......................... 10,955 973 James River Coal Co.+ .......................... 14,916 607 Knightsbridge Tankers, Ltd. .................... 8,893 178 Lufkin Industries, Inc. ........................ 6,141 933 Matrix Service Co.+ ............................ 7,156 2,140 McMoRan Exploration Co.+ ....................... 20,972 350 Mitcham Industries, Inc.+ ...................... 1,390 713 NATCO Group, Inc., Class A+ .................... 10,823 895 National Coal Corp.+ ........................... 1,137 435 Natural Gas Services Group, Inc.+ .............. 4,407 326 Nordic American Tanker Shipping ................ 11,002 755 Northern Oil and Gas, Inc.+ .................... 1,963 690 Oilsands Quest, Inc.+ .......................... 504 146 OYO Geospace Corp.+ ............................ 2,551 1,160 Pacific Ethanol, Inc.+ ......................... 510 265 Panhandle Oil and Gas, Inc., Class A ........... 4,770 1,488 Parallel Petroleum Corp.+ ...................... 2,991 719 Parker Drilling Co.+ ........................... 2,085 1,486 Penn Virginia Corp. ............................ 38,606 528 Petroleum Development Corp.+ ................... 12,709 766 Petroquest Energy, Inc.+ ....................... 5,178 332 PHI, Inc.+ ..................................... 4,651 220 Pioneer Drilling Co.+ .......................... 1,225 254 Precision Drilling Trust ....................... 2,131 35 PrimeEnergy Corp.+ ............................. 1,818 915 Quest Resource Corp.+ .......................... 403 820 RAM Energy Resources, Inc.+ .................... 722 5,860 Rentech, Inc.+ ................................. 3,985 600 Rex Energy Corp.+ .............................. 1,764 1,041 RPC, Inc. ...................................... 10,160 1,506 Ship Finance International, Ltd. ............... 16,641
See Notes to Financial Statements. 32 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Energy (continued) 3 Smith International, Inc. ...................... $ 69 115 Stone Energy Corp.+ ............................ 1,267 2,065 Sulphco, Inc.+ ................................. 1,941 395 Superior Well Services, Inc.+ .................. 3,950 444 T-3 Energy Services, Inc.+ ..................... 4,191 487 Teekay Tankers, Ltd., Class A .................. 6,185 755 Tri-Valley Corp.+ .............................. 1,359 175 Union Drilling, Inc.+ .......................... 908 1,432 Uranium Resources, Inc.+ ....................... 1,103 1,220 USEC, Inc.+ .................................... 5,478 665 Vaalco Energy, Inc.+ ........................... 4,948 726 Venoco, Inc.+ .................................. 1,967 2,054 Warren Resources, Inc.+ ........................ 4,087 315 Westmoreland Coal Co.+ ......................... 3,497 4,789 Whiting Petroleum Corp.+ ....................... 160,240 1,387 Willbros Group, Inc.+ .......................... 11,748 --------------- 2,132,169 --------------- Financials -- 5.4% 551 Acadia Realty Trust ............................ 7,863 437 Advance America Cash Advance Centers, Inc. ..... 826 5,772 Affiliated Managers Group, Inc.+ ............... 241,962 46 Alexander's, Inc. .............................. 11,725 32 Amtrust Financial Services, Inc. ............... 371 383 Argo Group International Holdings, Ltd.+ ....... 12,992 425 Asset Acceptance Capital Corp.+ ................ 2,172 321 Associated Estates Realty Corp. ................ 2,931 600 BGC Partners, Inc., Class A .................... 1,656 150 Broadpoint Securities Group, Inc.+ ............. 446 545 Cardinal Financial Corp. ....................... 3,101 429 Cardtronics, Inc.+ ............................. 553 455 Cash America International, Inc. ............... 12,444 374 Cohen & Steers, Inc. ........................... 4,110 131 Consolidated-Tomoka Land Co. ................... 5,003 906 Cousins Properties, Inc. ....................... 12,548 137 Credit Acceptance Corp.+ ....................... 1,830 280 Danvers Bancorp, Inc. .......................... 3,744 75 Diamond Hill Investment Group, Inc. ............ 4,875 869 Dollar Financial Corp.+ ........................ 8,951 49 Doral Financial Corp.+ ......................... 367 255 DuPont Fabros Technology, Inc. ................. 528 285 EastGroup Properties, Inc. ..................... 10,140 893 eHealth, Inc.+ ................................. 11,859 100 Employers Holdings, Inc. ....................... 1,650 114 Enstar Group, Ltd.+ ............................ 6,742 200 Enterprise Financial Services Corp. ............ 3,048 334 Epoch Holding Corp. ............................ 2,535 463 Equity Lifestyle Properties, Inc. .............. 17,761 1,361 Ezcorp, Inc., Class A+ ......................... 20,701 814 FCStone Group, Inc.+ ........................... 3,606 72 Fifth Street Finance Corp. ..................... 544 665 First Cash Financial Services, Inc.+ ........... 12,675 133 First Financial Bankshares, Inc. ............... 7,343 Shares Value ---------- --------------- Financials (continued) 1,220 First Marblehead Corp. (The)+ .................. $ 1,574 96 First Mercury Financial Corp.+ ................. 1,369 95 Forestar Group, Inc.+ .......................... 904 85 GAMCO Investors, Inc., Class A ................. 2,322 2,377 GFI Group, Inc. ................................ 8,415 2,757 Greenhill & Co., Inc. .......................... 192,356 976 Grubb & Ellis Co. .............................. 1,210 65 Hancock Holding Co. ............................ 2,955 123 Highwoods Properties, Inc. ..................... 3,365 483 Home Properties, Inc. .......................... 19,610 664 Inland Real Estate Corp. ....................... 8,619 1,447 Interactive Brokers Group, Inc., Class A+ ...... 25,887 155 International Assets Holding Corp.+ ............ 1,330 45 KBW, Inc.+ ..................................... 1,035 413 Knight Capital Group, Inc., Class A+ ........... 6,670 3,833 Ladenburg Thalmann Financial Services, Inc.+ ... 2,760 190 Life Partners Holdings, Inc. ................... 8,291 566 Mid-America Apartment Communities, Inc. ........ 21,032 15,501 MSCI, Inc., Class A+ ........................... 275,298 263 NewStar Financial, Inc.+ ....................... 1,049 348 Omega Healthcare Investors, Inc. ............... 5,558 1,512 optionsXpress Holdings, Inc. ................... 20,200 401 Oritani Financial Corp.+ ....................... 6,757 183 Pinnacle Financial Partners, Inc.+ ............. 5,455 357 Portfolio Recovery Associates, Inc.+ ........... 12,081 509 Potlatch Corp. ................................. 13,239 411 Primus Guaranty, Ltd.+ ......................... 468 767 PrivateBancorp, Inc. ........................... 24,897 155 PS Business Parks, Inc. ........................ 6,922 221 Pzena Investment Management, Inc., Class A ..... 933 771 Riskmetrics Group, Inc.+ ....................... 11,480 60 S.Y. Bancorp, Inc. ............................. 1,650 220 Saul Centers, Inc. ............................. 8,690 12,123 Signature Bank+ ................................ 347,809 65 Smithtown Bancorp, Inc. ........................ 1,042 52 Stifel Financial Corp.+ ........................ 2,384 131 Suffolk Bancorp ................................ 4,707 377 Sun Communities, Inc. .......................... 5,278 222 SVB Financial Group+ ........................... 5,823 1,127 Tanger Factory Outlet Centers .................. 42,398 393 Tejon Ranch Co.+ ............................... 9,723 167 Thomas Properties Group, Inc. .................. 433 730 Tower Group, Inc. .............................. 20,593 1,153 TradeStation Group, Inc.+ ...................... 7,437 951 Trustco Bank Corp. ............................. 9,044 389 U.S. Global Investors, Inc., Class A ........... 1,902 53 Universal Health Realty Income Trust ........... 1,744 365 ViewPoint Financial Group ...................... 5,858 943 Washington Real Estate Investment Trust ............................... 26,687
See Notes to Financial Statements. 33 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Financials (continued) 471 Westamerica Bancorporation ..................... $ 24,091 165 Westwood Holdings Group, Inc. .................. 4,688 583 World Acceptance Corp.+ ........................ 11,520 --------------- 1,677,144 --------------- Health Care -- 25.1% 778 Abaxis, Inc.+ .................................. 12,471 1,215 Abiomed, Inc.+ ................................. 19,950 1,087 Acadia Pharmaceuticals, Inc.+ .................. 978 960 Accelrys, Inc.+ ................................ 4,186 1,296 Accuray, Inc.+ ................................. 6,687 1,324 Acorda Therapeutics, Inc.+ ..................... 27,155 290 Acura Pharmaceuticals, Inc.+ ................... 2,129 1,580 Adolor Corp.+ .................................. 2,623 375 Affymax, Inc.+ ................................. 3,746 1,325 Affymetrix, Inc.+ .............................. 3,962 386 Air Methods Corp.+ ............................. 6,172 2,000 Akorn, Inc.+ ................................... 4,600 316 Albany Molecular Research, Inc.+ ............... 3,078 9,563 Alexion Pharmaceuticals, Inc.+ ................. 346,085 853 Alexza Pharmaceuticals, Inc.+ .................. 2,704 2,215 Align Technology, Inc.+ ........................ 19,381 3,414 Alkermes, Inc.+ ................................ 36,359 842 Alliance Imaging, Inc.+ ........................ 6,711 1,904 Allos Therapeutics, Inc.+ ...................... 11,652 5,214 Allscripts-Misys Healthcare Solutions, Inc. .... 51,723 228 Almost Family, Inc.+ ........................... 10,255 1,271 Alnylam Pharmaceuticals, Inc.+ ................. 31,432 845 Alphatec Holdings, Inc.+ ....................... 1,986 603 AMAG Pharmaceuticals, Inc.+ .................... 21,617 947 Amedisys, Inc.+ ................................ 39,149 2,580 American Medical Systems Holdings, Inc.+ ....... 23,194 176 Amicus Therapeutics, Inc.+ ..................... 1,404 1,112 AMN Healthcare Services, Inc.+ ................. 9,408 478 Analogic Corp. ................................. 13,040 359 Angiodynamics, Inc.+ ........................... 4,915 435 Ardea Biosciences, Inc.+ ....................... 5,207 700 Arena Pharmaceuticals, Inc.+ ................... 2,919 2,423 Ariad Pharmaceuticals, Inc.+ ................... 2,060 1,454 Arqule, Inc.+ .................................. 6,136 1,685 Array Biopharma, Inc.+ ......................... 6,824 948 Arthrocare Corp.+ .............................. 4,522 1,027 Assisted Living Concepts, Inc., Class A+ ....... 4,262 5,047 athenahealth, Inc.+ ............................ 189,868 55 Atrion Corp. ................................... 5,341 1,470 Auxilium Pharmaceuticals, Inc.+ ................ 41,807 387 Biodel, Inc.+ .................................. 1,865 630 BioForm Medical, Inc.+ ......................... 573 475 BioMimetic Therapeutics, Inc.+ ................. 4,379 677 Bio-Rad Laboratories, Inc., Class A+ ........... 50,985 407 Bio-Reference Labs, Inc.+ ...................... 10,676 729 BMP Sunstone Corp.+ ............................ 4,061 Shares Value ---------- --------------- Health Care (continued) 1,790 Bruker Corp.+ .................................. $ 7,232 724 Cadence Pharmaceuticals, Inc.+ ................. 5,235 595 Cambrex Corp.+ ................................. 2,749 176 Capital Senior Living Corp.+ ................... 524 391 Caraco Pharmaceutical Laboratories, Ltd.+ ...... 2,315 8,068 CardioNet, Inc.+ ............................... 198,876 5,758 Catalyst Health Solutions, Inc.+ ............... 140,207 1,059 Celera Corp.+ .................................. 11,787 2,885 Cell Genesys, Inc.+ ............................ 635 535 Celldex Therapeutics, Inc.+ .................... 4,237 127 Centene Corp.+ ................................. 2,503 2,028 Cepheid, Inc.+ ................................. 21,051 588 Chemed Corp. ................................... 23,385 395 Chindex International, Inc.+ ................... 3,140 403 Clinical Data, Inc.+ ........................... 3,587 1,680 Columbia Laboratories, Inc.+ ................... 2,134 276 Computer Programs & Systems, Inc. .............. 7,397 27,428 Conceptus, Inc.+ ............................... 417,454 80 Conmed Corp.+ .................................. 1,915 287 Corvel Corp.+ .................................. 6,308 534 Cougar Biotechnology, Inc.+ .................... 13,884 201 Cross Country Healthcare, Inc.+ ................ 1,767 1,000 CryoLife, Inc.+ ................................ 9,710 2,015 Cubist Pharmaceuticals, Inc.+ .................. 48,682 2,153 CV Therapeutics, Inc.+ ......................... 19,829 850 Cyberonics, Inc.+ .............................. 14,085 345 Cynosure, Inc., Class A+ ....................... 3,150 1,093 Cypress Bioscience, Inc.+ ...................... 7,476 1,139 Cytokinetics, Inc.+ ............................ 3,246 770 Cytori Therapeutics, Inc.+ ..................... 2,780 439 Datascope Corp. ................................ 22,933 3,302 Dendreon Corp.+ ................................ 15,123 1,824 Depomed, Inc.+ ................................. 3,010 940 DexCom, Inc.+ .................................. 2,594 655 Dionex Corp.+ .................................. 29,377 3,352 Discovery Laboratories, Inc.+ .................. 3,754 2,893 Durect Corp.+ .................................. 9,807 1,950 Dyax Corp.+ .................................... 7,098 1,943 Eclipsys Corp.+ ................................ 27,571 155 Emergency Medical Services Corp., Class A+ ..... 5,675 360 Emergent Biosolutions, Inc.+ ................... 9,400 707 Emeritus Corp.+ ................................ 7,091 18 Ensign Group, Inc. (The) ....................... 301 874 Enzo Biochem, Inc.+ ............................ 4,274 1,605 Enzon Pharmaceuticals, Inc.+ ................... 9,357 1,525 eResearchTechnology, Inc.+ ..................... 10,111 493 ev3, Inc.+ ..................................... 3,007 269 Exactech, Inc.+ ................................ 4,530 3,731 Exelixis, Inc.+ ................................ 18,730 846 Facet Biotech Corp.+ ........................... 8,113 327 Five Star Quality Care, Inc.+ .................. 500 490 Genomic Health, Inc.+ .......................... 9,545 298 Genoptix, Inc.+ ................................ 10,156
See Notes to Financial Statements. 34 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Health Care (continued) 398 Gentiva Health Services, Inc.+ ................. $ 11,645 1,759 Geron Corp.+ ................................... 8,215 669 GTx, Inc.+ ..................................... 11,266 919 Haemonetics Corp.+ ............................. 51,923 2,176 Halozyme Therapeutics, Inc.+ ................... 12,186 610 Hansen Medical, Inc.+ .......................... 4,404 1,241 Healthways, Inc.+ .............................. 14,247 893 HMS Holdings Corp.+ ............................ 28,147 562 Human Genome Sciences, Inc.+ ................... 1,191 200 ICU Medical, Inc.+ ............................. 6,628 898 Idenix Pharmaceuticals, Inc.+ .................. 5,199 740 Idera Pharmaceuticals, Inc.+ ................... 5,683 775 I-Flow Corp.+ .................................. 3,720 7,951 Immucor, Inc.+ ................................. 211,338 1,820 Immunogen, Inc.+ ............................... 7,808 2,251 Immunomedics, Inc.+ ............................ 3,827 2,690 Incyte Corp., Ltd.+ ............................ 10,195 2,770 Indevus Pharmaceuticals, Inc.+ ................. 8,698 1,515 Inspire Pharmaceuticals, Inc.+ ................. 5,454 660 Insulet Corp.+ ................................. 5,095 7,080 Integra LifeSciences Holdings Corp.+ ........... 251,836 1,117 InterMune, Inc.+ ............................... 11,818 215 Invacare Corp. ................................. 3,337 1,165 inVentiv Health, Inc.+ ......................... 13,444 205 IPC The Hospitalist Co., Inc.+ ................. 3,450 660 IRIS International, Inc.+ ...................... 9,200 24,081 Isis Pharmaceuticals, Inc.+ .................... 341,469 1,692 Javelin Pharmaceuticals, Inc.+ ................. 2,115 142 Jazz Pharmaceuticals, Inc.+ .................... 274 462 Kendle International, Inc.+ .................... 11,883 260 Kensey Nash Corp.+ ............................. 5,047 1,175 KV Pharmaceutical Co., Class A+ ................ 3,384 180 Landauer, Inc. ................................. 13,194 845 Lexicon Pharmaceuticals, Inc.+ ................. 1,183 525 LHC Group, Inc.+ ............................... 18,900 315 Life Sciences Research, Inc.+ .................. 2,961 3,629 Ligand Pharmaceuticals, Inc., Class B+ ......... 9,943 1,473 Luminex Corp.+ ................................. 31,463 965 MannKind Corp.+ ................................ 3,310 281 MAP Pharmaceuticals, Inc.+ ..................... 1,961 695 Marshall Edwards, Inc.+ ........................ 486 1,174 Martek Biosciences Corp. ....................... 35,584 8,577 Masimo Corp.+ .................................. 255,852 365 Maxygen, Inc.+ ................................. 3,256 4,538 Medarex, Inc.+ ................................. 25,322 650 MedAssets, Inc.+ ............................... 9,490 190 Medical Action Industries, Inc.+ ............... 1,900 1,860 Medicines Co. (The)+ ........................... 27,398 2,012 Medicis Pharmaceutical Corp., Class A .......... 27,967 903 Medivation, Inc.+ .............................. 13,157 1,206 Mentor Corp. ................................... 37,302 1,435 Meridian Bioscience, Inc. ...................... 36,549 977 Merit Medical Systems, Inc.+ ................... 17,518 Shares Value ---------- --------------- Health Care (continued) 682 Metabolix, Inc.+ ............................... $ 8,675 560 Micrus Endovascular Corp.+ ..................... 6,502 1,285 MiddleBrook Pharmaceuticals, Inc.+ ............. 1,927 635 Molecular Insight Pharmaceuticals, Inc.+ ....... 2,730 947 Momenta Pharmaceuticals, Inc.+ ................. 10,985 362 MWI Veterinary Supply, Inc.+ ................... 9,760 6,009 Myriad Genetics, Inc.+ ......................... 398,156 112 Nabi Biopharmaceuticals+ ....................... 375 463 Nanosphere, Inc.+ .............................. 2,204 265 National Healthcare Corp. ...................... 13,420 50 National Research Corp. ........................ 1,448 982 Natus Medical, Inc.+ ........................... 12,717 1,374 Nektar Therapeutics+ ........................... 7,639 510 Neogen Corp.+ .................................. 12,740 1,331 Neurocrine Biosciences, Inc.+ .................. 4,259 68 Nighthawk Radiology Holdings, Inc.+ ............ 331 2,075 Novavax, Inc.+ ................................. 3,922 892 Noven Pharmaceuticals, Inc.+ ................... 9,812 1,695 NPS Pharmaceuticals, Inc.+ ..................... 10,526 7,156 NuVasive, Inc.+ ................................ 247,955 535 NxStage Medical, Inc.+ ......................... 1,428 634 Obagi Medical Products, Inc.+ .................. 4,730 252 Odyssey HealthCare, Inc.+ ...................... 2,331 1,106 Omnicell, Inc.+ ................................ 13,504 10,446 Onyx Pharmaceuticals, Inc.+ .................... 356,835 1,726 Opko Health, Inc.+ ............................. 2,796 920 Optimer Pharmaceuticals, Inc.+ ................. 11,141 1,524 OraSure Technologies, Inc.+ .................... 5,608 720 Orexigen Therapeutics, Inc.+ ................... 4,018 203 Orthofix International NV+ ..................... 3,112 2,367 Orthovita, Inc.+ ............................... 8,024 6,495 OSI Pharmaceuticals, Inc.+ ..................... 253,630 536 Osiris Therapeutics, Inc.+ ..................... 10,270 1,337 Owens & Minor, Inc. ............................ 50,338 1,236 Pain Therapeutics, Inc.+ ....................... 7,317 2,010 Parexel International Corp.+ ................... 19,517 4,265 PDL BioPharma, Inc. ............................ 26,358 2,996 Perrigo Co. .................................... 96,801 464 PharmaNet Development Group, Inc.+ ............. 422 605 Pharmasset, Inc.+ .............................. 7,932 1,526 Phase Forward, Inc.+ ........................... 19,105 937 Pozen, Inc.+ ................................... 4,722 937 Progenics Pharmaceuticals, Inc.+ ............... 9,660 386 Protalix BioTherapeutics, Inc.+ ................ 710 372 Providence Service Corp. (The)+ ................ 539 2,213 PSS World Medical, Inc.+ ....................... 41,649 19,119 Psychiatric Solutions, Inc.+ ................... 532,464 1,890 Questcor Pharmaceuticals, Inc.+ ................ 17,596 999 Quidel Corp.+ .................................. 13,057 700 RadNet, Inc.+ .................................. 2,345 2,216 Regeneron Pharmaceuticals, Inc.+ ............... 40,686 1,065 Repligen Corp.+ ................................ 4,026 6,098 Resmed, Inc.+ .................................. 228,553 850 Rexahn Pharmaceuticals, Inc.+ .................. 757
See Notes to Financial Statements. 35 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Health Care (continued) 1,290 Rigel Pharmaceuticals, Inc.+ ................... $ 10,320 1,900 RTI Biologics, Inc.+ ........................... 5,244 1,315 Sangamo Biosciences, Inc.+ ..................... 4,576 1,932 Savient Pharmaceuticals, Inc.+ ................. 11,186 2,155 Seattle Genetics, Inc.+ ........................ 19,266 8,809 Sequenom, Inc.+ ................................ 174,770 571 Sirona Dental Systems, Inc.+ ................... 5,996 430 Somanetics Corp.+ .............................. 7,099 597 SonoSite, Inc.+ ................................ 11,391 1,112 Spectranetics Corp.+ ........................... 2,902 979 Stereotaxis, Inc.+ ............................. 4,308 2,092 STERIS Corp. ................................... 49,978 327 Sucampo Pharmaceuticals, Inc., Class A+ ........ 1,880 1,526 Sun Healthcare Group, Inc.+ .................... 13,505 1,401 Sunrise Senior Living, Inc.+ ................... 2,354 547 SurModics, Inc.+ ............................... 13,823 376 Symmetry Medical, Inc.+ ........................ 2,997 450 Synovis Life Technologies, Inc.+ ............... 8,433 598 Synta Pharmaceuticals Corp.+ ................... 3,660 650 Targacept, Inc.+ ............................... 2,314 1,836 Theravance, Inc.+ .............................. 22,748 1,947 Thoratec Corp.+ ................................ 63,258 1,342 TomoTherapy, Inc.+ ............................. 3,194 436 TranS1, Inc.+ .................................. 3,144 425 U.S. Physical Therapy, Inc.+ ................... 5,665 805 United Therapeutics Corp.+ ..................... 50,353 1,188 Valeant Pharmaceuticals International+ ......... 27,205 999 Varian, Inc.+ .................................. 33,476 250 Virtual Radiologic Corp.+ ...................... 2,120 555 Vision-Sciences, Inc.+ ......................... 849 293 Vital Images, Inc.+ ............................ 4,076 2,455 Vivus, Inc.+ ................................... 13,061 465 Vnus Medical Technologies, Inc.+ ............... 7,542 12,239 Volcano Corp.+ ................................. 183,585 1,155 West Pharmaceutical Services, Inc. ............. 43,624 19,310 Wright Medical Group, Inc.+ .................... 394,503 906 XenoPort, Inc.+ ................................ 22,722 4,656 XOMA, Ltd.+ .................................... 2,887 740 Zoll Medical Corp.+ ............................ 13,979 1,338 Zymogenetics, Inc.+ ............................ 4,014 --------------- 7,754,467 --------------- Industrials -- 19.3% 578 3D Systems Corp.+ .............................. 4,589 479 AAON, Inc. ..................................... 10,002 313 AAR Corp.+ ..................................... 5,762 50 Aceto Corp. .................................... 500 1,801 Actuant Corp., Class A ......................... 34,255 1,256 Acuity Brands, Inc. ............................ 43,847 766 Administaff, Inc. .............................. 16,607 1,565 Advanced Battery Technologies, Inc.+ ........... 4,163 614 Advisory Board Co. (The)+ ...................... 13,692 8,766 Aegean Marine Petroleum Network, Inc. .................................. 148,671 Shares Value ---------- --------------- Industrials (continued) 362 Aerovironment, Inc.+ ........................... $ 13,325 2,165 Airtran Holdings, Inc.+ ........................ 9,613 700 Akeena Solar, Inc.+ ............................ 1,204 4,213 Allegiant Travel Co.+ .......................... 204,625 948 Altra Holdings, Inc.+ .......................... 7,499 1,280 American Commercial Lines, Inc.+ ............... 6,272 577 American Ecology Corp. ......................... 11,673 265 American Railcar Industries, Inc. .............. 2,790 1,287 American Reprographics Co.+ .................... 8,880 325 American Science & Engineering, Inc. ........... 24,037 1,500 American Superconductor Corp.+ ................. 24,465 295 American Woodmark Corp. ........................ 5,378 70 Ameron International Corp. ..................... 4,405 219 Ampco-Pittsburgh Corp. ......................... 4,752 8 Amrep Corp.+ ................................... 250 523 Apogee Enterprises, Inc. ....................... 5,418 456 Applied Industrial Technologies, Inc. .......... 8,628 120 Applied Signal Technology, Inc. ................ 2,153 409 Argon ST, Inc.+ ................................ 7,714 265 Ascent Solar Technologies, Inc.+ ............... 997 593 Astec Industries, Inc.+ ........................ 18,579 4,038 Axsys Technologies, Inc.+ ...................... 221,525 173 AZZ, Inc.+ ..................................... 4,342 485 Badger Meter, Inc. ............................. 14,075 39 Baker (Michael) Corp.+ ......................... 1,439 5,547 Baldor Electric Co. ............................ 99,014 1,705 Barnes Group, Inc. ............................. 24,723 3,467 Beacon Power Corp.+ ............................ 1,837 745 Beacon Roofing Supply, Inc.+ ................... 10,341 503 Belden, Inc. ................................... 10,503 80 Bowne & Co., Inc. .............................. 470 185 CAI International, Inc.+ ....................... 587 1,932 Calgon Carbon Corp.+ ........................... 29,676 6,210 Capstone Turbine Corp.+ ........................ 5,216 460 Casella Waste Systems, Inc., Class A+ .......... 1,877 1,606 CBIZ, Inc.+ .................................... 13,892 37 CDI Corp. ...................................... 479 1,727 Cenveo, Inc.+ .................................. 7,685 1,008 Chart Industries, Inc.+ ........................ 10,715 668 China Architectural Engineering, Inc.+ ......... 1,643 835 China BAK Battery, Inc.+ ....................... 1,353 195 China Direct, Inc.+ ............................ 283 500 China Fire & Security Group, Inc.+ ............. 3,405 513 CIRCOR International, Inc. ..................... 14,108 1,115 Clarcor, Inc. .................................. 36,996 706 Clean Harbors, Inc.+ ........................... 44,789 206 Coleman Cable, Inc.+ ........................... 933 775 Colfax Corp.+ .................................. 8,052 73 Columbus McKinnon Corp.+ ....................... 996 204 Consolidated Graphics, Inc.+ ................... 4,619 698 CoStar Group, Inc.+ ............................ 22,992 248 CRA International, Inc.+ ....................... 6,679 1,357 Curtiss-Wright Corp. ........................... 45,310
See Notes to Financial Statements. 36 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Industrials (continued) 965 Deluxe Corp. ................................... $ 14,436 378 Duff & Phelps Corp., Class A+ .................. 7,227 260 DXP Enterprises, Inc.+ ......................... 3,799 161 Dynamex, Inc.+ ................................. 2,375 454 Dynamic Materials Corp. ........................ 8,767 60 DynCorp International, Inc., Class A+ .......... 910 1,665 Eagle Bulk Shipping, Inc. ...................... 11,355 934 EMCOR Group, Inc.+ ............................. 20,950 1,448 Ener1, Inc.+ ................................... 10,353 1,610 Energy Conversion Devices, Inc.+ ............... 40,588 359 Energy Recovery, Inc.+ ......................... 2,721 1,171 EnergySolutions, Inc. .......................... 6,616 35 EnerNOC, Inc.+ ................................. 260 300 EnerSys+ ....................................... 3,300 90 EnPro Industries, Inc.+ ........................ 1,939 927 ESCO Technologies, Inc.+ ....................... 37,961 869 Esterline Technologies Corp.+ .................. 32,927 5,108 Evergreen Solar, Inc.+ ......................... 16,295 367 Exponent, Inc.+ ................................ 11,039 575 Flanders Corp.+ ................................ 2,697 1,301 Flow International Corp.+ ...................... 3,148 1,423 Force Protection, Inc.+ ........................ 8,510 1,028 Forward Air Corp. .............................. 24,949 496 Franklin Electric Co., Inc. .................... 13,943 49 FreightCar America, Inc. ....................... 895 4,158 FTI Consulting, Inc.+ .......................... 185,779 667 Fuel Tech, Inc.+ ............................... 7,064 2,415 FuelCell Energy, Inc.+ ......................... 9,370 970 Furmanite Corp.+ ............................... 5,228 515 Fushi Copperweld, Inc.+ ........................ 2,714 867 Genco Shipping & Trading, Ltd. ................. 12,832 2,059 GenCorp, Inc.+ ................................. 7,577 6,707 General Cable Corp.+ ........................... 118,647 7,852 Genessee & Wyoming, Inc., Class A+ ............. 239,486 1,822 Geo Group, Inc. (The)+ ......................... 32,851 62 GeoEye, Inc.+ .................................. 1,192 506 Gorman-Rupp Co. (The) .......................... 15,747 3,515 GrafTech International, Ltd.+ .................. 29,245 349 Graham Corp. ................................... 3,776 2,205 Granite Construction, Inc. ..................... 96,866 736 GT Solar International, Inc.+ .................. 2,127 275 Harbin Electric, Inc.+ ......................... 2,197 1,342 Hawaiian Holdings, Inc.+ ....................... 8,562 1,534 Healthcare Services Group ...................... 24,437 1,234 Heartland Express, Inc. ........................ 19,448 793 HEICO Corp. .................................... 30,792 165 Herley Industries, Inc.+ ....................... 2,026 1,092 Herman Miller, Inc. ............................ 14,229 3,431 Hexcel Corp.+ .................................. 25,355 840 Hill International, Inc.+ ...................... 5,914 140 HNI Corp. ...................................... 2,218 1,073 Horizon Lines, Inc., Class A ................... 3,745 637 Houston Wire & Cable Co. ....................... 5,930 Shares Value ---------- --------------- Industrials (continued) 853 HUB Group, Inc., Class A+ ...................... $ 22,630 749 Hudson Highland Group, Inc.+ ................... 2,509 4,214 Huron Consulting Group, Inc.+ .................. 241,336 6,007 ICF International, Inc.+ ....................... 147,592 138 ICT Group, Inc.+ ............................... 632 870 II-VI, Inc.+ ................................... 16,608 1,133 Innerworkings, Inc.+ ........................... 7,421 60 Insteel Industries, Inc. ....................... 677 58 Integrated Electrical Services, Inc.+ .......... 508 1,884 Interface, Inc., Class A ....................... 8,742 50 Kaman Corp. .................................... 906 1,224 Kaydon Corp. ................................... 42,044 205 Key Technology, Inc.+ .......................... 3,872 143 Kforce, Inc.+ .................................. 1,098 2,045 Knight Transportation, Inc. .................... 32,965 1,548 Knoll, Inc. .................................... 13,963 119 Korn/Ferry International+ ...................... 1,359 86 K-Tron International, Inc.+ .................... 6,871 395 LaBarge, Inc.+ ................................. 5,668 7,692 Landstar System, Inc. .......................... 295,604 155 Layne Christensen Co.+ ......................... 3,722 330 LECG Corp.+ .................................... 2,214 425 Lindsay Corp. .................................. 13,511 195 LMI Aerospace, Inc.+ ........................... 2,217 25 M&F Worldwide Corp.+ ........................... 386 1,360 MasTec, Inc.+ .................................. 15,749 567 Mcgrath Rentcorp ............................... 12,111 1,064 Medis Technologies, Ltd.+ ...................... 479 870 Metalico, Inc.+ ................................ 1,348 540 Met-Pro Corp. .................................. 7,193 2,345 Microvision, Inc.+ ............................. 3,940 604 Middleby Corp.+ ................................ 16,471 391 Mine Safety Appliances Co. ..................... 9,349 1,024 Mobile Mini, Inc.+ ............................. 14,766 160 Moog, Inc., Class A+ ........................... 5,851 95 Mueller Industries, Inc. ....................... 2,383 12,330 Mueller Water Products, Inc., Class A .......... 103,572 336 Multi-Color Corp. .............................. 5,315 1,726 Navigant Consulting, Inc.+ ..................... 27,392 465 NN, Inc. ....................................... 1,065 1,204 Nordson Corp. .................................. 38,877 1,510 Odyssey Marine Exploration, Inc.+ .............. 4,862 689 Old Dominion Freight Line, Inc.+ ............... 19,609 110 Omega Flex, Inc. ............................... 2,303 2,091 Orbital Sciences Corp.+ ........................ 40,837 318 Orion Energy Systems, Inc.+ .................... 1,720 775 Orion Marine Group, Inc.+ ...................... 7,487 479 Pacer International, Inc. ...................... 4,996 5 Patriot Transporation Holding, Inc.+ ........... 350 730 Perini Corp.+ .................................. 17,067 197 Pike Electric Corp.+ ........................... 2,423 470 PMFG, Inc.+ .................................... 4,493 571 Polypore International, Inc.+ .................. 4,317 242 Powell Industries, Inc.+ ....................... 7,023
See Notes to Financial Statements. 37 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Industrials (continued) 170 Power-One, Inc.+ ............................... $ 202 605 PowerSecure International, Inc.+ ............... 1,990 15 Preformed Line Products Co. .................... 691 535 PRG-Schultz International, Inc.+ ............... 2,183 220 Protection One, Inc.+ .......................... 1,052 860 Quanex Building Products Corp. ................. 8,058 7,725 Quanta Services, Inc.+ ......................... 152,955 571 Raven Industries, Inc. ......................... 13,761 776 RBC Bearings, Inc.+ ............................ 15,737 5,739 Regal-Beloit Corp. ............................. 218,025 1,626 Resources Connection, Inc.+ .................... 26,634 580 Robbins & Myers, Inc. .......................... 9,379 1,483 Rollins, Inc. .................................. 26,813 1,678 RSC Holdings, Inc.+ ............................ 14,297 361 Sauer-Danfoss, Inc. ............................ 3,159 974 Spherion Corp.+ ................................ 2,153 225 Standard Parking Corp.+ ........................ 4,351 160 Standard Register Co. (The) .................... 1,429 4,491 Stanley, Inc.+ ................................. 162,664 275 Sterling Construction Co., Inc.+ ............... 5,098 419 Sun Hydraulics Corp. ........................... 7,894 10,463 SYKES Enterprises, Inc.+ ....................... 200,053 147 TAL International Group, Inc. .................. 2,073 2,240 Taser International, Inc.+ ..................... 11,827 375 TBS International, Ltd., Class A+ .............. 3,761 6,128 Team, Inc.+ .................................... 169,746 7,459 Teledyne Technologies, Inc.+ ................... 332,299 548 Tennant Co. .................................... 8,439 2,103 Tetra Tech, Inc.+ .............................. 50,787 150 Textainer Group Holdings, Ltd. ................. 1,590 105 Thermadyne Holdings Corp.+ ..................... 721 1,224 Titan International, Inc. ...................... 10,098 262 Titan Machinery, Inc.+ ......................... 3,684 1,187 TransDigm Group, Inc.+ ......................... 39,848 150 Trex Co., Inc.+ ................................ 2,469 329 Triumph Group, Inc. ............................ 13,969 153 TrueBlue, Inc.+ ................................ 1,464 843 TurboChef Technologies, Inc.+ .................. 4,139 34 Twin Disc, Inc. ................................ 234 2,117 UAL Corp. ...................................... 23,329 450 Ultralife Corp.+ ............................... 6,034 46 Universal Truckload Services, Inc.+ ............ 651 1,472 Valence Technology, Inc.+ ...................... 2,679 696 Vicor Corp. .................................... 4,601 145 VSE Corp. ...................................... 5,688 10,411 Wabtec Corp. ................................... 413,837 2,847 Waste Connections, Inc.+ ....................... 89,880 443 Watsco, Inc. ................................... 17,011 1,015 Watson Wyatt Worldwide, Inc., Class A .......... 48,537 1,653 Woodward Governor Co. .......................... 38,052 742 Xerium Technologies, Inc. ...................... 490 --------------- 5,953,531 --------------- Shares Value ---------- --------------- Information Technology -- 20.7% 976 3PAR, Inc.+ .................................... $ 7,447 1,222 ACI Worldwide, Inc.+ ........................... 19,430 975 Acme Packet, Inc.+ ............................. 5,129 45 Actel Corp.+ ................................... 527 2,125 Actuate Corp.+ ................................. 6,290 1,124 Adtran, Inc. ................................... 16,725 1,589 Advanced Analogic Technologies, Inc.+ .......... 4,799 245 Advanced Energy Industries, Inc.+ .............. 2,438 591 Advent Software, Inc.+ ......................... 11,802 776 Airvana, Inc.+ ................................. 4,749 530 American Software, Inc., Class A ............... 2,491 436 Amkor Technology, Inc.+ ........................ 951 2,174 Anadigics, Inc.+ ............................... 3,218 89 Anixter International, Inc.+ ................... 2,681 742 Applied Micro Circuits Corp.+ .................. 2,916 247 ArcSight, Inc.+ ................................ 1,978 2,599 Ariba, Inc.+ ................................... 18,739 4,580 Art Technology Group, Inc.+ .................... 8,839 1,829 Aruba Networks, Inc.+ .......................... 4,664 1,240 AsiaInfo Holdings, Inc.+ ....................... 14,682 206 Asyst Technologies, Inc.+ ...................... 52 2,121 Atheros Communications, Inc.+ .................. 30,352 7,901 ATMI, Inc.+ .................................... 121,912 900 AuthenTec, Inc.+ ............................... 1,503 433 Avanex Corp.+ .................................. 455 455 Bankrate, Inc.+ ................................ 17,290 30 Bel Fuse, Inc., Class B ........................ 636 422 Benchmark Electronics, Inc.+ ................... 5,389 205 Bidz.com, Inc.+ ................................ 943 1,174 BigBand Networks, Inc.+ ........................ 6,480 1,474 Blackbaud, Inc. ................................ 19,899 1,105 Blackboard, Inc.+ .............................. 28,984 1,170 Blue Coat Systems, Inc.+ ....................... 9,828 837 Cabot Microelectronics Corp.+ .................. 21,821 222 CACI International, Inc., Class A+ ............. 10,010 1,080 Callidus Software, Inc.+ ....................... 3,229 238 Cass Information Systems, Inc. ................. 7,250 1,068 Cavium Networks, Inc.+ ......................... 11,225 535 Ceva, Inc.+ .................................... 3,745 820 China Information Security Technology, Inc.+ ... 2,952 1,015 China Security & Surveillance Technology, Inc.+ 4,496 1,078 Chordiant Software, Inc.+ ...................... 2,867 1,565 Cirrus Logic, Inc.+ ............................ 4,194 855 Cogent, Inc.+ .................................. 11,602 1,488 Cognex Corp. ................................... 22,022 923 Cogo Group, Inc.+ .............................. 4,486 59 Cohu, Inc. ..................................... 717 1,528 Commvault Systems, Inc.+ ....................... 20,490 506 Compellent Technologies, Inc.+ ................. 4,923 632 comScore, Inc.+ ................................ 8,058 865 Comtech Telecommunications Corp.+ .............. 39,634
See Notes to Financial Statements. 38 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Information Technology (continued) 741 Comverge, Inc.+ ................................ $ 3,631 7,511 Concur Technologies, Inc.+ ..................... 246,511 9,897 Constant Contact, Inc.+ ........................ 131,135 27 CPI International, Inc.+ ....................... 234 280 Cray, Inc.+ .................................... 582 680 CSG Systems International, Inc.+ ............... 11,880 2,465 Cybersource Corp.+ ............................. 29,555 269 Cymer, Inc.+ ................................... 5,894 1,159 Daktronics, Inc. ............................... 10,848 1,173 Data Domain, Inc.+ ............................. 22,053 1,114 DealerTrack Holdings, Inc.+ .................... 13,245 414 Deltek, Inc.+ .................................. 1,921 705 DemandTec, Inc.+ ............................... 5,689 490 DG FastChannel, Inc.+ .......................... 6,115 565 Dice Holdings, Inc.+ ........................... 2,305 165 Digi International, Inc.+ ...................... 1,338 223 Digimarc Corp.+ ................................ 2,234 1,327 Digital River, Inc.+ ........................... 32,910 1,039 Diodes, Inc.+ .................................. 6,296 966 DivX, Inc.+ .................................... 5,052 621 Double-Take Software, Inc.+ .................... 5,570 19,564 DTS, Inc.+ ..................................... 358,999 3,921 Earthlink, Inc.+ ............................... 26,506 228 Ebix, Inc.+ .................................... 5,449 1,063 Echelon Corp.+ ................................. 8,663 2,060 Elixir Gaming Technologies, Inc.+ .............. 268 2,585 Emcore Corp.+ .................................. 3,361 245 Entegris, Inc.+ ................................ 537 905 Entropic Communications, Inc.+ ................. 453 2,100 Entrust, Inc.+ ................................. 3,318 840 EPIQ Systems, Inc.+ ............................ 14,036 3,546 Equinix, Inc.+ ................................. 188,612 123 Exar Corp.+ .................................... 820 509 ExlService Holdings, Inc.+ ..................... 4,362 5,232 F5 Networks, Inc.+ ............................. 119,604 1,369 FalconStor Software, Inc.+ ..................... 3,806 587 FARO Technologies, Inc.+ ....................... 9,897 14,101 Finisar Corp.+ ................................. 5,358 1,051 Formfactor, Inc.+ .............................. 15,345 548 Forrester Research, Inc.+ ...................... 15,459 15,240 Gartner, Inc.+ ................................. 271,729 850 Global Cash Access Holdings, Inc.+ ............. 1,887 480 Globecomm Systems, Inc.+ ....................... 2,635 9,329 GSI Commerce, Inc.+ ............................ 98,141 334 Guidance Software, Inc.+ ....................... 1,363 1,430 Hackett Group, Inc. (The)+ ..................... 4,176 1,513 Harmonic, Inc.+ ................................ 8,488 867 Heartland Payment Systems, Inc.................. 15,173 696 Hittite Microwave Corp.+ ....................... 20,504 430 HSW International, Inc.+ ....................... 163 259 Hughes Communications, Inc.+ ................... 4,128 1,355 Hypercom Corp.+ ................................ 1,463 269 ICx Technologies, Inc.+ ........................ 2,128 787 iGate Corp.+ ................................... 5,123 520 Immersion Corp.+ ............................... 3,063 Shares Value ---------- --------------- Information Technology (continued) 3,307 Infinera Corp.+ ................................ $ 29,631 3,163 Informatica Corp.+ ............................. 43,428 712 Infospace, Inc.................................. 5,376 602 Integral Systems, Inc.+ ........................ 7,254 498 Interactive Intelligence, Inc.+ ................ 3,192 1,621 InterDigital, Inc.+ ............................ 44,578 2,200 Intermec, Inc.+ ................................ 29,216 906 Internap Network Services Corp.+ ............... 2,265 348 Internet Brands, Inc., Class A+ ................ 2,025 855 Internet Capital Group, Inc.+ .................. 4,660 1,362 Interwoven, Inc.+ .............................. 17,161 11,890 IPG Photonics Corp.+ ........................... 156,710 834 Isilon Systems, Inc.+ .......................... 2,744 913 Ixia+ .......................................... 5,277 644 IXYS Corp ...................................... 5,319 1,583 j2 Global Communications, Inc.+ ................ 31,723 2,472 Jack Henry & Associates, Inc.................... 47,982 66 JDA Software Group, Inc.+ ...................... 867 631 Kenexa Corp.+ .................................. 5,035 95 Keynote Systems, Inc.+ ......................... 732 1,015 Knot, Inc. (The)+ .............................. 8,445 260 Kopin Corp.+ ................................... 530 2,176 Kulicke & Soffa Industries, Inc.+ .............. 3,699 302 L-1 Identity Solutions, Inc.+ .................. 2,036 7,365 Lam Research Corp.+ ............................ 156,727 2,000 Lattice Semiconductor Corp.+ ................... 3,020 4,219 Lawson Software, Inc.+ ......................... 19,998 577 Limelight Networks, Inc.+ ...................... 1,414 526 Liquidity Services, Inc.+ ...................... 4,382 338 Littelfuse, Inc.+ .............................. 5,611 1,049 LoopNet, Inc.+ ................................. 7,154 224 LTX-Credence Corp.+ ............................ 60 226 Macrovision Solutions Corp.+ ................... 2,859 1,533 Magma Design Automation, Inc.+ ................. 1,564 870 Manhattan Associates, Inc.+ .................... 13,755 733 Mantech International Corp., Class A+ .......... 39,721 852 Marchex, Inc., Class B ......................... 4,967 90 MAXIMUS, Inc. .................................. 3,160 655 Maxwell Technologies, Inc.+ .................... 3,321 212 Mentor Graphics Corp.+ ......................... 1,096 905 MercadoLibre, Inc.+ ............................ 14,851 1,751 Micrel, Inc. ................................... 12,800 2,910 Micros Systems, Inc.+ .......................... 47,491 2,810 Microsemi Corp.+ ............................... 35,518 321 MicroStrategy, Inc., Class A+ .................. 11,919 1,874 Microtune, Inc.+ ............................... 3,823 313 Midway Games, Inc.+ ............................ 59 195 MIPS Technologies, Inc., Class A+ .............. 216 109 MKS Instruments, Inc.+ ......................... 1,612 920 Monolithic Power Systems, Inc.+ ................ 11,601 379 Monotype Imaging Holdings, Inc.+ ............... 2,198 4,537 Move, Inc.+ .................................... 7,259 213 MTS Systems Corp ............................... 5,674 275 Multi-Fineline Electronix, Inc.+ ............... 3,215
See Notes to Financial Statements. 39 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Information Technology (continued) 235 NCI, Inc., Class A+ ............................ $ 7,081 127 Ness Technologies, Inc.+ ....................... 544 1,782 Net 1 UEPS Technologies, Inc.+ ................. 24,413 19,076 Netezza Corp.+ ................................. 126,665 207 Netgear, Inc.+ ................................. 2,362 608 Netlogic Microsystems, Inc.+ ................... 13,382 895 Netscout Systems, Inc.+ ........................ 7,715 253 NetSuite, Inc.+ ................................ 2,135 18,906 Neutral Tandem, Inc.+ .......................... 306,655 5,501 Nextwave Wireless, Inc.+ ....................... 495 1,383 NIC, Inc. ...................................... 6,362 502 Novatel Wireless, Inc.+ ........................ 2,329 165 NVE Corp.+ ..................................... 4,311 2,229 Omniture, Inc.+ ................................ 23,717 155 Omnivision Technologies, Inc.+ ................. 814 1,033 Online Resources Corp.+ ........................ 4,896 304 OpenTV Corp., Class A+ ......................... 374 269 Oplink Communications, Inc.+ ................... 2,313 425 Opnet Technologies, Inc.+ ...................... 4,191 376 Opnext, Inc.+ .................................. 658 991 Orbcomm, Inc.+ ................................. 2,141 449 OSI Systems, Inc.+ ............................. 6,219 3,265 Palm, Inc.+ .................................... 10,024 3,905 Parametric Technology Corp.+ ................... 49,398 595 Park Electrochemical Corp. ..................... 11,281 825 Parkervision, Inc.+ ............................ 2,038 415 PC-Tel, Inc. ................................... 2,727 517 Pegasystems, Inc. .............................. 6,390 794 Pericom Semiconductor Corp.+ ................... 4,351 985 Phoenix Technologies, Ltd.+ .................... 3,448 1,296 Plexus Corp.+ .................................. 21,967 909 PLX Technology, Inc.+ .......................... 1,563 36,034 PMC - Sierra, Inc.+ ............................ 175,125 2,903 Polycom, Inc.+ ................................. 39,220 9,716 Power Integrations, Inc. ....................... 193,154 990 Presstek, Inc.+ ................................ 3,178 1,350 Progress Software Corp.+ 26,001 458 PROS Holdings, Inc.+ ........................... 2,634 493 QAD, Inc. ...................................... 2,066 624 Quality Systems, Inc. .......................... 27,219 4,045 Quantum Corp.+ ................................. 1,456 118 Rackable Systems, Inc.+ ........................ 465 459 Rackspace Hosting, Inc.+ ....................... 2,469 992 Radiant Systems, Inc.+ ......................... 3,343 1,255 RealNetworks, Inc.+ ............................ 4,430 344 Renaissance Learning, Inc. ..................... 3,093 997 RightNow Technologies, Inc.+ ................... 7,707 18 Rimage Corp.+ .................................. 241 1,991 Riverbed Technology, Inc.+ ..................... 22,678 1,059 Rofin-Sinar Technologies, Inc.+ ................ 21,794 476 Rubicon Technology, Inc.+ ...................... 2,028 114 Rudolph Technologies, Inc.+ .................... 402 1,285 S1 Corp.+ ...................................... 10,139 335 Safeguard Scientifics, Inc.+ ................... 231 5,840 Sanmina-SCI Corp.+ ............................. 2,745 Shares Value ---------- --------------- Information Technology (continued) 44,194 Sapient Corp.+ ................................. $ 196,221 1,349 SAVVIS, Inc.+ .................................. 9,295 708 Scansource, Inc.+ .............................. 13,643 674 Semitool, Inc.+ ................................ 2,056 2,071 Semtech Corp.+ ................................. 23,340 1,317 ShoreTel, Inc.+ ................................ 5,913 792 Sigma Designs, Inc.+ ........................... 7,524 2,583 Silicon Image, Inc.+ ........................... 10,849 5,000 Silicon Laboratories, Inc.+ .................... 123,900 3,922 Skyworks Solutions, Inc.+ ...................... 21,728 909 Smith Micro Software, Inc.+ .................... 5,054 9,245 Solera Holdings, Inc.+ ......................... 222,805 481 Sonic Solutions, Inc.+ ......................... 847 189 SonicWALL, Inc.+ ............................... 752 7,260 Sonus Networks, Inc.+ .......................... 11,471 576 Sourcefire, Inc.+ .............................. 3,226 2,043 Spansion, Inc., Class A+ ....................... 387 634 SPSS, Inc.+ .................................... 17,093 807 SRA International, Inc., Class A+ .............. 13,921 442 Standard Microsystems Corp.+ ................... 7,222 12,352 Starent Networks Corp.+ ........................ 147,359 1,104 STEC, Inc.+ .................................... 4,703 739 Stratasys, Inc.+ ............................... 7,944 872 SuccessFactors, Inc.+ .......................... 5,005 715 Super Micro Computer, Inc.+ .................... 4,526 392 Supertex, Inc.+ ................................ 9,412 1,135 SupportSoft, Inc.+ ............................. 2,531 734 Switch & Data Facilities Co., Inc.+ ............ 5,424 13,449 Sybase, Inc.+ .................................. 333,132 741 Sycamore Networks, Inc.+ ....................... 1,993 638 Symyx Technologies+ ............................ 3,790 1,205 Synaptics, Inc.+ ............................... 19,955 789 Synchronoss Technologies, Inc.+ ................ 8,411 464 Syntel, Inc. ................................... 10,728 2,727 Take-Two Interactive Software, Inc. ............ 20,616 917 Taleo Corp., Class A+ .......................... 7,180 96 Technitrol, Inc. ............................... 334 500 TechTarget, Inc.+ .............................. 2,160 549 Techwell, Inc.+ ................................ 3,569 265 Tekelec+ ....................................... 3,535 1,185 TeleCommunication Systems, Inc., Class A+ ...... 10,179 1,383 TeleTech Holdings, Inc.+ ....................... 11,548 1,850 Terremark Worldwide, Inc.+ ..................... 7,197 1,722 Tessera Technologies, Inc.+ .................... 20,457 392 TheStreet.com, Inc. ............................ 1,137 1,627 THQ, Inc.+ ..................................... 6,817 3,640 TiVo, Inc.+ .................................... 26,062 775 TNS, Inc.+ ..................................... 7,277 395 Transmeta Corp.+ ............................... 7,189 792 Trident Microsystems, Inc.+ .................... 1,497 189 TTM Technologies, Inc.+ ........................ 985 1,346 Tyler Technologies, Inc.+ ...................... 16,125 877 Ultimate Software Group, Inc.+ ................. 12,804 841 Ultratech, Inc.+ ............................... 10,058
See Notes to Financial Statements. 40 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Information Technology (continued) 500 Unica Corp.+ ................................... $ 2,740 1,038 Universal Display Corp.+ ....................... 9,809 200 Utstarcom, Inc.+ ............................... 370 3,065 Valueclick, Inc.+ .............................. 20,965 964 VASCO Data Security International, Inc.+ ....... 9,958 964 Veeco Instruments, Inc.+ ....................... 6,112 1,266 VeriFone Holdings, Inc.+ ....................... 6,203 188 Viasat, Inc.+ .................................. 4,527 470 Vignette Corp.+ ................................ 4,423 227 Virtusa Corp.+ ................................. 1,280 9,294 VistaPrint, Ltd.+ .............................. 172,961 11,013 Vocus, Inc.+ ................................... 200,547 909 Volterra Semiconductor Corp.+ .................. 6,499 225 Web.com Group, Inc.+ ........................... 824 1,454 Websense, Inc.+ ................................ 21,766 2,556 Wind River Systems, Inc.+ ...................... 23,081 1,294 Wright Express Corp.+ .......................... 16,304 --------------- 6,386,916 --------------- Materials -- 1.1% 193 AEP Industries, Inc.+ .......................... 3,393 1,425 Allied Nevada Gold Corp.+ ...................... 7,210 307 AMCOL International Corp. ...................... 6,432 637 American Vanguard Corp. ........................ 7,453 424 Apex Silver Mines, Ltd.+ ....................... 415 305 Arch Chemicals, Inc. ........................... 7,951 656 Balchem Corp. .................................. 16,341 200 Bway Holding Co.+ .............................. 1,592 145 Clearwater Paper Corp.+ ........................ 1,216 604 Compass Minerals International, Inc. ........... 35,431 373 Deltic Timber Corp. ............................ 17,065 1,362 Ferro Corp. .................................... 9,602 812 Flotek Industries, Inc.+ ....................... 2,046 1,784 General Moly, Inc.+ ............................ 2,105 385 General Steel Holdings, Inc.+ .................. 1,517 250 GenTek, Inc.+ .................................. 3,763 5,123 Graphic Packaging Holding Co.+ ................. 5,840 104 Haynes International, Inc.+ .................... 2,560 220 Headwaters, Inc.+ .............................. 1,485 375 ICO, Inc.+ ..................................... 1,185 197 Innophos Holdings, Inc. ........................ 3,903 515 Innospec, Inc. ................................. 3,033 49 Koppers Holdings, Inc. ......................... 1,059 833 Landec Corp.+ .................................. 5,481 412 LSB Industries, Inc.+ .......................... 3,428 310 Minerals Technologies, Inc. .................... 12,679 578 Myers Industries, Inc. ......................... 4,624 479 NewMarket Corp. ................................ 16,722 145 NL Industries, Inc. ............................ 1,943 245 Olympic Steel, Inc. ............................ 4,991 325 Quaker Chemical Corp. .......................... 5,346 519 Rock-Tenn Co., Class A ......................... 17,739 1,082 ShengdaTech, Inc.+ ............................. 3,809 449 Silgan Holdings, Inc. .......................... 21,467 Shares Value ---------- --------------- Materials (continued) 2,585 Solutia, Inc.+ ................................. $ 11,633 95 Stepan Co ...................................... 4,464 389 Stillwater Mining Co.+ ......................... 1,922 145 Sutor Technology Group, Ltd.+ .................. 335 835 Texas Industries, Inc. ......................... 28,808 35 United States Lime & Minerals, Inc.+ ........... 838 24 Universal Stainless & Alloy+ ................... 348 415 Worthington Industries, Inc. ................... 4,573 1,978 WR Grace & Co.+ ................................ 11,809 750 Zep, Inc. ...................................... 14,482 970 Zoltek Cos., Inc.+ ............................. 8,720 --------------- 328,758 --------------- Telecommunication Services -- 1.5% 795 Alaska Communications Systems Group, Inc. ...... 7,457 859 Cbeyond, Inc.+ ................................. 13,727 2,060 Centennial Communications Corp.+ ............... 16,604 1,711 Cogent Communications Group, Inc.+ ............. 11,173 305 Consolidated Communications Holdings, Inc. ..... 3,623 304 Global Crossing, Ltd.+ ......................... 2,414 172 Hungarian Telephone & Cable Corp.+ ............. 1,479 1,127 ICO Global Communications Holdings, Ltd.+ ...... 1,251 140 Iowa Telecommunications Services, Inc. ......... 1,999 199 iPCS, Inc.+ .................................... 1,365 1,065 NTELOS Holdings Corp. .......................... 26,263 3,263 PAETEC Holding Corp.+ .......................... 4,699 1,887 Premiere Global Services, Inc.+ ................ 16,247 16,482 SBA Communications Corp., Class A+ ............. 268,986 758 Shenandoah Telecommunications Co ............... 21,262 871 Syniverse Holdings, Inc.+ ...................... 10,400 625 TerreStar Corp.+ ............................... 250 4,615 tw telecom, Inc., Class A+ ..................... 39,089 1,320 Virgin Mobile USA, Inc., Class A+ .............. 1,109 1,399 Vonage Holdings Corp.+ ......................... 923 --------------- 450,320 --------------- Utilities -- 0.9% 431 Cadiz, Inc.+ ................................... 5,392 520 Consolidated Water Co., Inc. ................... 6,500 5,696 ITC Holdings Corp. ............................. 248,801 638 Ormat Technologies, Inc. ....................... 20,333 26 SJW Corp. ...................................... 778 535 Synthesis Energy Systems, Inc.+ ................ 364 2,130 U.S. Geothermal, Inc.+ ......................... 1,768 --------------- 283,936 --------------- Total Common Stock (Cost $38,217,140) 30,101,247 ---------------
See Notes to Financial Statements. 41 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- EXCHANGE TRADED FUND -- 0.9% 5,258 iShares Russell 2000 Growth Index Fund (Cost $255,326) ..................... $ 267,422 --------------- WARRANTS -- 0.0% 15 GRH, Expires 09/11+ ............................ -- 125 Pegasus Wireless Corp., Expires 12/08+ ................................. 1 --------------- Total Warrants (Cost $--) 1 --------------- CASH EQUIVALENT -- 2.1% 648,269 PNC Institutional Money Market Trust, 0.050%(a)(b) (Cost $648,269) ................................ 648,269 --------------- Money Market Fund -- 0.2% 62,739 TCW Money Market Fund, 1.380%(a) (Cost $62,739) ....................... 62,739 --------------- Total Investments -- 100.7% (Cost $39,183,474) 31,079,678 Other Assets & Liabilities, Net -- (0.7)% (226,527) --------------- NET ASSETS -- 100.0% $ 30,853,151 ===============
---------- ADR - American Depositary Receipt + Non-income producing security. (a) The rate shown is the 7-day effective yield as of December 31, 2008. (b) A partial position of this investment was purchased with proceeds from collateral received from securities on loan. At December 31, 2008, $9 of this investment represents the collateral received for securities on loan. (c) All or a portion of this security is on loan. Amounts designated as "--" are $0 or rounded to $0. See Notes to Financial Statements. 42 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
Shares Value ---------- --------------- COMMON STOCK -- 95.0% Australia -- 2.8% 840 AGL Energy, Ltd ................................ $ 9,128 13,400 Alumina, Ltd ................................... 13,760 3,220 AMP, Ltd ....................................... 12,513 1,749 Aristocrat Leisure, Ltd ........................ 4,851 2,280 Asciano Group .................................. 2,474 4,176 Australia & New Zealand Banking Group, Ltd ..... 45,951 6,301 BHP Billiton, Ltd .............................. 136,432 2,640 BlueScope Steel, Ltd ........................... 6,611 2,590 Brambles, Ltd .................................. 13,715 2,663 Commonwealth Bank of Australia ................. 55,846 1,000 CSL, Ltd. ...................................... 24,035 3,120 Fortescue Metals Group, Ltd. + ................. 4,336 4,120 Foster's Group, Ltd ............................ 16,150 16,573 Goodman Group .................................. 8,698 10,000 GPT Group ...................................... 6,646 6,870 Insurance Australia Group, Ltd ................. 19,083 308 Leighton Holdings, Ltd ......................... 6,100 528 Macquarie Group, Ltd ........................... 10,922 5,570 Macquarie Infrastructure Group ................. 6,805 3,409 National Australia Bank, Ltd ................... 51,081 1,329 Newcrest Mining, Ltd ........................... 32,242 1,215 Orica, Ltd ..................................... 12,152 2,260 Origin Energy, Ltd ............................. 25,979 1,610 QBE Insurance Group, Ltd ....................... 29,658 620 Rio Tinto, Ltd ................................. 16,934 3,490 Stockland ...................................... 10,119 1,600 Suncorp-Metway, Ltd ............................ 9,612 2,150 TABCORP Holdings, Ltd .......................... 10,721 8,000 Telstra Corp., Ltd ............................. 21,828 1,550 Toll Holdings, Ltd ............................. 6,826 2,602 Transurban Group ............................... 10,032 2,326 Wesfarmers, Ltd ................................ 29,923 754 Wesfarmers, Ltd. PPS ........................... 9,695 3,555 Westfield Group ................................ 32,895 9,764 Westpac Banking Corp. .......................... 119,358 970 Woodside Petroleum, Ltd ........................ 25,584 2,227 Woolworths, Ltd ................................ 42,323 383 WorleyParsons, Ltd ............................. 3,894 --------------- 904,912 --------------- Austria -- 1.1% 3,336 Atrium European Real Estate, Ltd. + ............ 12,297 570 Erste Group Bank AG ............................ 13,333 3,100 Oesterreichische Post AG ....................... 106,530 4,360 OMV AG ......................................... 116,389 790 Telekom Austria AG ............................. 11,548 3,300 Vienna Insurance Group ......................... 115,183 --------------- 375,280 --------------- Belgium -- 0.8% 1,014 Anheuser-Busch InBev NV ........................ 23,658 280 Belgacom SA .................................... 10,754 197 Delhaize Group ................................. 12,234 Shares Value ---------- --------------- Belgium (continued) 3,169 Dexia SA ....................................... $ 14,434 14,865 Fortis ......................................... 19,693 341 Groupe Bruxelles Lambert SA .................... 27,444 400 KBC Groep NV ................................... 12,077 100 Solvay SA ...................................... 7,460 3,800 UCB SA ......................................... 124,524 --------------- 252,278 --------------- Bermuda -- 0.0% 736 Seadrill, Ltd .................................. 6,050 --------------- Canada -- 3.3% 3,500 Bank of Nova Scotia ............................ 95,836 11,600 CGI Group, Inc., Class A + ..................... 91,541 6,400 Nexen, Inc. .................................... 112,848 5,300 Petro-Canada ................................... 116,413 2,050 Potash Corp. of Saskatchewan ................... 150,890 6,000 Rogers Communications, Inc., Class B ........... 180,469 3,900 Royal Bank of Canada ........................... 115,734 5,400 Shoppers Drug Mart Corp. ....................... 213,292 --------------- 1,077,023 --------------- China -- 0.4% 93,577 Bank of Communications Co., Ltd., Class H ...... 68,016 137,500 China Construction Bank Corp., Class H ......... 76,502 7,327 Foxconn International Holdings, Ltd. + ......... 2,458 --------------- 146,976 --------------- Denmark -- 0.7% 3 A P Moller - Maersk A/S, Class B ............... 16,226 1,669 Danske Bank A/S ................................ 16,898 700 DSV A/S ........................................ 7,656 5,800 H Lundbeck A/S ................................. 121,917 250 Jyske Bank A/S + ............................... 5,865 800 Novo-Nordisk A/S, Class B ...................... 41,476 125 Novozymes A/S, Class B ......................... 10,076 350 Vestas Wind Systems A/S + ...................... 20,701 --------------- 240,815 --------------- Finland -- 1.0% 1,070 Fortum Oyj ..................................... 23,365 15,415 Nokia Oyj ...................................... 243,019 1,060 Sampo Oyj, Class A ............................. 20,156 1,450 Stora Enso Oyj, Class R ........................ 11,540 1,310 UPM-Kymmene Oyj ................................ 16,870 --------------- 314,950 --------------- France -- 10.4% 370 Accor SA ....................................... 18,311 517 Air Liquide SA ................................. 47,566 4,580 Alcatel-Lucent ................................. 9,960 440 Alstom SA ...................................... 26,343 2,840 AXA SA ......................................... 64,041
See Notes to Financial Statements. 43 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- France (continued) 5,016 BNP Paribas .................................... $ 217,517 5,750 Bouygues ....................................... 245,066 290 Cap Gemini SA .................................. 11,265 1,369 Carrefour SA ................................... 53,163 5,150 Christian Dior SA .............................. 292,527 560 Cie de Saint-Gobain ............................ 26,583 295 Cie Generale de Geophysique- Veritas + ......... 4,436 440 Cie Generale d'Optique Essilor International SA ............................... 20,765 180 CNP Assurances ................................. 13,139 527 Compagnie Generale des Etablissements Michelin, Class B .............................. 27,972 1,610 Credit Agricole SA ............................. 18,167 362 Electricite de France .......................... 21,152 13,070 France Telecom SA .............................. 365,985 8,003 GDF Suez ....................................... 399,087 950 Groupe Danone .................................. 57,665 350 Lafarge SA ..................................... 21,506 330 Lagardere SCA .................................. 13,469 490 L'Oreal SA ..................................... 42,961 509 LVMH Moet Hennessy Louis Vuitton SA ............ 34,270 40 Neopost SA ..................................... 3,646 280 Pernod-Ricard SA ............................... 20,897 735 Peugeot SA ..................................... 12,625 200 PPR ............................................ 13,156 520 Publicis Groupe ................................ 13,482 766 Renault SA ..................................... 20,082 5,334 Sanofi-Aventis SA .............................. 342,761 2,415 Schneider Electric SA .......................... 180,640 820 Societe Generale ............................... 41,794 230 Sodexo ......................................... 12,842 450 Suez Environnement SA + ........................ 7,635 310 Technip SA ..................................... 9,563 3,991 Total SA ....................................... 220,439 104 Unibail-Rodamco^ ............................... 15,617 133 Unibail-Rodamco^ ............................... 19,961 135 Vallourec ...................................... 15,421 3,767 Veolia Environnement ........................... 119,373 995 Vinci SA ....................................... 42,183 7,931 Vivendi ........................................ 259,702 --------------- 3,424,735 --------------- Germany -- 6.7% 4,400 Adidas AG ...................................... 168,504 797 Allianz SE ..................................... 85,195 6,800 Altana AG ...................................... 124,971 1,956 BASF SE ........................................ 76,350 4,114 Bayer AG ....................................... 240,827 1,250 Commerzbank AG ................................. 11,932 430 Continental AG + ............................... 43,175 1,677 Daimler AG ..................................... 64,193 1,037 Deutsche Bank AG ............................... 41,200 350 Deutsche Boerse AG ............................. 25,440 Shares Value ---------- --------------- Germany (continued) 1,941 Deutsche Post AG ............................... $ 32,982 5,210 Deutsche Telekom AG ............................ 79,137 3,438 E.ON AG ........................................ 135,626 595 Fresenius Medical Care AG & Co. KGaA ........... 27,480 454 Hypo Real Estate Holding AG .................... 2,015 1,890 Infineon Technologies AG + ..................... 2,556 260 Linde AG ....................................... 21,922 1,650 MAN AG ......................................... 92,984 106 Merck KGaA ..................................... 9,527 310 Metro AG ....................................... 12,385 331 Muenchener Rueckversicherungs AG ............... 51,625 120 Q-Cells SE + ................................... 4,489 3,740 RWE AG ......................................... 333,715 3,680 SAP AG ......................................... 134,155 3,600 SGL Carbon AG + ................................ 121,345 1,560 Siemens AG ..................................... 117,986 280 Solarworld AG .................................. 6,233 720 ThyssenKrupp AG ................................ 20,136 310 Volkswagen AG .................................. 108,322 --------------- 2,196,407 --------------- Greece -- 0.2% 1,070 Alpha Bank AE .................................. 10,057 810 EFG Eurobank Ergasias SA ....................... 6,481 680 Hellenic Telecommunications Organization SA ................................ 11,350 875 National Bank of Greece SA ..................... 16,324 500 OPAP SA ........................................ 14,456 445 Piraeus Bank SA ................................ 3,991 --------------- 62,659 --------------- Hong Kong -- 3.0% 4,400 Bank of East Asia, Ltd. ........................ 9,281 11,600 BOC Hong Kong Holdings, Ltd. ................... 13,278 159,693 Chaoda Modern Agriculture Holdings, Ltd. ....... 102,622 3,200 Cheung Kong Holdings, Ltd. ..................... 30,527 44,800 Cheung Kong Infrastructure Holdings, Ltd. ...... 169,183 13,000 China Mobile, Ltd. ............................. 131,901 5,100 CLP Holdings, Ltd. ............................. 34,674 79,800 CNOOC, Ltd. .................................... 75,905 2,000 Esprit Holdings, Ltd. .......................... 11,397 3,801 Hang Lung Properties, Ltd. ..................... 8,345 2,100 Hang Seng Bank, Ltd. ........................... 27,726 11,330 Hong Kong & China Gas Co., Ltd. ................ 17,182 2,100 Hong Kong Exchanges and Clearing, Ltd. ......... 20,162 3,100 HongKong Electric Holdings ..................... 17,453 26,100 Hutchison Whampoa, Ltd. ........................ 131,760 4,129 Li & Fung, Ltd. ................................ 7,136 50,500 MTR Corp. ...................................... 117,612 4,775 New World Development, Ltd. .................... 4,889 2,900 Sun Hung Kai Properties, Ltd. .................. 24,403
See Notes to Financial Statements. 44 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Hong Kong (continued) 2,400 Swire Pacific, Ltd., Class A ................... $ 16,626 --------------- 972,062 --------------- Indonesia -- 0.2% 137,000 Gudang Garam TBK PT ............................ 54,213 --------------- Ireland -- 0.2% 4,124 Allied Irish Banks PLC ......................... 9,910 3,728 Bank of Ireland ................................ 4,321 1,036 CRH PLC ........................................ 26,373 770 Elan Corp. PLC + ............................... 4,566 2,400 Experian PLC ................................... 15,349 --------------- 60,519 --------------- Israel -- 0.6% 25,875 Bank Hapoalim BM ............................... 55,766 3,700 Teva Pharmaceutical Industries, Ltd. ADR ....................................... 157,509 --------------- 213,275 --------------- Italy -- 2.6% 2,305 Assicurazioni Generali SPA ..................... 63,935 690 Atlantia SPA ................................... 13,004 4,660 Banca Monte dei Paschi di Siena SPA ...................................... 10,223 1,530 Banco Popolare Scarl ........................... 10,898 8,800 Enel SPA ....................................... 56,949 10,506 ENI SPA ........................................ 253,985 1,510 Fiat SPA ....................................... 10,155 1,090 Finmeccanica SPA ............................... 16,961 65,484 Intesa Sanpaolo SPA ............................ 238,986 2,180 Intesa Sanpaolo SPA, RNC ....................... 5,666 2,310 Mediaset SPA ................................... 13,372 1,310 Mediobanca SPA ................................. 13,534 2,740 Snam Rete Gas SPA .............................. 15,376 19,710 Telecom Italia SPA ............................. 32,577 13,120 Telecom Italia SPA, RNC ........................ 15,007 22,618 UniCredit SPA .................................. 57,773 1,132 Unione di Banche Italiane SCPA ................. 16,679 --------------- 845,080 --------------- Japan -- 20.9% 300 Advantest Corp. ................................ 4,887 1,600 Aeon Co., Ltd. ................................. 16,103 1,100 Aisin Seiki Co., Ltd. .......................... 15,744 1,800 Ajinomoto Co., Inc. ............................ 19,632 1,100 Amada Co., Ltd. ................................ 5,346 26,000 Asahi Breweries, Ltd. .......................... 449,245 2,200 Asahi Glass Co., Ltd. .......................... 12,532 3,600 Asahi Kasei Corp. .............................. 15,880 5,300 Astellas Pharma, Inc. .......................... 216,797 2,100 Bank of Yokohama, Ltd. (The) ................... 12,379 1,400 Bridgestone Corp. .............................. 20,986 2,100 Canon, Inc. .................................... 66,494 21 Central Japan Railway Co. ...................... 182,005 1,400 Chiba Bank, Ltd. (The) ......................... 8,750 Shares Value ---------- --------------- Japan (continued) 1,200 Chubu Electric Power Co., Inc. ................. $ 36,525 500 Chugai Pharmaceutical Co., Ltd. ................ 9,713 1,900 Chuo Mitsui Trust Holdings, Inc. ............... 9,336 300 Credit Saison Co., Ltd. ........................ 4,162 2,100 Dai Nippon Printing Co., Ltd. .................. 23,199 18,983 Daihatsu Motor Co., Ltd. ....................... 167,638 1,400 Daiichi Sankyo Co., Ltd. ....................... 33,086 600 Daikin Industries, Ltd. ........................ 15,769 200 Daito Trust Construction Co., Ltd. ............. 10,492 1,900 Daiwa House Industry Co., Ltd. ................. 18,616 2,900 Daiwa Securities Group, Inc. ................... 17,398 1,200 Denso Corp. .................................... 20,320 5 Dentsu, Inc.* .................................. 9,756 6 East Japan Railway Co.* ........................ 45,574 500 Eisai Co., Ltd. ................................ 20,851 200 Electric Power Development Co., Ltd. ........... 7,856 400 Fanuc, Ltd. .................................... 28,650 1,000 FUJIFILM Holdings Corp. ........................ 22,309 4,600 Fujitsu, Ltd. .................................. 22,351 1,900 Fukuoka Financial Group, Inc. .................. 8,299 3,802 Hankyu Hanshin Holdings, Inc. .................. 21,943 100 Hirose Electric Co., Ltd. ...................... 10,111 8,000 Hitachi, Ltd. .................................. 31,027 1,400 Hokkaido Electric Power Co., Inc. .............. 35,372 1,600 Hokuhoku Financial Group, Inc. ................. 3,785 6,300 Hokuriku Electric Power Co. .................... 178,097 2,900 Honda Motor Co., Ltd. .......................... 61,726 900 HOYA Corp. ..................................... 15,709 200 Ibiden Co., Ltd. ............................... 4,144 5 INPEX Corp. .................................... 39,834 39,700 ITOCHU Corp. ................................... 200,158 1,164 Japan Steel Works, Ltd. (The) .................. 16,286 8 Japan Tobacco, Inc. ............................ 26,481 1,200 JFE Holdings, Inc. ............................. 31,870 2,000 Joyo Bank, Ltd. (The) .......................... 11,367 700 JS Group Corp. ................................. 10,810 1,200 JTEKT Corp. .................................... 9,346 4,300 Kajima Corp. ................................... 15,136 14,000 Kamigumi Co., Ltd. ............................. 124,305 28,200 Kaneka Corp. ................................... 180,015 1,700 Kansai Electric Power Co., Inc. (The) .......... 49,210 1,000 Kao Corp. ...................................... 30,355 5 KDDI Corp. ..................................... 35,678 3,900 Keio Corp. ..................................... 23,451 100 Keyence Corp. .................................. 20,538 5,300 Kintetsu Corp. ................................. 24,367 1,900 Kirin Holdings Co., Ltd. ....................... 25,244 6,100 Kobe Steel, Ltd. ............................... 11,199 1,800 Komatsu, Ltd. .................................. 22,946 15,100 Konica Minolta Holdings, Inc. .................. 117,413 3,300 Kubota Corp. ................................... 23,877 1,000 Kuraray Co., Ltd. .............................. 7,830 300 Kyocera Corp. .................................. 21,705
See Notes to Financial Statements. 45 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Japan (continued) 700 Kyushu Electric Power Co., Inc. ................ $ 18,571 4,200 Marubeni Corp. ................................. 16,069 900 Marui Group Co., Ltd. .......................... 5,255 44,000 Meiji Seika Kaisha, Ltd. ....................... 211,769 4,300 Mitsubishi Chemical Holdings Corp. ............. 19,041 2,600 Mitsubishi Corp. ............................... 36,802 29,200 Mitsubishi Electric Corp. ...................... 182,868 2,200 Mitsubishi Estate Co., Ltd. .................... 36,318 1,400 Mitsubishi Gas Chemical Co., Inc. .............. 5,741 6,000 Mitsubishi Heavy Industries, Ltd. .............. 26,798 4,600 Mitsubishi Materials Corp. ..................... 11,635 48,700 Mitsubishi UFJ Financial Group, Inc. ........... 305,884 3,400 Mitsui & Co., Ltd. ............................. 34,930 1,600 Mitsui Fudosan Co., Ltd. ....................... 26,658 2,700 Mitsui OSK Lines, Ltd. ......................... 16,676 750 Mitsui Sumitomo Insurance Group Holdings, Inc. ................................. 23,835 17 Mizuho Financial Group, Inc.* .................. 48,296 500 Murata Manufacturing Co., Ltd. ................. 19,593 5,700 NEC Corp. ...................................... 19,271 300 Nidec Corp. .................................... 11,725 800 Nikon Corp. .................................... 9,596 200 Nintendo Co., Ltd. ............................. 76,380 1,056 Nippon Electric Glass Co., Ltd. ................ 5,571 2,100 Nippon Express Co., Ltd. ....................... 8,846 2,400 Nippon Mining Holdings, Inc. ................... 10,407 2,300 Nippon Oil Corp. ............................... 11,654 10,400 Nippon Steel Corp. ............................. 34,155 33 Nippon Telegraph & Telephone Corp.* ............ 170,257 2,800 Nippon Yusen KK ................................ 17,250 5,200 Nissan Motor Co., Ltd. ......................... 18,695 400 Nitto Denko Corp. .............................. 7,652 3,500 Nomura Holdings, Inc. .......................... 29,123 2,100 NSK, Ltd. ...................................... 7,926 3 NTT Data Corp. ................................. 12,079 27 NTT DoCoMo, Inc. ............................... 53,109 3,100 Obayashi Corp. ................................. 18,516 400 Olympus Corp. .................................. 8,002 500 Omron Corp. .................................... 6,714 200 Oriental Land Co., Ltd. ........................ 16,409 180 ORIX Corp. ..................................... 10,271 4,800 Osaka Gas Co., Ltd. ............................ 22,182 4,000 Panasonic Corp. ................................ 49,137 200 Promise Co., Ltd. .............................. 5,070 11 Resona Holdings, Inc.* ......................... 16,262 14,700 Ricoh Co., Ltd. ................................ 188,281 200 Rohm Co., Ltd. ................................. 10,091 2,900 Sankyo Co., Ltd. ............................... 146,204 500 Secom Co., Ltd. ................................ 25,784 400 Sega Sammy Holdings, Inc. ...................... 4,661 300 Seiko Epson Corp. .............................. 4,770 2,000 Sekisui Chemical Co., Ltd. ..................... 12,478 1,700 Sekisui House, Ltd. ............................ 14,988 1,500 Seven & I Holdings Co., Ltd. ................... 51,523 Shares Value ---------- --------------- Japan (continued) 1,900 Sharp Corp. .................................... $ 13,687 700 Shin-Etsu Chemical Co., Ltd. ................... 32,285 1,300 Shinsei Bank, Ltd. ............................. 2,056 700 Shiseido Co., Ltd. ............................. 14,386 1,100 Shizuoka Bank, Ltd. (The) ...................... 12,774 2,800 Showa Denko KK ................................. 4,053 200 SMC Corp. ...................................... 20,590 1,300 Softbank Corp. ................................. 23,594 4,544 Sojitz Corp. ................................... 7,589 1,900 Sompo Japan Insurance, Inc. .................... 14,060 1,800 Sony Corp. ..................................... 39,343 3,200 Sumitomo Chemical Co., Ltd. .................... 10,962 2,500 Sumitomo Corp. ................................. 22,159 1,900 Sumitomo Electric Industries, Ltd. ............. 14,699 1,800 Sumitomo Heavy Industries, Ltd. ................ 7,196 7,600 Sumitomo Metal Industries, Ltd. ................ 18,760 1,300 Sumitomo Metal Mining Co., Ltd. ................ 13,898 12 Sumitomo Mitsui Financial Group, Inc.* ......... 49,741 900 Sumitomo Realty & Development Co., Ltd. ........ 13,520 2,600 Sumitomo Trust & Banking Co., Ltd. (The) ....... 15,359 300 T&D Holdings, Inc. ............................. 12,689 1,300 Takashimaya Co., Ltd. .......................... 9,873 1,400 Takeda Pharmaceutical Co., Ltd. ................ 72,923 250 Takefuji Corp. ................................. 2,050 200 TDK Corp. ...................................... 7,384 3,100 Teijin, Ltd. ................................... 8,800 400 Terumo Corp. ................................... 18,726 2,500 Tobu Railway Co., Ltd. ......................... 14,927 900 Tohoku Electric Power Co., Inc. ................ 24,330 10,600 Tokio Marine Holdings, Inc. .................... 313,864 2,200 Tokyo Electric Power Co., Inc. (The) ........... 73,391 300 Tokyo Electron, Ltd. ........................... 10,554 3,500 Tokyo Gas Co., Ltd. ............................ 17,729 3,000 Tokyu Corp. .................................... 15,115 2,100 Toppan Printing Co., Ltd. ...................... 16,213 2,700 Toray Industries, Inc. ......................... 13,731 6,000 Toshiba Corp. .................................. 24,672 8,900 Toyo Suisan Kaisha, Ltd. ....................... 256,296 500 Toyota Industries Corp. ........................ 10,763 5,100 Toyota Motor Corp. ............................. 168,486 500 Toyota Tsusho Corp. ............................ 5,379 42 West Japan Railway Co. ......................... 191,243 34 Yahoo! Japan Corp. ............................. 13,941 190 Yamada Denki Co., Ltd. ......................... 13,273 600 Yamaha Motor Co., Ltd. ......................... 6,309 1,200 Yamato Holdings Co., Ltd. ...................... 15,682 --------------- 6,870,847 --------------- Luxembourg -- 0.4% 3,000 ArcelorMittal^ ................................. 72,649 1,645 ArcelorMittal^ ................................. 40,059
See Notes to Financial Statements. 46 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Luxembourg (continued) 11,466 Reinet Investments SCA + ....................... $ 11,895 --------------- 124,603 --------------- Malaysia -- 1.6% 78,800 RHB Capital BHD ................................ 89,223 46,500 Tanjong PLC .................................... 179,806 457,847 YTL Power International BHD .................... 252,609 --------------- 521,638 --------------- Mexico -- 1.5% 4,200 Grupo Elektra SA de CV ......................... 181,074 136,000 Telefonos de Mexico SAB de CV .................. 142,609 67,000 Wal-Mart de Mexico SAB de CV ................... 181,147 --------------- 504,830 --------------- Netherlands -- 4.7% 4,811 Aegon NV ....................................... 30,511 550 Akzo Nobel NV .................................. 22,791 953 ASML Holding NV ................................ 17,259 690 European Aeronautic Defence and Space Co. NV ... 11,740 3,000 Fugro NV, CVA .................................. 86,629 600 Heineken NV .................................... 18,455 1,081 ING Groep NV, CVA^ ............................. 11,952 3,400 ING Groep NV, CVA^ ............................. 33,902 1,780 Koninklijke Ahold NV ........................... 22,036 5,430 Koninklijke DSM NV ............................. 139,987 3,640 Koninklijke KPN NV ............................. 53,165 2,340 Koninklijke Philips Electronics NV ............. 46,610 1,203 Reed Elsevier NV ............................... 14,369 6,200 Royal Dutch Shell PLC, Class A ................. 165,233 23,598 Royal Dutch Shell PLC, Class B ................. 606,766 900 TNT NV ......................................... 17,564 8,940 Unilever NV, CVA ............................... 217,692 660 Wolters Kluwer NV .............................. 12,572 --------------- 1,529,233 --------------- New Zealand -- 0.0% 7,043 Telecom Corp. of New Zealand, Ltd. ............. 9,516 --------------- Norway -- 0.6% 19,700 DnB NOR ASA .................................... 78,839 2,200 Norsk Hydro ASA ................................ 9,041 2,150 Orkla ASA ...................................... 14,430 2,000 Petroleum Geo-Services ASA + ................... 8,234 2,845 StatoilHydro ASA ............................... 47,994 3,400 Telenor ASA .................................... 23,136 --------------- 181,674 --------------- Philippines -- 0.2% 3,200 Globe Telecom, Inc. ............................ 52,319 --------------- Portugal -- 0.2% 3,730 Banco Comercial Portugues SA, Class R .......... 4,278 1,620 BRISA .......................................... 12,199 Shares Value ---------- --------------- Portugal (continued) 4,750 Energias de Portugal SA ........................ $ 17,952 1,970 Portugal Telecom SGPS SA ....................... 16,937 446 Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA ........................... 2,325 --------------- 53,691 --------------- Russia -- 0.5% 5,000 Gazprom OAO ADR ................................ 72,036 2,700 Tatneft GDR .................................... 94,500 --------------- 166,536 --------------- Singapore -- 2.6% 72,000 ComfortDelgro Corp., Ltd. ...................... 73,468 3,000 DBS Group Holdings, Ltd. ....................... 17,800 9,800 Jardine Cycle & Carriage, Ltd. ................. 65,652 3,908 Keppel Corp., Ltd. ............................. 11,952 6,000 Oversea-Chinese Banking Corp., Ltd. ............ 21,015 2,500 Singapore Airlines, Ltd. ....................... 19,806 130,200 Singapore Telecommunications, Ltd. ............. 233,719 61,000 SMRT Corp., Ltd. ............................... 70,687 39,200 United Overseas Bank, Ltd. ..................... 356,840 --------------- 870,939 --------------- South Africa -- 1.1% 6,000 African Rainbow Minerals, Ltd. ................. 71,790 6,700 MTN Group, Ltd. ................................ 78,107 18,000 Remgro, Ltd. ................................... 147,212 1,900 Sasol, Ltd. .................................... 57,133 --------------- 354,242 --------------- South Korea -- 0.2% 1,000 POSCO ADR 75,250 --------------- Spain -- 4.5% 580 Abertis Infraestructuras SA .................... 10,443 138 Acciona SA ..................................... 17,628 490 ACS Actividades de Construccion y Servicios SA ................................... 22,860 6,776 Banco Bilbao Vizcaya Argentaria SA ............. 84,347 1,820 Banco Popular Espanol SA ....................... 15,859 45,714 Banco Santander SA ............................. 443,676 880 Cintra Concesiones de Infraestructuras de Transporte SA ............................... 6,709 210 Fomento de Construcciones y Contratas SA ....... 7,016 897 Gamesa Corp. Tecnologica SA .................... 16,431 170 Grupo Ferrovial SA ............................. 4,764 6,436 Iberdrola SA^ .................................. 60,273 1,708 Iberdrola SA^ .................................. 16,445 380 Inditex SA ..................................... 17,000 57,000 Mapfre SA ...................................... 195,295 18,740 Repsol YPF SA .................................. 401,957 7,683 Telefonica SA .................................. 174,222 --------------- 1,494,925 ---------------
See Notes to Financial Statements. 47 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Sweden -- 1.5% 800 Assa Abloy AB, Class B ......................... $ 9,411 1,400 Atlas Copco AB, Class B ........................ 11,089 14,400 Atlas Copco AB, Class A ........................ 128,171 600 Electrolux AB, Ser B ........................... 5,311 1,375 Hennes & Mauritz AB, Class B ................... 55,326 4,000 Nordea Bank AB ................................. 28,842 12,800 Sandvik AB ..................................... 83,174 1,000 Scania AB, Class B ............................. 10,294 1,100 Securitas AB, Class B .......................... 9,368 1,200 Skandinaviska Enskilda Banken AB, Class A ...... 9,800 1,200 SKF AB, Class B ................................ 12,353 1,500 Svenska Cellulosa AB, Class B .................. 13,175 1,100 Svenska Handelsbanken AB, Class A .............. 18,401 5,589 Telefonaktiebolaget LM Ericsson, Class B ....... 44,078 4,100 TeliaSonera AB ................................. 20,888 4,335 Volvo AB, Class B .............................. 24,956 --------------- 484,637 --------------- Switzerland -- 5.4% 3,841 ABB, Ltd. ...................................... 58,469 371 Actelion, Ltd. + ............................... 20,950 340 Adecco SA ...................................... 11,618 1,100 Compagnie Financiere Richemont SA .............. 20,921 1,990 Credit Suisse Group AG ......................... 55,667 90 Geberit AG ..................................... 9,716 450 Holcim, Ltd. ................................... 25,998 3,000 Julius Baer Holding AG ......................... 116,059 7,320 Nestle SA ...................................... 289,328 325 Nobel Biocare Holding AG ....................... 6,699 13,469 Novartis AG .................................... 673,313 1,318 Roche Holding AG ............................... 203,676 1,470 STMicroelectronics NV .......................... 9,905 79 Swatch Group AG (The) .......................... 11,122 66 Swiss Life Holding AG .......................... 4,568 764 Swiss Reinsurance .............................. 37,342 104 Swisscom AG .................................... 33,674 240 Syngenta AG .................................... 46,539 149 Synthes, Inc. .................................. 18,859 5,481 UBS AG + ....................................... 79,599 260 Zurich Financial Services AG ................... 56,701 --------------- 1,790,723 --------------- United Kingdom -- 15.1% 1,005 3i Group PLC ................................... 3,992 4,607 Anglo American PLC ............................. 109,059 13,323 AstraZeneca PLC ................................ 552,880 29,540 Aviva PLC ...................................... 169,793 6,290 BAE Systems PLC ................................ 34,723 16,799 Barclays PLC ................................... 38,731 6,220 BG Group PLC ................................... 87,331 10,424 BHP Billiton PLC ............................... 205,084 Shares Value ---------- --------------- United Kingdom (continued) 33,456 BP PLC ......................................... $ 261,972 7,309 British American Tobacco PLC^ .................. 191,723 12,307 British American Tobacco PLC^ .................. 325,663 1,541 British Energy Group PLC ....................... 17,517 1,069 British Land Co. PLC ........................... 8,688 2,330 British Sky Broadcasting Group PLC ............. 16,691 40,231 BT Group PLC, Class A .......................... 82,071 4,422 Cable & Wireless PLC ........................... 10,144 2,451 Cadbury PLC .................................... 21,969 2,640 Capita Group PLC (The) ......................... 28,726 400 Carnival PLC ................................... 8,960 9,673 Centrica PLC ................................... 37,774 3,980 Compass Group PLC .............................. 20,136 4,882 Diageo PLC ..................................... 69,582 8,510 Enterprise Inns PLC ............................ 6,977 5,480 Friends Provident PLC .......................... 7,105 9,667 GlaxoSmithKline PLC ............................ 182,367 490 Hammerson PLC .................................. 3,850 8,986 HBOS PLC ....................................... 9,435 2,878 Home Retail Group PLC .......................... 9,010 45,175 HSBC Holdings PLC .............................. 448,488 16,410 Imperial Tobacco Group PLC ..................... 444,624 619 Intercontinental Hotels Group PLC .............. 5,180 3,260 International Power PLC ........................ 11,523 11,440 ITV PLC ........................................ 6,695 830 Johnson Matthey PLC ............................ 13,398 4,950 Kingfisher PLC ................................. 9,891 1,460 Ladbrokes PLC .................................. 3,978 970 Land Securities Group PLC ...................... 13,229 13,730 Legal & General Group PLC ...................... 15,567 13,837 Lloyds TSB Group PLC ........................... 26,566 350 London Stock Exchange Group PLC ................ 2,663 3,512 Man Group PLC .................................. 12,256 2,730 Marks & Spencer Group PLC ...................... 8,680 22,454 National Grid PLC .............................. 225,066 540 Next PLC ....................................... 8,608 12,240 Old Mutual PLC ................................. 9,979 1,940 Pearson PLC .................................... 18,548 39,059 Prudential PLC ................................. 240,504 1,200 Reckitt Benckiser Group PLC .................... 45,611 1,930 Reed Elsevier PLC .............................. 14,373 1,680 Rexam PLC ...................................... 8,722 5,659 Rio Tinto PLC .................................. 127,587 3,689 Rolls-Royce Group PLC .......................... 18,305 37,896 Royal Bank of Scotland Group PLC ............... 28,297 5,679 RSA Insurance Group PLC ........................ 11,479 1,780 SABMiller PLC .................................. 30,321 4,410 Sage Group PLC (The) ........................... 11,077 3,120 Sainsbury (J) PLC .............................. 15,103 1,550 Scottish & Southern Energy PLC ................. 27,721 500 Severn Trent PLC ............................... 8,790 2,010 Smith & Nephew PLC ............................. 13,021 1,276 Smiths Group PLC ............................... 16,632 8,556 Standard Chartered PLC ......................... 111,056
See Notes to Financial Statements. 48 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- United Kingdom (continued) 950 Tate & Lyle PLC ................................ $ 5,615 14,168 Tesco PLC ...................................... 74,833 411 Thomson Reuters PLC ............................ 9,290 1,221 Tullow Oil PLC ................................. 11,858 2,529 Unilever PLC ................................... 58,925 1,228 United Utilities Group PLC ..................... 11,310 95,562 Vodafone Group PLC ............................. 198,489 625 Whitbread PLC .................................. 8,450 6,449 WM Morrison Supermarkets PLC ................... 26,515 1,570 Wolseley PLC ................................... 8,871 2,730 WPP PLC ........................................ 16,193 1,250 Xstrata PLC .................................... 11,865 --------------- 4,977,705 --------------- Total Common Stock (Cost $44,960,546) 31,210,542 --------------- PREFERRED STOCK -- 1.9% Brazil -- 1.1% 5,300 Banco Bradesco SA .............................. 51,762 8,800 Cia Vale do Rio Doce ........................... 90,892 31,064 Investimentos Itau SA .......................... 107,576 12,600 Petroleo Brasileiro SA ......................... 124,420 --------------- 374,650 --------------- Germany -- 0.8% 3,550 Fresenius SE ................................... 209,298 550 Henkel AG & Co. KGaA ........................... 17,311 190 Porsche Automobil Holding SE ................... 15,197 160 Volkswagen AG .................................. 8,665 --------------- 250,471 --------------- Total Preferred Stock (Cost $1,220,162) 625,121 --------------- EXCHANGE TRADED FUND -- 1.2% 9,000 iShares MSCI EAFE Index Fund (Cost $369,238) ................................ 403,830 --------------- WARRANTS -- 0.1% 148,893 YTL Power International BHD, Expires 05/18 (Cost $4,620) .................................. 29,131 --------------- RIGHTS -- 0.0% 1,500 DBS Group Holdings, Expires 01/09+** ........... 3,146 4,495 Fortis, Expires 07/14+ ......................... -- 12,435 HBOS PLC, Expires 01/09+** ..................... -- 6,014 Lloyds TSB Group, Expires 01/09+** ............. -- --------------- Total Rights (Cost $--) 3,146 --------------- Shares Value ---------- --------------- CASH EQUIVALENT -- 1.6% 527,478 PNC Institutional Money Market Trust, 0.050%(a) (Cost $527,478) ...................... $ 527,478 --------------- Total Investments -- 99.8% (Cost $47,082,044) 32,799,248 Other Assets & Liabilities, Net -- 0.2% 54,638 --------------- NET ASSETS -- 100.0% $ 32,853,886 ===============
---------- ADR - American Depositary Receipt GDR - Global Depositary Receipt + Non-income producing security. ^ Securities incorporated in the same country but traded on different exchanges. * Security fair valued using methods determined in good faith by the Pricing Committee. As of December 31, 2008, the total market value of these securities was $339,886, representing 1.0% of net assets. ** Valued using intrinsic value of underlying stock, as approved by the Pricing Committee. (a) The rate shown is the 7-day effective yield as of December 31, 2008. Amounts designated as "--" are $0 or rounded to $0. See Notes to Financial Statements. 49 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS --------------------------------------------------------------------------------
Shares Value ---------- --------------- COMMON STOCK -- 97.9% Consumer Discretionary -- 9.6% 8,500 Autoliv, Inc. .................................. $ 182,410 6,200 Black & Decker Corp. ........................... 259,222 43,100 CBS Corp., Class B ............................. 352,989 16,100 Comcast Corp. Special, Class A ................. 271,768 15,500 Family Dollar Stores, Inc. ..................... 404,085 23,400 Gannett Co., Inc. .............................. 187,200 25,600 Gap, Inc. (The) ................................ 342,784 12,100 J.C. Penney Co., Inc. .......................... 238,370 20,400 Jones Apparel Group, Inc. ...................... 119,544 27,100 Lowe's Cos., Inc. .............................. 583,192 39,700 Macy's, Inc. ................................... 410,895 2,000 McDonald's Corp. ............................... 124,380 10,800 Time Warner Cable, Inc., Class A + ............. 231,660 13,000 TJX Cos., Inc. ................................. 267,410 15,200 Viacom, Inc., Class B + ........................ 289,712 --------------- 4,265,621 --------------- Consumer Staples -- 17.2% 5,400 Coca-Cola Co. (The) ............................ 244,458 8,900 Colgate-Palmolive Co. .......................... 610,006 24,200 ConAgra Foods, Inc. ............................ 399,300 18,300 Del Monte Foods Co. ............................ 130,662 7,500 General Mills, Inc. ............................ 455,625 3,200 JM Smucker Co. (The) ........................... 138,752 8,300 Kellogg Co. .................................... 363,955 9,500 Kimberly-Clark Corp. ........................... 501,030 18,300 Kroger Co. (The) ............................... 483,303 11,900 Pepsi Bottling Group, Inc. ..................... 267,869 16,100 PepsiCo, Inc. .................................. 881,797 23,720 Procter & Gamble Co. ........................... 1,466,370 20,600 Safeway, Inc. .................................. 489,662 34,300 Sara Lee Corp. ................................. 335,797 9,500 SUPERVALU, Inc. ................................ 138,700 10,000 Tyson Foods, Inc., Class A ..................... 87,600 12,300 Wal-Mart Stores, Inc. .......................... 689,538 --------------- 7,684,424 --------------- Energy -- 5.6% 11,500 Apache Corp. ................................... 857,095 9,200 Devon Energy Corp. ............................. 604,532 3,100 ENSCO International, Inc. ...................... 88,009 9,400 Helmerich & Payne, Inc. ........................ 213,850 12,500 Occidental Petroleum Corp. ..................... 749,875 --------------- 2,513,361 --------------- Financials -- 18.9% 10,300 ACE, Ltd. ...................................... 545,076 12,500 Allstate Corp. (The) ........................... 409,500 31,200 American International Group, Inc. ............. 48,984 41,700 Bank of America Corp. .......................... 587,136 3,800 BB&T Corp. ..................................... 104,348 2,100 Capital One Financial Corp. .................... 66,969 2,100 Chubb Corp. .................................... 107,100 47,200 Citigroup, Inc. ................................ 316,712 Shares Value ---------- --------------- Financials (continued) 24,500 Discover Financial Services .................... $ 233,485 23,400 Fifth Third Bancorp ............................ 193,284 23,200 Genworth Financial, Inc., Class A .............. 65,656 4,900 Goldman Sachs Group, Inc. (The) ................ 413,511 8,000 Hartford Financial Services Group, Inc. ........ 131,360 34,200 JPMorgan Chase & Co. ........................... 1,078,326 20,400 MetLife, Inc. .................................. 711,144 32,300 Morgan Stanley ................................. 518,092 20,700 Old Republic International Corp. ............... 246,744 900 PartnerRe, Ltd. ................................ 64,143 6,600 Prudential Financial, Inc. ..................... 199,716 8,200 SunTrust Banks, Inc. ........................... 242,228 7,800 Torchmark Corp. ................................ 348,660 11,100 Travelers Cos., Inc. (The) ..................... 501,720 13,900 U.S. Bancorp ................................... 347,639 20,900 Unum Group ..................................... 388,740 15,600 Wells Fargo & Co. .............................. 459,888 19,400 XL Capital, Ltd., Class A ...................... 71,780 --------------- 8,401,941 --------------- Health Care -- 16.1% 8,500 Abbott Laboratories ............................ 453,645 10,800 Amgen, Inc. + .................................. 623,700 26,800 Bristol-Myers Squibb Co. ....................... 623,100 9,700 Cardinal Health, Inc. .......................... 334,359 7,450 Covidien, Ltd. ................................. 269,988 11,500 Eli Lilly & Co. ................................ 463,105 16,000 Johnson & Johnson .............................. 957,280 4,300 McKesson Corp. ................................. 166,539 36,300 Merck & Co., Inc. .............................. 1,103,520 69,400 Pfizer, Inc. ................................... 1,229,074 15,900 Schering-Plough Corp. .......................... 270,777 17,800 Wyeth .......................................... 667,678 --------------- 7,162,765 --------------- Industrials -- 6.2% 10,700 Caterpillar, Inc. .............................. 477,969 3,700 CSX Corp. ...................................... 120,139 9,000 Dover Corp. .................................... 296,280 12,600 Emerson Electric Co. ........................... 461,286 10,300 Illinois Tool Works, Inc. ...................... 361,015 9,100 Norfolk Southern Corp. ......................... 428,155 12,555 Republic Services, Inc., Class A ............... 311,238 13,800 Tyco International, Ltd. ....................... 298,080 --------------- 2,754,162 --------------- Information Technology -- 16.2% 3,300 Apple, Inc. + .................................. 281,655 22,900 Cisco Systems, Inc. + .......................... 373,270 22,900 Corning, Inc. .................................. 218,237 32,800 Dell, Inc. + ................................... 335,872 13,300 Hewlett-Packard Co. ............................ 482,657 46,300 Intel Corp. .................................... 678,758 12,000 International Business Machines Corp. .......... 1,009,920
See Notes to Financial Statements. 50 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND DECEMBER 31, 2008 [LOGO] SCHEDULE OF INVESTMENTS - (CONTINUED) --------------------------------------------------------------------------------
Shares Value ---------- --------------- Information Technology (continued) 8,700 Lexmark International, Inc., Class A + ......... $ 234,030 62,500 Microsoft Corp. ................................ 1,215,000 91,800 Motorola, Inc. ................................. 406,674 20,000 Nokia Oyj ADR .................................. 312,000 33,200 Nvidia Corp. + ................................. 267,924 29,100 Oracle Corp. + ................................. 515,943 16,200 Sanmina-SCI Corp. + ............................ 7,614 20,300 Symantec Corp. + ............................... 274,456 21,300 Texas Instruments, Inc. ........................ 330,576 13,500 Tyco Electronics, Ltd. ......................... 218,835 5,100 Western Digital Corp. + ........................ 58,395 --------------- 7,221,816 --------------- Materials -- 3.3% 9,200 Ball Corp. ..................................... 382,628 10,000 Bemis Co., Inc. ................................ 236,800 5,900 Eastman Chemical Co. ........................... 187,089 5,700 International Flavors & Fragrances, Inc. ....... 169,404 10,900 Owens-Illinois, Inc. + ......................... 297,897 8,800 Sonoco Products Co. ............................ 203,808 --------------- 1,477,626 --------------- Telecommunication Services -- 1.1% 134,100 Sprint Nextel Corp. ............................ 245,403 7,600 Verizon Communications, Inc. ................... 257,640 --------------- 503,043 --------------- Utilities -- 3.7% 11,200 Ameren Corp. ................................... 372,512 6,300 CMS Energy Corp. ............................... 63,693 1,600 Consolidated Edison, Inc. ...................... 62,288 2,600 Dominion Resources, Inc. ....................... 93,184 6,400 Entergy Corp. .................................. 532,032 18,700 Reliant Energy, Inc. + ......................... 108,086 10,300 Wisconsin Energy Corp. ......................... 432,394 --------------- 1,664,189 --------------- Total Common Stock (Cost $60,715,663) 43,648,948 --------------- CASH EQUIVALENT -- 1.7% 771,983 PNC Institutional Money Market Trust, 0.050%(a) (Cost $771,983) ................................ 771,983 --------------- Total Investments -- 99.6% (Cost $61,487,646) 44,420,931 Other Assets & Liabilities, Net -- 0.4% 156,859 --------------- NET ASSETS -- 100.0% $ 44,577,790 ===============
---------- ADR - American Depositary Receipt + Non-income producing security. (a) The rate shown is the 7-day effective yield as of December 31, 2008. See Notes to Financial Statements. 51 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF ASSETS AND LIABILITIES [LOGO] DECEMBER 31, 2008 --------------------------------------------------------------------------------
SMALL CAP INTERNATIONAL SOCIALLY EQUITY BALANCED INCOME GROWTH EQUITY RESPONSIBLE FUND FUND FUND FUND FUND FUND ------------- ------------- ------------- ------------- ------------- ------------- ASSETS: Investments in securities at value ^ (Note 2) ............................ $ 254,591,317 $ 155,542,752 $ 122,937,372 $ 31,079,678 $ 32,799,248 $ 44,420,931 Cash ................................... -- 13,280 -- -- -- -- Foreign currency, at value ............. -- -- 3,805 -- 18,587 -- Unrealized appreciation on forward contracts ........................... -- -- 12,243 -- -- -- Receivable for investment securities sold and matured .................... 502,096 -- 276,311 400,813 -- 180,111 Receivable for Fund shares sold ........ 23,135 12,228 17,137 17,560 19,625 7,555 Variation margin ....................... 20,830 -- -- -- -- -- Dividends and interest receivable ...... 496,804 -- 919,617 7,523 75,650 105,047 Reclaims receivable .................... -- -- 1,502 -- 87,064 -- ------------- ------------- ------------- ------------- ------------- ------------- Total Assets ........................ 255,634,182 155,568,260 124,167,987 31,505,574 33,000,174 44,713,644 ------------- ------------- ------------- ------------- ------------- ------------- LIABILITIES: Unrealized depreciation on forward contracts ........................... -- -- 127,513 -- -- -- Payable for investment securities purchased ........................... 636,729 13,280 22,258,094 538,034 17,450 12,337 Payable for Fund shares redeemed ....... 168,789 182,628 26,325 26,926 28,149 49,669 Investment advisory fees payable (Note 3) ............................ 161,346 -- 41,286 22,583 20,976 30,304 Professional fees payable .............. 119,938 64,257 40,499 12,629 13,291 18,383 Distribution fees payable (Note 4) ..... 81,566 -- 28,269 6,286 6,108 9,214 Printing fees payable .................. 40,566 21,734 13,698 4,272 4,495 6,218 Custody fees payable ................... 32,468 3,748 12,938 37,010 48,173 2,910 Administration and accounting fees payable ............................. 15,494 8,246 4,389 1,085 1,187 1,885 Chief Compliance Officer fees payable ............................. 4,409 2,362 1,489 464 489 676 Trustees' fees payable ................. 213 114 72 22 24 33 Payable upon return of securities loaned .............................. -- -- -- 9 -- -- Other accrued expenses 38,830 14,135 9,451 3,103 5,946 4,225 ------------- ------------- ------------- ------------- ------------- ------------- Total Liabilities ................... 1,300,348 310,504 22,564,023 652,423 146,288 135,854 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS ............................. $ 254,333,834 $ 155,257,756 $ 101,603,964 $ 30,853,151 $ 32,853,886 $ 44,577,790 ============= ============= ============= ============= ============= ============= NET ASSETS consist of: Undistributed net investment income .... $ 3,965 $ 5,314,092 $ 4,724,814 $ -- $ 333,821 $ 821,750 Accumulated net realized loss on investments, futures contracts and foreign currency transactions ... (100,636,605) (29,197,222) (11,337) (16,137,913) (4,709,024) (6,236,864) Net unrealized depreciation of investments, futures contracts and other assets and liabilities denominated in foreign currencies ... (81,954,377) (23,589,930) (16,006,449) (8,103,796) (14,268,162) (17,066,715) Paid-in capital ........................ 436,920,851 202,730,816 112,896,936 55,094,860 51,497,251 67,059,619 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS ............................. $ 254,333,834 $ 155,257,756 $ 101,603,964 $ 30,853,151 $ 32,853,886 $ 44,577,790 ============= ============= ============= ============= ============= ============= SHARES OUTSTANDING: (Unlimited shares authorized) .......... 18,817,067 12,066,442 9,559,923 3,547,966 3,630,614 5,323,439 ============= ============= ============= ============= ============= ============= NET ASSET VALUE: (Offering and redemption price per share) .............................. $ 13.52 $ 12.87 $ 10.63 $ 8.70 $ 9.05 $ 8.37 ============= ============= ============= ============= ============= ============= Investments, at cost (Note 2) .......... $ 336,574,622 $ 179,132,682 $ 138,845,149 $ 39,183,474 $ 47,082,044 $ 61,487,646 Foreign currency, at cost .............. $ -- $ -- $ 4,046 $ -- $ 18,618 $ -- Market value of securities on loan (Note 1) ............................ $ -- $ -- $ -- $ 8 $ -- $ --
^ For Balanced Fund represents value of investments in affiliated funds. See Notes to Financial Statements. 52 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF OPERATIONS [LOGO] FOR THE YEAR ENDED DECEMBER 31, 2008 --------------------------------------------------------------------------------
SMALL CAP INTERNATIONAL SOCIALLY EQUITY BALANCED INCOME GROWTH EQUITY RESPONSIBLE FUND FUND FUND FUND FUND FUND ------------- ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME: Dividends# ............................. $ 7,386,923 $ 4,157,997 $ 109,736 $ 185,818 $ 1,767,507 $ 1,628,342 Interest ............................... 69,078 -- 6,262,923 13,677 20,783 15,542 Securities lending income .............. 322,311 -- -- 145,158 207 34,858 Foreign taxes withheld ................. (42,541) -- -- (204) (175,595) (2,503) ------------- ------------- ------------- ------------- ------------- ------------- Total Income ........................ 7,735,771 4,157,997 6,372,659 344,449 1,612,902 1,676,239 ------------- ------------- ------------- ------------- ------------- ------------- EXPENSES Investment advisory fees (Note 3) ...... 2,739,852 -- 630,438 508,915 465,340 551,238 Distribution fees (Note 4) ............. 978,511 -- 286,555 110,641 116,341 162,230 Administration and accounting fees ..... 319,480 69,605 130,248 77,506 95,212 58,943 Chief Compliance Officer fees .......... 28,061 15,028 7,843 3,177 3,420 4,833 Professional fees ...................... 167,556 88,766 54,595 17,917 19,171 25,908 Printing fees .......................... 97,352 51,747 32,122 14,730 15,872 15,466 Custodian fees ......................... 75,163 9,533 25,444 75,996 84,360 7,236 Transfer agent fees .................... 78,925 18,787 14,434 11,219 11,207 12,091 Trustees' fees and expenses (Note 3) ... 57,872 30,548 10,776 6,692 6,869 10,061 Other .................................. 50,984 29,276 8,556 6,726 9,039 9,894 ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses ...................... 4,593,756 313,290 1,201,011 833,519 826,831 857,900 Fees waived by investment adviser (Note 3) ............................ -- -- -- (104,210) (95,301) -- Fees waived by administrator (Note 3) .. (3,450) (3,450) (3,450) (3,450) (3,450) (3,450) ------------- ------------- ------------- ------------- ------------- ------------- Net expenses ........................ 4,590,306 309,840 1,197,561 725,859 728,080 854,450 ------------- ------------- ------------- ------------- ------------- ------------- Net Investment Income/(Loss) ........... 3,145,465 3,848,157 5,175,098 (381,410) 884,822 821,789 ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS (Notes 1 And 4) Net realized gain/(loss) from: Investments ......................... (90,159,513) (22,937,930) 1,918,939 (12,852,693) (4,647,376) (6,188,823) Distributions from underlying funds ............................ -- 1,635,347 -- -- -- -- Futures contracts ................... (950,608) -- -- -- -- -- Forward foreign currency exchange contracts and foreign currency transactions ..................... -- -- 135,813 -- 16,176 -- Net change in unrealized appreciation/ (depreciation) of: Investments ......................... (100,778,268) (42,884,329) (15,568,705) (13,596,976) (21,258,998) (26,154,352) Futures contracts ................... 133,526 -- -- -- -- -- Forward foreign currency exchange contracts and other assets and liabilities denominated in foreign currencies ....................... -- -- (33,187) -- (3,214) -- ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized loss on investments, futures contracts and foreign currencies .................. (191,754,863) (64,186,912) (13,547,140) (26,449,669) (25,893,412) (32,343,175) ------------- ------------- ------------- ------------- ------------- ------------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ..................... $(188,609,398) $ (60,338,755) $ (8,372,042) $ (26,831,079) $ (25,008,590) $ (31,521,386) ============= ============= ============= ============= ============= =============
# For Balanced Fund, represents income from affiliated funds. See Notes to Financial Statements. 53 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF CHANGES IN NET ASSETS [LOGO] FOR THE YEAR ENDED DECEMBER 31, 2008 --------------------------------------------------------------------------------
SMALL CAP INTERNATIONAL SOCIALLY EQUITY BALANCED INCOME GROWTH EQUITY RESPONSIBLE FUND FUND FUND FUND FUND FUND ------------- ------------- ------------- ------------ ------------- ------------ Operations: Net investment income/(loss) .............. $ 3,145,465 $ 3,848,157 $ 5,175,098 $ (381,410) $ 884,822 $ 821,789 Net realized gain/(loss) on investments, futures contracts, forward foreign currency exchange contracts and foreign currency transactions .................. (91,110,121) (22,937,930) 2,054,752 (12,852,693) (4,631,200) (6,188,823) Distributions from underlying funds ....... -- 1,635,347 -- -- -- -- Net change in unrealized appreciation/ (depreciation) of investments, futures contracts, forward foreign currency exchange contracts and other assets and liabilities denominated in foreign currencies ..................... (100,644,742) (42,884,329) (15,601,892) (13,596,976) (21,262,212) (26,154,352) ------------- ------------- ------------- ------------ ------------- ------------ Net decrease in net assets resulting from operations ............................. (188,609,398) (60,338,755) (8,372,042) (26,831,079) (25,008,590) (31,521,386) ------------- ------------- ------------- ------------ ------------- ------------ Distributions to Shareholders From: Net investment income ..................... (3,121,578) (12,582,403) (5,466,491) -- (719,012) (883,214) Net realized capital gains ................ (793,565) (11,917,231) (2,370,929) -- -- (3,836,943) ------------- ------------- ------------- ------------ ------------- ------------ Total distributions to shareholders ....... (3,915,143) (24,499,634) (7,837,420) -- (719,012) (4,720,157) ------------- ------------- ------------- ------------ ------------- ------------ Capital Stock Transactions: (Dollars) Shares sold ............................ 28,278,757 1,589,717 15,887,444 3,277,019 5,034,734 1,258,929 Shares issued from merger .............. -- -- 4,105,280 -- -- -- Shares issued as reinvestment of distributions ....................... 3,891,019 24,499,630 7,837,416 -- 719,168 4,720,155 Shares redeemed ........................ (81,443,597) (29,177,084) (37,480,121) (4,351,194) (4,265,202) (8,962,208) ------------- ------------- ------------- ------------ ------------- ------------ Net increase/(decrease) in net assets from capital stock transactions ........ (49,273,821) (3,087,737) (9,649,981) (1,074,175) 1,488,700 (2,983,124) ------------- ------------- ------------- ------------ ------------- ------------ Net decrease in net assets ................ (241,798,362) (87,926,126) (25,859,443) (27,905,254) (24,238,902) (39,224,667) NET ASSETS: Beginning of year ......................... 496,132,196 243,183,882 127,463,407 58,758,405 57,092,788 83,802,457 ------------- ------------- ------------- ------------ ------------- ------------ End of year ............................... $ 254,333,834 $ 155,257,756 $ 101,603,964 $ 30,853,151 $ 32,853,886 $ 44,577,790 ============= ============= ============= ============ ============= ============ Undistributed net investment income at end of year ............................ $ 3,965 $ 5,314,092 $ 4,724,814 $ -- $ 333,821 $ 821,750 ============= ============= ============= ============ ============= ============ Capital Share Transactions: Shares sold ............................ 2,013,913 87,690 1,387,859 271,641 390,016 104,391 Shares issued from merger .............. -- -- 362,339 -- -- -- Shares issued as reinvestment of distributions ....................... 298,755 1,862,221 730,664 -- 81,531 582,656 Shares redeemed ........................ (5,097,194) (1,600,842) (3,290,906) (345,521) (314,259) (676,532) ------------- ------------- ------------- ------------ ------------- ------------ Net increase/(decrease) in shares outstanding ..................... (2,784,526) 349,069 (810,044) (73,880) 157,288 10,515 ============= ============= ============= ============ ============= ============
See Notes to Financial Statements. 54 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF CHANGES IN NET ASSETS [LOGO] FOR THE YEAR ENDED DECEMBER 31, 2007 --------------------------------------------------------------------------------
SMALL CAP INTERNATIONAL SOCIALLY EQUITY BALANCED INCOME GROWTH EQUITY RESPONSIBLE FUND FUND FUND FUND FUND FUND ------------- ------------- ------------- ------------ ------------- ------------ Operations: Net investment income/(loss) .............. $ 2,835,806 $ 4,823,841 $ 5,819,373 $ (489,942) $ 427,695 $ 883,212 Affiliated mutual fund capital gain distributions .......................... -- 15,635,107 -- -- -- -- Net realized gain on investments, futures contracts, forward foreign currency exchange contracts and foreign currency transactions ........................... 54,634,027 4,040,601 179,440 6,818,565 6,761,306 5,168,067 Net change in unrealized appreciation/(depreciation) of investments, futures contracts, forward foreign currency exchange contracts and other assets and liabilities denominated in foreign currencies ...... (44,707,533) (16,405,525) (684,627) 1,070,682 (2,745,875) (8,140,295) ------------- ------------- ------------- ------------ ------------- ------------ Net increase/(decrease) in net assets resulting from operations .............. 12,762,300 8,094,024 5,314,186 7,399,305 4,443,126 (2,089,016) ------------- ------------- ------------- ------------ ------------- ------------ Distributions to Shareholders From: Net investment income ..................... (2,900,639) -- (5,500,835) -- (502,143) (1,015,033) Net realized capital gains ................ (52,557,526) -- (180,560) -- (2,949,849) (5,040,549) ------------- ------------- ------------- ------------ ------------- ------------ Total distributions to shareholders ....... (55,458,165) -- (5,681,395) -- (3,451,992) (6,055,582) ------------- ------------- ------------- ------------ ------------- ------------ Capital Stock Transactions: (Dollars) Shares sold ............................ 14,300,679 2,378,096 6,891,244 3,520,424 6,869,233 2,679,941 Shares issued as reinvestment of distributions ....................... 55,114,259 -- 5,681,395 -- 3,451,992 6,055,582 Shares redeemed ........................ (58,567,552) (27,703,738) (13,969,525) (6,355,974) (5,438,716) (7,942,787) ------------- ------------- ------------- ------------ ------------- ------------ Net increase/(decrease) in net assets from capital stock transactions ............. 10,847,386 (25,325,642) (1,396,886) (2,835,550) 4,882,509 792,736 ------------- ------------- ------------- ------------ ------------- ------------ Net increase/(decrease) in net assets ..... (31,848,479) (17,231,618) (1,764,095) 4,563,755 5,873,643 (7,351,862) NET ASSETS: Beginning of year ......................... 527,980,675 260,415,500 129,227,502 54,194,650 51,219,145 91,154,319 ------------- ------------- ------------- ------------ ------------- ------------ End of year ............................... $ 496,132,196 $ 243,183,882 $ 127,463,407 $ 58,758,405 $ 57,092,788 $ 83,802,457 ============= ============= ============= ============ ============= ============ Undistributed net investment income at end of year ............................ $ 31,841 $ 12,582,402 $ 5,292,997 $ 1,092 $ 151,078 $ 883,180 ============= ============= ============= ============ ============= ============ Capital Share Transactions: Shares sold ............................ 551,300 114,271 549,799 221,280 405,566 149,206 Shares issued as reinvestment of distributions ....................... 2,354,302 -- 467,605 -- 204,866 376,357 Shares redeemed ........................ (2,221,368) (1,334,950) (1,105,754) (404,153) (316,635) (441,203) ------------- ------------- ------------- ------------ ------------- ------------ Net increase/(decrease) in shares outstanding ............................ 684,234 (1,220,679) (88,350) (182,873) 293,797 84,360 ============= ============= ============= ============ ============= ============
See Notes to Financial Statements. 55 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND [LOGO] FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR.
YEAR ENDED DECEMBER 31, --------------------------------------------------------------- 2008 2007 2006 2005 2004 ---------- ----------- ---------- ---------- ---------- Net asset value, beginning of year ............................. $ 22.97 $ 25.24 $ 22.35 $ 21.34 $ 19.63 ---------- ----------- ---------- ---------- ---------- INCOME FROM INVESTMENT OPERATIONS: Net investment income(1) ....................................... 0.15 0.14 0.21 0.25 0.26 Net realized and unrealized gain/(loss) on investments and futures contracts .............................................. (9.39) 0.47 3.57 1.01 1.73 ---------- ----------- ---------- ---------- ---------- Total from investment operations ............................... (9.24) 0.61 3.78 1.26 1.99 ---------- ----------- ---------- ---------- ---------- LESS DISTRIBUTIONS: From net investment income ..................................... (0.17) (0.15) (0.23) (0.25) (0.28) From capital gains ............................................. (0.04) (2.73) (0.66) -- -- ---------- ----------- ---------- ---------- ---------- Total distributions ............................................ (0.21) (2.88) (0.89) (0.25) (0.28) ---------- ----------- ---------- ---------- ---------- Net asset value, end of year ................................... $ 13.52 $ 22.97 $ 25.24 $ 22.35 $ 21.34 ========== =========== ========== ========== ========== Total return(2) ................................................ (40.19)% 2.20% 16.92% 5.90% 10.15% ========== =========== ========== ========== ========== RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Net assets, end of year (in 000's) ............................. $ 254,334 $ 496,132 $ 527,981 $ 505,499 $ 535,028 Operating expenses including reimbursement/ waiver and excluding earnings credits ...................... 1.17% 1.13% 1.00% 0.86% 0.87% Operating expenses excluding reimbursement/ waiver and excluding earnings credits ...................... 1.17% 1.13% 1.03% 0.93% 0.91% Net investment income .......................................... 0.80% 0.54% 0.87% 1.15% 1.30% Portfolio turnover rate ........................................ 93% 81% 135% 44% 35%
---------- (1) The selected per share data was calculated using the average shares outstanding method for the period. (2) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. See Notes to Financial Statements. 56 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST BALANCED FUND [LOGO] FINANCIAL HIGHLIGHTS - (CONTINUED) -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR.
YEAR ENDED DECEMBER 31, --------------------------------------------------------- 2008 2007 2006 2005 2004 --------- --------- --------- --------- --------- Net asset value, beginning of year ................................... $ 20.75 $ 20.13 $ 18.72 $ 17.95 $ 17.02 --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income(1) ............................................. 0.35 0.39 0.41 0.11 0.38 Net realized and unrealized gain/(loss) on investments .................................................... (5.94) 0.23 1.76 0.66 1.01 --------- --------- --------- --------- --------- Total from investment operations ..................................... (5.59) 0.62 2.17 0.77 1.39 --------- --------- --------- --------- --------- LESS DISTRIBUTIONS: From net investment income ........................................... (1.13) -- (0.70) -- (0.46) From capital gains ................................................... (1.16) -- (0.06) -- -- --------- --------- --------- --------- --------- Total distributions .................................................. (2.29) -- (0.76) -- (0.46) --------- --------- --------- --------- --------- Net asset value, end of year ......................................... $ 12.87 $ 20.75 $ 20.13 $ 18.72 $ 17.95 ========= ========= ========= ========= ========= Total return(2) ...................................................... (26.68)% 3.08% 11.59% 4.29% 8.18% ========= ========= ========= ========= ========= RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Net assets, end of year (in 000's) ................................... $ 155,258 $ 243,184 $ 260,416 $ 256,819 $ 269,488 Operating expenses including reimbursement/waiver and excluding earnings credits+ ....................................... 0.16% 0.09% 0.08% 0.06% 0.04% Operating expenses excluding reimbursement/waiver and excluding earnings credits+ ....................................... 0.16% 0.09% 0.10% 0.06% 0.04% Net investment income ................................................ 1.92% 1.88% 2.09% 0.60% 2.20% Portfolio turnover rate .............................................. 30% 10% 4% 1% 6%
---------- + These ratios do not include expenses from the underlying funds. (1) The selected per share data was calculated using the average shares outstanding method for the period. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. (2) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. See Notes to Financial Statements. 57 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND [LOGO] FINANCIAL HIGHLIGHTS - (CONTINUED) -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR.
YEAR ENDED DECEMBER 31, --------------------------------------------------------- 2008 2007 2006 2005 2004 --------- --------- --------- --------- --------- Net asset value, beginning of year ................................... $ 12.29 $ 12.36 $ 12.40 $ 12.16 $ 12.26 --------- --------- --------- --------- --------- INCOME FROM INVESTMENT OPERATIONS: Net investment income(1) ............................................. 0.54 0.56 0.52 0.45 0.41 Net realized and unrealized gain/ (loss) on investments and foreign currency transactions ............................................. (1.33) (0.05) (0.03) (0.21) 0.19 --------- --------- --------- --------- --------- Total from investment operations ..................................... (0.79) 0.51 0.49 0.24 0.60 --------- --------- --------- --------- --------- LESS DISTRIBUTIONS: From net investment income ........................................... (0.60) (0.56) (0.52) -- (0.47) From capital gains ................................................... (0.27) (0.02) (0.01) -- (0.23) --------- --------- --------- --------- --------- Total distributions .................................................. (0.87) (0.58) (0.53) -- (0.70) --------- --------- --------- --------- --------- Net asset value, end of year ......................................... $ 10.63 $ 12.29 $ 12.36 $ 12.40 $ 12.16 ========= ========= ========= ========= ========= Total return(2) ...................................................... (6.44)% 4.21% 3.99% 1.97% 4.94% ========= ========= ========= ========= ========= RATIOS TO AVERAGE NET ASSETS/ SUPPLEMENTAL DATA: Net assets, end of year (in 000's) ................................... $ 101,604 $ 127,463 $ 129,228 $ 127,380 $ 127,557 Operating expenses including reimbursement/waiver and excluding earnings credits ........................................ 1.05% 0.98% 1.02% 0.95% 0.91% Operating expenses excluding reimbursement/waiver and excluding earnings credits ........................................ 1.05% 1.05% 1.05% 1.00% 0.93% Net investment income ................................................ 4.52% 4.47% 4.12% 3.64% 3.25% Portfolio turnover rate .............................................. 367% 458% 421% 765% 595%
---------- (1) The selected per share data was calculated using the average shares outstanding method for the period. (2) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. See Notes to Financial Statements. 58 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND [LOGO] FINANCIAL HIGHLIGHTS - (CONTINUED) -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR.
YEAR ENDED DECEMBER 31, ---------------------------------------------------- 2008 2007 2006 2005 2004 -------- -------- -------- -------- -------- Net asset value, beginning of year ....................... $ 16.22 $ 14.24 $ 12.78 $ 12.33 $ 11.81 -------- -------- -------- -------- -------- INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment loss(1) ................................... (0.11) (0.13) (0.18) (0.11) (0.16) Net realized and unrealized gain/(loss) on investments ... (7.41) 2.11 1.64 0.56 0.68 -------- -------- -------- -------- -------- Total from investment operations ......................... (7.52) 1.98 1.46 0.45 0.52 -------- -------- -------- -------- -------- Net asset value, end of year ............................. $ 8.70 $ 16.22 $ 14.24 $ 12.78 $ 12.33 ======== ======== ======== ======== ======== Total return(2) .......................................... (46.36)% 13.91% 11.42% 3.65% 4.40% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of year (in 000's) ....................... $ 30,853 $ 58,758 $ 54,195 $ 52,655 $ 56,286 Operating expenses including reimbursement/waiver and excluding earnings credits ............................ 1.64% 1.45% 1.60% 1.66% 1.58% Operating expenses excluding reimbursement/waiver and excluding earnings credits ............................ 1.88% 1.76% 1.76% 1.73% 1.77% Net investment loss ...................................... (0.86)% (0.85)% (1.29)% (0.94)% (1.38)% Portfolio turnover rate .................................. 199% 110% 240% 152% 96%
---------- (1) The selected per share data was calculated using the average shares outstanding method for the period. (2) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. See Notes to Financial Statements. 59 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND [LOGO] FINANCIAL HIGHLIGHTS - (CONTINUED) -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR.
YEAR ENDED DECEMBER 31, ---------------------------------------------------- 2008 2007 2006 2005 2004 -------- -------- -------- -------- -------- Net asset value, beginning of year ....................... $ 16.44 $ 16.11 $ 13.11 $ 11.91 $ 10.91 -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income(1) ................................. 0.25 0.13 0.07 0.10 0.03 Net realized and unrealized gain/(loss) on investments and foreign currency transactions ......... (7.44) 1.26 3.04 1.11 1.13 -------- -------- -------- -------- -------- Total from investment operations ......................... (7.19) 1.39 3.11 1.21 1.16 -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: From net investment income ............................... (0.20) (0.15) (0.11) (0.01) (0.16) From capital gains ....................................... -- (0.91) -- -- -- -------- -------- -------- -------- -------- Total distributions ...................................... (0.20) (1.06) (0.11) (0.01) (0.16) -------- -------- -------- -------- -------- Net asset value, end of year ............................. $ 9.05 $ 16.44 $ 16.11 $ 13.11 $ 11.91 ======== ======== ======== ======== ======== Total return(2) .......................................... (43.75)% 8.73% 23.76% 10.12% 10.61% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of year (in 000's) ....................... $ 32,854 $ 57,093 $ 51,219 $ 41,882 $ 39,276 Operating expenses including reimbursement/waiver and excluding earnings credits ............................... 1.56% 2.06% 2.10% 1.71% 1.55% Operating expenses excluding reimbursement/waiver and excluding earnings credits ............................... 1.78% 2.26% 2.27% 1.80% 1.60% Net investment income .................................... 1.90% 0.77% 0.49% 0.84% 0.26% Portfolio turnover rate .................................. 27% 106% 103% 48% 161%
---------- (1) The selected per share data was calculated using the average shares outstanding method for the period. (2) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. See Notes to Financial Statements. 60 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND [LOGO] FINANCIAL HIGHLIGHTS - (CONTINUED) -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH YEAR.
YEAR ENDED DECEMBER 31, --------------------------------------------------- 2008 2007 2006 2005 2004 -------- -------- -------- -------- ------- Net asset value, beginning of year ....................... $ 15.77 $ 17.43 $ 16.21 $ 15.42 $ 13.79 INCOME FROM INVESTMENT OPERATIONS: Net investment income(1) ................................. 0.16 0.17 0.21 0.20 0.19 Net realized and unrealized gain/(loss) on investments ... (6.58) (0.60) 3.12 0.59 1.64 -------- -------- -------- -------- ------- Total from investment operations ......................... (6.42) (0.43) 3.33 0.79 1.83 -------- -------- -------- -------- ------- LESS DISTRIBUTIONS: From net investment income ............................... (0.17) (0.21) (0.22) --(2) (0.20) From capital gains ....................................... (0.81) (1.02) (1.89) -- -- -------- -------- -------- -------- ------- Total distributions ...................................... (0.98) (1.23) (2.11) -- (0.20) -------- -------- -------- -------- ------- Net asset value, end of year ............................. $ 8.37 $ 15.77 $ 17.43 $ 16.21 $ 15.42 ======== ======== ======== ======== ======= Total return(3) .......................................... (40.39)% (2.63)% 20.52% 5.13% 13.30% ======== ======== ======== ======== ======= RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of year (in 000's) ....................... $ 44,578 $ 83,802 $ 91,154 $ 79,445 $80,336 Operating expenses including reimbursement/waiver and excluding earnings credits ............................ 1.32% 1.28% 1.23% 1.03% 1.01% Operating expenses excluding reimbursement/waiver and excluding earnings credits ............................ 1.32% 1.29% 1.32% 1.26% 1.21% Net investment income .................................... 1.27% 0.96% 1.20% 1.29% 1.35% Portfolio turnover rate .................................. 34% 21% 46% 28% 32%
---------- (1) The selected per share data was calculated using the average shares outstanding method for the period. (2) Less than $0.01 per share. (3) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. See Notes to Financial Statements. 61 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- 1. Organization. The Wilshire Variable Insurance Trust (the "Trust") is an open-end, diversified management investment company registered under the Investment Company Act of 1940 ("1940 Act"), which offers units of beneficial ownership (shares) in 9 separate investment portfolios. The portfolios presented in these financial statements are: Equity Fund, Balanced Fund, Income Fund, Small Cap Growth Fund, International Equity Fund and Socially Responsible Fund (collectively the "Funds", and each a "Fund"). The financial statements for the 2015 ETF Fund, 2025 ETF Fund, and 2035 ETF Fund are included in a separate annual report. Shares of the Funds are presently offered to Horace Mann Life Insurance Company ("HMLIC") Separate Account and the HMLIC 401(k) Separate Account. The Equity Fund shares also may be purchased under the dividend reinvestment plans by certain shareholders. FUND INVESTMENT OBJECTIVES: EQUITY FUND -- primary, long-term capital growth; secondary, conservation of principal and production of income. BALANCED FUND -- realization of high long-term total rate of return consistent with prudent investment risks. INCOME FUND -- long-term total rate of return in excess of the U.S. bond market over a full market cycle. SMALL CAP GROWTH FUND -- long-term capital appreciation through investing primarily in equity securities of small cap companies with earnings growth potential. INTERNATIONAL EQUITY FUND -- long-term growth of capital through diversified holdings of marketable foreign equity investments. SOCIALLY RESPONSIBLE FUND -- long-term growth of capital, current income and growth of income through investing primarily in equity securities of issuers that meet certain socially responsible criteria. 2. Significant Accounting Policies. SECURITY VALUATION -- A security listed or traded on a domestic exchange 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 the exchange. Securities traded on National Association of Securities Dealers Automatic Quotation ("Nasdaq") System are valued at the Nasdaq official closing price. If there is no Nasdaq official closing price available, the most recent bid quotation is used. Securities traded over-the-counter (other than on Nasdaq) are valued at the last current sale price. Equity securities primarily traded on a foreign exchange or market are valued daily at the price, which is an estimate of the fair value price, as provided by an independent pricing service. Debt securities that have a remaining maturity of 60 days or less are valued at prices supplied by the Funds' pricing agent for such securities, if available, and otherwise are valued at amortized cost. When market quotations are not readily available, securities are valued according to procedures established 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 the Adviser, one of whom is an officer of the Trust, or the Funds' Valuation Committee. 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 the Valuation Committee. The value of fair valued securities may be different from the last sale 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. Investments in the underlying funds by the Balanced Fund are valued at their net asset value as reported by the underlying funds. Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and 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. 62 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- The International Equity Fund uses FT Interactive Data Corp. ("FT") as a third party fair valuation vendor daily. FT provides a fair value for foreign securities in the International Equity Fund based on certain factors and methodologies (involving, generally, tracking valuation correlations between the U.S. market and each non-U.S. security) applied by FT. These factors are used to value the International Equity Fund. In such event, it is not necessary to hold a Pricing Committee meeting. In the event that the Adviser believes that the fair values provided by FT are not reliable, the Adviser contacts the International Equity Fund's Administrator and may request that a meeting of the Pricing Committee be held. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are recorded on a trade date basis. Dividend income and distributions on underlying funds are recorded on the ex-dividend date or, for certain foreign dividends, as soon the dividend information becomes available. Interest income and distributions on underlying funds, premium and discount amortization is accrued daily. Securities gains and losses are determined on the basis of identified cost. 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 ("REITs") are not known until after the end of the fiscal year, at which time such distributions are appropriately adjusted. The Income Fund, Small Cap Growth Fund, International Equity Fund and Socially Responsible Fund may purchase or sell securities on a when-issued or delayed-delivery basis and make contracts to purchase or sell securities for a fixed price at a future date beyond customary settlement time. Securities purchased or sold on a when-issued, delayed-delivery or forward commitment basis involve a risk of loss if the value of the security to be purchased declines prior to the settlement date. Although the Funds would generally purchase securities on a when-issued, delayed-delivery or forward commitment basis with the intention of acquiring the securities, each Fund may dispose of such securities prior to settlement if its sub-adviser deems it appropriate to do so. Each Fund may dispose of or negotiate a when-issued or forward commitment after entering into these transactions. Such transactions are generally considered to be derivative transactions. The Fund will normally realize a capital gain or loss in connection with these transactions. When a Fund purchases securities on a when-issued, delayed-delivery or forward commitment basis, the Fund's custodian will maintain cash or liquid securities having a value (determined daily) at least equal to the amount of the Fund's purchase commitments. In the case of a forward commitment to sell portfolio securities, the custodian will hold the portfolio securities themselves while the commitment is outstanding. These procedures are designed to ensure that each Fund will maintain sufficient assets at all times to cover its obligations under when-issued purchases, forward commitments and delayed-delivery transactions. 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. There were no repurchase agreements as of December 31, 2008. INVESTMENTS IN REITS -- With respect to the Funds, 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. SECURITIES LENDING -- The Equity, Income, Small Cap Growth, International Equity and the Socially Responsible Funds 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 Fund may return a portion of the interest earned to the bor- 63 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- rower or a third party which is unaffiliated with the Trust and acting as a "placing broker." A Fund receives compensation for lending securities in the form of fees. A Fund also continues to receive dividends on the securities loaned. Security loans are secured at all times by collateral. It is the Trust'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 Fund. 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 Fund. 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 ("PNCGIS"), the Funds' custodian, acts as the securities lending agent for the Funds. The value of the securities on loan and the value of the related collateral at December 31, 2008 are shown on the Statement of Assets and Liabilities. The related income from securities loaned during the period is reflected in the Statements of Operations. MORTGAGE DOLLAR ROLLS -- The Income Fund may enter into mortgage dollar rolls in which the Income Fund makes a forward commitment to purchase or sell a security and, instead of accepting or making delivery, the position is offset by a sale or purchase of the security with a simultaneous agreement to repurchase or resell similar, but not identical, securities at an agreed upon price in the future. The Income Fund accounts for such dollar rolls as purchases and sales and records an unrealized gain or loss each day equal to the difference between the original value of the purchase and the current market value. The Income Fund must maintain liquid securities having a value not less than the repurchase price, including accrued interest, for such dollar rolls. Losses may arise due to changes in values of the securities or if the coun-terparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, the Income Fund's right to repurchase or resell securities may be limited. There were no mortgage dollar rolls as of December 31, 2008. ADRS, EDRS AND GDRS -- The Small Cap Growth Fund, International Equity Fund and Socially Responsible Fund may invest in both sponsored and unsponsored American Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs") and other similar global instruments. The Equity Fund may invest in ADRs. ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading on an international basis. Unsponsored ADR, EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying securities. As a result, available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the issuer. ASSET-BACKED AND MORTGAGE SECURITIES -- The Income Fund may invest in mortgage and asset-backed securities which represent shares in a pool of mortgages or other debt. These securities are generally pass-through securities, which means that principal and interest payments on the underlying securities (less servicing fees) are passed through to shareholders on a pro rata basis. These securities involve prepayment risk, which is the risk that the underlying mortgages or other debt may be refinanced or paid off before they mature, particularly during periods of declining interest rates. In that case, a sub-adviser may have to reinvest the proceeds from the securities at a lower interest rate. This could lower a Fund's return and result in losses to a Fund if some securities were acquired at a premium. Potential market gains on a security subject to prepayment risk may be more limited than potential market gains on a comparable security that is not subject to prepayment risk. The Income Fund may also invest in collateralized mortgage obligations ("CMOs"). In a CMO, a series of bonds or certificates is issued in multiple classes, which have varying levels of risks. FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Funds are maintained in U.S. dollars. Foreign currency transactions are translated into U.S. dollars on the following basis: 64 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- o market value of investment securities, other assets and other liabilities at the daily rates of exchange and o purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized gain (loss) from foreign currency related transactions includes gains and losses between trade and settlement dates on securities transactions, gains and losses arising from the sales of foreign currency and gains and losses between the ex-dividend and payment dates on dividends, interest and foreign withholding taxes. The effect of changes in foreign exchange rates on realized and unrealized gains or losses is reflected as a component of such gains or losses. FUTURES CONTRACTS -- A futures contract is an agreement to purchase (long) or sell (short) an agreed asset at a set price for delivery on a future date. Upon entering into a futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the "initial margin." Subsequent payments known as "variation margin," are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. The change in the value of the futures contract is recorded for financial statement purposes on a daily basis as unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the Statement of Operations as net realized gain or loss on futures contracts. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. It is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its expiration date. Additionally, the purchase of a futures contract involves the risk that a Fund could lose more than the original margin deposit required to initiate a futures transaction. FORWARD CURRENCY CONTRACTS -- The Funds may enter into forward foreign currency contracts as hedges against either specific transactions, fund positions or anticipated fund positions. All commitments are "marked-to-market" daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The Funds realize gains and losses at the time forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the year are recognized as ordinary income or loss for federal income tax purposes. The Funds could be exposed to risk if the counterparties to the contracts are unable to meet the terms of the contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. EXPENSE POLICY -- 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 based upon another reasonable basis. Expenses which are attributable to the Trust and the Wilshire Mutual Funds are allocated across the Trust and the Wilshire Mutual Funds based upon relative net assets or another reasonable basis. USE OF ESTIMATES -- The preparation of financial statements in conformity 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 increases and decreases in net assets from operations during the period. Actual results could differ from those estimates. 3. Investment Advisory Fee and Other Transactions. The Trust employs the Adviser to manage the investment and reinvestment of the assets of the Funds and to continuously review, oversee and administer the Funds' investment programs. The Adviser has entered into agreements with the following sub-advisers: Equity Fund -- AllianceBernstein L.P., Madison Square Partners (formerly known as New York Life Investment Management LLC) and Pzena Investment Management, LLC; Income Fund -- Western Asset Management Company and Western Asset Management Limited; International Equity Fund -- PanAgora Asset Management, Inc. and Thomas White International, Ltd.; Small Cap Growth Fund -- Mellon Capital Management Corporation and Copper Rock Capital Partners, LLC; Socially Responsible Fund -- AllianceBernstein L.P. 65 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- Each sub-adviser's fees are paid by the Adviser out of the advisory fees that it receives from each of the Funds. Fees paid to a sub-adviser of a Fund with multiple sub-advisers depends upon the fee rate negotiated with the Adviser and upon the percentage of the Fund's assets allocated to that sub-adviser by the Adviser, which may vary from time to time. Thus, the basis for fees paid to any such sub-adviser is not constant, and the relative amounts of fees paid to the various sub-advisers of a Fund may fluctuate. These internal fluctuations, however, will not affect the total advisory fees paid by a Fund, which will remain fixed on the terms described below. The Adviser may, however, determine in its discretion to waive a portion of its fee if internal fluctuations in the fee to be paid to the sub-advisers results in excess profit to the Adviser. Because the Adviser will pay each sub-adviser's fees out of its own fees from the Funds, there will not be any "duplication" of advisory fees paid by the Funds. For the year ended December 31, 2008, the Adviser provided services and assumed expenses pursuant to the amended Investment Advisory Agreement for which it received a fee based on each Fund's average daily net assets, computed daily and payable monthly, at the following annual rates:
RATE ON AVERAGE RATE ON THE FIRST DAILY NET ASSETS $1 BILLION OF AVERAGE IN EXCESS OF FUND DAILY NET ASSETS $1 BILLION ---- --------------------- ---------------- Equity Fund ....................... 0.70% 0.60% Balanced Fund* .................... 0.55 0.45 Income Fund ....................... 0.55 0.45 Small Cap Growth Fund ............. 1.15 1.15 International Equity Fund ......... 1.00 0.90 Socially Responsible Fund ......... 0.85 0.75
* The Balanced Fund operates under a "fund of funds" structure, primarily investing in shares of underlying funds. The Adviser directly receives from the Balanced Fund a fee based on the average daily net assets of the Balanced Fund that are not invested in underlying funds. The Adviser did not receive fees from the Balanced Fund during the year ended December 31, 2008. For the year ended December 31, 2008, the Adviser voluntarily waived fees in the amounts listed below.
ADVISORY FEES FUND VOLUNTARILY WAIVED ---- ------------------ Equity Fund ....................... $ -- Balanced Fund ..................... -- Income Fund ....................... -- Small Cap Growth Fund ............. 104,210 International Equity Fund ......... 95,301 Socially Responsible Fund ......... --
SEI Investments Global Funds Services serves as the Funds' administrator and accounting agent pursuant to an administration agreement dated May 30, 2008. DST Systems, Inc. serves as the Funds' transfer agent and dividend disbursing agent. PNCGIS serves as the Funds' Custodian. SEI Investments Distribution Co. serves as the Funds' distributor. Prior to July 14, 2008, PNCGIS served as the Funds' administrator, accounting agent, and transfer agent pursuant to a services agreement. PNCGIS was the Trust's administrator prior to July 14, 2008 and had voluntarily waived a portion of its fee during their tenure as administrator. On termination of the administration agreement in 2008, PNCGIS was entitled to recoup certain previously waived fees as a term of the administration agreement. As of June 30, 2008, PNCGIS recouped $149,217 of previously waived fees. This amount is reflected in Administration and Accounting Fees on the accompanying Statement of Operations. This amount includes fees waived of Funds that have since closed. 66 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- SEI is the Trust's administrator subsequent to July 14, 2008 and has voluntarily waived a portion of its fee. As of Decem-ber 31 2008, SEI has waived $149,217. This amount is reflected in the Fees Waived by Administrator on the accompanying Statement of Operations. OFFICERS AND TRUSTEES' EXPENSES -- The officers of the Trust receive remuneration from the Adviser. The Trust does not pay any remuneration to its officers with the exception of the Trust's Chief Compliance Officer ("CCO"). The Trust and the Wilshire Mutual Funds, Inc. 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 Trust and the Wilshire Mutual Funds, Inc. together pay each independent trustee 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 Trust and the Wilshire Mutual Funds, Inc. together paid each independent trustee 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 Plan. The Funds have adopted a Rule 12b-1 distribution and shareholder services plan (the "Distribution Plan"). Pursuant to the Distribution Plan with the Funds, SEI Investments Distribution Co. (the "Distributor") receives a distribution and shareholder services fee, payable by each Fund. The Distributor uses the fee to pay for distribution-related and shareholder services for the Funds. Under the Distribution Plan, each Fund will pay to the Distributor a shareholder/distribution services fee computed at the annual rate of up to 0.25% of average daily net assets attributable to each Fund. The Distributor did not receive fees from the Balanced Fund during the year ended December 31, 2008. 5. Security Transactions. For the year ended December 31, 2008, aggregate cost of purchases and proceeds from sales of securities, other than short-term investments and U.S. Government securities, were as follows:
PROCEEDS FUND PURCHASES FROM SALES ---- ------------ ------------ Equity Fund ...................................... $361,608,558 $407,076,867 Balanced Fund .................................... 60,370,405 83,278,605 Income Fund ...................................... 13,512,656 8,891,761 Small Cap Growth Fund ............................ 87,575,111 88,423,165 International Equity Fund ........................ 15,941,128 12,404,165 Socially Responsible Fund ........................ 21,978,878 27,895,532
Purchases and sales of U.S. Government securities during the year ended December 31, 2008 were:
PROCEEDS FUND PURCHASES FROM SALES ---- ------------ ------------ Income Fund ...................................... $450,628,612 $480,850,961
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 Funds 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 67 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- 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 Funds' net assets as of December 31, 2008 is as follows:
SMALL CAP INTERNATIONAL SOCIALLY EQUITY BALANCED INCOME GROWTH EQUITY RESPONSIBLE FUND FUND FUND FUND+ FUND FUND ----------- ------------ ------------ ------------ ------------ ------------- Level 1-Quoted Prices ................... $253,191,508 $155,542,752 $ 6,295,381 $ 31,079,678 $ 2,938,335 $ 44,420,931 Level 2-Other Significant Observable Inputs .................... 1,399,809 -- 116,520,271 -- 29,521,027 -- Level 3-Significant Unobservable Inputs .................. -- -- 121,720 -- 339,886 -- ----------- ------------ ------------ ------------ ------------ ------------- Total Market Value of Investments ....... $254,591,317 $155,542,752 $122,937,372 $ 31,079,678 $ 32,799,248 $ 44,420,931 ============ ============ ============ ============ ============ =============
+ The Small Cap Growth Fund had two securities categorized as Level 3, which had a market value of $0 as of December 31, 2008.
EQUITY INCOME FUND FUND --------- --------- Level 1-Quoted Prices ........................................ $ 28,928 $ -- Level 2-Other Significant Observable Inputs .................. -- (115,270) Level 3-Significant Unobservable Inputs ...................... -- -- --------- --------- Total Market Value of Other Financial Instruments* ........... $ 28,928 (115,270) ========= =========
* Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures contracts and forward currency contracts which are valued at the unrealized appreciation/(depreciation) on the investment. Following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
INCOME INTERNATIONAL Investments in Securities (Market Value) FUND EQUITY FUND ----------- ------------- Balance as of December 31, 2007 ........................ $ 1,138,255 $ -- Accrued discounts/premiums ............................. -- -- Change in unrealized appreciation/(depreciation) ....... -- -- Net purchases/sales .................................... 121,720 -- Net transfers in and/or out of Level 3 ................. (1,138,255) 339,886 ----------- ------------- Balance as of December 31, 2008 ........................ $ 121,720 $ 339,886 =========== =============
68 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- 6. Significant Shareholder Activity. On December 31, 2008, the Funds had the following concentrations of shareholders holding 10% or more of the outstanding shares of the Funds. These represent omnibus shareholder accounts.
FUND ---- Equity Fund (2 omnibus shareholders) .................................... 87% Balanced Fund (1 omnibus shareholder) ................................... 100% Income Fund (2 omnibus shareholders) .................................... 87% Small Cap Growth Fund (1 omnibus shareholder) ........................... 92% International Equity Fund (1 omnibus shareholder) ....................... 88% Socially Responsible Fund (1 omnibus shareholder) ....................... 100%
7. Tax Information. No provision for Federal income taxes is required because each Fund qualifies as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and distributes 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. Financial records are not adjusted for temporary differences. The Funds are 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 Funds' financial statements, and therefore the Funds did not record any tax expense in the current period. If the Funds 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 Funds file 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 Funds' 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. The Funds intend to retain realized gains to the extent of available capital loss carryforwards. At December 31, 2008, the following Funds had available for Federal income tax purposes unused capital losses as follows:
EXPIRING DECEMBER 31 -------------------------- 2010 2016 ----------- ------------ Equity Fund ....................................... $ -- $ 71,009,319 Balanced Fund ..................................... -- 22,469,678 Small Cap Growth Fund ............................. 2,873,880 12,009,541 International Equity Fund ......................... -- 4,489,974 Socially Responsible Fund ......................... -- 6,188,823
The tax character of distributions declared during the years ended December 31, 2008 and 2007 were as follows: 69 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 --------------------------------------------------------------------------------
2008 2008 2007 2007 FUND ORDINARY INCOME CAPITAL GAINS ORDINARY INCOME CAPITAL GAINS ---- --------------- ------------- --------------- ------------- Equity Fund .................................................... $ 3,226,528 $ 688,615 $28,746,251 $26,711,914 Balanced Fund .................................................. 12,582,487 11,917,147 -- -- Income Fund .................................................... 7,837,420 -- 5,681,395 -- International Equity Fund ...................................... 719,012 -- 525,375 2,926,617 Socially Responsible Fund ...................................... 883,219 3,836,938 1,494,356 4,561,226
At December 31, 2008, the components of distributable accumulated earnings/(losses) on a tax basis were as follows:
SMALL CAP INTERNATIONAL SOCIALLY EQUITY BALANCED INCOME GROWTH EQUITY RESPONSIBLE FUND FUND FUND FUND FUND FUND ------------- ------------- ------------- ------------- ------------- ------------- Undistributed ordinary income/(loss) ................... $ 3,963 $ 5,314,092 $ 4,609,543 $ -- $ 337,259 $ 821,750 Accumulated capital gain/(loss) .... (71,009,319) (22,469,678) -- (14,883,421) (4,489,974) (6,188,823) Unrealized appreciation/ (depreciation) .................. (111,581,661) (30,317,474) (15,902,515) (9,358,288) (14,490,650) (17,114,756) ------------- ------------- ------------- ----------- ------------- ------------- Total accumulated earnings/(loss) .. $(182,587,017) $ (47,473,060) $ (11,292,972) $ (24,241,709) $ (18,643,365) $ (22,481,829) ============= ============= ============= ============= ============= =============
The differences between book and tax-basis unrealized appreciation/depreciation are attributable primarily to the tax deferral of losses on wash sales on all Funds as well as PFIC mark-to-market on the International Equity Fund. The cost, unrealized appreciation and depreciation for federal tax purposes at December 31, 2008 for each Fund is as follows:
NET UNREALIZED TAX UNREALIZED UNREALIZED APPRECIATION/ FUND COST APPRECIATION DEPRECIATION (DEPRECIATION) ---- ------------ ------------ ------------- -------------- Equity Fund ..................................................... $366,172,978 $ 8,955,406 $(120,537,067) $ (111,581,661) Balanced Fund ................................................... 185,860,226 3,288,438 (33,605,912) (30,317,474) Income Fund ..................................................... 138,856,486 2,325,671 (18,244,785) (15,919,114) Small Cap Growth Fund ........................................... 40,437,966 1,772,648 (11,130,936) (9,358,288) International Equity Fund ....................................... 47,304,532 1,115,896 (15,621,180) (14,505,284) Socially Responsible Fund ....................................... 61,535,687 2,799,209 (19,913,965) (17,114,756)
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. The reclassifications primarily include: foreign currency capital gain/(loss) to ordinary income, foreign bond bifurcation, recharacterization of distributions, excess distributions not exceeding current year earnings and profits, PFIC capital gain to ordinary income, partnership income, short-term capital gain distrubutions from underlying funds and the write off of net operating loss to paid-in-capital. These reclassifications have no effect on net assets or net asset values per share. As of December 31, 2008, the reclassifications were as follows: 70 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 --------------------------------------------------------------------------------
INCREASE/(DECREASE) INCREASE/(DECREASE) INCREASE/(DECREASE) UNDISTRIBUTED NET REALIZED FUND PAID-IN CAPITAL INVESTMENT INCOME CAPITAL GAINS/(LOSSES) ---- ------------------- ------------------- ---------------------- Equity Fund ................................................... $ -- $ (51,763) $ 51,763 Balanced Fund ................................................. -- 1,465,936 (1,465,936) Income Fund ................................................... -- (276,790) 276,790 Small Cap Growth Fund ......................................... (375,767) 380,318 (4,551) International Equity Fund ..................................... -- 16,933 (16,933) Socially Responsible Fund ..................................... -- (5) 5
9. Fund Merger. On December 21, 2008, the assets of the Short-Term Investment Fund were reorganized into the Income Fund. In this merger, 408,894 shares of the Short-Term Investment Fund were exchanged for 362,339 shares of the Income Fund in a taxable exchange. The value of the Short-Term Investment Fund on December 21, 2008 was $4,105,280. Upon the business combination of such Funds on December 21, 2008, the value of the Income Fund which included accumulated realized losses of $4, combined with the Short-Term Investment Fund was $96,442,706. 10. Indemnifications. In the normal course of business, the Trust on behalf of the Funds enters into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is dependent on claims that may be made against the Funds 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 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 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. 11. New Accounting Pronouncements. In March 2008, the Financial Accounting Standards Board ("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 Funds' financial statement disclosures, if any, is currently being assessed. 71 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- To the Board of Trustees and Shareholders of Wilshire Variable Insurance Trust: In our opinion, the accompanying statements of assets and liabilities, including the schedules 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 Equity Fund, Balanced Fund, Income Fund, Small Cap Growth Fund, International Equity Fund and Socially Responsible Fund (six series of Wilshire Variable Insurance Trust, hereafter referred to as the "Funds") at December 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds' 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 custodian, brokers and underlying funds' transfer agent, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania March 2, 2009 72 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] ADDITIONAL FUND INFORMATION -------------------------------------------------------------------------------- A listing of the Trustees and Officers of the Trust, their ages and their principal occupations for the past five years is presented below. The address of each Trustee and Officer is 1299 Ocean Avenue, Suite 700, Santa Monica, California 90401.
TERM OF NUMBER OF OFFICE(1) AND PRINCIPAL FUNDS/FUNDS OTHER POSITION HELD LENGTH OF OCCUPATIONS IN COMPLEX DIRECTORSHIPS WITH THE TIME DURING THE PAST OVERSEEN BY HELD BY NAME AND AGE TRUST SERVED FIVE YEARS TRUSTEE TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEE ------------------------------------------------------------------------------------------------------------------------------------ Lawrence E. Trustee Since 2005 President, Wilshire Associates 15 Wilshire Mutual Funds, Davanzo, 55(2) and Incorporated, October Inc. (6 Funds); President 2007-Present; Senior Managing Wilshire Associates Director, October 2004-October Incorporated 2007, Wilshire Associates Incorporated; President, 2005- Present, Wilshire Variable Insurance Trust; Managing Director, August 2004- October 2004, Guggenheim Partners, independent investor, August 2001-August 2004. ------------------------------------------------------------------------------------------------------------------------------------ NON-INTERESTED TRUSTEES ------------------------------------------------------------------------------------------------------------------------------------ Theodore J. Beck, 55 Trustee Since 2008 President and Chief Executive 15 Wilshire Mutual Funds, Officer, National Endowment for Inc. (6 Funds) Financial Education (since 2005); Associate Dean for Executive Education and Corporate Relationships, and President for the Center for Advanced Studies in Business at the University of Wisconsin (1999-2005) Roger A. Formisano, 59 Trustee Since 2006 Vice President, University 15 Integrity Mutual Medical Foundation, 2006-Present; Insurance Company, formerly Director, The Center for Wilshire Mutual Funds, Leadership and Applied Business, Inc. (6 Funds) UW-Madison School of Business; Principal, R.A. Formisano & Company, LLC Richard A. Holt, 66 Trustee Since 2006 Retired; formerly Senior 15 Wilshire Mutual Funds, Relationship Manager, Scudder Inc. (6 Funds) Insurance Asset Management. Suanne K. Luhn, 53 Trustee Since 2008 Retired; formerly Chief 15 Wilshire Mutual Funds, Compliance Officer, Bahl & Gaynor Inc. (6 Funds) (investment adviser) (1990 to 2006) Harriet A. Russell, 66 Trustee Since 2006 President, Greater Cincinnati 15 Greater Cincinnati Credit Union; formerly Vice Credit Union Board; President, Cincinnati Board of Wilshire Mutual Funds, Education; formerly teacher, Inc. (6 Funds) Walnut Hills High School. George J. Zock, 57 Trustee, Since 2006 Independent Consultant; 15 Wilshire Mutual Funds, Chairman Consultant, Horace Mann Service Inc. (6 Funds) of the Corporation (2004 to 2005); Board Executive Vice President, Horace Mann Life Insurance Company and Horace Mann Service Corporation (1997 to 2003).
73 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] ADDITIONAL FUND INFORMATION --------------------------------------------------------------------------------
TERM OF NUMBER OF OFFICE(1) AND PRINCIPAL FUNDS/FUNDS OTHER POSITION LENGTH OF OCCUPATIONS IN COMPLEX DIRECTORSHIPS HELD WITH TIME DURING THE PAST OVERSEEN BY HELD BY NAME AND AGE THE TRUST SERVED FIVE YEARS OFFICER OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS ------------------------------------------------------------------------------------------------------------------------------------ Helen Thompson, 40 Chief Since 2004 Managing Director, Wilshire N/A N/A Compliance Associates Incorporated. (since Officer and 2003); Associate Director, First Secretary Quadrant, L.P. (2001 to 2003); Chief Investment Accountant, Treasurer Since 2008 Financial Controller, Company Secretary, Associate Director, Compliance Officer (1996 to 2003), First Quadrant Limited
(1) EACH TRUSTEE SERVES UNTIL THE NEXT SHAREHOLDERS' MEETING (AND UNTIL THE ELECTION AND QUALIFICATION OF A SUCCESSOR), OR UNTIL DEATH, RESIGNATION, REMOVAL (AS PROVIDED IN THE TRUST'S DECLARATION OF TRUST) 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 TRUST'S INVESTMENT ADVISER, WILSHIRE ASSOCIATES INCORPORATED. The Trust's Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, upon request, by calling 1-888-200-6796. 74 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] ADDITIONAL FUND INFORMATION -------------------------------------------------------------------------------- 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 Funds use to determine how to vote proxies relating to portfolio securities, along with each Fund's proxy voting record relating to portfolio securities held during the most recent 12-month period ended June 30 is available at no charge, upon request by calling 1-888-200-6796, or on the SEC's website at http://www.sec.gov. INFORMATION ON FORM N-Q The Trust 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 Trust's Form N-Q will be 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. 75 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] SHAREHOLDER VOTING RESULTS (UNAUDITED) -------------------------------------------------------------------------------- At a special meeting held on December 19, 2008 the shareholders of the Wilshire Variable Insurance Trust voted to elect seven Board members to the Board of Trustees. THEODORE J BECK
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ......................... 37,111,444 68.593% 96.306% WITHHOLD ............................ 1,423,609 2.631% 3.694% ------------- ----------------------- ----------------- TOTAL ............................... 38,535,053 71.224% 100.000% ------------- ----------------------- -----------------
LAWRENCE E DAVANZO
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ......................... 37,232,310 68.817% 96.619% WITHHOLD ............................ 1,302,743 2.407% 3.381% ------------- ----------------------- ----------------- TOTAL ............................... 38,535,053 71.224% 100.000% ------------- ----------------------- -----------------
ROGER A. FORMISANO
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ......................... 37,215,735 68.786% 96.576% WITHHOLD ............................ 1,319,318 2.438% 3.424% ------------- ----------------------- ----------------- TOTAL ............................... 38,535,053 71.224% 100.000% ------------- ----------------------- -----------------
RICHARD A. HOLT
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ......................... 37,218,954 68.792% 96.585% WITHHOLD ............................ 1,316,099 2.432% 3.415% ------------- ----------------------- ----------------- TOTAL ............................... 38,535,053 71.224% 100.000% ------------- ----------------------- -----------------
SUANNE K. LUHN
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ......................... 37,199,756 68.756% 96.535% WITHHOLD ............................ 1,335,297 2.468% 3.465% ------------- ----------------------- ----------------- TOTAL ............................... 38,535,053 71.224% 100.000% ------------- ----------------------- -----------------
HARRIET A RUSSELL
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ......................... 37,256,681 68.862% 96.683% WITHHOLD ............................ 1,278,372 2.362% 3.317% ------------- ----------------------- ----------------- TOTAL ............................... 38,535,053 71.224% 100.000% ------------- ----------------------- -----------------
GEORGE J. ZOCK
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ......................... 37,199,808 68.757% 96.535% WITHHOLD ............................ 1,335,245 2.467% 3.465% ------------- ----------------------- ----------------- TOTAL ............................... 38,535,053 71.224% 100.000% ------------- ----------------------- -----------------
76 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SHAREHOLDER VOTING RESULTS (UNAUDITED) [LOGO] (CONTINUED) -------------------------------------------------------------------------------- At a special meeting held on December 19, 2008 the shareholders of the Wilshire Variable Insurance Trust Short-Term Investment Fund voted to approve an Agreement and Plan of Reorganization and the transactions it contemplates, including the transfer of all the assets of the Short-Term Investment Fund to the Income Fund in exchange for shares of the Income Fund and the assumption by the Income Fund of all the liabilities of the Short-Term Investment Fund and the distribution of such shares to the shareholders Short-Term Investment Fund in complete liquidation and termination of Short-Term Investment Fund. The approval of the Agreement and Plan of Reorganization on behalf of the Short-Term Investment Fund
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ............................ 1,028,003.107 100.000% 100.000% AGAINST ................................ -- -- -- ABSTAIN ................................ -- -- -- ------------- ----------------------- ----------------- TOTAL .................................. 1,028,003.107 100.000% 100.000% ------------- ----------------------- -----------------
77 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] BOARD APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS -------------------------------------------------------------------------------- During the six months ended December 31, 2008, the Board of Trustees (the "Board") of Wilshire Variable Insurance Trust (the "Trust") approved the renewal for an additional one-year term of the Trust's advisory agreement with Wilshire Associates Incorporated ("Wilshire" or the "Adviser") on behalf of the Equity Fund, Socially Responsible Fund, Small Cap Growth Fund, Income Fund, International Equity Fund and Balanced Fund (the "Funds"). The Board also approved the renewal for additional one-year terms of Wilshire Associates Incorporated's ("Wilshire") Sub-advisory Agreements with each of the following sub-advisers: AllianceBernstein L.P. (Equity Fund and Socially Responsible Fund), Copper Rock Capital Partners, LLC (Small Cap Growth Fund), Mellon Capital Management Corporation (Small Cap Growth Fund), Madison Square Investors formerly known as New York Life Investment Management LLC (Equity Fund), PanAgora Asset Management, Inc. (International Equity Fund), Pzena Investment Management, LLC (Equity Fund), Western Asset Management Company (Income Fund) and Western Asset Management Company Limited (Income Fund). In the following text, the Advisory Agreement between the Trust and Wilshire is referred to as the "Advisory Agreement," the sub-advisers are referred to as "Sub-advisers" and the Sub-advisory Agreements between Wilshire and each Sub-adviser are referred to as "Sub-advisory Agreements." The information in this summary outlines the Board's considerations associated with its approval of the Advisory Agreement and each of the Sub-advisory 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 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 Sub-advisers; the extent to which Wilshire and the Sub-advisers realize economies of scale as a Fund grows; and whether any fall-out benefits are being realized by Wilshire and the Sub-advisers. In considering these matters, the Board was advised with respect to relevant legal standards by independent counsel. In addition, the Trustees who are not "interested persons" of the Trust as defined in the Investment Company Act of 1940 (the "Independent Trustees") discussed the renewal of the Advisory Agreement with management and in private sessions with counsel at which no representatives of Wilshire were present and discussed the renewal of the Sub-advisory Agreements with management and in private sessions with counsel at which no representatives of the Sub-advisers were present. As required by the Investment Company Act of 1940, each approval was confirmed by the unanimous separate vote of the Independent Trustees. In deciding to approve renewal of the Advisory Agreement and the Sub-advisory Agreements, the Board did not identify any 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 Trustees, considered the renewal of the Sub-advisory 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 Trustees, counsel to the Trust and the Independent Trustees sent memoranda to the Adviser requesting information regarding the Sub-advisory Agreements and the Advisory Agreement to be provided to the Trustees in advance of a meeting of the Contract Review Committee (which is comprised of all the Independent Trustees) 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 Trustees, 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 Trustees 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 Trustees received information from the Adviser regarding the factors underlying its recommendations to continue each Sub-advisory Agreement. The Trustees also received information from each Sub-adviser as to each Fund it managed describing: (i) the nature, extent and quality of services provided; (ii) the investment performance of the Sub-adviser in connection with the Fund; (iii) the financial con- 78 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST BOARD APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS [LOGO] (CONTINUED) -------------------------------------------------------------------------------- dition of the Sub-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) where applicable, comparisons of services rendered and amounts paid by other registered investment companies and any comparable advisory clients; and (vii) benefits realized by the Sub-adviser from its relationship with the Fund. At each meeting, the Independent Trustees 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 Trustees), which met on December 4, 2008 to review 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 Sub-advisory Agreements and recommended to the Board that such Advisory and Sub-advisory Agreements be renewed. At its meetings on August 21, 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, noting that the Adviser performs administrative functions on behalf of the Funds and engages and oversees sub-advisers to manage the assets of the Funds, except for the Balanced Fund which has a fund-of-funds structure. 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 concluded that appropriate resources were being provided under the agreements to administer the Trust's affairs. The Board reviewed the processes used by the Adviser to select, monitor and replace sub-advisers. The Board concluded that the Adviser was successful in negotiating favorable sub-advisory agreements on behalf of the sub-advised Funds. The Board concluded that the Adviser had a robust system in place for selecting, monitoring and terminating sub-advisers. The Board also reviewed the Adviser's financial condition. 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 securities index for the same periods, and a peer group of funds for one-, three- and five-year periods. For the Socially Responsible Fund, the Board determined that performance was satisfactory, noting that over longer periods the Fund's performance was competitive as compared to its peer group and that it had outperformed its benchmark. For the International Equity Fund, the Board determined that performance was satisfactory, noting that for the one-year period it outperformed its benchmark and was competitive as compared to its peer group. For the Income Fund, the Board determined that performance was satisfactory, noting that the Fund's performance was competitive as compared to its peer group. In addition, the Board noted the unusual volatility in the credit market had negatively impacted the performance of the Income Fund. For the Equity, Balanced and Small Cap Growth Funds, the Board noted that each Fund had underperformed its benchmark and peer group for all periods, but that performance for the current one-year period had improved over the longer-term performance. The Board noted that Wilshire is developing proposals to address the investment performance of the Equity Fund, Balanced Fund and Small Cap Growth Fund, and concluded that it was appropriate to approve the continuation of the Advisory Agreement with respect to such Funds while Wilshire developed such proposals. The Board also noted that the Balanced Fund's underperformance was due to the performance of the underlying funds. 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 Equity Fund, Income Fund, 79 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST BOARD APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS {LOGO] (CONTINUED) -------------------------------------------------------------------------------- Socially Responsible Fund, Small Cap Growth Fund and International Equity Fund have relatively high contractual advisory fees in comparison to their peer groups, the Board recognized that the advisory fees charged to the Funds are primarily driven by the sub-advisory fees paid, which the Board concluded were at competitive levels. The Board also noted that the Equity Fund's total expense ratio is competitive as compared to its peer group. In addition, the Board noted that pursuant to the Trust's current arrangement with the Adviser, the Adviser voluntarily waives a portion of its advisory fees with respect to the Small Cap Growth Fund and the International Equity Fund. 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 advisory fee waivers and/or expense reimbursements currently in place and whether the investment process produced economies of scale. The Board noted that the advisory fee for all Funds other than the Small Cap Growth Fund include a breakpoint. 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 -- SUB-ADVISERS ------------------------------------------------------ As to each Sub-advisory Agreement, the Board considered the nature, extent and quality of services provided. The Board considered the reputation, qualifications and background of the Sub-adviser, investment approach of the Sub-adviser, 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 Sub-adviser's compliance with investment policies and general legal compliance. In addition, the Board considered the analysis provided under the Adviser's oversight program, which concluded that each Sub-adviser was providing reasonable services and recommended that each Sub-advisory Agreement for each Fund be continued. The Board reviewed information comparing each Sub-adviser's investment performance to a relevant benchmark. Based upon all relevant factors, the Board concluded that the investment performance of Madison Square Investors with respect to the Equity Fund and PanAgora with respect to the International Equity Fund met or exceeded acceptable levels of investment performance and, therefore, was satisfactory. The Board determined that, although Copper Rock with respect to the Small Cap Growth Fund had underperformed for longer time periods, recent outperformance resulted in a conclusion that performance was satisfactory. The Board also determined that, although Western Asset and Western Asset Limited had underperformed with respect to the Income Fund over recent periods, long term outperformance resulted in a conclusion that performance was satisfactory. The Board noted AllianceBernstein's underperformance with respect to the Equity Fund over certain periods following AllianceBernstein's change in investment strategy in August 2006, but concluded that performance was satisfactory due to recent outperformance. The Board noted AllianceBernstein's underperformance as to a non socially screened benchmark with respect to the Socially Responsible Fund for most recent periods reviewed, but determined to recommend continuation of the Sub-advisory Agreement given the effect the socially responsible screen has had on the Fund's performance, particularly over such recent time periods. The Board determined to approve continuation of Mellon Capital's Sub-advisory Agreement with respect to the Small Cap Growth Fund even though Mellon Capital underperformed for all periods reviewed, given Mellon Capital's mandate to deliver an enhanced 80 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST BOARD APPROVAL OF ADVISORY AND SUB-ADVISORY AGREEMENTS [LOGO] (CONTINUED) -------------------------------------------------------------------------------- index style of management to the Fund and Wilshire's assessment that Mellon Capital was performing in line with expectations. The Board noted that Pzena with respect to the Equity Fund 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 Equity Fund, which showed that Pzena's performance was 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 Sub-advisory Agreement with Pzena. SUB-ADVISORY FEES ----------------- The Board considered each Fund's sub-advisory fees. The Board evaluated the competitiveness of the sub-advisory fees based upon data supplied by each Sub-adviser about the fees charged to other clients. The Board also considered that the sub-advisory fee rates were negotiated at arm's length between the Adviser and each Sub-adviser, that the Adviser compensates the Sub-adviser from its fees, and that the aggregate advisory fee was deemed reasonable by the Board. For the Sub-advisers that reported fees for "Other Clients" with comparable investment policies and services, the Board noted that most Sub-advisers did not charge higher fees to the Adviser for the Funds than were charged to their Other Clients. For those Sub-advisers 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 sub-advisory fees for each Fund were reasonable. PROFITABILITY TO THE SUB-ADVISERS --------------------------------- The Board noted that the Adviser compensates each Sub-adviser from its own advisory fees and that the fees were negotiated at arm's length between the Adviser and each Sub-adviser. In addition, the Board noted that the revenues to the various Sub-advisers were limited due to the size of the Funds. The Board took these factors into account in concluding that the sub-advisory fees were reasonable. ECONOMIES OF SCALE -- SUB-ADVISERS ---------------------------------- The Board considered whether there are economies of scale with respect to the sub-advisory services provided to each Fund and whether the sub-advisory fees reflect such economies of scale through breakpoints in fees. The Board also considered whether the effective sub-advisory fee rate for each Fund under the Sub-advisory 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 -- SUB-ADVISERS --------------------------------- The Board also considered the character and amount of other incidental benefits received by each Sub-adviser. The Board considered each Sub-adviser's soft dollar practices and, if applicable, use of affiliated brokerage. The Board concluded that, taking into account the benefits arising from these practices, the fees charged under each Sub-advisory 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 Sub-advisory Agreement continue to be fair and reasonable and that the continuation of the Advisory Agreement and each Sub-advisory Agreement is in the best interests of each Fund. 81 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] TAX INFORMATION -------------------------------------------------------------------------------- Of the distributions made by the following Funds, the corresponding percentage represents the amount of each distribution which will qualify for the dividends received deduction available to corporate shareholders:
FUND PERCENTAGE ---- ---------- Equity Fund .......................................... 96.79% International Equity Fund ............................ 0.03% Socially Responsible Fund ........................... 100.00%
The Funds designate long-term capital gain distributions pursuant to Section 852(b)(3) of the Internal Revenue Code as follows:
FUND ---- Equity Fund ........................................ $ 688,615 Balanced Fund ...................................... 11,917,147 Socially Responsible Fund .......................... 3,836,943
82 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST ANNUAL REPORT [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST Equity Fund Balanced Fund Income Fund Small Cap Growth Fund International Equity Fund Socially Responsible Fund BOARD OF TRUSTEES Theodore J. Beck Roger A. Formisano Richard A. Holt Harriet A. Russell Suanne K. Luhn Lawrence E. Davanzo George J. Zock CHAIRMAN OF THE BOARD OFFICERS OF THE FUNDS Lawrence E. Davanzo PRESIDENT Helen Thompson SECRETARY, TREASURER AND CHIEF COMPLIANCE OFFICER -------------------------------------------------------------------------------- ADMINISTRATOR SEI Investment Global Funds Services* 1 Freedom Valley Drive Oaks, PA 19456 TRANSFER AGENT DST Systems, Inc.* Wilshire Mutual Funds P.O. Box 219512 Kansas City, MO 64121-9512 INVESTMENT ADVISER Wilshire Associates Incorporated 1299 Ocean Avenue Santa Monica, CA 90401-1085 CUSTODIAN PNC Global Investment Servicing The Eastwick Center 8800 Tinicum Boulevard Philadelphia, PA 19153 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP Two Commerce Square 2001 Market Street, Suite 1700 Philadelphia, PA 19103-7042 INVESTMENT SUBADVISERS AllianceBernstein L.P. 767 Fifth Avenue New York, NY 10153 Copper Rock Capital Partners, LLC 200 Clarendon Street Boston, MA 02116 Madison Square Investors 51 Madison Avenue New York, NY 15258 Mellon Capital Management Corporation 1633 Broadway, 13th Floor New York, NY 10019 PanAgora Asset Management, Inc. 260 Franklin Street, 22nd Floor Boston, MA 02110 Pzena Investment Management, LLC 120 West 45th Street New York, NY 10036 Thomas White International, Ltd. 440 South LaSalle Street, Suite 3900 Chicago, IL 60605 Western Asset Management Company 117 E. Colorado Blvd., Suite 600 Pasadena, CA 91105 Western Asset Management Limited 155 Bishopsgate, London England EC2M 3XG * Effective July 14, 2008. [LOGO] WILSHIRE VARIABLE INSURANCE TRUST Wilshire Associates Incorporated 1299 Ocean Avenue Santa Monica, CA 90401 1-888-200-6796 WIL-AR-002-0100 -------------------------------------------------------------------------------- [LOGO] WILSHIRE VARIABLE INSURANCE TRUST ANNUAL REPORT 2015 ETF FUND 2025 ETF FUND 2035 ETF FUND DECEMBER 31, 2008 ----------------- -------------------------------------------------------------------------------- TABLE OF CONTENTS Shareholder Letter ........................................................ 1 Fund Commentaries ......................................................... 2 Disclosure of Fund Expenses ............................................... 8 Schedules of Investments .................................................. 10 Statements of Assets and Liabilities ...................................... 11 Statements of Operations .................................................. 12 Statements of Changes in Net Assets ....................................... 13 Financial Highlights ...................................................... 15 Notes to the Financial Statements ......................................... 18 Report of Independent Registered Public Accounting Firm ................... 24 Board Approval of Advisory Agreement ...................................... 25 Additional Fund Information ............................................... 27 Tax Information ........................................................... 30 Shareholder Voting Results ................................................ 31
------------------------------------------------ SHARES OF THE WILSHIRE VARIABLE INSURANCE TRUST ARE SOLD ONLY AS THE UNDERLYING INVESTMENT FOR VARIABLE ANNUITY CONTRACTS ISSUED BY INSURANCE COMPANIES. THIS REPORT IS AUTHORIZED FOR USE IN CONNECTION WITH ANY OFFERING OF THE TRUST'S SHARES ONLY IF ACCOMPANIED OR PRECEDED BY THE TRUST'S CURRENT PROSPECTUS. Shares of the Wilshire Variable Insurance Trust are distributed by SEI Investments Distribution Co. Dear Wilshire Variable Insurance Trust Shareholder: We are pleased to present this annual report to shareholders of the Wilshire Variable Insurance Trust (the "Trust") Target Maturity Funds (the "Funds"). This report covers the period from January 1, 2008, to December 31, 2008 (the "Period"), for the 2015 Fund, 2025 Fund, and the 2035 Fund. 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 off (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 BRIC's (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)%. The volatility in the equities markets was mirrored in the bond market for year. Investors' persistent flight to quality from risky assets into U.S. Treasury bonds materially affected fixed income market returns. For the year, the Barclays Capital Aggregate Bond index returned 5.24%. Except for Treasury bonds, virtually all fixed income securities performed poorly with non-investment grade bonds declining 26% for the year. The market's immediate haste to raise liquidity has created value opportunities for disciplined investors. However, the lack of broad market commitment has penalized long-term investors as we witnessed many of the largest bond funds in the country underperform the broad fixed income market. 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 declining for the year. We are disappointed by the performance of the market and our funds and recognize that the immediate terrain will be challenging. However, 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 1 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2015 ETF FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 .......................................... (24.18)% INCEPTION (05/1/06) THROUGH 12/31/08 ............................. (6.51)%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE 2015 ETF FUND AND THE BLENDED BENCHMARK THROUGH 12/31/08. [LINE GRAPH] Initial Investment Date 4/30/06 DEC 06 DEC 07 DEC 08 ------- ------ ------ 2015 ETF Fund $10,000 $10,540 $11,022 $8,357 Blended Benchmark (1) $10,000 $10,625 $11,324 $9,070 THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR FUND REDEMPTIONS. (1) THE BLENDED BENCHMARK IS BASED ON THE FUND'S TARGET ALLOCATION AND IS COMPRISED OF 32% S&P 500 INDEX, 8% RUSSELL 2000 GROWTH INDEX, 11% MSCI EAFE INDEX, 22% BARCLAYS CAPITAL AGGREGATE BOND INDEX AND 27% TREASURY BILL INDEX. THE S&P 500 INDEX IS AN INDEX COMPRISED OF 500 U.S. STOCKS. THE RUSSELL 2000 GROWTH INDEX IS AN INDEX COMPRISED OF THE RUSSELL 2000 GROWTH SECURITIES WITH A GREATER-THAN-AVERAGE GROWTH ORIENTATION. THE MSCI EAFE INDEX IS A CAPITALIZATION WEIGHTED MEASURE OF STOCK MARKETS IN EUROPE, AUSTRALIA AND THE FAR EAST. THE BARCLAYS CAPITAL AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED INDEX OF INVESTMENT GRADE FIXED-RATED DEBT ISSUES, INCLUDING GOVERNMENT, CORPORATE, ASSET-BACKED AND MORTGAGE-BACKED SECURITIES WITH A MATURITY OF ONE YEAR OR MORE. THE TREASURY BILL INDEX CONSISTS OF U.S. TREASURY BILLS WITH 90 DAY MATURITIES. ALL INDICES ARE UNMANAGED. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. Since inception, certain fees and expenses were waived and reimbursed. For the year ended December 31, 2008, fees totaling 0.55% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns would have been lower. 2 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2015 ETF FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND 56.0% WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND 25.6% WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 10.9% WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND 7.5%
The 2015 ETF Fund's investment objective is to provide capital appreciation and maximize total return until its target retirement date. Thereafter, the 2015 ETF Fund's objective will be to seek high current income and, as a secondary objective, capital appreciation. The investment objective of the 2015 ETF Fund may be changed without a shareholder vote. The chart above provides an illustrative allocation among the underlying funds and the actual allocations will vary from time to time. The 2015 ETF Fund returned (24.18)% for the year ended December 31, 2008 (the "Period"). The Fund's performance was hampered during the Period by its significant exposure to domestic and international equities. No style or size segment of the global equity market was immune to the wreckage of the financial crisis. The Fund's investment in fixed income provided some relief to investors in this volatile environment as the WVIT Income Fund performed better than the global equity markets. Investors' objectives of seeking current income and capital appreciation are balanced in the Fund's portfolio, which maintained approximately 56.1% of its assets in high credit quality intermediate-term and short-term bond investments while investing the remaining 43.9% in diversified domestic and international equities. THE 2015 ETF FUND ATTEMPTS TO ACHIEVE ITS OBJECTIVES BY INVESTING IN OTHER FUNDS. YOU MAY INVEST IN THE UNDERLYING FUNDS DIRECTLY. BY INVESTING IN THE UNDERLYING FUNDS INDIRECTLY THROUGH THE 2015 ETF FUND, YOU WILL INCUR NOT ONLY THE EXPENSES OF THE UNDERLYING FUNDS, BUT ALSO THE EXPENSES OF THE 2015 ETF FUND. THE 2015 ETF FUND IS SUBJECT TO THE RISKS OF THE UNDERLYING FUNDS IT HOLDS. * BASED ON PERCENT OF FUND'S TOTAL LONG-TERM INVESTMENTS' MARKET VALUE. 3 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2025 ETF FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 ....................................... (28.11)% INCEPTION (05/1/06) THROUGH 12/31/08 .......................... (8.23)%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE 2025 ETF FUND AND THE BLENDED BENCHMARK THROUGH 12/31/08. [LINE GRAPH] Initial Investment Date 4/30/06 DEC 06 DEC 07 DEC 08 ------ ------ ------ 2025 ETF Fund $10,000 $10,600 $11,062 $7,953 Blended Benchmark (1) $10,000 $10,680 $11,385 $8,634 THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR FUND REDEMPTIONS. (1) THE BLENDED BENCHMARK IS BASED ON THE FUND'S TARGET ALLOCATION AND IS COMPRISED OF 42% S&P 500 INDEX, 9% RUSSELL 2000 GROWTH INDEX, 11% MSCI EAFE INDEX, 20% BARCLAYS CAPITAL AGGREGATE BOND INDEX AND 18% TREASURY BILL INDEX. THE S&P 500 INDEX IS AN INDEX COMPRISED OF 500 U.S. STOCKS. THE RUSSELL 2000 GROWTH INDEX IS AN INDEX COMPRISED OF THE RUSSELL 2000 GROWTH SECURITIES WITH A GREATER-THAN-AVERAGE GROWTH ORIENTATION. THE MSCI EAFE INDEX IS A CAPITALIZATION WEIGHTED MEASURE OF STOCK MARKETS IN EUROPE, AUSTRALIA AND THE FAR EAST. THE BARCLAYS CAPITAL AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED INDEX OF INVESTMENT GRADE FIXED-RATED DEBT ISSUES, INCLUDING GOVERNMENT, CORPORATE, ASSET-BACKED AND MORTGAGE-BACKED SECURITIES WITH A MATURITY OF ONE YEAR OR MORE. THE TREASURY BILL INDEX CONSISTS OF U.S. TREASURY BILLS WITH 90 DAY MATURITIES. ALL INDICES ARE UNMANAGED. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. Since inception, certain fees and expenses were waived and reimbursed. For the year ended December 31, 2008, fees totaling 0.63% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns would have been lower. 4 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2025 ETF FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND 42.4% WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND 37.0% WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 12.1% WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND 8.5%
The 2025 ETF Fund's investment objective is to provide capital appreciation and maximize total return until its target retirement date. Thereafter, the 2025 ETF Fund's objective will be to seek high current income and, as a secondary objective, capital appreciation. The investment objective of the 2025 ETF Fund may be changed without a shareholder vote. The chart above provides an illustrative allocation among the underlying funds and the actual allocations will vary from time to time. The 2025 ETF Fund returned (28.11)% for the year ended December 31, 2008 (the "Period"). The Fund's performance was hampered during the Period by its exposure to domestic and international equities. No style or size segment of the global equity market was immune to the wreckage of the financial crisis. The Fund's investment in fixed income provided some relief to investors in this volatile environment as the WVIT Income Fund performed better than the global equity markets. Investors' objectives of seeking current income and capital appreciation are balanced in the Fund's portfolio, which maintained approximately 42.4% of its assets in high credit quality intermediate-term and short-term bond investments while investing the remaining 57.6% in diversified domestic and international equities. THE 2025 ETF FUND ATTEMPTS TO ACHIEVE ITS OBJECTIVES BY INVESTING IN OTHER FUNDS. YOU MAY INVEST IN THE UNDERLYING FUNDS DIRECTLY. BY INVESTING IN THE UNDERLYING FUNDS INDIRECTLY THROUGH THE 2025 ETF FUND, YOU WILL INCUR NOT ONLY THE EXPENSES OF THE UNDERLYING FUNDS, BUT ALSO THE EXPENSES OF THE 2025 ETF FUND. THE 2025 ETF FUND IS SUBJECT TO THE RISKS OF THE UNDERLYING FUNDS IT HOLDS. * BASED ON PERCENT OF FUND'S TOTAL LONG-TERM INVESTMENTS' MARKET VALUE. 5 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2035 ETF FUND [LOGO] COMMENTARY -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN ONE YEAR ENDED 12/31/08 ....................................... (33.00)% INCEPTION (05/1/06) THROUGH 12/31/08 .......................... (10.64)%
COMPARATIVE PERFORMANCE COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE 2035 ETF FUND AND THE BLENDED BENCHMARK THROUGH 12/31/08. [LINE GRAPH] Initial Investment Date 4/30/06 DEC 06 DEC 07 DEC 08 ------ ------ ------ 2035 ETF Fund $10,000 $10,570 $11,057 $7,408 Blended Benchmark (1) $10,000 $10,745 $11,453 $7,823 THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER. 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. RETURNS ASSUME REINVESTMENT OF ALL DISTRIBUTIONS. ANNUITY CONTRACT FEES ARE NOT REFLECTED IN RETURNS. THE TABLE ABOVE DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR FUND REDEMPTIONS. (1) THE BLENDED BENCHMARK IS BASED ON THE FUND'S TARGET ALLOCATION AND IS COMPRISED OF 57% S&P 500 INDEX, 13% RUSSELL 2000 GROWTH INDEX, 12% MSCI EAFE INDEX, 10% BARCLAYS CAPITAL AGGREGATE BOND INDEX AND 8% TREASURY BILL INDEX. THE S&P 500 INDEX IS AN INDEX COMPRISED OF 500 U.S. STOCKS. THE RUSSELL 2000 GROWTH INDEX IS AN INDEX COMPRISED OF THE RUSSELL 2000 GROWTH SECURITIES WITH A GREATER-THAN-AVERAGE GROWTH ORIENTATION. THE MSCI EAFE INDEX IS A CAPITALIZATION WEIGHTED MEASURE OF STOCK MARKETS IN EUROPE, AUSTRALIA AND THE FAR EAST. THE BARCLAYS CAPITAL AGGREGATE BOND INDEX IS A MARKET VALUE-WEIGHTED INDEX OF INVESTMENT GRADE FIXED-RATED DEBT ISSUES, INCLUDING GOVERNMENT, CORPORATE, ASSET-BACKED AND MORTGAGE-BACKED SECURITIES WITH A MATURITY OF ONE YEAR OR MORE. THE TREASURY BILL INDEX CONSISTS OF U.S. TREASURY BILLS WITH 90 DAY MATURITIES. ALL INDICES ARE UNMANAGED. AN INDIVIDUAL CANNOT INVEST DIRECTLY IN ANY INDEX. INDEX PERFORMANCE IS PRESENTED FOR GENERAL COMPARATIVE PURPOSES. Since inception, certain fees and expenses were waived and reimbursed. For the year ended December 31, 2008, fees totaling 1.14% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns would have been lower. 6 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2035 ETF FUND [LOGO] COMMENTARY - (CONTINUED) -------------------------------------------------------------------------------- PORTFOLIO SECTOR WEIGHTING* (As of December 31, 2008) [PIE CHART] WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND 51.8% WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND 20.2% WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND 17.2% WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND 10.8%
The 2035 ETF Fund's investment objective is to provide capital appreciation and maximize total return until its target retirement date. Thereafter, the 2035 ETF Fund's objective will be to seek high current income and, as a secondary objective, capital appreciation. The investment objective of the 2035 ETF Fund may be changed without a shareholder vote. The chart above provides an illustrative allocation among the underlying funds and the actual allocations will vary from time to time. The 2035 ETF Fund returned (33.00)% for the year ended December 31, 2008 (the "Period"). The Fund's performance was hampered during the Period by its exposure to domestic and international equities. No style or size segment of the global equity market was immune to the wreckage of the financial crisis. The Fund's investment in fixed income provided some relief to investors in this volatile environment as the WVIT Income Fund performed better than the global equity markets. Investors' objectives of seeking current income and capital appreciation are balanced in the Fund's portfolio, which maintained approximately 51.7% of its assets in high credit quality intermediate-term and short-term bond investments while investing the remaining 48.3% in diversified domestic and international equities. THE 2035 ETF FUND ATTEMPTS TO ACHIEVE ITS OBJECTIVES BY INVESTING IN OTHER FUNDS. YOU MAY INVEST IN THE UNDERLYING FUNDS DIRECTLY. BY INVESTING IN THE UNDERLYING FUNDS INDIRECTLY THROUGH THE 2035 ETF FUND, YOU WILL INCUR NOT ONLY THE EXPENSES OF THE UNDERLYING FUNDS, BUT ALSO THE EXPENSES OF THE 2035 ETF FUND. THE 2035 ETF FUND IS SUBJECT TO THE RISKS OF THE UNDERLYING FUNDS IT HOLDS. * BASED ON PERCENT OF FUND'S TOTAL LONG-TERM INVESTMENTS' MARKET VALUE. 7 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 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 mutual 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 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. Wilshire Variable Insurance Trust has no such charges or fees, but they 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 costs of owning different funds. 8 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 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 07/01/2008 12/31/2008 Ratio(1)(2) 07/01/2008-12/31/2008(3)(4) ---------- ---------- ----------- --------------------------- 2015 ETF FUND ---------------------------------------------------------------------------------------------------------- Actual Fund Return ................. $ 1,000.00 $ 817.20 0.51% $ 2.33 Hypothetical 5% Return ............. $ 1,000.00 $ 1,022.62 0.51% $ 2.59 2025 ETF FUND ---------------------------------------------------------------------------------------------------------- Actual Fund Return ................. $ 1,000.00 $ 786.90 0.50% $ 2.25 Hypothetical 5% Return ............. $ 1,000.00 $ 1,022.62 0.50% $ 2.54 2035 ETF FUND ---------------------------------------------------------------------------------------------------------- Actual Fund Return ................. $ 1,000.00 $ 750.20 0.51% $ 2.24 Hypothetical 5% Return ............. $ 1,000.00 $ 1,022.62 0.51% $ 2.59
(1) THE EXPENSE RATIO DOES NOT INCLUDE THE EXPENSES OF THE UNDERLYING FUNDS. (2) ANNUALIZED, BASED ON THE FUND'S EXPENSES FOR THE PERIOD. (3) 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. (4) EXPENSES SHOWN DO NOT INCLUDE ANNUITY CONTRACT FEES. 9 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SCHEDULES OF INVESTMENTS DECEMBER 31, 2008 [LOGO] -------------------------------------------------------------------------------- 2015 ETF FUND -------------
Shares Value ---------- --------------- INVESTMENTS IN UNDERLYING FUNDS -- 94.7% 731,737 Wilshire Variable Insurance Trust Income Fund (A)* ...................................... $ 7,778,368 262,469 Wilshire Variable Insurance Trust Equity Fund* ................................... 3,548,580 167,523 Wilshire Variable Insurance Trust International Equity Fund* ................................... 1,516,084 120,403 Wilshire Variable Insurance Trust Small Cap Growth Fund* ................................... 1,047,510 --------------- Total Investments in Underlying Funds -- 94.7% (Cost $18,895,622) .......................................... 13,890,542 --------------- CASH EQUIVALENT -- 5.9% 864,519 PNC Institutional Money Market Trust, 0.05% (B) ...................................... 864,519 --------------- Total Cash Equivalent (Cost $864,519) ............................................. 864,519 --------------- Total Investments -- 100.6% (Cost $19,760,141) .......................................... 14,755,061 Other Assets & Liabilities, Net -- (0.6)% ................... (81,474) --------------- NET ASSETS -- 100.0% ........................................ $ 14,673,587 ===============
2025 ETF FUND -------------
Shares Value ---------- --------------- INVESTMENTS IN UNDERLYING FUNDS -- 92.0% 355,101 Wilshire Variable Insurance Trust Income Fund* .......................................... $ 3,774,729 243,855 Wilshire Variable Insurance Trust Equity Fund* .......................................... 3,296,925 119,362 Wilshire Variable Insurance Trust International Equity Fund* ..................... 1,080,225 86,975 Wilshire Variable Insurance Trust Small Cap Growth Fund* ................................... 756,679 --------------- Total Investments in Underlying Funds -- 92.0% (Cost $12,653,297) .......................................... 8,908,558 --------------- CASH EQUIVALENT -- 7.9% 764,783 PNC Institutional Money Market Trust, 0.05% (B) ...................................... 764,783 --------------- Total Cash Equivalent (Cost $764,783) ............................................. 764,783 --------------- Total Investments -- 99.9% (Cost $13,418,080) .......................................... 9,673,341 Other Assets & Liabilities, Net -- 0.1% ..................... 5,778 --------------- NET ASSETS -- 100.0% ........................................ $ 9,679,119 ===============
2035 ETF FUND -------------
Shares Value ---------- --------------- INVESTMENTS IN UNDERLYING FUNDS -- 88.4% 268,077 Wilshire Variable Insurance Trust Equity Fund* .......................................... $ 3,624,401 133,352 Wilshire Variable Insurance Trust Income Fund* .......................................... 1,417,527 132,746 Wilshire Variable Insurance Trust International Equity Fund* ..................... 1,201,354 87,155 Wilshire Variable Insurance Trust Small Cap Growth Fund* ......................... 758,252 --------------- Total Investments in Underlying Funds -- 88.4% (Cost $10,585,387) .......................................... 7,001,534 --------------- CASH EQUIVALENT -- 11.2% 890,637 PNC Institutional Money Market Trust, 0.05% (B) ............................... 890,637 --------------- Total Cash Equivalent (Cost $890,637) ............................................. 890,637 --------------- Total Investments -- 99.6% (Cost $11,476,024) .......................................... 7,892,171 Other Assets & Liabilities, Net -- 0.4% ..................... 30,716 --------------- NET ASSETS -- 100.0% ........................................ $ 7,922,887 ===============
---------- * Affiliated Fund (A) The Fund's investment in the Wilshire Variable Insurance Trust Income Fund represents greater than 50% of the Fund's total investments. The Wilshire Variable Insurance Trust Income Fund seeks long-term total rate of return in excess of the U.S. bond market over a full market cycle. For further financial information, available upon request at no charge, on the Wilshire Variable Insurance Trust Income Fund, please go to the Securities Exchange Commission's website at http://www.sec.gov or call 1-888-200-6796. (B) Rate shown is the 7-day effective yield at December 31, 2008. See Notes to Financial Statements. 10 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF ASSETS AND LIABILITIES [LOGO] DECEMBER 31, 2008 --------------------------------------------------------------------------------
2015 ETF 2025 ETF 2035 ETF FUND FUND FUND ------------ ------------ ------------ ASSETS: Investments, at cost (Note 2) ........................................................ $ 19,760,141 $ 13,418,080 $ 11,476,024 Investments in affiliated funds, at value (Note 2), See accompanying schedules ....... $ 13,890,542 $ 8,908,558 $ 7,001,534 Investments, at value (Note 2), ...................................................... 864,519 764,783 890,637 Receivable for Fund shares sold ...................................................... 14,303 25,929 47,364 Due from Administrator ............................................................... 12,467 3,007 6,278 Dividends and interest receivable .................................................... 77 67 70 ------------ ------------ ------------ Total Assets ......................................................................... $ 14,781,908 $ 9,702,344 $ 7,945,883 ------------ ------------ ------------ LIABILITIES: Payable for Fund shares redeemed ..................................................... 75,219 9,169 7,030 Investment advisory fees payable (Note 3) ............................................ 8,424 2,194 3,291 Chief Compliance Officer fees ........................................................ 221 144 116 Trustee fees payable ................................................................. 11 7 6 Accrued expenses and other payables .................................................. 24,446 11,711 12,553 ------------ ------------ ------------ Total Liabilities .................................................................... 108,321 23,225 22,996 ------------ ------------ ------------ NET ASSETS ........................................................................... $ 14,673,587 $ 9,679,119 $ 7,922,887 ============ ============ ============ NET ASSETS consist of: Undistributed net investment income .................................................. $ 630,153 $ 314,207 $ 159,922 Accumulated net realized gain/(loss) on investments .................................. (120,072) 14,824 (44,341) Net unrealized depreciation of investments ........................................... (5,005,080) (3,744,739) (3,583,853) Paid-in Capital ...................................................................... 19,168,586 13,094,827 11,391,159 ------------ ------------ ------------ NET ASSETS ........................................................................... $ 14,673,587 $ 9,679,119 $ 7,922,887 ============ ============ ============ SHARES OUTSTANDING: (Unlimited shares authorized, per fund) .............................................. 1,829,725 1,283,719 1,109,513 ============ ============ ============ NET ASSET VALUE: (Offering and redemption price per share) ............................................ $ 8.02 $ 7.54 $ 7.14 ============ ============ ============
See Notes to Financial Statements. 11 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF OPERATIONS [LOGO] FOR THE YEAR ENDED DECEMBER 31, 2008 --------------------------------------------------------------------------------
2015 ETF 2025 ETF 2035 ETF FUND FUND FUND ------------ ------------ ------------ INVESTMENT INCOME: Dividend income from affiliated funds ................................................ $ 494,640 $ 266,892 $ 146,911 Interest Income ...................................................................... 3,684 4,541 2,606 ------------- ------------ ------------ Total ............................................................................. 498,324 271,433 149,517 EXPENSES Administration and Accounting fees (Note 3) .......................................... 35,907 35,736 34,903 Investment advisory fees (Note 3) .................................................... 34,249 31,824 16,424 Trustees' fees and expenses (Note 3) ................................................. 1,411 1,295 655 Chief Compliance Officer fees ........................................................ 672 625 325 Transfer agent fees .................................................................. 11,189 11,178 10,933 Professional fees .................................................................... 7,443 5,281 3,433 Custodian fees ....................................................................... 6,882 6,446 6,430 Printing fees ........................................................................ 3,812 8,527 2,767 Other ................................................................................ 2,470 2,337 1,832 ------------- ------------ ------------ Total Expenses .................................................................... 104,035 103,249 77,702 ------------- ------------ ------------ Fees waived and reimbursed by investment adviser (Note 3) ............................ (36,344) (39,352) (35,912) Fees waived by administrator (Note 3) ................................................ (17,867) (17,867) (17,867) ------------- ------------ ------------ Net expenses ...................................................................... 49,824 46,030 23,923 ------------- ------------ ------------ Net Investment Income/(Loss) ......................................................... 448,500 225,403 125,594 ------------- ------------ ------------ NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS (Notes 2 and 5) Net realized gain/(loss) from: Sales of investments in affiliated funds .......................................... 8,002 6,046 (35,050) Distributions from affiliated funds ............................................... 191,542 97,859 44,185 Net change in unrealized depreciation of: Investments in affiliated funds ................................................... (3,316,979) (3,363,244) (1,976,961) ------------- ------------ ------------ Net realized and unrealized loss on investments in affiliated funds ............... (3,117,435) (3,259,339) (1,967,826) ------------- ------------ ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................. $ (2,668,935) $(3,033,936) $ (1,842,232) ============= =========== ============
See Notes to Financial Statements. 12 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF CHANGES IN NET ASSETS [LOGO] FOR THE YEAR ENDED DECEMBER 31, 2008 --------------------------------------------------------------------------------
2015 ETF 2025 ETF 2035 ETF FUND FUND FUND ------------ ------------ ------------ Operations: Net investment income ................................................................ $ 448,500 $ 225,403 $ 125,594 Net realized gain on investments and distributions from affiliated and underlying funds ............................................................................. 199,544 103,905 9,135 Net change in unrealized depreciation of investments of affiliates ................... (3,316,979) (3,363,244) (1,976,961) ------------ ------------ ------------ Net decrease in net assets resulting from operations ................................. (2,668,935) (3,033,936) (1,842,232) ------------ ------------ ------------ Distributions to Shareholders From: Net investment income ................................................................ (287,053) (248,626) (137,278) Net realized capital gains ........................................................... (194,337) (195,481) (129,547) ------------ ------------ ------------ Total distributions to shareholders .................................................. (481,390) (444,107) (266,825) ------------ ------------ ------------ Capital Stock Transactions: (Dollars) Shares sold .......................................................................... 6,467,256 6,357,824 4,385,652 Shares issued in connection with merger (Note 9) ..................................... 4,340,601 -- 2,306,527 Shares issued as reinvestment of distributions ....................................... 481,389 444,106 266,823 Shares redeemed ...................................................................... (2,020,534) (672,661) (533,951) ------------ ------------ ------------ Net increase in net assets from capital stock transactions ........................... 9,268,712 6,129,269 6,425,051 ------------ ------------ ------------ Net increase in net assets ........................................................... 6,118,387 2,651,226 4,315,994 NET ASSETS: Beginning of year .................................................................... 8,555,200 7,027,893 3,606,893 ------------ ------------ ------------ End of year .......................................................................... $ 14,673,587 $ 9,679,119 $ 7,922,887 ============ ============ ============ Undistributed net investment income at end of year ................................... $ 630,153 $ 314,207 $ 159,922 ============ ============ ============ Capital Share Transactions: Shares sold .......................................................................... 662,323 658,825 485,351 Shares issued in connection with merger (Note 9) ..................................... 532,579 -- 317,703 Shares issued as reinvestment of distributions ....................................... 60,400 59,233 37,871 Shares redeemed ...................................................................... (207,504) (73,432) (58,186) ------------ ------------ ------------ Net increase in shares outstanding ................................................... 1,047,798 644,626 782,739 ============ ============ ============
See Notes to Financial Statements. 13 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF CHANGES IN NET ASSETS [LOGO] FOR THE YEAR ENDED DECEMBER 31, 2007 --------------------------------------------------------------------------------
2015 ETF 2025 ETF 2035 ETF FUND FUND FUND ----------- ----------- ----------- Operations: Net investment income ............................ $ 150,147 $ 101,788 $ 35,207 Net realized gain on investments and distributions from affiliated funds ........... 328,225 339,852 229,408 Net change in unrealized appreciation/depreciation of investments of affiliates .................. (390,188) (390,236) (267,269) ----------- ----------- ----------- Net increase/(decrease) in net assets resulting from operations ..................... 88,184 51,404 (2,654) ----------- ----------- ----------- Distributions to Shareholders From: Net investment income ............................ (36,996) (21,133) (1,260) Net realized capital gains ....................... (26,389) (17,265) (4,239) ----------- ----------- ----------- Total distributions to shareholders .............. (63,385) (38,398) (5,499) ----------- ----------- ----------- Capital Stock Transactions: (Dollars) Shares sold ...................................... 7,340,075 5,840,518 3,517,371 Shares issued as reinvestment of distributions ................................. 63,385 38,398 5,499 Shares redeemed .................................. (807,330) (235,680) (231,639) ----------- ----------- ----------- Net increase in net assets from capital stock transactions ............................ 6,596,130 5,643,236 3,291,231 ----------- ----------- ----------- Net increase in net assets ....................... 6,620,929 5,656,242 3,283,078 NET ASSETS: Beginning of year ................................ 1,934,271 1,371,651 323,815 ----------- ----------- ----------- End of year ...................................... $ 8,555,200 $ 7,027,893 $ 3,606,893 =========== =========== =========== Undistributed net investment income at end of year ................................ $ 287,050 $ 248,621 $ 137,277 =========== =========== =========== Capital Share Transactions: Shares sold ...................................... 666,511 527,898 316,534 Shares issued as reinvestment of distributions ................................. 5,763 3,473 494 Shares redeemed .................................. (73,938) (21,693) (20,896) ----------- ----------- ----------- Net increase in shares outstanding ............... 598,336 509,678 296,132 =========== =========== ===========
See Notes to Financial Statements. 14 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2015 ETF FUND [LOGO] FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
FOR THE PERIOD YEAR ENDED YEAR ENDED MAY 1, 2006 TO DECEMBER 31, 2008 DECEMBER 31, 2007 DECEMBER 31, 2006(1) ----------------- ----------------- -------------------- Net asset value, beginning of period .......................... $ 10.94 $ 10.54 $ 10.00 -------- ------- ------- INCOME FROM INVESTMENT OPERATIONS: Net investment income(2) ...................................... 0.44 0.34 0.61 Net realized and unrealized gain/(loss) on investments ........ (3.09) 0.14 (0.07) -------- ------- ------- Total from investment operations .............................. (2.65) 0.48 0.54 -------- ------- ------- LESS DISTRIBUTIONS: From net investment income .................................... (0.16) (0.05) -- From capital gains ............................................ (0.11) (0.03) -- -------- ------- ------- Total distibutions ............................................ (0.27) (0.08) -- -------- ------- ------- Net asset value, end of period ................................ $ 8.02 $ 10.94 $ 10.54 ======== ======= ======= Total return(3,4) ............................................. (24.18)% 4.57% 5.40%(5) ======== ======= ======= RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's) .......................... $ 14,674 $ 8,555 $ 1,934 Operating expenses including reimbursement/waiver+ ............ 0.50% 0.50% 0.50%(6) Operating expenses excluding reimbursement/waiver+ ............ 1.05% 1.35% 8.69%(6) Net investment income+ ........................................ 4.54% 3.08% 8.87%(6) Portfolio turnover rate ....................................... 32% 3% 55%(5)
+ These ratios do not include expenses from the affiliated funds. (1) The Fund commenced operations May 1, 2006. (2) The selected per share data was calculated using the average shares outstanding method for the period. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. (3) Total return represents the total return for the period indicated. (4) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. (5) Non-annualized. (6) Annualized. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 15 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2025 ETF FUND [LOGO] FINANCIAL HIGHLIGHTS - (CONTINUED) -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
FOR THE PERIOD YEAR ENDED YEAR ENDED MAY 1, 2006 TO DECEMBER 31, 2008 DECEMBER 31, 2007 DECEMBER 31, 2006(1) ----------------- ----------------- -------------------- Net asset value, beginning of period .......................... $ 11.00 $ 10.60 $ 10.00 -------- ------- ------- INCOME FROM INVESTMENT OPERATIONS: Net investment income(2) ...................................... 0.23 0.32 0.54 Net realized and unrealized gain/(loss) on investments ........ (3.33) 0.14 0.06 -------- ------- ------- Total from investment operations .............................. (3.10) 0.46 0.60 -------- ------- ------- LESS DISTRIBUTIONS: From net investment income .................................... (0.20) (0.03) -- From capital gains ............................................ (0.16) (0.03) -- -------- ------- ------- Total distibutions ............................................ (0.36) (0.06) -- -------- ------- ------- Net asset value, end of period ................................ $ 7.54 $ 11.00 $ 10.60 ======== ======= ======= Total return(3,4) ............................................. (28.11)% 4.36% 6.00%(5) ======== ======= ======= RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's) .......................... $ 9,679 $ 7,028 $ 1,372 Operating expenses including reimbursement/waiver+ ............ 0.50% 0.50% 0.50%(6) Operating expenses excluding reimbursement/waiver+ ............ 1.13% 1.72% 12.72%(6) Net investment income+ ........................................ 2.46% 2.85% 7.83%(6) Portfolio turnover rate ....................................... 24% 2% 10%(5)
+ These ratios do not include expenses from the affiliated funds. (1) The Fund commenced operations May 1, 2006. (2) The selected per share data was calculated using the average shares outstanding method for the period. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. (3) Total return represents the total return for the period indicated. (4) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. (5) Non-annualized. (6) Annualized. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 16 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2035 ETF FUND [LOGO] FINANCIAL HIGHLIGHTS - (CONCLUDED) -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
FOR THE PERIOD YEAR ENDED YEAR ENDED MAY 1, 2006 TO DECEMBER 31, 2008 DECEMBER 31, 2007 DECEMBER 31, 2006(1) ----------------- ----------------- -------------------- Net asset value, beginning of period .............................. $ 11.04 $ 10.57 $ 10.00 -------- ------- ------- INCOME FROM INVESTMENT OPERATIONS: Net investment income(2) .......................................... 0.24 0.24 0.40 Net realized and unrealized gain/(loss) on investments ............ (3.89) 0.24 0.17 -------- ------- ------- Total from investment operations .................................. (3.65) 0.48 0.57 -------- ------- ------- LESS DISTRIBUTIONS: From net investment income ........................................ (0.13) -- (3) -- From capital gains ................................................ (0.12) (0.01) -- -------- ------- ------- Total distibutions ................................................ (0.25) (0.01) -- -------- ------- ------- Net asset value, end of period .................................... $ 7.14 $ 11.04 $ 10.57 ======== ======= ======= Total return(4,5) ................................................. (33.00)% 4.61% 5.70%(6) ======== ======= ======= RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's) .............................. $ 7,923 $ 3,607 $ 324 Operating expenses including reimbursement/waiver+ ................ 0.50% 0.50% 0.50%(7) Operating expenses excluding reimbursement/waiver+ ................ 1.64% 3.37% 61.49%(7) Net investment income+ ............................................ 2.65% 2.20% 5.78%(7) Portfolio turnover rate ........................................... 18% 0% 4%(6)
+ These ratios do not include expenses from the affiliated funds. (1) The Fund commenced operations May 1, 2006. (2) The selected per share data was calculated using the average shares outstanding method for the period. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. (3) Amount is less than $0.01 per share. (4) Total return represents the total return for the period indicated. (5) If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related insurance policies. The inclusion of these charges would reduce the total return figures for all periods shown. (6) Non-annualized. (7) Annualized. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 17 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- 1. Organization. The Wilshire Variable Insurance Trust (the "Trust") is an open-end, diversified management investment company registered under the Investment Company Act of 1940 ("1940 Act"), which offers units of beneficial ownership (shares) in 9 separate investment portfolios. The portfolios presented in these financial statements are: 2015 ETF Fund, 2025 ETF Fund and 2035 ETF Fund (collectively the "Funds", each a "Fund" of the Trust). Prior to December 22, 2008, the 2015 ETF Fund, the 2025 ETF Fund and the 2035 ETF Fund were named the 2015 Moderate Fund, the 2025 Moderate Fund and the 2035 Moderate Fund, respectively. The financial statements for the Underlying Funds are included in a separate annual report. The Funds operate under a fund of funds structure and at this time invest substantially all of their assets in the Underlying Funds according to an asset allocation strategy designed for investors planning to retire in certain target years. They also intend to invest in shares of ETFs and the underlying funds, which invest primarily in equity securities and fixed income securities. Shares are presently offered to Horace Mann Life Insurance Company ("HMLIC") Separate Account, the HMLIC 401(k) Separate Account and Great American Life Insurance Company. FUNDS' INVESTMENT OBJECTIVES: High total return until each respective Fund's target retirement date. Thereafter, high current income and, as a secondary objective, capital appreciation. 2. Significant Accounting Policies. SECURITY VALUATION -- Investments by the Funds in underlying funds are valued at their net asset values as reported by the Underlying Funds. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are recorded on a trade date basis. Dividend income and realized gain distributions from underlying funds are recorded on the ex-dividend date. Interest income accrues daily. Securities gains and losses are determined on the basis of identified cost. 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 Funds' 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 Trustees in order to avoid the application of a 4% non-deductible federal excise tax. EXPENSE POLICY -- 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 Trust and the Wilshire Mutual Funds, Inc. are allocated across the Trust and the Wilshire Mutual Funds, Inc. based upon relative net assets or another reasonable basis. USE OF ESTIMATES -- The preparation of financial statements in conformity 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 increases and decreases in net assets from operations during the period. Actual results could differ from those estimates. 3. Investment Advisory Fee and Other Transactions With Affiliates. The Trust employs the Adviser to manage the investment and reinvestment of the assets of the Funds and to continuously review, oversee and administer the Funds' investment programs. 18 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- For the year ended December 31, 2008, the Adviser provided services and assumed expenses pursuant to the Investment Advisory Agreement, for which it received a fee based on each Fund's average daily net assets, computed daily and payable monthly, at the following annual rates:
RATE ON FUND'S FUND AVERAGE NET ASSETS ---- ------------------ 2015 ETF Fund ............................................. 0.25% 2025 ETF Fund ............................................. 0.25% 2035 ETF Fund ............................................. 0.25%
Prior to December 22, 2008, the rate on fund's average net assets was 0.35% for the 2015 ETF Fund, 2025 ETF Fund and 2035 ETF Fund. The Adviser has contractually agreed to waive fees and/or reimburse expenses through December 31, 2010, so that the annual operating expenses for each Fund for this period will not exceed 0.60% (exclusive of underlying fund fees) (the "Expense Limitation"). Prior to December 22, operating expenses were limited to 0.50%. Each Fund, for a period not to exceed three years from commencement of operations, will repay the Adviser any expenses in excess of the Expense Limitation, provided the Fund is able to effect such reimbursement and remain in compliance with the Expense Limitation. For the year ended December 31, 2008, the Adviser waived fees and reimbursed expenses in the amounts listed below.
FUND FEES WAIVED/REIMBURSED ---- ---------------------- 2015 ETF Fund ......................................... $ 36,344 2025 ETF Fund ......................................... 39,352 2035 ETF Fund ......................................... 35,912
At December 31, 2008, the balance of recoupable expenses along with the year of expiration for the Funds are as follows:
FUND 2009 2010 2011 TOTAL ---- --------- --------- --------- --------- 2015 ETF Fund ......................... $ 24,725 $ 38,388 $ 36,344 $ 99,457 2025 ETF Fund ......................... 24,989 40,544 39,352 104,885 2035 ETF Fund ......................... 25,168 42,924 35,912 104,004
Because the underlying funds have varied fee and expense levels and the Funds may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by a Fund will vary. SEI Investments Global Funds Services serves as the Trust's administrator and accounting agent pursuant to an administration agreement dated May 30, 2008. DST Systems, Inc. serves as the Trust's transfer agent and dividend disbursing agent. PNC Global Investment Services ("PNCGIS") serves as the Company's custodian. SEI Investments Distribution Co. serves as the Trust's distributor. PNCGIS was the Trust's administrator prior to July 14, 2008 and had voluntarily waived a portion of its fee during their tenure as administrator. On termination of the administration agreement in 2008 PNCGIS was entitled to recoup certain previously waived fees as a term of the administration agreement. As of June 30, 2008, PNCGIS recouped $149,217 of previously waived fees. This amount is reflected in Administration and Accounting Fees on the accompanying Statement of Operations. This amount includes fees waived of Funds that have since closed. SEI, is the Trust's administrator subsequent to July 14, 2008 and has voluntarily waived a portion of its fee. As of December 31 2008, SEI has waived $149,217. This amount is reflected in the Fees Waived by Administrator on the accompanying Statement of Operations. 19 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- Prior to July 14, 2008, PNCGIS served as the Trust's administrator, accounting agent and transfer agent pursuant to a services agreement. OFFICERS' AND DIRECTORS' EXPENSES The officers of the Trust receive remuneration from the Adviser. The Trust does not pay any remuneration to its officers with the exception of the Trust's Chief Compliance Officer ("CCO"). The Trust and the Wilshire Mutual Funds, Inc. 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 Trust and the Wilshire Mutual Funds, Inc. together pay each independent trustee 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 Trust and the Wilshire Mutual Funds, Inc. together paid each independent trustee 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 Plan. The Funds have adopted a plan under Rule 12b-1 of the 1940 Act that provides for a fee of up to 0.25% of each Fund's average net assets payable to SEI Investments Distribution Co. (the "Distributor") to reimburse the Distributor for distribution and shareholder services provided to shareholders. 5. Security Transactions. For the year ended December 31, 2008, the aggregate cost of purchases and proceeds from sales of Underlying Funds, were as follows:
FUND PURCHASES PROCEEDS FROM SALES ------ ----------- ------------------- 2015 ETF Fund .............................. $13,771,284 $ 3,166,415 2025 ETF Fund .............................. 8,025,818 2,149,185 2035 ETF Fund .............................. 8,166,106 864,922
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, pre-payment speeds, credit risk, etc.). o Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). 20 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- 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 Funds' net assets as of December 31, 2008 is as follows:
2015 ETF 2025 ETF 2035 ETF FUND FUND FUND ----------- ---------- ---------- Level 1-Quoted Prices ........................... $14,755,061 $9,673,341 $7,892,171 Level 2-Other Significant Observable Inputs ..... -- -- -- Level 3-Significant Unobservable Inputs ......... -- -- -- ----------- ---------- ---------- Total Market Value of Investments ............... $14,755,061 $9,673,341 $7,892,171 =========== ========== ==========
6. Significant Shareholder Activity On December 31, 2008, the Funds had the following concentrations of shareholders holding 10% or more of the outstanding shares of the Funds. These represent omnibus shareholder accounts.
FUND ---- 2015 ETF Fund (1 omnibus shareholder) ...................................... 97% 2025 ETF Fund (1 omnibus shareholder) ...................................... 98% 2035 ETF Fund (1 omnibus shareholder) ...................................... 96%
7. Tax Information. No provision for federal income taxes is required because each Fund qualifies as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and distributes 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. Financial records are not adjusted for temporary differences. The Funds are 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 Funds' financial statements, and therefore the Fund did not record any tax expense in the current period. If the Funds 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 Funds file U.S. federal income tax returns and if applicable, returns in various foreign jurisdictions in which they invest. While the statute of limitations remains open to examine the Funds' U.S. federal income tax returns filed for the fiscal years 2007 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. The tax character of distributions declared for the years ended December 31, 2008 and December 31, 2007, respectively were as follows:
2008 2008 2007 2007 FUND ORDINARY INCOME CAPITAL GAINS ORDINARY INCOME CAPITAL GAINS ----- --------------- ------------- --------------- ------------- 2015 ETF Fund ....... $ 291,791 $ 189,599 $ 48,155 $ 15,230 2025 ETF Fund ....... 252,565 191,542 24,482 13,916 2035 ETF Fund ....... 137,281 129,544 1,326 4,173
21 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- At December 31, 2008, the components of distributable accumulated earnings/(losses) on a tax basis were as follows:
2015 ETF 2025 ETF 2035 ETF FUND FUND FUND ------------ ------------ ------------ Undistributed ordinary income ........ $ 639,575 $ 322,756 $ 163,185 Accumulated capital gain ............. 15,614 13,644 10,416 Capital loss carryforwards ........... (108,234) -- (18,753) Unrealized Depreciation .............. (5,041,954) (3,752,108) (3,623,120) ------------ ------------ ------------ Total accumulated loss ............... $ (4,494,999) $ (3,415,708) $ (3,468,272) ============ ============ ============
The differences between book and tax-basis unrealized appreciation/depreciation are attributable primarily to the tax deferral of losses on wash sales on all Funds. The Funds 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, ---------------------------------------------- FUND 2015 2016 2017 TOTAL ---- --------- --------- --------- ---------- 2015 ETF Fund ................. $ 71,378 $ 36,856 $ -- $ 108,234 2025 ETF Fund ................. -- -- -- -- 2035 ETF Fund ................. -- -- 18,753 18,753
The 2035 ETF Fund utilized $30 in capital loss carryforwards in the year ended December 31, 2008. The federal tax cost, unrealized appreciation and depreciation at December 31, 2008 for each Fund is as follows:
TAX UNREALIZED UNREALIZED NET UNREALIZED FUND COST APPRECIATION DEPRECIATION DEPRECIATION ---- -------------- ------------ ------------ -------------- 2015 ETF Fund ................. $ 19,797,015 $ 27,039 $ (5,068,993) $ (5,041,954) 2025 ETF Fund ................. 13,425,449 28,029 (3,780,137) (3,752,108) 2035 ETF Fund ................. 11,515,292 44,850 (3,667,971) (3,623,121)
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. The reclassifications relate primarily to the re-characterization of distributions from the Underlying Funds for tax purposes. These reclassifications have no effect on net assets or net asset values per share. As of December 31, 2008, the reclassifications were as follows:
INCREASE DECREASE UNDISTRIBUTED NET REALIZED FUND INVESTMENT INCOME CAPITAL GAINS ---- ----------------- ------------- 2015 ETF Fund ................. $ 181,656 $ (181,656) 2025 ETF Fund ................. 88,809 (88,809) 2035 ETF Fund ................. 34,329 (34,329)
22 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- 9. Fund Mergers. On December 21, 2008, the assets of the 2010 Aggressive Fund, the 2010 Moderate Fund and the 2010 Conservative Fund were reorganized into the 2015 ETF Fund. In this merger, 110,684 shares of the 2010 Aggressive Fund, 293,363 shares of the 2010 Moderate Fund and 142,371 shares of the 2010 Conservative Fund were exchanged for 532,579 shares of the 2015 ETF Fund in a tax-free exchange. Assets of the 2045 Moderate Fund were reorganized into the 2035 ETF Fund. In this merger, 379,614 shares of the 2045 Moderate Fund were exchanged for 317,703 shares of the 2035 ETF Fund in a tax-free exchange. The values of the 2010 Aggressive Fund, the 2010 Moderate Fund and the 2010 Conservative Fund were $798,560, $2,322,799 and $1,219,242, respectively on December 21, 2008. Upon the business combination of such Funds on December 21, 2008, the value of the 2010 Aggressive Fund, the 2010 Moderate Fund and the 2010 Conservative Fund, which included accumulated realized losses of $16,694, $92,524 and $104, respectively, and unrealized depreciation of $340,618, $730,805 and $252,442, respectively, combined with the 2015 ETF Fund was $14,298,661. In addition, there were wash sales in the amount of $27,716 in accumulated realized losses and $27,716 in unrealized appreciation associated with this merger. The value of the 2045 Moderate Fund on December 31, 2008 was $2,306,527. Upon the business combination of such funds on December 21, 2008, the value of the 2045 Moderate Fund which included accumulated realized losses of $19,086 and unrealized depreciation of $1,342,048, combined with the 2035 ETF Fund was $7,529,107. 10. Indemnifications. In the normal course of business, the Trust on behalf of the Funds enters into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote. The Wilshire Variable Trust Income Fund ("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 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. 11. 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. 23 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- To the Board of Trustees and Shareholders of Wilshire Variable Insurance Trust: In our opinion, the accompanying statements of assets and liabilities, including the schedules 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 2015 ETF Fund, 2025 ETF Fund and 2035 ETF Fund (three series of Wilshire Variable Insurance Trust, hereafter referred to as the "Funds") at December 31, 2008, the results of each of their operations for the year then ended and the changes in each of their net assets and the 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 Funds' 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 investments at December 31, 2008 by correspondence with the underlying funds' transfer agent, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania March 2, 2009 24 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] BOARD APPROVAL OF ADVISORY AGREEMENT -------------------------------------------------------------------------------- During the six months ended December 31, 2008, the Board of Trustees (the "Board") of Wilshire Variable Insurance Trust (the "Trust") approved the renewal for an additional one-year term of the Trust's advisory agreement with Wilshire Associates Incorporated ("Wilshire" or the "Adviser") on behalf of the 2015 ETF Fund, 2025 ETF Fund and 2035 ETF Fund (the "Funds"). The information in this summary outlines the Board's considerations associated with its approval of the Advisory Agreement. In connection with its deliberations regarding the continuation of this relationship, 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 under the existing advisory arrangement; comparative fees and expense ratios as prepared by Wilshire; the profits to be realized by Wilshire; the extent to which Wilshire realizes economies of scale as a Fund grows; and whether any fall-out benefits are being realized by Wilshire. In considering these matters, the Board was advised with respect to relevant legal standards by independent counsel. In addition, the Trustees who are not "interested persons" of the Trust as defined in the Investment Company Act of 1940 (the "Independent Trustees") discussed the renewal of the Advisory Agreement with management and in private sessions with counsel at which no representatives of Wilshire were present. As required by the Investment Company Act of 1940, the approval was confirmed by the unanimous separate vote of the Independent Trustees. In deciding to approve renewal of the Advisory Agreement, the Board did not identify any single factor as controlling and this summary does not describe all of the matters considered. However, the Board concluded that each of the various factors referred to below favored such approval. INFORMATION REQUESTED AND RECEIVED ---------------------------------- The Board, including all the Independent Trustees, considered the renewal of the Advisory Agreement pursuant to a process that concluded at the Board's December 5, 2008 meeting, following an extensive process. At the direction of the Independent Trustees, counsel to the Trust and the Independent Trustees sent a memorandum to the Adviser requesting information regarding the Advisory Agreements to be provided to the Trustees in advance of a meeting of the Contract Review Committee (which is comprised of all the Independent Trustees) held on December 4 and 5, 2008. Based upon a review of such information, counsel sent a follow-up memorandum, on behalf of the Independent Trustees, requesting additional information to be considered at the December 4 and 5, 2008 meeting. In response to the requests for information, the Trustees 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 Independent Trustees 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 December 4 and 5, 2008 to discuss the information provided. It also considered the assessment of performance made by the Investment Committee (which is comprised solely of Independent Trustees), which met on December 4, 2008 to review 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 Agreement and recommended to the Board that such Advisory Agreement be renewed. At its meeting on December 5, 2008, 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 -------------------------------------- With respect to the nature, extent and quality of services provided by the Adviser, the Board reviewed the functions performed by the Adviser, noting that the Adviser performs administrative functions on behalf of the Funds. 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. 25 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST BOARD APPROVAL OF ADVISORY AGREEMENT [LOGO] (CONTINUED) -------------------------------------------------------------------------------- The Board also considered the compliance programs established by the Adviser and the level of compliance maintained for the Funds. The Board concluded that appropriate resources were being provided under the agreements to administer the Trust's affairs. The Board also reviewed the Adviser's financial condition, and considered the financial support provided by the Adviser to the Funds pursuant to an Expense Limitation Agreement through December 31, 2010. 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 the one-year and since inception periods, along with performance information of a relevant benchmark for the same periods, and a peer group of funds for the one-year period. For each Fund, the Board noted that each Fund underperformed its benchmark, but that the performance of each Fund was competitive as compared to its peer group. 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. The Board noted that the Adviser waives advisory fees and reimburses expenses for the Funds pursuant to an Expense Limitation Agreement. As to total expenses, the Board noted that total expenses are influenced by the small size of the complex. 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 expense reimbursements currently in place 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 ----------------- 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. CONCLUSION ---------- Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the Advisory Agreement continue to be fair and reasonable and that the continuation of the Advisory Agreement is in the best interests of each Fund. 26 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] ADDITIONAL FUND INFORMATION -------------------------------------------------------------------------------- A listing of the Trustees and Officers of the Trust, their ages and their principal occupations for the past five years is presented below. The address of each Trustee and Officer is 1299 Ocean Avenue, Suite 700, Santa Monica, California 90401.
NUMBER OF TERM OF FUNDS/ OFFICE(1) AND PRINCIPAL FUNDS IN OTHER POSITION LENGTH OCCUPATIONS COMPLEX DIRECTORSHIPS HELD WITH OF TIME DURING THE PAST OVERSEEN BY HELD BY NAME AND AGE THE TRUST SERVED FIVE YEARS TRUSTEE TRUSTEE ----------------------------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEE ----------------------------------------------------------------------------------------------------------------------------------- Lawrence E. Davanzo, 55(2) Trustee and Since 2005 President, Wilshire Associates 15 Wilshire Mutual Funds, President Incorporated, October 2007-Present; Inc. (6 Funds); Wilshire Senior Managing Director, October Associates Incorporated 2004-October 2007, Wilshire Associates Incorporated; President, 2005-Present, Wilshire Variable Insurance Trust; Managing Director, August 2004-October 2004, Guggenheim Partners, independent investor, August 2001-August 2004. ----------------------------------------------------------------------------------------------------------------------------------- NON-INTERESTED TRUSTEES ----------------------------------------------------------------------------------------------------------------------------------- Theodore J. Beck, 55 Trustee Since 2008 President and Chief Executive 15 Wilshire Mutual Funds, Officer, National Endowment for Inc. (6 Funds) Financial Education (since 2005); Associate Dean for Executive Education and Corporate Relationships, and President for the Center for Advanced Studies in Business at the University of Wisconsin (1999-2005) Roger A. Formisano, 59 Trustee Since 2006 Vice President, University Medical 15 Integrity Mutual Foundation, 2006-Present; formerly Insurance Company, Director, The Center for Leadership Wilshire Mutual Funds, and Applied Business, UW-Madison Inc. (6 Funds) School of Business; Principal, R.A. Formisano & Company, LLC Richard A. Holt, 66 Trustee Since 2006 Retired; formerly Senior 15 Wilshire Mutual Funds, Relationship Manager, Scudder Inc. (6 Funds) Insurance Asset Management. Suanne K. Luhn, 53 Trustee Since 2008 Retired; formerly Chief Compliance 15 Wilshire Mutual Funds, Officer, Bahl & Gaynor (investment Inc. (6 Funds) adviser) (1990 to 2006) Harriet A. Russell, 66 Trustee Since 2006 President, Greater Cincinnati Credit 15 Greater Cincinnati Credit Union; formerly Vice President, Union Board; Wilshire Cincinnati Board of Education; Mutual Funds, Inc. formerly teacher, Walnut Hills High (6 Funds) School. George J. Zock, 57 Trustee , Since 2006 Independent Consultant; Consultant, 15 Wilshire Mutual Funds, Chairman Horace Mann Service Corporation Inc. (6 Funds) of the (2004 to 2005); Executive Vice Board President, Horace Mann Life Insurance Company and Horace Mann Service Corporation (1997 to 2003).
27 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] ADDITIONAL FUND INFORMATION --------------------------------------------------------------------------------
NUMBER OF TERM OF FUNDS/ OFFICE(1) AND PRINCIPAL FUNDS IN OTHER POSITION LENGTH OCCUPATIONS COMPLEX DIRECTORSHIPS HELD WITH OF TIME DURING THE PAST OVERSEEN BY HELD BY NAME AND AGE THE TRUST SERVED FIVE YEARS TRUSTEE TRUSTEE ----------------------------------------------------------------------------------------------------------------------------------- OFFICERS ----------------------------------------------------------------------------------------------------------------------------------- Helen Thompson, 41 Chief Since 2004 Managing Director, Wilshire N/A N/A Compliance Associates Incorporated. (since Officer and 2003); Associate Director, First Secretary Quadrant, L.P. (2001 to 2003); Chief Investment Accountant, Financial Controller, Company Secretary, Associate Director, Treasurer Since 2008 Compliance Officer (1996 to 2003), and Vice First Quadrant Limited President
(1) EACH TRUSTEE SERVES UNTIL THE NEXT SHAREHOLDERS' MEETING (AND UNTIL THE ELECTION AND QUALIFICATION OF A SUCCESSOR), OR UNTIL DEATH, RESIGNATION, REMOVAL (AS PROVIDED IN THE TRUST'S DECLARATION OF TRUST) 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 TRUST'S INVESTMENT ADVISER, WILSHIRE ASSOCIATES INCORPORATED. The Trust's Statement of Additional Information includes additional information about the Trustees of the Trust and is available, without charge, upon request, by calling 1-888-200-6796. 28 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST [LOGO] ADDITIONAL FUND INFORMATION -------------------------------------------------------------------------------- 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 Funds use to determine how to vote proxies relating to portfolio securities, along with each Fund's proxy voting record relating to portfolio securities held during the most recent 12-month period ended June 30 is available at no charge, upon request by calling 1-888-200-6796, or on the SEC's website at http://www.sec.gov. INFORMATION ON FORM N-Q The Trust 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 Trust's Form N-Q will be 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. 29 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST TAX INFORMATION [LOGO] (UNAUDITED) -------------------------------------------------------------------------------- Of the distributions made by the following Funds, the corresponding percentage represents the amount of each distribution which will qualify for the dividends received deduction available to corporate shareholders: FUND PERCENTAGE ---- ---------- 2015 ETF Fund .......................................... 11.34% 2025 ETF Fund .......................................... 20.22% 2035 ETF Fund .......................................... 0.00%
The Funds designate long-term capital gain distributions pursuant to Section 852(b)(3) of the Internal Revenue Code as follows: FUND ---- 2015 ETF Fund .......................................... $ 189,600 2025 ETF Fund .......................................... 191,552 2035 ETF Fund .......................................... 129,544
30 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SHAREHOLDER VOTING RESULTS [LOGO] (UNAUDITED) -------------------------------------------------------------------------------- At a special meeting held on December 19, 2008 the shareholders of the Wilshire Variable Insurance Trust voted to elect seven Board members to the Board of Trustees. THEODORE J BECK
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE .............. 37,111,444 68.593% 96.306% WITHHOLD ................. 1,423,609 2.631% 3.694% ---------- ------ ------- TOTAL .................... 38,535,053 71.224% 100.000% ---------- ------ -------
LAWRENCE E DAVANZO
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE .............. 37,232,310 68.817% 96.619% WITHHOLD ................. 1,302,743 2.407% 3.381% ---------- ------ ------- TOTAL .................... 38,535,053 71.224% 100.000% ---------- ------ -------
ROGER A. FORMISANO
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE .............. 37,215,735 68.786% 96.576% WITHHOLD ................. 1,319,318 2.438% 3.424% ---------- ------ ------- TOTAL .................... 38,535,053 71.224% 100.000% ---------- ------ -------
RICHARD A. HOLT
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE .............. 37,218,954 68.792% 96.585% WITHHOLD ................. 1,316,099 2.432% 3.415% ---------- ------ ------- TOTAL .................... 38,535,053 71.224% 100.000% ---------- ------ -------
SUANNE K. LUHN
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE .............. 37,199,756 68.756% 96.535% WITHHOLD ................. 1,335,297 2.468% 3.465% ---------- ------ ------- TOTAL .................... 38,535,053 71.224% 100.000% ---------- ------ -------
HARRIET A RUSSELL
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE .............. 37,256,681 68.862% 96.683% WITHHOLD ................. 1,278,372 2.362% 3.317% ---------- ------ ------- TOTAL .................... 38,535,053 71.224% 100.000% ---------- ------ -------
GEORGE J. ZOCK
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE .............. 37,199,808 68.757% 96.535% WITHHOLD ................. 1,335,245 2.467% 3.465% ---------- ------ ------- TOTAL .................... 38,535,053 71.224% 100.000% ---------- ------ -------
31 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SHAREHOLDER VOTING RESULTS - (CONTINUED) [LOGO] (UNAUDITED) -------------------------------------------------------------------------------- The shareholders of the Wilshire Variable Insurance Trust 2010 Aggressive Fund voted to approve an Agreement and Plan of Reorganization and the transactions it contemplates, including the transfer of all the assets of the 2010 Aggressive Fund to the 2015 Moderate Fund in exchange for shares of the 2015 Moderate Fund and the assumption by the 2015 Moderate Fund of all the liabilities of the 2010 Aggressive Fund and the distribution of such shares to the shareholders of the 2010 Aggressive Fund in complete liquidation and termination of 2010 Aggressive Fund. The approval of the Agreement and Plan of Reorganization on behalf of the 2010 Aggressive Fund
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ........ 98,729.156 99.995% 100.000% AGAINST ............ -- -- -- ABSTAIN ............ -- -- -- ---------- ------ ------- TOTAL .............. 98,729.156 99.995% 100.000% ---------- ------ -------
The shareholders of the Wilshire Variable Insurance Trust 2010 Conservative Fund voted to approve an Agreement and Plan of Reorganization and the transactions it contemplates, including the transfer of all the assets of the 2010 Conservative Fund to the 2015 Moderate Fund in exchange for shares of the 2015 Moderate Fund and the assumption by the 2015 Moderate Fund of all the liabilities of the 2010 Conservative Fund and the distribution of such shares to the shareholders of the 2010 Conservative Fund in complete liquidation and termination of 2010 Conservative Fund. The approval of the Agreement and Plan of Reorganization on behalf of the 2010 Conservative Fund
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ........ 139,390.514 99.996% 100.000% AGAINST ............ -- -- -- ABSTAIN ............ -- -- -- ----------- ------ ------- TOTAL .............. 139,390.514 99.996% 100.000% ----------- ------ -------
The shareholders of the Wilshire Variable Insurance Trust 2010 Moderate Fund voted to approve an Agreement and Plan of Reorganization and the transactions it contemplates, including the transfer of all the assets of the 2010 Moderate Fund to the 2015 Moderate Fund in exchange for shares of the 2015 Moderate Fund and the assumption by the 2015 Moderate Fund of all the liabilities of the 2010 Moderate Fund and the distribution of such shares to the shareholders of the 2010 Moderate Fund in complete liquidation and termination of 2010 Moderate Fund. The approval of the Agreement and Plan of Reorganization on behalf of the 2010 Moderate Fund
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ........ 273,458.630 95.969% 100.000% AGAINST ............ -- -- -- ABSTAIN ............ -- -- -- ----------- ------ ------- TOTAL .............. 273,458.630 95.969% 100.000% ----------- ------ -------
32 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST SHAREHOLDER VOTING RESULTS - (CONTINUED) [LOGO] (UNAUDITED) -------------------------------------------------------------------------------- The shareholders of the Wilshire Variable Insurance Trust 2045 Moderate Fund voted to approve an Agreement and Plan of Reorganization and the transactions it contemplates, including the transfer of all the assets of the 2045 Moderate Fund to the 2035 Moderate Fund in exchange for shares of the 2035 Moderate Fund and the assumption by the 2035 Moderate Fund of all the liabilities of the 2045 Moderate Fund and the distribution of such shares to the shareholders of the 2045 Moderate Fund in complete liquidation and termination of 2045 Moderate Fund. The approval of the Agreement and Plan of Reorganization on behalf of the 2045 Moderate Fund
NO. OF SHARES % OF OUTSTANDING SHARES % OF SHARES VOTED ------------- ----------------------- ----------------- AFFIRMATIVE ........ 302,698.224 95.083% 100.000% AGAINST ............ -- -- -- ABSTAIN ............ -- -- -- ----------- ------ ------- TOTAL .............. 302,698.224 95.083% 100.000% ----------- ------ -------
33 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST ANNUAL REPORT [LOGO] DECEMBER 31, 2008 -------------------------------------------------------------------------------- WILSHIRE VARIABLE INSURANCE TRUST 2015 ETF Fund 2025 ETF Fund 2035 ETF Fund BOARD OF TRUSTEES Theodore J. Beck Roger A. Formisano Richard A. Holt Harriet A. Russell Suanne K. Luhn Lawrence E. Davanzo George J. Zock CHAIRMAN OF THE BOARD OFFICERS OF THE FUNDS Lawrence E. Davanzo PRESIDENT HELEN THOMPSON SECRETARY, TREASURER AND CHIEF COMPLIANCE OFFICER -------------------------------------------------------------------------------- ADMINISTRATOR SEI Investments Global Funds Services* 1 Freedom Valley Drive Oaks, PA 19456 TRANSFER AGENT DST Systems, Inc.* P.O. Box 219512 Kansas City, MO 64121-9512 INVESTMENT ADVISER Wilshire Associates Incorporated 1299 Ocean Avenue Santa Monica, CA 90401-1085 CUSTODIAN PNC Global Investment Servicing The Eastwick Center 8800 Tinicum Boulevard Philadelphia, PA 19153 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM PricewaterhouseCoopers LLP Two Commerce Square 2001 Market Street, Suite 1700 Philadelphia, PA 19103-7042 * EFFECTIVE JULY 14, 2008. [LOGO] WILSHIRE VARIABLE INSURANCE TRUST Wilshire Associates Incorporated 1299 Ocean Avenue Santa Monica, CA 90401 1-888-200-6796 WIL-AR-003-0100 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 and to reflect the fact that the registrant's audit committee rather than the adviser's general counsel is responsible for administering the code of ethics. (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 Trustees has determined that the Registrant has at least one "audit committee financial expert" (as defined in 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 to 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 Trustees. 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 $188,450 for 2007 and $140,962 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 $23,984 for 2008. Fees billed were for agreed 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 $32,050 for 2007 and $22,500 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 $32,050 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. Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. 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 December 3, 2008. 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 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 Variable Insurance Trust 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.