N-CSRS 1 dncsrs.txt WILSHIRE VARIABLE INSURANCE TRUST 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) c/o PFPC Inc, 760 Moore Rd. King of Prussia, PA 194 ----------------------------------------------------- (Address of principal executive offices) (Zip code) David Lebisky c/o PFPC Inc, 760 Moore Rd. King of Prussia, PA 194 ----------------------------------------------------- (Name and address of agent for service) registrant's telephone number, including area code: (610) 382-8667 Date of fiscal year end: December 31 Date of reporting period: June 30, 2005 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, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507. Item 1. Reports to Stockholders. The Report to Shareholders is attached herewith. [GRAPHIC OMITTED] SEMI-ANNUAL REPORT (Unaudited) BALANCED FUND EQUITY FUND INCOME FUND INTERNATIONAL EQUITY FUND SHORT-TERM INVESTMENT FUND SMALL CAP GROWTH FUND SOCIALLY RESPONSIBLE FUND June 30, 2005 ----------------- www.wilshirefunds.com Table of Contents Shareholder Letter................... 1 Balanced Fund Commentary............. 2 Equity Fund Commentary............... 3 Income Fund Commentary............... 4 International Equity Fund Commentary. 5 Short-Term Investment Fund Commentary 6 Small Cap Growth Fund Commentary..... 7 Socially Responsible Fund Commentary. 8 Disclosure of Fund Expenses.......... 9 Statements of Investments: Balanced Fund.................... 11 Equity Fund...................... 12 Income Fund...................... 15 International Equity Fund........ 24 Short-Term Investment Fund....... 27 Small Cap Growth Fund............ 28 Socially Responsible Fund........ 31 Statements of Assets and Liabilities. 33 Statements of Operations............. 34 Statements of Changes in Net Assets.. 35 Financial Highlights: Balanced Fund.................... 37 Equity Fund...................... 38 Income Fund...................... 39 International Equity Fund........ 40 Short-Term Investment Fund....... 41 Small Cap Growth Fund............ 42 Socially Responsible Fund........ 43 Notes to Financial Statements........ 44 Other Information.................... 51
--------------------------------------------- THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS. Shares of the Wilshire Variable Insurance Trust are distributed by PFPC Distributors, Inc. Dear Shareholders: We are pleased to present this Semi-Annual report to all shareholders of the Wilshire Variable Insurance Trust (the "Funds"). This report covers the six-month period ended June 30, 2005 (the "Period"), for the Balanced, Equity, Income, International Equity, Short-Term Investment, Socially Responsible, and Small Cap Growth Funds. After losing ground in the first quarter of the year, U.S. stocks recouped most of their losses to end the six months essentially flat with a return of 0.04% as measured by the Dow Jones Wilshire 5000/sm/ Composite Index. Bond markets faired better despite the Fed's continue policy of monetary tightening. For the Period, the Lehman Aggregate Bond Index, a broad measure of investment grade bonds, returned 2.15% as long-term yields declined. The U.S. equity market witnessed a significant reversal in growth versus value stocks over the Period. During the first quarter of 2005, when markets declined in general, growth stocks fell more than value. As the market began to recover during the second quarter, this pattern partially reversed with value stocks lagging growth stocks, resulting in a return for the Dow Jones Wilshire Large Growth Index of -1.15%, versus 1.32% return for the Dow Jones Wilshire Value Index. This is a typical pattern, with defensive, value stocks providing more downside protection but lagging in a strong rising market. Energy was once again one of the top performing sectors in the market, returning more than 20% for the period. Healthcare and financial services companies also performed well, especially during the second quarter. Economic activity for the six months continues to be strong, with June Consumer Confidence rising above its peak in January 2005. GDP growth remains on target, and despite oil prices surpassing $60/barrel in late June, inflation remains under control. The residential housing market continues to rise at a feverish pace, with existing home sales hitting record levels in the second quarter. Over the last six months, several changes occurred to the management and administration of the Funds. At the end of June, PFPC Inc. assumed the duties of Administrator, Fund Accountant and Custodian. The benefit to shareholders is realized by enhanced service through the consolidation of services and greater transparency of reporting and accounting duties. In terms of the Funds' sub-advisors, we made one change over the past six months. In January 2005, Lee Munder, one of the sub-advisors of the Small Cap Growth Fund, was terminated and their assets were moved to the other two sub-advisors in the Small Cap Growth Fund, Black Rock and Mazama. We feel the Small Cap Growth Fund is well served by these two sub-advisors. As a final note, all shareholders can access current holdings of the Funds through Wilshire's mutual fund website, www.wilshirefunds.com. Sincerely, Wilshire Associates Incorporated 1 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST BALANCED FUND COMMENTARY Average Annual Total Return Six Months Ended 6/30/05 0.95%* One Year Ended 6/30/05.. 7.32% Five Years Ended 6/30/05 4.84% Ten Years Ended 6/30/05. 7.42%
* Not Annualized. During certain periods since inception, certain fees and expenses were waived and reimbursed. For the six months ended 6/30/05, fees totaling less than 0.01% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns since inception would have been lower. Returns assume reinvestment of all dividends and distributions. The performance data quoted represents past performance and does not indicate 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 less than their original cost. Annuity contract fees are not reflected in returns. PORTFOLIO SECTOR WEIGHTING** (As of June 30, 2005) [CHART] Wilshire Variable Insurance Trust Income Fund 40.1% Wilshire Variable Insurance Trust Equity Fund 59.9% The Balanced Fund (the "Fund") is designed to provide a stock/bond mix appropriate for long-term investors. The Fund buys shares of the Equity Fund (60%) and the Income Fund (40%) to replicate the target weightings. During the six-month period ended June 30, 2005 (the "Period"), the Fund significantly outperformed its benchmark, returning 0.95% versus 0.54% return of the blended benchmark, which consists of 60% S&P 500 Index and 40% Lehman Brother Aggregate Bond Index. The Equity Fund's strong showing was more than enough to outweigh the relative sluggish performance of the Income Fund. ** Based on percent of Fund's total long-term market value. 2 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND COMMENTARY Average Annual Total Return Six Months Ended 6/30/05 0.19%* One Year Ended 6/30/05.. 7.45% Five Years Ended 6/30/05 2.22% Ten Years Ended 6/30/05. 6.76%
* Not Annualized. During certain periods since inception, certain fees and expenses were waived and reimbursed. For the six months ended 6/30/05, fees totaling 0.20% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns since inception would have been lower. Returns assume reinvestment of all dividends and distributions. The performance data quoted represents past performance and does not indicate 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 less than their original cost. Annuity contract fees are not reflected in returns. PORTFOLIO SECTOR WEIGHTING** (As of June 30, 2005) [CHART] Consumer Discretionary 12.0% Consumer Staples 8.4% Energy 11.3% Financials 24.9% Health Care 10.3% Industrials 10.8% Information Technology 13.0% Materials 2.8% Telecommunication Services 3.1% Utilities 3.4% Wilshire Associates Incorporated structures the management of the Equity Fund (the "Fund") to be a diversified strategy with tactical value style orientation. The Fund is managed by three sub-advisers, Bernstein Investment Research and Management, Wellington Management Company, LLP and Mellon Equity Associates, LLP. For the six-month period ended June 30, 2005 (the "Period"), the Fund posted a total return of 0.19% while the S&P 500 index returned -0.82%. As was the case for the first half of this year, the Fund should outperform the broad market during periods when value style outperforms. During the Period, all three managers were able to add value through stock selection. In terms of sector performance, overweight in the Financials and Energy sector combined with underweight in the Information Technology contributed positively to the overall portfolio performance. Even though underweight in the Healthcare sector was a detractor to the Fund's performance, positive stock selection in other sectors was more than enough to offset this impact. ** Based on percent of Fund's total long-term market value. 3 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND COMMENTARY Average Annual Total Return Six Months Ended 6/30/05 2.14%* One Year Ended 6/30/05.. 7.01% Five Years Ended 6/30/05 7.85% Ten Years Ended 6/30/05. 6.58%
* Not Annualized. During certain periods since inception, certain fees and expenses were waived and reimbursed. For the six months ending 6/30/05, fees totaling 0.18% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns since inception would have been lower. Returns assume reinvestment of all dividends and distributions. The performance data quoted represents past performance and does not indicate 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 less than their original cost. Annuity contract fees are not reflected in returns. PORTFOLIO SECTOR WEIGHTING** (As of June 30, 2005) [CHART] Asset Backed Securities 6.3% Collateralized Mortgage Obligations 13.0% Corporate Bonds 21.6% Foreign Bonds 11.5% U.S. Government & Agency Obligations 25.8% U.S. Treasury Obligations 21.4% Preferred Stock 0.4% The Income Fund (the "Fund") is managed by Western Asset Management Company ("Western"), and BlackRock Financial Management ("BlackRock"). The mix provides exposure to all areas of the bond markets. The Fund returned 2.14%, underperforming the Lehman Brothers Aggregate Bond Index, which returned 2.52% for the six-month period ended June 30, 2005. The shorter market duration was a major detractor to the Fund's performance. Managers of the Income Fund will continue to be defensively positioned relative to the interest rates on the expectation that the FOMC will continue to tighten monetary policy in the near future. BlackRock and Western will attempt to make up the performance drag, resulting from the short duration, by finding opportunities in the non-traditional sectors. ** Based on percent of Fund's total long-term market value. 4 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND COMMENTARY Average Annual Total Return Six Months Ended 6/30/05........... (1.26)%* One Year Ended 6/30/05............. 7.06% Five Years Ended 6/30/05........... (5.65)% Inception (3/31/97) through 6/30/05 3.54%
* Not Annualized. During certain periods since inception, certain fees and expenses were waived and reimbursed. For the six months ended 6/30/05, fees totaling 0.22% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns since inception would have been lower. Returns assume reinvestment of all dividends and distributions. The performance data quoted represents past performance and does not indicate 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 less than their original cost. Annuity contract fees are not reflected in returns. Foreign securities may be subject to a higher degree of market risk due to currency fluctuations, lack of liquidity, and political and economic instability. PORTFOLIO SECTOR WEIGHTING** (As of June 30, 2005) [CHART] Consumer Discretionary 17.0% Consumer Staples 7.9% Energy 9.1% Financials 23.9% Health Care 8.9% Industrials 6.8% Information Technology 8.0% Materials 7.2% Telecommunication Services 8.5% Utilities 2.7% The International Equity Fund (the "Fund") is managed by The Boston Company Asset Management and New Star Institutional Managers. The Fund underperformed its benchmark for the six-month period ended June 30, 2005 (the "Period"). The International Equity Fund posted a total return of -1.26% which the Morgan Stanley EAFE Index had a return of -1.17%. The Fund fell short of the benchmark during the Period primarily due to the value style exposure of the Fund. Underperformance can be attributed to the underweight exposure to Energy, Resources, Electric and Gas Utilities. On a positive note, exposure to emerging markets contributed positively to the Fund's overall performance. ** Based on percent of Fund's total long-term market value. 5 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST SHORT-TERM INVESTMENT FUND COMMENTARY Average Annual Total Return Six Months Ended 6/30/05 1.19%* One Year Ended 6/30/05.. 1.91% Five Years Ended 6/30/05 2.68% Ten Years Ended 6/30/05. 3.84%
* Not Annualized. During certain periods since inception, certain fees and expenses were waived and reimbursed. For the six months ended 6/30/05, fees totaling 0.61% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns since inception would have been lower. Returns assume reinvestment of all dividends and distributions. The performance data quoted represents past performance and does not indicate 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 less than their original cost. Annuity contract fees are not reflected in returns. PORTFOLIO SECTOR WEIGHTING** (As of June 30, 2005) [CHART] Corporate Bonds 33.3% U.S. Government & Agency Obligations 60.5% U.S. Treasury Obligations 6.2% The Short-Term Investment Fund (the "Fund") is managed by Western Asset Management. The Fund generated returns slightly lower than the index for six-month period ended June 30, 2005 (the "Period"). The Fund returned 1.19% while the benchmark index based on 90-day Treasury Bills returned 1.30% for the Period. The marginal underperformance stems from trading costs and management fees. Short-term rates rose and the yield curve flattened over the Period as FOMC increased Fed Funds rate to keep inflation in check. The Fund seeks to preserve invested capital and outpace inflation during the course of the year. ** Based on percent of Fund's total market value. 6 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND COMMENTARY Average Annual Total Return Six Months Ended 6/30/05........... (4.38)%* One Year Ended 6/30/05............. (0.84)% Five Years Ended 6/30/05........... (10.78)% Inception (3/31/97) through 6/30/05 4.40%
* Not Annualized. During certain periods since inception, certain fees and expenses were waived and reimbursed. For the six months ended 6/30/05, fees totaling 0.34% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns since inception would have been lower. Returns assume reinvestment of all dividends and distributions. The performance data quoted represents past performance and does not indicate 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 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. PORTFOLIO SECTOR WEIGHTING** (As of June 30, 2005) [CHART] Consumer Discretionary 20.4% Consumer Staples 0.1% Energy 6.1% Financials 3.9% Health Care 19.8% Industrials 10.8% Information Technology 33.5% Materials 4.5% Telecommunication Services 0.9% The Small Cap Growth Fund (the "Fund") is managed by BlackRock Financial Management and Mazama Capital Management. The mix provides diversification as well as disciplined approach to portfolio management. For the six-month period ended June 30, 2005, the Fund posted a total return of -4.38%, trailing the Russell 2000 Growth Index by 79 basis points. Overall, the portfolio's overweight in Information Technology weighed most heavily on the Fund's performance, followed by an underweight exposure to the Energy sector. Poor security selection in Consumer Discretionary and Industrials negatively affected the Fund's performance. On a positive note, security selection within the Healthcare sector gave a boost to the relative performance. ** Based on percent of Fund's total long-term market value. 7 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND COMMENTARY Average Annual Total Return Six Months Ended 6/30/05........... (0.13)%* One Year Ended 6/30/05............. 8.89% Five Years Ended 6/30/05........... 5.11% Inception (3/31/97) through 6/30/05 8.63%
* Not Annualized. During certain periods since inception, certain fees and expenses were waived and reimbursed. For the six months ended 6/30/05, fees totaling 0.36% of average net assets were waived and reimbursed. Without such waivers and reimbursements, total returns since inception would have been lower. Returns assume reinvestment of all dividends and distributions. The performance data quoted represents past performance and does not indicate 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 less than their original cost. Annuity contract fees are not reflected in returns. PORTFOLIO SECTOR WEIGHTING** (As of June 30, 2005) [CHART] Consumer Discretionary 10.3% Consumer Staples 7.6% Energy 5.3% Financials 38.8% Health Care 8.0% Industrials 6.9% Information Technology 6.4% Materials 4.5% Telecommunication Services 4.4% Utilities 7.8% The Socially Responsible Fund (the "Fund") is managed by Bernstein Investment Research and Management. The Fund underperformed the Russell 1000 Value Index for the six-month period ended June 30, 2005 (the "Period") primarily due to its underweight in the Energy sector. The Fund returned -0.13% while the benchmark index gained 1.76% for the Period. The Fund's underperformance suffered in part owing to its socially responsible mandate. Based on screens employed by the manager, which ensure that socks held in the portfolio comply with the socially responsible standards set forth in the prospectus, the Fund is unable to hold tobacco and oil stocks. Significant underweight to the Energy sector detracted from returns as this sector enjoyed strong performance. Positive contributions came from Utilities and Information Technology, where the Fund held overweight positions in electric utilities and telecommunications. ** Based on percent of Fund's total long-term market value. 8 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST DISCLOSURE OF FUND EXPENSES For the Six Month Period Ended June 30, 2005 (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 portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund's gross income, directly reduce the investment return of the fund. A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing fees (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. This table illustrates your fund's costs in two ways: Actual Fund Return: This section helps you to estimate the actual expenses, after any applicable fee waivers, that you paid over the period. The "Ending Account Value" shown is derived from the fund's actual return for the past six month period, the "Expense Ratio" column shows the period's annualized expense ratio, and the "Expenses Paid During Period" column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund at the beginning of the period. You may use the information here, together with your account value, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund in the first line under the heading entitled "Expenses Paid During Period." Hypothetical 5% Return: This section is intended to help you compare your fund's costs with those of other mutual funds. 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 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. 9 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST DISCLOSURE OF FUND EXPENSES - (CONTINUED) For the Six Month Period Ended June 30, 2005 (Unaudited)
Beginning Ending Account Account Expenses Paid Value Value Expense During Period 1/1/2005 6/30/2005 Ratio/(1)/ 1/1/2005-6/30/2005/(2)/ --------- --------- --------- ---------------------- Balanced Fund/(3)/ --------------------------------------------------------------------------------- Actual Fund Return........ $1,000.00 $1,009.50 0.05% $0.25 Hypothetical 5% Return.... $1,000.00 $1,024.55 0.05% $0.25 Equity Fund --------------------------------------------------------------------------------- Actual Fund Return........ $1,000.00 $1,001.90 0.84% $4.17 Hypothetical 5% Return.... $1,000.00 $1,020.63 0.84% $4.21 Income Fund --------------------------------------------------------------------------------- Actual Fund Return........ $1,000.00 $1,021.40 0.91% $4.56 Hypothetical 5% Return.... $1,000.00 $1,020.28 0.91% $4.56 International Equity Fund --------------------------------------------------------------------------------- Actual Fund Return........ $1,000.00 $ 987.40 1.51% $7.44 Hypothetical 5% Return.... $1,000.00 $1,017.31 1.51% $7.55 Short-Term Investment Fund --------------------------------------------------------------------------------- Actual Fund Return........ $1,000.00 $1,011.90 0.13% $0.65 Hypothetical 5% Return.... $1,000.00 $1,024.15 0.13% $0.65 Small Cap Growth Fund --------------------------------------------------------------------------------- Actual Fund Return........ $1,000.00 $ 956.20 1.51% $7.32 Hypothetical 5% Return.... $1,000.00 $1,017.31 1.51% $7.55 Socially Responsible Fund --------------------------------------------------------------------------------- Actual Fund Return........ $1,000.00 $ 998.70 1.00% $4.96 Hypothetical 5% Return.... $1,000.00 $1,019.84 1.00% $5.01
/(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 most recent fiscal half-year, then divided by 365. /(3)/ The expense ratio for the Balanced Fund does not include the expenses of the underlying funds. 10 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST BALANCED FUND STATEMENT OF INVESTMENTS June 30, 2005 (Unaudited)
Shares Value ---------------------------------------- --------------- INVESTMENTS IN UNDERLYING FUNDS - 100.1% 7,310,183 Wilshire Variable Insurance Trust Equity Fund* .................... $156,291,722 8,419,632 Wilshire Variable Insurance Trust Income Fund* .................... 104,571,827 ------------ Total Investments in Underlying Funds (Cost $247,765,166) 260,863,549 Other Assets & Liabilities, Net - (0.1)% (197,172) ------------ NET ASSETS - 100.0% $260,666,377 ============
* Affiliated fund. See Notes to Financial Statements. 11 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND STATEMENT OF INVESTMENTS June 30, 2005 (Unaudited)
Shares Value -------------- --------------- COMMON STOCK - 98.7% Consumer Discretionary - 11.9% 8,500 Abercrombie & Fitch Co., Class A ........... $ 583,949 14,900 American Axle & Manufacturing Holdings, Inc. ............................. 376,523 17,000 American Eagle Outfitters .................. 521,050 23,400 Autoliv, Inc. .............................. 1,024,920 7,600 Black & Decker Corp. ....................... 682,860 19,800 BorgWarner, Inc. ........................... 1,062,666 20,800 Claire's Stores, Inc. ...................... 500,240 37,000 Coach, Inc.\^ .............................. 1,242,090 101,888 Comcast Corp., Class A\^ ................... 3,127,962 27,000 Cooper Tire & Rubber Co. ................... 501,390 5,900 Dana Corp. ................................. 88,559 49,600 Federated Department Stores, Inc. .......... 3,634,688 58,700 Gap, Inc. (The) ............................ 1,159,325 27,300 Genuine Parts Co. .......................... 1,121,757 30,100 GTECH Holdings Corp. ....................... 880,124 81,700 Home Depot, Inc. ........................... 3,178,130 86,500 Interpublic Group of Companies, Inc.\^...... 1,053,570 21,600 Jones Apparel Group, Inc. .................. 670,464 23,900 Kohl's Corp.\^ ............................. 1,336,249 30,200 Lear Corp. ................................. 1,098,676 58,100 Limited Brands, Inc. ....................... 1,244,502 39,500 Lowe's Cos., Inc. .......................... 2,299,690 12,100 Magna International, Inc., Class A ......... 851,114 27,500 Marvel Enterprises, Inc.\^ ................. 542,300 33,900 Mattel, Inc. ............................... 620,370 137,500 McDonald's Corp. ........................... 3,815,625 23,600 McGraw-Hill Cos., Inc. (The) ............... 1,044,300 51,100 Newell Rubbermaid, Inc. .................... 1,218,224 10,800 Nike, Inc., Class B ........................ 935,280 12,700 Nordstrom, Inc. ............................ 863,219 1,000 NVR, Inc.\^ ................................ 810,000 61,200 Office Depot, Inc.\^ ....................... 1,397,808 6,600 Polaris Industries, Inc. ................... 356,400 14,700 Reynolds American, Inc. .................... 1,158,360 70,000 Target Corp. ............................... 3,808,700 511,600 Time Warner, Inc.\^ ........................ 8,548,836 155,881 Viacom, Inc., Class B ...................... 4,991,310 82,000 Walt Disney Co. (The) ...................... 2,064,760 ---------- 60,415,990 ---------- Consumer Staples - 8.3% 155,200 Altria Group, Inc. ......................... 10,035,232 29,000 Archer-Daniels-Midland Co. ................. 620,020 105,800 Coca-Cola Co. (The) ........................ 4,417,150 24,500 Fresh Del Monte Produce, Inc. .............. 659,540 31,900 Kellogg Co. ................................ 1,417,636 37,700 Kraft Foods, Inc., Class A ................. 1,199,237 35,000 Kroger Co. (The)\^ ......................... 666,050 16,600 Monsanto Co. ............................... 1,043,642 104,700 PepsiCo, Inc. .............................. 5,646,471 131,800 Procter & Gamble Co. ....................... 6,952,450 58,500 Safeway, Inc.\^ ............................ 1,321,515 104,600 Sara Lee Corp. ............................. 2,072,126
Shares Value -------------- --------------- Consumer Staples (continued) 47,200 Supervalu, Inc. ............................ $1,539,192 24,900 Unilever NV ................................ 1,614,267 25,100 UST, Inc. .................................. 1,146,066 39,200 Wal-Mart Stores, Inc. ...................... 1,889,440 ---------- 42,240,034 ---------- Energy - 11.2% 21,100 Baker Hughes, Inc. ......................... 1,079,476 17,200 BP PLC ADR ................................. 1,072,936 115,476 Chevron Corp. .............................. 6,457,418 171,800 ConocoPhillips ............................. 9,876,782 20,400 Diamond Offshore Drilling, Inc. ............ 1,089,972 323,600 Exxon Mobil Corp. .......................... 18,597,292 9,300 Frontline, Ltd. ............................ 374,232 66,300 GlobalSantaFe Corp. ........................ 2,705,040 59,300 Halliburton Co. ............................ 2,835,726 44,600 Marathon Oil Corp. ......................... 2,380,302 10,700 National Oilwell Varco, Inc.\^ ............. 508,678 23,900 Noble Energy, Inc. ......................... 1,808,035 71,250 Occidental Petroleum Corp. ................. 5,481,262 32,200 Rowan Cos., Inc. ........................... 956,662 20,100 Valero Energy Corp. ........................ 1,590,111 ---------- 56,813,924 ---------- Financials - 24.6% 19,400 ACE, Ltd. .................................. 870,090 14,100 Allstate Corp. ............................. 842,475 17,400 American Express Co. ....................... 926,202 33,400 American Financial Group, Inc. ............. 1,119,568 143,725 American International Group, Inc. ......... 8,350,422 15,150 Astoria Financial Corp. .................... 431,320 312,600 Bank of America Corp. ...................... 14,257,686 10,200 Bank of Hawaii Corp. ....................... 517,650 10,800 Bear Stearns Cos., Inc. (The) .............. 1,122,552 17 Berkshire Hathaway, Inc., Class A\^ ........ 1,419,500 19,600 Capital One Financial Corp. ................ 1,568,196 40,600 Chubb Corp. ................................ 3,475,766 19,440 Cincinnati Financial Corp. ................. 769,046 30,600 CIT Group, Inc. ............................ 1,314,882 382,181 Citigroup, Inc. ............................ 17,668,229 40,400 Comerica, Inc. ............................. 2,335,120 68,300 Countrywide Financial Corp. ................ 2,637,063 23,500 Endurance Specialty Holdings, Ltd. ......... 888,770 45,800 Fannie Mae ................................. 2,674,720 47,700 Freddie Mac ................................ 3,111,471 83,800 Genworth Financial, Inc., Class A .......... 2,533,274 23,500 Golden West Financial Corp. ................ 1,512,930 30,600 Goldman Sachs Group, Inc. .................. 3,121,812 22,000 Hartford Financial Services Group, Inc. ....................................... 1,645,160 29,200 Huntington Bancshares, Inc. ................ 704,888 145,312 JPMorgan Chase & Co. ....................... 5,132,420 61,300 KeyCorp .................................... 2,032,095 10,900 Lehman Brothers Holdings, Inc. ............. 1,082,152 33,700 Marshall & Ilsley Corp. .................... 1,497,965
12 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Shares Value -------------- --------------- Financials (continued) 66,300 Merrill Lynch & Co., Inc. .................... $ 3,647,163 62,900 MetLife, Inc. ................................ 2,826,726 14,800 Moody's Corp. ................................ 665,408 35,600 Morgan Stanley ............................... 1,867,932 26,200 National City Corp. .......................... 893,944 44,500 North Fork Bancorp, Inc. ..................... 1,250,005 5,600 PartnerRe, Ltd. .............................. 360,752 31,300 Platinum Underwriters Holdings, Ltd. ......... 995,966 44,000 PNC Financial Services Group, Inc. ........... 2,396,240 42,000 Principal Financial Group .................... 1,759,800 29,800 Prudential Financial, Inc. ................... 1,956,668 80,823 St. Paul Travelers Cos., Inc. (The) .......... 3,194,933 38,700 State Street Corp. ........................... 1,867,275 18,000 SunTrust Banks, Inc. ......................... 1,300,320 15,300 Torchmark Corp. .............................. 798,660 67,500 U.S. Bancorp ................................. 1,971,000 48,800 UnumProvident Corp. .......................... 894,016 95,751 Wachovia Corp. ............................... 4,749,251 52,100 Washington Mutual, Inc. ...................... 2,119,949 43,900 Wells Fargo & Co. ............................ 2,703,362 16,400 XL Capital, Ltd., Class A .................... 1,220,488 ----------- 125,003,282 ----------- Health Care - 10.1% 83,800 Abbott Laboratories .......................... 4,107,038 33,600 Aetna, Inc. .................................. 2,782,752 7,800 AmerisourceBergen Corp. ...................... 539,370 47,100 Amgen, Inc.\^ ................................ 2,847,666 54,700 Baxter International, Inc. ................... 2,029,370 22,400 Bristol-Myers Squibb Co. ..................... 559,552 13,400 Cigna Corp. .................................. 1,434,202 62,100 Eli Lilly & Co. .............................. 3,459,591 11,100 Fisher Scientific International, Inc.\^ ...... 720,390 25,000 Genzyme Corp.\^ .............................. 1,502,250 25,100 GlaxoSmithKline PLC ADR ...................... 1,217,601 22,600 HCA, Inc. .................................... 1,280,742 90,900 Johnson & Johnson ............................ 5,908,500 15,300 Laboratory Corp. of America Holdings\^ ................................... 763,470 35,100 Medco Health Solutions, Inc.\^ ............... 1,872,936 60,700 Medtronic, Inc. .............................. 3,143,653 85,300 Merck & Co., Inc. ............................ 2,627,240 235,550 Pfizer, Inc. ................................. 6,496,469 141,900 Schering-Plough Corp. ........................ 2,704,614 20,900 Thermo Electron Corp.\^ ...................... 561,583 43,400 WellPoint, Inc.\^ ............................ 3,022,376 42,400 Wyeth ........................................ 1,886,800 ----------- 51,468,165 ----------- Industrials - 10.7% 13,200 3M Co. ....................................... 954,360 6,200 Apollo Group, Inc., Class A\^ ................ 484,964 92,400 Boeing Co. ................................... 6,098,400 62,300 Burlington Northern Santa Fe Corp. ........... 2,933,084 11,900 Caterpillar, Inc. ............................ 1,134,189
Shares Value -------------- --------------- Industrials (continued) 31,600 Cooper Industries, Ltd., Class A ............. $ 2,019,240 48,100 CSX Corp. .................................... 2,051,946 20,500 Eaton Corp. .................................. 1,227,950 19,600 Equifax, Inc. ................................ 699,916 94,100 Flextronics International, Ltd.\^ ............ 1,243,061 20,500 General Dynamics Corp. ....................... 2,245,570 359,000 General Electric Co. ......................... 12,439,350 28,200 Goodrich Corp. ............................... 1,155,072 23,400 Graco, Inc. .................................. 797,238 22,600 Ingersoll-Rand Co., Ltd., Class A ............ 1,612,510 66,300 Ingram Micro, Inc., Class A\^ ................ 1,038,258 13,500 ITT Educational Services, Inc.\^ ............. 721,170 59,200 Norfolk Southern Corp. ....................... 1,832,832 61,500 Owens-Illinois, Inc.\^ ....................... 1,540,575 9,000 Paccar, Inc. ................................. 612,000 19,500 Raytheon Co. ................................. 762,840 21,500 Rockwell Automation, Inc. .................... 1,047,265 20,000 Rockwell Collins, Inc. ....................... 953,600 3,255 Ship Finance International, Ltd. ............. 61,552 17,000 SPX Corp. .................................... 781,660 22,900 Textron, Inc. ................................ 1,736,965 78,100 Tyco International, Ltd. ..................... 2,280,520 6,400 United Parcel Service, Inc., Class B ......... 442,624 63,500 United Technologies Corp. .................... 3,260,725 ----------- 54,169,436 ----------- Information Technology - 12.8% 31,200 Accenture, Ltd., Class A\^ ................... 707,303 31,657 ADC Telecommunications, Inc.\^................ 689,173 24,200 Adobe Systems, Inc. .......................... 692,604 52,140 Agere Systems, Inc.\^ ........................ 625,680 53,100 Analog Devices, Inc. ......................... 1,981,161 13,900 Autodesk, Inc. ............................... 477,743 47,900 Avnet, Inc.\^ ................................ 1,079,187 43,000 Celestica, Inc.\^ ............................ 576,200 259,500 Cisco Systems, Inc.\^ ........................ 4,959,045 60,200 Comcast Corp., Special Class A\^ ............. 1,802,990 15,400 Computer Sciences Corp.\^ .................... 672,980 209,900 Corning, Inc.\^ .............................. 3,488,538 83,400 Dell, Inc.\^ ................................. 3,295,134 65,700 Earthlink, Inc.\^ ............................ 568,962 8,200 Electronic Arts, Inc.\^ ...................... 464,202 57,000 Electronic Data Systems Corp. ................ 1,097,250 49,600 EMC Corp.\^ .................................. 680,016 13,000 First Data Corp. ............................. 521,820 211,100 Hewlett-Packard Co. .......................... 4,962,961 221,200 Intel Corp. .................................. 5,764,472 37,300 International Business Machines Corp.......... 2,767,660 517,800 Microsoft Corp. .............................. 12,862,152 60,064 News Corp., Class A .......................... 971,836 146,000 Nokia Oyj ADR ................................ 2,429,440 197,200 Nortel Networks Corp.\^ ...................... 514,692 31,700 Oracle Corp.\^ ............................... 418,440 91,200 Quantum Corp.\^ .............................. 270,864
13 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Shares Value -------------- --------------- Information Technology (continued) 155,900 Sanmina-SCI Corp.\^ ........................ $ 852,773 207,800 Solectron Corp.\^ .......................... 787,562 27,800 Storage Technology Corp.\^ ................. 1,008,862 192,700 Sun Microsystems, Inc.\^ ................... 718,771 21,400 Tech Data Corp.\^ .......................... 783,454 130,000 Tellabs, Inc.\^ ............................ 1,131,000 54,000 Texas Instruments, Inc. .................... 1,515,780 90,400 Yahoo!, Inc.\^ ............................. 3,132,360 ----------- 65,273,067 ----------- Materials - 2.8% 28,100 Air Products & Chemicals, Inc. ............. 1,694,430 44,900 Dow Chemical Co. (The) ..................... 1,999,397 32,200 du Pont (E.I.) de Nemours & Co. ............ 1,384,922 29,800 Engelhard Corp. ............................ 850,790 20,400 Hercules, Inc.\^ ........................... 288,660 35,600 International Paper Co. .................... 1,075,476 14,400 IPSCO, Inc. ................................ 629,280 10,900 Phelps Dodge Corp. ......................... 1,008,250 16,600 Potlatch Corp. ............................. 868,678 18,400 PPG Industries, Inc. ....................... 1,154,784 12,900 Rio Tinto PLC ADR .......................... 1,572,768 53,700 Smurfit-Stone Container Corp.\^ ............ 546,129 32,500 United States Steel Corp. .................. 1,117,025 ----------- 14,190,589 ----------- Telecommunication Services - 3.0% 42,100 AT&T Corp. ................................. 801,584 55,200 Deutsche Telekom AG ADR .................... 1,016,784 84,900 Nextel Communications, Inc., Class A\^ .................................. 2,743,119 137,200 SBC Communications, Inc. ................... 3,258,500 111,800 Sprint Corp. ............................... 2,805,062 117,158 Verizon Communications, Inc. ............... 4,047,809 32,200 Vodafone Group PLC ADR ..................... 783,104 ----------- 15,455,962 -----------
Shares Value -------------- --------------- Utilities - 3.3% 56,220 American Electric Power Co., Inc. .......... $ 2,072,831 21,500 Consolidated Edison, Inc. .................. 1,007,060 42,200 Duquesne Light Holdings, Inc. .............. 788,296 48,300 Entergy Corp. .............................. 3,649,065 28,100 National Fuel Gas Co. ...................... 812,371 27,200 NSTAR ...................................... 838,576 65,100 PG&E Corp. ................................. 2,443,854 24,900 PPL Corp. .................................. 1,478,562 78,700 Southern Co. (The) ......................... 2,728,529 9,500 TXU Corp. .................................. 789,355 ----------- 16,608,499 ----------- Total Common Stock (Cost $456,861,805) 501,638,948 -----------
Maturity Date Par ---------- ------------- REPURCHASE AGREEMENTS - 0.3% Agreement with UBS Securities, 2.93% dated 06/30/2005 to be repurchased at $1,502,122, collateralized by $1,070,000 U.S. Treasury Bonds, 8.00%, due 11/15/2001 (market value $ 1,548,156) (Cost $1,502,000) 07/21/05 $1,502,000 1,502,000 --------- Total Investments - 99.0% (Cost $458,363,805) 503,140,948 Other Assets & Liabilities, Net - 1.0% 4,853,483 ----------- NET ASSETS - 100.0% $507,994,431 ============
\^ Non-income producing security. ADR - American Depository Receipt. 14 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS June 30, 2005 (Unaudited)
Maturity Date Par Value ---------- ---------------- --------------- ASSET BACKED SECURITIES - 5.8% Amortizing Residential Collateral Trust 3.59 %(a) 01/01/32 $ 112,294 $ 112,487 Bayview Financial Acquisition Trust 3.77 %(a) 02/28/44 367,745 368,113 Chase Issuance Trust 3.22 % 06/15/10 475,000 467,319 Chase Manhattan Auto Owner Trust 3.87 % 06/15/09 550,000 549,398 Chesapeake Funding LLC 3.52 %(a) 08/07/15 1,100,000 1,101,366 Citibank Credit Card Issuance Trust 2.55 % 01/20/09 525,000 513,964 6.90 % 10/15/07 425,000 428,890 Citibank Credit Card Master Trust I 6.10 % 05/15/08 525,000 534,688 Countrywide Asset-Backed Certificates 3.38 %(a) 06/25/35 438,512 438,963 Discover Card Master Trust I 3.25 %(a) 07/15/08 600,000 600,466 Green Tree Financial Corp. 9.15 % 01/15/18 56,343 51,211 Green Tree Home Improvement Loan Trust 7.60 % 07/15/20 24,182 24,208 Green Tree Recreational, Equipment & Consumer Trust 7.25 % 03/15/29 127,240 114,246 MBNA Credit Card Master Note Trust 2.65 % 11/15/10 600,000 577,390 2.70 % 09/15/09 525,000 513,654 3.30 % 07/15/10 510,000 501,294 MSDWCC Heloc Trust 3.28 %(a) 07/25/17 88,232 88,237 Nissan Auto Receivables Owner Trust 1.89 % 12/15/06 226,493 225,780 SLM Student Loan Trust 3.15 %(a) 10/26/09 325,710 325,660 --------- Total Asset Backed Securities (Cost $7,611,688) 7,537,334 --------- COLLATERALIZED MORTGAGE OBLIGATIONS - 12.0% Asset Securitization Corp. 6.75 % 02/14/43 260,000 274,665 6.82 %(a) 02/14/43 100,000 112,257 Bank of America Alternative Loan Trust 5.00 % 08/25/19 185,805 186,645 Bear Stearns Adjustable Rate Mortgage Trust 4.03 %(a) 07/25/34 821,712 809,081 Bear Stearns Commercial Mortgage Securities 4.67 % 06/11/41 325,000 327,552 4.82 % 11/11/41 345,000 352,001
Maturity Date Par Value ---------- ---------------- --------------- Capital Lease Funding Securitization LP 7.35%* 06/22/24 $ 304,246 $ 314,589 Commercial Mortgage Pass Through Certificates 7.42 % 08/15/33 290,000 323,947 Countrywide Alternative Loan Trust 3.54 %(a) 09/25/34 290,265 290,629 6.00 % 12/25/34 386,146 397,596 Countrywide Home Loan Mortgage Pass Through Trust 3.36 %(a) 02/25/35 430,569 430,434 CS First Boston Mortgage Securities Corp. 6.30 % 11/11/30 320,000 340,067 6.55 % 01/17/35 675,000 708,974 Deutsche Mortgage and Asset Receiving Corp. 6.54 % 06/15/31 796,650 835,115 GMAC Commercial Mortgage Securities, Inc. 4.65 % 04/10/40 575,000 581,835 7.18 % 08/15/36 303,671 331,726 7.46 % 08/16/33 280,000 315,721 GS Mortgage Securities Corp. II 6.14 % 10/18/30 462,769 484,827 6.62 % 10/18/30 400,000 424,225 Harborview Mortgage Loan Trust 3.48 %(a) 05/19/35 591,435 590,725 Impac CMB Trust 3.44 %(a) 10/25/33 287,348 287,373 3.58 %(a) 05/25/35 583,078 582,063 JP Morgan Chase Commercial Mortgage Securities Corp. 4.74 % 07/15/42 325,000 328,234 6.43 % 04/15/35 300,000 329,264 LB-UBS Commercial Mortgage Trust 4.06 %(a) 09/15/27 180,000 178,745 5.16 %(a) 06/15/29 360,000 374,688 7.37 % 08/15/26 270,000 304,395 Residential Asset Securitization Trust 4.75 % 02/25/19 1,379,676 1,372,348 Salomon Brothers Mortgage Securities VII 3.39 %(a) 03/25/32 281,469 282,235 6.59 % 12/18/33 300,000 327,986 Small Business Administration 4.75 % 08/10/14 319,901 323,170 Washington Mutual Mortgage Pass-Through Certificates 5.49 %(a) 01/25/35 563,945 570,831 Washington Mutual, Inc. 3.32 %(a) 04/25/45 496,264 496,291 3.42 %(a) 11/25/34 830,718 832,173
See Notes to Financial Statements. 15 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Maturity Date Par Value ----------------- ---------------- --------------- Wells Fargo Mortgage Backed Securities Trust 3.54 %(a) 09/25/34 $470,000 $ 457,788 ---------- Total Collateralized Mortgage Obligations (Cost $15,526,352) 15,480,195 ---------- CORPORATE BONDS - 21.1% Consumer Discretionary - 2.2% Caesars Entertainment, Inc. 8.12 % 05/15/11 12,000 13,800 Clear Channel Communications ,Inc. 4.25 % 05/15/09 50,000 48,183 Comcast Cable Communications Holdings, Inc. 8.38 % 03/15/13 75,000 91,451 Comcast Corp. 5.65 % 06/15/35 25,000 24,895 6.50 % 01/15/15 345,000 384,552 COX Communications, Inc. 4.62 % 06/01/13 20,000 19,414 7.75 % 11/01/10 15,000 16,984 CSC Holdings, Inc. 7.62 % 04/01/11 10,000 9,875 7.88 % 02/15/18 31,000 30,535 D.R. Horton, Inc. 7.88 % 08/15/11 10,000 11,240 DirecTV Holdings LLC 6.38%* 06/15/15 35,000 34,825 Eastman Kodak Co. 7.25 % 11/15/13 15,000 15,770 Echostar DBS Corp. 6.35 %(a) 10/01/08 25,000 25,562 Federated Department Stores, Inc. 6.79 % 07/15/27 30,000 33,909 General Motors Corp. 8.38 % 07/33-07/33 60,000 54,912 Harrah's Operating Co., Inc. 7.88 % 12/15/05 43,000 43,645 Historic TW, Inc. 6.62 % 05/15/29 165,000 183,853 Inn of the Mountain Gods Resort & Casino 12.00 % 11/15/10 20,000 23,100 International Paper Co. 5.50 % 01/15/14 50,000 51,056 JC Penney Co., Inc. 7.40 % 04/01/37 10,000 10,800 John Q. Hammons Hotels LP 8.88 % 05/15/12 15,000 16,350 K2, Inc. 7.38 % 07/01/14 20,000 21,050 KB Home 6.25 % 06/15/15 60,000 61,000
Maturity Date Par Value ----------------- ---------------- --------------- Consumer Discretionary (continued) Lamar Media Corp. 7.25 % 01/01/13 $ 25,000 $ 26,375 Lennar Corp. 5.60%* 05/31/15 55,000 56,366 Liberty Media Corp. 4.91 %(a) 09/17/06 123,000 123,759 5.70 % 05/15/13 60,000 55,806 MacDermid, Inc. 9.12 % 07/15/11 10,000 10,775 May Department Stores Co. (The) 7.88 % 03/01/30 30,000 37,936 MGM Mirage 6.00 % 10/01/09 45,000 45,225 6.75 % 09/01/12 20,000 20,600 8.50 % 09/15/10 50,000 55,500 Mohegan Tribal Gaming Authority 6.12%* 02/15/13 10,000 10,100 8.00 % 04/01/12 5,000 5,350 Movie Gallery, Inc. 11.00%* 05/01/12 10,000 10,500 News America, Inc. 6.20 % 12/15/34 155,000 162,671 Oxford Industries, Inc. 8.88 % 06/01/11 10,000 10,700 Premier Entertainment Biloxi LLC 10.75 % 02/01/12 10,000 9,700 Pulte Homes, Inc. 6.00 % 02/15/35 15,000 14,594 Reader's Digest Association, Inc. (The) 6.50 % 03/01/11 10,000 10,150 Station Casinos, Inc. 6.00 % 04/01/12 20,000 20,300 Tele-Communications - TCI Group 7.88 % 08/01/13 295,000 351,129 Time Warner, Inc. 6.88 % 05/01/12 400,000 451,368 7.70 % 05/01/32 50,000 63,251 Toys R US, Inc. 7.38 % 10/15/18 33,000 26,730 Viacom, Inc. 5.62 % 08/15/12 30,000 30,680 Walt Disney Co. 6.20 % 06/20/14 25,000 27,753 ---------- 2,864,079 ---------- Consumer Staples - 0.6% Altria Group, Inc. 7.00 % 11/04/13 5,000 5,596 7.20 % 02/01/07 240,000 250,055 Delhaize America, Inc. 9.00 % 04/15/31 85,000 106,121 General Mills, Inc. 3.88 % 11/30/07 150,000 148,753 5.12 % 02/15/07 110,000 111,714
See Notes to Financial Statements. 16 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Maturity Date Par Value -------------- ---------------- --------------- Consumer Staples (continued) Kraft Foods, Inc. 6.25 % 06/01/12 $ 60,000 $ 65,959 Manor Care, Inc. 7.50 % 06/15/06 10,000 10,259 Smithfield Foods, Inc. 7.00 % 08/01/11 15,000 15,788 Unilever Capital Corp. 7.12 % 11/01/10 55,000 62,177 ---------- 776,422 ---------- Energy - 2.6% Amerada Hess Corp. 7.12 % 03/15/33 75,000 88,958 7.30 % 08/15/31 215,000 259,412 Apache Corp 6.25 % 04/15/12 180,000 200,990 Chesapeake Energy Corp. 6.25%* 01/15/18 40,000 39,400 7.50 % 09/15/13 10,000 10,825 7.75 % 01/15/15 20,000 21,600 ConocoPhillips 4.75 % 10/15/12 330,000 337,701 ConocoPhillips Holding Co. 6.95 % 04/15/29 10,000 12,563 El Paso Corp. 7.75 % 01/15/32 30,000 29,250 7.80 % 08/01/31 930,000 904,425 El Paso Corp. Convertible Debentures 4.87 %(b) 02/28/21 1,050,000 561,750 Enterprise Products Operating LP 4.00 % 10/15/07 25,000 24,750 FMC Corp. 10.25 % 11/01/09 12,000 13,515 Kerr-McGee Corp. 7.88 % 09/15/31 90,000 102,484 Occidental Petroleum Corp. 8.45 % 02/15/29 25,000 36,105 Pacific Gas & Electric Co. 3.82 %(a) 04/03/06 8,000 8,000 6.05 % 03/01/34 120,000 132,251 Pemex Project Funding Master Trust 5.75%* 12/15/15 40,000 39,820 Plains Exploration & Production Co. 7.12 % 06/15/14 20,000 21,400 Pride International, Inc. 7.38 % 07/15/14 20,000 21,950 Southern Natural Gas Co. 8.88 % 03/15/10 20,000 21,939 Suburban Propane Partners LP 6.88%* 12/15/13 30,000 28,500 Transcontinental Gas Pipe Line Corp. 8.88 % 07/15/12 35,000 41,650
Maturity Date Par Value -------------- ---------------- --------------- Energy (continued) Vintage Petroleum, Inc. 7.88 % 05/15/11 $ 20,000 $ 21,100 8.25 % 05/01/12 24,000 26,040 Williams Cos., Inc. 7.50 % 01/15/31 173,000 187,272 7.62 % 07/15/19 10,000 11,250 7.75 % 06/15/31 80,000 88,200 XTO Energy, Inc. 6.25 % 04/15/13 20,000 21,645 7.50 % 04/15/12 36,000 41,405 ---------- 3,356,150 ---------- Financials - 10.5% American Express Bank FSB 3.35 %(a) 11/21/07 275,000 275,208 Bank of America Corp. 3.42 %(a) 02/17/09 100,000 100,224 3.88 % 01/15/08 360,000 358,584 4.88 % 01/15/13 120,000 123,096 5.25 % 02/01/07 200,000 204,111 BellSouth Capital Funding Corp. 7.88 % 02/15/30 160,000 206,514 Berkshire Hathaway Finance Corp. 3.38 % 10/15/08 150,000 145,933 4.12 % 01/15/10 95,000 94,431 CIT Group, Inc. 4.00 % 05/08/08 5,000 4,964 Citigroup, Inc. 3.62 % 02/09/09 1,005,000 988,387 4.12 % 02/22/10 175,000 174,379 5.00 % 09/15/14 265,000 271,081 Conseco Finance Securitizations Corp. 0.00 % 03/01/33 650,722 171,934 Deutsche Bank AG 3.84 % 03/15/07 150,000 149,748 Devon Financing Corp ULC 7.88 % 09/30/31 80,000 104,056 DI Finance/DynCorp International 9.50%* 02/15/13 10,000 9,300 EOP Operating LP 7.00 % 07/15/11 100,000 110,887 FleetBoston Financial Corp. 3.85 % 02/15/08 80,000 79,274 Ford Motor Credit Co. 4.95 % 01/15/08 130,000 124,010 6.62 % 06/16/08 70,000 69,135 7.00 % 10/01/13 5,000 4,797 7.25 % 10/25/11 50,000 48,113 7.38 % 10/09-02/11 700,000 683,846 Forest City Enterprises, Inc. 6.50 % 02/01/17 8,000 7,980
See Notes to Financial Statements. 17 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Maturity Date Par Value ----------------- ---------------- --------------- Financials (continued) General Electric Capital Corp. 3.45 %(a) 01/15/08 $950,000 $ 943,310 3.60 % 10/15/08 65,000 63,906 4.12 % 03/08-09/09 565,000 564,271 General Motors Acceptance Corp. 4.60 %(a) 09/23/08 175,000 161,786 4.75 %(c) 09/14/09 55,000 60,549 5.62 % 05/15/09 90,000 84,284 6.12 % 09/06-08/07 730,000 727,461 6.15 % 04/05/07 40,000 39,792 6.31 % 11/30/07 50,000 48,434 7.25 % 03/02/11 165,000 154,716 7.75 % 01/19/10 90,000 87,979 Goldman Sachs Group, Inc. 6.60 % 01/15/12 290,000 322,310 Host Marriott LP 9.25 % 10/01/07 4,000 4,320 HSBC Bank USA 3.87 % 06/07/07 300,000 297,981 HSBC Finance Corp. NA 6.38 % 11/27/12 40,000 44,239 6.40 % 06/17/08 325,000 344,218 6.50 % 11/15/08 213,000 227,344 JP Morgan Chase & Co. 3.62 % 05/01/08 50,000 49,228 5.12 % 09/15/14 75,000 76,721 5.25 % 05/30/07 330,000 336,897 5.35 % 03/01/07 100,000 101,999 5.75 % 01/02/13 195,000 208,925 6.38 % 02/15/08 100,000 105,138 Lehman Brothers Holdings, Inc. 6.62 % 01/18/12 150,000 167,533 7.88 % 08/15/10 55,000 63,887 Metlife, Inc. 5.70 % 06/15/35 80,000 82,470 Mizuho JGB Investment LLC 9.87 %(a)* 12/31/49 210,000 237,905 Mizuho Preferred Capital Co. LLC 8.79 %(a)* 12/31/49 360,000 397,188 Morgan Stanley 3.62 % 04/01/08 270,000 265,814 4.00 % 01/15/10 5,000 4,924 4.25 % 05/15/10 100,000 99,336 5.80 % 04/01/07 75,000 77,091 Protective Life Secured Trust 3.70 % 11/24/08 85,000 83,715 RBS Capital Trust I 4.71 % 12/31/49 90,000 88,793 Rouse Co. (The) 3.62 % 03/15/09 35,000 33,102 5.38 % 11/26/13 125,000 121,099 Sensus Metering Systems, Inc. 8.62 % 12/15/13 10,000 9,300
Maturity Date Par Value ----------------- ---------------- --------------- Financials (continued) SLM Corp. 3.62 %(a) 03/17/08 $225,000 $ 221,159 4.27 % 04/01/09 220,000 216,260 State Street Bank & Trust Corp. 3.33 % 12/11/06 125,000 124,998 SunTrust Banks, Inc. 3.62 % 10/15/07 270,000 266,446 4.00 % 10/15/08 65,000 64,649 UBS Preferred Funding Trust I 8.62 %(a) 12/31/49 25,000 29,703 UGS Corp. 10.00 % 06/01/12 20,000 22,200 US Bancorp 3.12 % 03/15/08 170,000 165,497 US Bank NA 2.87 % 02/01/07 250,000 245,970 Ventas Realty LP/Ventas Capital Corp. 6.75%* 06/01/10 10,000 10,376 8.75 % 05/01/09 20,000 22,100 9.00 % 05/01/12 10,000 11,500 Verizon Global Funding Corp. 4.38 % 06/01/13 35,000 34,610 6.88 % 06/15/12 10,000 11,349 7.38 % 09/01/12 10,000 11,685 7.75 % 12/01/30 100,000 129,125 Wells Fargo & Co. 4.00 % 08/15/08 400,000 399,294 4.12 % 03/10/08 125,000 124,876 4.20 % 01/15/10 105,000 104,945 5.00 % 11/15/14 75,000 77,218 ----------- 13,591,917 ----------- Health Care - 0.8% Bio-Rad Laboratories, Inc. 6.12 % 12/15/14 20,000 20,200 7.50 % 08/15/13 5,000 5,350 Boston Scientific Corp 5.45 % 06/15/14 40,000 41,990 Bristol-Myers Squibb Co. 5.75 % 10/01/11 115,000 123,037 DaVita, Inc. 7.25%* 03/15/15 150,000 154,125 HCA, Inc. 5.50 % 12/01/09 25,000 25,074 5.75 % 03/15/14 10,000 9,956 7.25 % 05/20/08 22,000 23,266 7.69 % 06/15/25 30,000 32,141 Merck & Co., Inc. 4.75 % 03/01/15 125,000 126,116 Omnicare, Inc. 8.12 % 03/15/11 39,000 41,145
See Notes to Financial Statements. 18 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Maturity Date Par Value ---------- ---------------- --------------- Health Care (continued) Tenet Healthcare Corp. 6.38 % 12/01/11 $121,000 $ 115,252 7.38 % 02/01/13 40,000 39,500 9.25%* 02/01/15 171,000 177,412 WellPoint, Inc. 5.95 % 12/15/34 50,000 54,578 ---------- 989,142 ---------- Industrials - 1.8% BE Aerospace, Inc. 8.50 % 10/01/10 30,000 33,150 Boeing Capital Corp. 5.80 % 01/15/13 85,000 92,531 Case New Holland, Inc. 9.25 % 08/01/11 10,000 10,500 DaimlerChrysler NA Holding Corp. 6.50 % 11/15/13 50,000 54,109 7.30 % 01/15/12 135,000 150,854 Delta Air Lines, Inc. 6.72 % 01/02/23 116,306 122,084 Horizon Lines LLC 9.00%* 11/01/12 17,000 17,808 IMC Global, Inc. 10.88 % 08/01/13 30,000 35,175 International Steel Group, Inc. 6.50 % 04/15/14 5,000 4,800 K. Hovnanian Enterprises, Inc. 6.25 % 01/15/15 30,000 29,625 Kansas City Southern Railway Corp. 9.50 % 10/01/08 23,000 25,070 Lockheed Martin Corp. 7.65 % 05/01/16 95,000 118,072 8.50 % 12/01/29 60,000 86,651 National Waterworks, Inc. 10.50 % 12/01/12 10,000 11,250 Norfolk Southern Corp. 6.20 % 04/15/09 90,000 95,952 Northrop Grumman Corp. 4.08 % 11/16/06 150,000 149,567 7.75 % 02/15/31 40,000 54,106 OMI Corp. 7.62 %(d) 12/01/13 30,000 29,888 Overseas Shipholding Group 7.50 % 02/15/24 30,000 28,950 Raytheon Co. 6.75 % 08/15/07 23,000 24,129 7.00 % 11/01/28 40,000 49,007 Raytheon Co. Pfd. Unit 7.00 % 05/15/06 2 79,583 Schuler Homes, Inc. 9.38 % 07/15/09 26,000 27,247 Service Corp International US 7.00%* 06/15/17 20,000 20,550 7.70 % 04/15/09 20,000 21,400
Maturity Date Par Value ---------- ---------------- --------------- Industrials (continued) Solo Cup Co. 8.50 % 02/15/14 $ 10,000 $ 9,350 Teekay Shipping Corp. 8.88 %(d) 07/15/11 19,000 21,684 Terex Corp. 7.38 % 01/15/14 5,000 5,175 United Technologies Corp. 4.88 % 05/01/15 50,000 51,146 8.88 % 11/15/19 25,000 35,045 Waste Management, Inc. 6.88 % 05/15/09 425,000 460,122 7.00 % 10/15/06 125,000 129,212 7.38 % 05/15/29 165,000 198,577 ---------- 2,282,369 ---------- Information Technology - 0.0%# Freescale Semiconductor, Inc. 5.89 %(a) 07/15/09 10,000 10,388 ---------- Materials - 0.2% Georgia-Pacific Corp. 7.70 % 06/15/15 13,000 14,820 8.00 % 01/15/24 5,000 5,750 8.88 % 02/01/10 18,000 20,430 9.38 % 02/01/13 1,000 1,131 9.50 % 12/01/11 1,000 1,208 Lyondell Chemical Co. 9.62 % 05/01/07 4,000 4,270 Trimas Corp. 9.88 % 06/15/12 10,000 8,400 Westlake Chemical Corp. 8.75 % 07/15/11 10,000 10,875 Weyerhaeuser Co. 6.75 % 03/15/12 175,000 192,542 ---------- 259,426 ---------- Telecommunication Services - 0.9% BellSouth Corp. 4.20 % 09/15/09 75,000 74,734 4.75 % 11/15/12 30,000 30,157 6.55 % 06/15/34 25,000 28,465 Cincinnati Bell, Inc. 7.25 % 07/15/13 55,000 57,750 Citizens Communications Co. 6.25 % 01/15/13 10,000 9,675 MagnaChip Semiconductor Finance Co. SA 6.26 %(a)* 12/15/11 25,000 24,750 New Cingular Wireless Services, Inc. 8.12 % 05/01/12 85,000 101,842 Nextel Communications, Inc. 5.95 % 03/15/14 15,000 15,581 7.38 % 08/01/15 20,000 21,600
See Notes to Financial Statements. 19 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Maturity Date Par Value ---------- ---------------- --------------- Telecommunication Services (continued) Qwest Capital Funding, Inc. 7.25 % 02/15/11 $ 10,000 $ 9,575 7.75 % 02/15/31 30,000 25,875 Qwest Communications International, Inc. 7.27 %(a) 02/15/09 40,000 39,300 Qwest Corp. 5.62 % 11/15/08 30,000 29,475 6.67 %(a)* 06/15/13 35,000 35,831 7.88%* 09/01/11 85,000 88,612 SBC Communications, Inc. 5.10 % 09/15/14 80,000 81,797 6.15 % 09/15/34 10,000 10,832 6.45 % 06/15/34 50,000 56,216 Sprint Capital Corp. 4.78 % 08/17/06 160,000 161,169 6.00 % 01/15/07 70,000 71,732 8.38 % 03/15/12 40,000 48,113 8.75 % 03/15/32 70,000 97,379 Verizon New Jersey, Inc. 5.88 % 01/17/12 90,000 95,140 ---------- 1,215,600 ---------- Utilities - 1.5% AES Corp. (The) 8.75 % 06/15/08 16,000 17,240 8.88 % 02/15/11 19,000 21,185 9.38 % 09/15/10 97,000 109,852 9.50 % 06/01/09 68,000 75,820 Amerigas Partners LP 7.25%* 05/20/15 10,000 10,400 Cleveland Electric Illuminating Co. (The) 5.65 % 12/15/13 40,000 42,069 Devon Energy Corp. 7.95 % 04/15/32 140,000 184,151 Dominion Resources, Inc. 4.12 % 02/15/08 30,000 29,872 4.75 % 12/15/10 30,000 30,182 5.12 % 12/15/09 80,000 82,114 5.70 % 09/17/12 90,000 94,907 5.95 % 06/15/35 45,000 46,612 FirstEnergy Corp. 5.50 % 11/15/06 40,000 40,685 6.45 % 11/15/11 50,000 54,631 7.38 % 11/15/31 335,000 409,497 KCS Energy, Inc. 7.12%* 04/01/12 5,000 5,100 Midwest Generation LLC 8.75 % 05/01/34 35,000 39,200 Midwest Generation LLC, Series B 8.56 % 01/02/16 100,000 110,250
Maturity Date Par Value ---------- ---------------- --------------- Utilities (continued) Orion Power Holdings, Inc. 12.00 % 05/01/10 $ 51,000 $ 61,072 Peabody Energy Corp. 6.88 % 03/15/13 28,000 29,680 Progress Energy, Inc. 7.75 % 03/01/31 70,000 87,339 Reliant Energy, Inc. 6.75 % 12/15/14 5,000 4,888 TXU Corp. 6.38 % 06/15/06 10,000 10,169 6.50%* 11/15/24 100,000 97,954 6.55%* 11/15/34 160,000 157,140 TXU Electric Delivery Co. 6.38 % 01/15/15 50,000 55,423 TXU Energy Co, LLC 3.92 %(a) 01/17/06 20,000 19,994 7.00 % 03/15/13 50,000 55,762 ---------- 1,983,188 ---------- Total Corporate Bonds (Cost $26,626,843) 27,328,681 ---------- FOREIGN BONDS - 10.9% Australia - 0.2% Australia Government Bond 5.25 %(c) 08/15/10 410,000 314,085 ---------- Bermuda - 0.0% Intelsat Bermuda, Ltd. 6.50 %(d) 11/01/13 30,000 24,301 7.80 %(a)(d)* 01/15/12 10,000 10,176 8.25 %(d)* 01/15/13 5,000 5,162 ---------- 39,639 ---------- Brazil - 0.7% Brazilian Government International Bond 4.31 %(a)(d) 04/15/12 168,826 162,393 8.00 %(d) 04/15/14 153,047 156,766 11.00 %(d) 08/17/40 119,000 143,157 12.00 %(d) 04/15/10 130,000 157,950 14.50 %(d) 10/15/09 180,000 234,000 ---------- 854,266 ---------- Bulgaria - 0.2% Bulgaria Government International Bond 8.25 %(d) 01/15/15 224,000 282,038 ---------- Canada - 1.3% Abitibi-Consolidated, Inc. 8.38 %(d) 04/01/15 25,000 25,500 Anadarko Finance Co. 6.75 %(d) 05/01/11 200,000 222,222 7.50 %(d) 05/01/31 30,000 37,875 Canadian Government Bond 4.00 %(c)(e) 12/01/31 130,000 178,158
See Notes to Financial Statements. 20 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Maturity Date Par Value -------------- ---------------- --------------- Canada (continued) ChevronTexaco Capital Co. 3.50%(d) 09/17/07 $ 200,000 $ 198,062 Conoco Funding Co. 6.35%(d) 10/15/11 120,000 132,876 7.25%(d) 10/15/31 35,000 45,945 EnCana Corp. 6.30%(d) 11/01/11 90,000 98,126 6.50%(d) 08/15/34 25,000 28,691 Hydro Quebec 6.30%(d) 05/11/11 60,000 66,298 Ispat Inland ULC 9.75%(d) 04/01/14 78,000 90,870 Petro-Canada 5.95%(d) 05/15/35 75,000 78,455 Province of Ontario 6.25%(c) 06/16/15 280,000 193,544 Province of Quebec 5.75%(d) 02/15/09 75,000 79,257 Rogers Cable, Inc. 6.75%(d) 03/15/15 10,000 10,200 Rogers Wireless Communications, Inc. 6.38%(d) 03/01/14 20,000 20,350 7.50%(d) 03/15/15 15,000 16,312 Shaw Communications, Inc. 7.20%(d) 12/15/11 24,000 26,160 Sun Media Corp. 7.62%(d) 02/15/13 10,000 10,588 Suncor Energy, Inc. 5.95%(d) 12/01/34 30,000 33,374 Western Oil Sands, Inc. 8.38%(d) 05/01/12 37,000 42,134 ---------- 1,634,997 ---------- Cayman Islands - 0.4% Systems 2001 AT LLC 6.66%* 09/15/13 424,604 463,090 XL Capital Ltd. 6.38 %(d) 11/15/24 40,000 43,532 ---------- 506,622 ---------- Chile - 0.0%# Empresa Nacional de Electricidad SA 8.35 %(d) 08/01/13 20,000 23,230 ---------- Colombia - 0.3% Colombia Government International Bond 9.75 %(d) 04/09/11 134,649 153,769 10.50 %(d) 07/09/10 45,000 53,550 11.75 %(d) 02/25/20 90,000 118,350 ---------- 325,669 ---------- France - 1.0% Crown European Holdings SA 10.88 %(d) 03/01/13 30,000 35,250
Maturity Date Par Value -------------- ---------------- --------------- France (continued) France Government Bond OAT 3.00 %(e) 07/25/09 $ 800,000 $1,181,979 France Telecom SA 8.75 %(d) 03/01/31 25,000 34,855 Rhodia SA 10.25 %(d) 06/01/10 20,000 21,450 ---------- 1,273,534 ---------- Germany - 0.9% Deutsche Bundesrepublik 4.25 %(c) 01/04/14 910,000 1,205,488 5.25 %(c) 01/04/11 900 1,238 ---------- 1,206,726 ---------- Ireland - 0.2% Depfa ACS Bank 3.62 %(d) 10/29/08 150,000 148,209 Eircom Funding 8.25 %(d) 08/15/13 50,000 54,250 Elan Finance PLC 7.75 %(d)* 11/15/11 30,000 25,650 ---------- 228,109 ---------- Israel - 0.3% Israel Government AID Bond 5.50 %(d) 04/24-09/33 400,000 451,505 ---------- Japan - 0.6% Japan Finance Corp. for Municipal Enterprises 4.62 %(d) 04/21/15 200,000 203,472 UBS AG Park Avenue 0.10 %(c) 09/27/05 66,000,000 595,506 ---------- 798,978 ---------- Luxembourg - 0.8% Telecom Italia Capital SA 4.95 %(d)* 09/30/14 40,000 39,606 5.25 %(d) 11/15/13 35,000 35,532 6.00 %(d)* 09/30/34 115,000 117,406 Tyco International Group SA 6.00 %(d) 11/15/13 220,000 239,249 6.12 %(d) 11/01/08 40,000 42,354 6.38 %(d) 02/15/06 30,000 30,401 6.75 %(d) 02/15/11 10,000 11,101 7.00 %(d) 06/15/28 418,000 504,105 ---------- 1,019,754 ---------- Mexico - 1.4% Mexican Bonos 8.00 %(c) 12/24/08 1,951,000 174,773 9.00 %(c) 12/24/09 1,982,000 182,793
See Notes to Financial Statements. 21 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Maturity Date Par Value -------------- ---------------- --------------- Mexico (continued) Mexico Government International Bond 7.50%(d) 04/08/33 $ 250,000 $ 286,875 8.00%(d) 09/24/22 25,000 30,625 8.30% 08/15/31 60,000 74,700 8.38%(d) 01/14/11 425,000 494,700 11.50%(d) 05/15/26 360,000 577,800 ---------- 1,822,266 ---------- Netherlands - 0.9% Deutsche Telekom International Finance BV 8.75%(d) 06/15/30 5,000 6,770 Netherlands Government Bond 4.25%(c) 07/15/13 880,000 1,162,244 ---------- 1,169,014 ---------- New Zealand - 0.1% New Zealand Government Bond 6.00%(c) 04/15/15 235,000 166,782 ---------- Norway - 0.2% Eksportfinans AS 3.38%(d) 01/15/08 240,000 236,610 ---------- Panama - 0.1% Panama Government International Bond 9.38%(d) 01/16/23 40,000 49,400 9.62%(d) 02/08/11 30,000 35,850 10.75%(d) 05/15/20 70,000 94,850 ---------- 180,100 ---------- Peru - 0.2% Peru Government International Bond 5.00%(a)(d) 03/07/17 117,300 111,728 8.75%(d) 11/21/33 100,000 112,750 ---------- 224,478 ---------- Russia - 0.7% Russia Government International Bond 5.00%(a)(d) 03/31/30 850,000 948,940 ---------- Sweden - 0.1% Svensk Exportkredit AB 2.88%(d) 01/26/07 100,000 98,403 ---------- United Kingdom - 0.3% British Telecommunications PLC 8.38%(d) 12/15/10 140,000 165,758 8.88%(d) 12/15/30 5,000 7,058 Diageo Capital PLC 3.38%(d) 03/20/08 85,000 83,386 Vodafone Group PLC 7.75%(d) 02/15/10 80,000 91,343 ---------- 347,545 ---------- Total Foreign Bonds (Cost $13,250,416) 14,153,290 ----------
Maturity Date Par Value -------------- ---------------- --------------- U.S. GOVERNMENT & AGENCY OBLIGATIONS - 24.6% Federal Home Loan Bank - 0.1% 5.92% 04/09/08 $ 100,000 $ 105,342 ---------- Federal Home Loan Bank Discount Notes - 0.5% 3.01% 07/06/05 700,000 699,690 ---------- Federal Home Loan Mortgage Corp. - 5.5% 2.00% 02/28/06 475,000 469,696 3.44%(a) 06/15/18 226,568 227,045 4.00% 03/01/10 133,641 132,236 4.50% 05/18-01/20 553,973 552,127 5.00% 12/17-10/33 4,981,849 5,004,668 5.50% 06/15-10/33 746,091 770,532 ---------- 7,156,304 ---------- Federal National Mortgage Assoc. - 13.0% 2.35% 04/06-04/07 695,000 679,108 2.71% 01/30/07 975,000 958,657 2.92% 08/15/07 190,000 189,891 3.00% 08/25/22 300,000 292,446 3.12% 03/16/09 225,000 217,817 3.39%(a) 03/25/35 300,000 303,797 4.50% 10/18-07/33 367,265 362,187 5.00% 06/18-07/35 2,215,717 2,225,526 5.12% 05/27/15 250,000 252,657 5.50% 03/11-01/35 5,958,875 6,104,080 6.00% 05/11-07/35 3,104,399 3,205,884 6.50% 11/12-08/34 1,249,199 1,295,548 7.00% 08/19-10/32 352,528 371,950 7.50% 10/22-04/30 211,420 225,981 8.00% 08/14-10/14 35,707 38,495 8.50% 09/14-03/30 91,492 99,785 8.75% 02/01/10 23,788 24,417 ---------- 16,848,226 ---------- Government National Mortgage Assoc. - 5.5% 3.75%(a) 05/20/34 422,298 415,524 5.50% 04/33-07/33 2,414,278 2,465,697 6.00% 02/14-03/34 3,460,140 3,569,290 6.50% 12/12-01/34 354,081 370,322 7.00% 08/15/28 3,744 3,969 7.50% 10/29-06/30 93,005 99,703 8.00% 05/20/22 14,532 15,658 8.25% 05/15/06 1,152 1,177 9.50% 08/15/17 542 600 11.50% 03/15/10 1,559 1,724 12.00% 03/14-07/15 4,384 4,952 ---------- 6,948,616 ---------- Total U.S. Government & Agency Obligations (Cost $31,414,869) 31,758,178 ----------
See Notes to Financial Statements. 22 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Maturity Date Par Value -------------- ------------- ------------- U.S. TREASURY OBLIGATIONS - 20.4% United States Treasury Notes & Bonds 0.88%(e) 04/15/10 $ 870,000 $ 871,415 2.00%(e) 07/15/14 535,000 569,004 3.00% 12/06-02/08 1,450,000 1,431,627 3.12% 01/31/07 3,800,000 3,770,014 3.38%(e) 01/07-01/12 4,790,000 4,898,838 3.50%(e) 05/07-01/11 5,035,000 5,194,299 3.62%(e) 06/10-04/28 375,000 565,755 3.75% 03/31/07 200,000 200,305 3.88%(e) 01/09-04/29 570,000 866,151 4.00% 04/10-02/15 1,590,000 1,604,512 4.12% 05/15/15 780,000 791,395 4.25%(e) 01/15/10 190,000 247,247 5.00% 02/15/11 170,000 180,617 5.38% 02/15/31 1,270,000 1,498,600 5.58%(b) 11/15/27 700,000 266,118 5.71%(b) 11/15/21 890,000 438,544 5.78%(b) 02/15/23 30,000 13,957 6.12% 11/15/27 635,000 801,936 6.25% 08/15/23 70,000 87,235 6.75% 08/15/26 425,000 569,317 8.00% 11/15/21 290,000 417,859 8.50% 02/15/20 30,000 44,002 8.75% 08/15/20 680,000 1,023,188 ---------- Total U.S. Treasury Obligations (Cost $25,676,836) 26,351,935 ---------- COMMERCIAL PAPER - 0.5% Bank of America Corp. 3.36% (Cost $694,055) 09/30/05 700,000 694,055 ---------- REPURCHASE AGREEMENTS - 10.2% Agreement with Nomura Corp., 3.33% dated 6/3/2005 to be repurchased at $13,001,203, collateralized by $13,320,000 Federal Home Loan Bank, 3.75%, due 08/13/2005 (market value $13,334,962) 3.33% (Cost $13,000,000) 07/01/05 13,000,000 13,000,000 ---------- MONEY MARKET FUNDS - 1.5% TCW Galileo Money Market Fund 2.66% (Cost $1,952,653) 1,952,653 1,952,653 ----------
Shares Value ---------- ---------------- PREFERRED STOCK - 0.3% 2,600 Fannie Mae O Series 7.00% .............. $ 144,869 460 Fresenius Medical Capital Trust II Guarantee 7.875% ....................... 48,185 12,850 General Motors Series B 5.25% .......... 238,496 ------------ Total Preferred Stock (Cost $418,103) 431,550 ------------ Total Investments - 107.3% (Cost $136,171,815) 138,687,871 Other Assets & Liabilities, Net - (7.3)% (9,425,135) ------------ NET ASSETS - 100.0% $129,262,736 ============
* Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified buyers. At June 30, 2005, these securities amounted to $2,639,641, or 2.0% of net assets. (a) Variable rate security. The interest rate represents the rate at June 30, 2005. (b) Zero coupon bond. The interest rate represents the yield at time of purchase. (c) Investment in non-U.S. Dollars. Par amount reflects principal in local currency. (d) Foreign security denominated in U.S. Dollars. (e) Inflation protection security. Principal amount periodically adjusted for inflation. # Amount represents less than 0.1%. See Notes to Financial Statements. 23 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND STATEMENT OF INVESTMENTS June 30, 2005 (Unaudited)
Shares Value(a) -------------- ----------------- COMMON STOCK - 96.2% Australia - 1.3% 26,695 Amcor, Ltd. ............................ $ 135,753 7,561 National Australia Bank, Ltd. .......... 176,676 9,019 Woodside Petroleum, Ltd. ............... 200,326 --------- 512,754 --------- Belgium - 0.8% 10,500 Fortis ................................. 290,606 --------- Brazil - 0.6% 2,790 Petroleo Brasileiro SA ADR ............. 145,443 3,400 Telecomunicacoes Brasileiras ADR ....... 103,700 --------- 249,143 --------- Denmark - 0.6% 7,200 Danske Bank AS ......................... 216,267 --------- Finland - 1.5% 22,700 M-Real Oyj ............................. 122,954 18,209 Nokia Oyj .............................. 302,982 2,012 Tietoenator Oyj ........................ 61,066 5,402 UPM-Kymmene Oyj ........................ 103,392 --------- 590,393 --------- France - 10.3% 13,700 Alcatel SA\^ ........................... 149,390 8,500 AXA SA ................................. 211,627 2,980 BNP Paribas ............................ 203,534 5,200 Bouygues ............................... 214,963 5,826 Capgemini SA\^ ......................... 184,340 4,474 Carrefour SA ........................... 216,374 7,020 Credit Agricole SA ..................... 177,362 8,579 France Telecom SA ...................... 249,667 2,306 Lafarge SA ............................. 209,603 423 Pagesjaunes Groupe SA .................. 9,880 5,510 Sanofi-Aventis ......................... 451,259 1,482 Schneider Electric SA .................. 111,444 6,700 Sodexho Alliance SA .................... 207,037 3,013 Total SA ............................... 705,033 3,867 Valeo SA ............................... 173,218 2,500 Vinci SA ............................... 207,760 8,787 Vivendi Universal SA ................... 275,371 --------- 3,957,863 --------- Germany - 8.0% 1,240 Allianz AG ............................. 141,440 3,800 Bayerische Motoren Werke AG ............ 172,335 2,600 Celesio AG ............................. 203,989 2,551 Deutsche Bank AG ....................... 198,622 9,790 Deutsche Lufthansa AG .................. 119,628 9,810 Deutsche Post AG ....................... 228,311 2,413 Deutsche Postbank AG ................... 118,616 19,560 Deutsche Telekom AG .................... 360,377 5,000 E.On AG ................................ 443,867 1,700 Fresenius Medical Care AG .............. 144,709 2,300 Heidelberger Druckmaschinen AG\^ ....... 67,361 13,400 Infineon Technologies AG\^ ............. 124,094
Shares Value(a) -------------- ----------------- Germany (continued) 5,619 Karstadtquelle AG\^ .................... $ 74,811 1,900 Medion AG .............................. 32,122 6,000 Metro AG ............................... 297,260 990 SAP AG ................................. 171,271 4,300 Volkswagen AG .......................... 195,975 --------- 3,094,788 --------- Greece - 0.9% 5,699 Alpha Bank Ae .......................... 151,612 10,500 Cosmote Mobile Telecommunications SA ..................................... 191,620 --------- 343,233 --------- Hong Kong - 2.5% 43,645 Bank of East Asia, Ltd. ................ 128,555 14,000 Cheung Kong Holdings, Ltd. ............. 135,788 56,300 China Mobile Hong Kong, Ltd. ........... 208,623 2,200 China Pete and Chemical Corp. ADR ...... 85,844 4,200 Citic Pacific, Ltd. .................... 12,255 302,000 Guangdong Investments, Ltd. ............ 87,970 16,500 Sun Hung Kai Properties, Ltd. .......... 162,286 25,000 Television Broadcasts, Ltd. ............ 140,963 --------- 962,286 --------- Israel - 0.2% 3,000 Teva Pharmaceutical Industries, Ltd. ADR .................................... 93,420 --------- Italy - 4.1% 2,080 Banche Popolari Unite Scrl ............. 41,238 2,310 Banco Popolare di Verona e Novara Scrl ................................... 39,321 9,940 Benetton Group SpA ..................... 91,217 16,623 Eni SpA ................................ 427,124 140,890 Finmeccanica SpA ....................... 131,183 19,700 Mediaset SpA ........................... 231,697 114,700 Unicredito Italiano SpA ................ 604,729 --------- 1,566,508 --------- Japan - 21.9% 22,000 77 Bank, Ltd. (The) .................... 134,945 28,600 Aeon Co., Ltd. ......................... 434,977 11,000 Ajinomoto Co., Inc. .................... 122,084 5,700 Alps Electric Co., Ltd. ................ 86,907 3,400 Canon, Inc. ............................ 178,209 4,200 Credit Saison Co., Ltd. ................ 139,015 41 Dentsu, Inc. ........................... 100,923 29,300 Fuji Heavy Industries, Ltd. ............ 121,461 4,100 Fuji Photo Film Co., Ltd. .............. 132,501 1,200 Funai Electric Co., Ltd. ............... 122,433 5,700 JS Group Corp. ......................... 96,302 21,000 Kaneka Corp. ........................... 234,638 24,000 Kao Corp. .............................. 563,898 38 Kddi Corp. ............................. 175,381 800 Keyence Corp. .......................... 178,342 10,900 Kuraray Co., Ltd. ...................... 102,921 1,100 Lawson, Inc. ........................... 38,267
See Notes to Financial Statements. 24 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Shares Value(a) -------------- ----------------- Japan (continued) 2,500 Mabuchi Motor Co., Ltd. ................... $ 143,806 2,800 Matsumotokiyoshi Co., Ltd. ................ 76,216 29,000 Minebea Co., Ltd. ......................... 116,696 14 Mitsubishi Tokyo Financial Group, Inc. ...................................... 118,015 7,900 Murata Manufacturing Co., Ltd. ............ 400,238 55,200 Nippon Express Co., Ltd. .................. 238,651 20,000 Nippon Oil Corp. .......................... 135,329 31 Nippon Paper Group, Inc. .................. 113,409 29 Nippon Telegraph & Telephone Corp.......... 124,003 24,000 Nissan Motor Co., Ltd. .................... 237,265 234 NTT Docomo, Inc. .......................... 344,764 10,900 Omron Corp. ............................... 239,582 900 Orix Corp. ................................ 134,388 5,800 Rinnai Corp. .............................. 142,455 1,800 Rohm Co., Ltd. ............................ 172,548 5,000 Secom Co., Ltd. ........................... 214,523 14,000 Seino Transportation Co., Ltd. ............ 126,176 13,000 Sekisui House, Ltd. ....................... 130,653 5,500 Shimachu Co., Ltd. ........................ 138,146 5,100 Shin-Etsu Chemical Co., Ltd. .............. 192,964 15,000 Showa Shell Sekiyu KK ..................... 149,971 8,900 Skylark Co., Ltd. ......................... 135,232 4,800 Sohgo Security Services Co., Ltd. ......... 63,404 17,900 Sumitomo Bakelite Co., Ltd. ............... 115,389 25,000 Sumitomo Chemical Co., Ltd. ............... 114,439 41 Sumitomo Mitsui Financial Group, Inc....... 275,709 10,500 Suzuki Motor Corp. ........................ 164,452 3,500 Takeda Pharmaceutical Co., Ltd. ........... 173,067 5,510 Takefuji Corp. ............................ 370,850 950 TDK Corp. ................................. 64,572 6,800 Toyoda Gosei Co., Ltd. .................... 109,142 3,900 Toyota Motor Corp. ........................ 139,175 4,300 Yamaha Motor Co., Ltd. .................... 78,624 --------- 8,457,057 --------- Luxembourg - 0.4% 2,436 OTP Bank .................................. 162,725 --------- Mexico - 0.7% 4,900 Coca-Cola Femsa, SA de CV ADR ............. 130,879 6,800 Telefonos de Mexico SA, Class L ADR ....................................... 128,452 --------- 259,331 --------- Netherlands - 7.6% 5,925 ABN AMRO Holding NV ....................... 145,564 13,432 Aegon NV .................................. 172,968 12,800 ASML Holding NV\^ ......................... 200,726 8,100 Fortis .................................... 224,062 6,280 Heineken NV ............................... 193,742 10,400 ING Groep NV .............................. 292,316 29,000 Koninklijke Ahold NV\^ .................... 237,576 9,560 Koninklijke Philips Electronics NV. ....... 240,800 10,440 Royal Dutch Petroleum Co. ................. 678,696 1,550 Unilever NV ............................... 100,385
Shares Value(a) -------------- ----------------- Netherlands (continued) 1,650 VNU NV .................................... $ 45,927 20,338 Wolters Kluwer NV. ........................ 388,199 --------- 2,920,961 --------- New Zealand - 0.1% 30,600 Carter Holt Harvey, Ltd. .................. 48,350 --------- Portugal - 0.4% 55,840 Energias de Portugal SA ................... 140,278 --------- Russia - 0.4% 4,400 Mobile TeleSystems ADR .................... 148,060 --------- Singapore - 1.8% 27,800 DBS Group Holdings, Ltd. .................. 235,205 49,000 Singapore Press Holdings, Ltd. ADR ........ 124,762 40,000 United Overseas Bank, Ltd. ................ 336,397 4,000 United Overseas Land, Ltd. ................ 5,401 --------- 701,766 --------- South Africa - 0.3% 8,800 Nedbank Group, Ltd. ....................... 98,346 --------- South Korea - 0.9% 6,410 Korea Electric Power Corp. ADR ............ 100,445 5,300 KT Corp. ADR .............................. 113,950 540 Samsung Electronics Co., Ltd GDR .......... 129,057 --------- 343,451 --------- Spain - 2.8% 6,700 ACS Actividades Cons y Serv ............... 187,159 11,800 Banco Bilbao Vizcaya Argentaria SA......... 181,305 3,130 Banco. Sabadell SA ........................ 80,808 10,300 Endesa SA ................................. 239,419 9,000 Indra Sistemas SA ......................... 177,798 8,662 Repsol YPF SA ............................. 219,825 --------- 1,086,315 --------- Sweden - 1.4% 4,900 Autoliv, Inc. ............................. 213,609 8,300 Securitas AB .............................. 138,134 5,630 Svenska Cellulosa AB ...................... 179,873 --------- 531,616 --------- Switzerland - 6.9% 3,448 Ciba Specialty Chemicals AG ............... 200,493 3,280 Clariant AG\^ ............................. 43,451 1,150 Lonza Group AG ............................ 63,526 1,658 Nestle SA ................................. 423,557 13,580 Novartis AG ............................... 644,733 3,878 Roche Holding AG .......................... 489,315 3,070 Swiss Re .................................. 188,249 5,430 UBS AG .................................... 423,296 1,000 Zurich Financial Services AG\^ ............ 171,520 --------- 2,648,141 --------- Taiwan - 0.6% 13,640 Taiwan Semiconductor Manufacturing Co., Ltd. ADR ............................. 124,401
See Notes to Financial Statements. 25 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Shares Value(a) -------------- ----------------- Taiwan (continued) 27,460 United Microelectronics Corp. ADR* ........... $ 112,861 ---------- 237,261 ---------- Thailand - 0.5% 76,000 Advanced Info Service PLC .................... 187,586 ---------- United Kingdom - 18.8% 7,200 Anglo American PLC ........................... 168,370 5,000 Astrazeneca PLC .............................. 206,138 15,800 Aviva PLC .................................... 175,440 9,600 BAA PLC ...................................... 106,366 26,900 BAE Systems PLC .............................. 137,825 19,300 Bank of Ireland .............................. 311,069 39,381 Barclays PLC ................................. 390,354 10,000 BHP Billiton PLC ............................. 127,477 5,800 BOC Group PLC ................................ 104,070 17,242 Boots Group PLC .............................. 187,764 23,900 BP PLC ....................................... 248,553 40,859 BT Group PLC ................................. 168,267 2,255 Bunzl PLC .................................... 20,925 45,050 Centrica PLC ................................. 186,551 42,000 Compass Group PLC ............................ 175,875 14,832 Diageo PLC ................................... 218,193 11,000 EMAP PLC ..................................... 152,941 41,000 EMI Group PLC ................................ 185,997 2,671 Filtrona PLC* ................................ 11,629 36,410 GKN PLC ...................................... 167,827 31,006 GlaxoSmithKline PLC .......................... 749,213 29,676 HSBC Holdings PLC ............................ 471,929 22,006 J Sainsbury PLC .............................. 112,174 90,000 Legal & General Group PLC .................... 184,751 11,000 Marks & Spencer Group PLC .................... 70,848 2,618 Novo Nordisk AS .............................. 133,063 9,240 Rexam PLC .................................... 79,528 5,812 Rio Tinto PLC ................................ 176,979 20,000 Rolls-Royce Group PLC* ....................... 102,608 1,000,000 Rolls-Royce Group PLC Class B ................ 1,801
Shares Value(a) -------------- ----------------- United Kingdom (continued) 7,885 Royal Bank of Scotland Group PLC ............. $ 237,408 29,800 Scottish & Newcastle PLC ..................... 246,829 30,400 Shell Transport & Trading Co. PLC ............ 294,352 11,000 Standard Chartered PLC ....................... 200,404 21,500 Unilever PLC ................................. 206,840 134,383 Vodafone Group PLC ........................... 326,720 17,600 WPP Group PLC ................................ 180,274 ---------- 7,227,357 ----------
Total Common Stock - 96.2% (Cost 37,075,862 $34,737,735) Other Assets & 1,459,418 ---------- Liabilities, Net - 3.8% NET ASSETS - 100.0% $38,535,280 ===========
* Non-income producing security. (a) Fair valued securities - See Note 1. ADR - American Depository Receipt. GDR - Global Depository Receipt.
Securities presented by industry: (as a percentage of market value) Consumer Discretionary 17.0% Consumer Staples 7.9 Energy 9.1 Financials 23.9 Health Care 8.9 Industrials 6.8 Information Technology 8.0 Materials 7.2 Telecommunication Services 8.5 Utilities 2.7 ----- 100.0% =====
See Notes to Financial Statements. 26 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST SHORT-TERM INVESTMENT FUND STATEMENT OF INVESTMENTS June 30, 2005 (Unaudited)
Maturity Date Par Value ---------- ---------------- --------------- CORPORATE BONDS - 16.9% Financials - 15.6% CIT Group Holdings, Inc. 7.25% 08/15/05 $ 40,000 $ 40,163 Countrywide Home Loans, Inc. 3.50% 12/19/05 50,000 49,923 FleetBoston Financial Corp. 7.25% 09/15/05 10,000 10,070 Ford Motor Credit Corp. 6.12% 01/09/06 45,000 45,165 International Lease Finance Corp. 4.41% 08/01/05 100,000 100,065 John Deere Capital Corp. 3.12% 12/15/05 100,000 99,699 Telefonica Europe BV 7.35% 09/15/05 100,000 100,662 Verizon Global Funding Corp. 6.75% 12/01/05 50,000 50,576 -------- 496,323 -------- Utilities - 1.3% Consolidated Edison Co. of New York 6.62% 07/01/05 40,000 40,000 -------- Total Corporate Bonds (Cost $537,519) 536,323 -------- U.S. GOVERNMENT & AGENCY OBLIGATIONS - 30.8% Federal Farm Credit Bank Discount Notes - 0.9% 3.45% 07/26/05 30,000 29,928 -------- Federal Home Loan Bank Discount Notes - 3.2% 3.01% 07/06/05 100,000 99,958 -------- Federal Home Loan Mortgage Corp. Discount Notes - 16.6% 2.22% 08/05/05 100,000 99,784 2.46% 07/26/05 125,000 124,788 2.96% 07/01/05 100,000 100,000 3.10% 08/08/05 100,000 99,673 3.10% 08/09/05 100,000 99,664 -------- 523,909 -------- Federal National Mortgage Assoc. Discount Notes - 10.1% 2.25% 08/19/05 100,000 99,694 3.20% 08/03/05 83,000 82,757 3.23% 07/06/05 25,000 24,989 3.23% 07/22/05 12,000 11,977 3.32% 09/27/05 100,000 99,179 -------- 318,596 -------- Total U.S. Government & Agency Obligations (Cost $972,401) 972,391 --------
Maturity Date Par Value ---------- ---------------- --------------- U.S. TREASURY OBLIGATIONS - 3.2% U.S. Treasury Note 1.62% (Cost $99,894) 09/30/05 $100,000 $ 99,621 --------
Total Investments - 50.9% (Cost $1,609,814) 1,608,335 Other Assets & 1,549,551 --------- Liabilities, Net - 49.1% NET ASSETS - 100.0% $3,157,886 ==========
See Notes to Financial Statements. 27 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND STATEMENT OF INVESTMENTS June 30, 2005 (Unaudited)
Shares Value -------------- --------------- COMMON STOCK - 97.0% Consumer Discretionary - 19.8% 8,200 99 Cents Only Stores\^ ...................... $ 104,222 5,900 Advisory Board Co. (The)\^ .................. 287,566 7,200 Aeropostale, Inc.\^ ......................... 241,920 11,900 AFC Enterprises\^ ........................... 156,842 8,100 Argosy Gaming Co.\^ ......................... 377,541 2,300 Buffalo Wild Wings, Inc.\^ .................. 71,760 2,600 Build-A-Bear Workshop, Inc.\^ ............... 60,970 9,700 Central Garden & Pet Co.\^ .................. 476,464 3,700 Christopher & Banks Corp. ................... 67,562 12,500 Coldwater Creek, Inc.\^ ..................... 311,375 3,000 Cost Plus, Inc.\^ ........................... 74,820 5,200 CoStar Group, Inc.\^ ........................ 226,720 8,117 Dick's Sporting Goods, Inc.\^ ............... 313,235 1,400 Great Wolf Resorts, Inc.\^ .................. 28,616 32,150 HOT Topic, Inc.\^ ........................... 614,708 35,900 J Jill Group, Inc. (The)\^ .................. 493,625 18,600 Laureate Education, Inc.\^ .................. 890,196 4,300 Marvel Enterprises, Inc.\^ .................. 84,796 1,800 Meritage Homes Corp.\^ ...................... 143,100 11,700 Orient-Express Hotels, Ltd., Class A ........ 370,539 23,400 Outdoor Channel Holdings, Inc.\^ ............ 321,984 30,570 Playboy Enterprises, Inc., Class B\^ ........ 395,576 3,500 Quiksilver, Inc.\^ .......................... 55,930 3,400 Rare Hospitality International, Inc.\^ ...... 103,598 2,500 Red Robin Gourmet Burgers, Inc.\^ ........... 154,950 8,100 Reebok International, Ltd. .................. 338,823 12,300 Scientific Games Corp., Class A\^ ........... 331,239 5,800 Select Comfort Corp.\^ ...................... 124,294 50,100 Spanish Broadcasting System, Class A\^....... 500,499 1,500 Strayer Education, Inc. ..................... 129,390 9,300 Texas Roadhouse, Inc., Class A\^ ............ 323,175 18,900 Too, Inc.\^ ................................. 441,693 25,200 Vail Resorts, Inc.\^ ........................ 708,120 15,900 Warnaco Group, Inc. (The)\^ ................. 369,675 2,200 WCI Communities, Inc.\^ ..................... 70,466 5,300 West Marine, Inc.\^ ......................... 95,718 32,200 World Wrestling Entertainment, Inc. ......... 367,724 ---------- 10,229,431 ---------- Consumer Staples - 0.1% 2,100 Volcom, Inc.\^ .............................. 56,217 ---------- Energy - 5.9% 13,800 Alpha Natural Resources\^ ................... 329,544 500 Atwood Oceanics, Inc.\^ ..................... 30,780 9,900 Energy Partners, Ltd.\^ ..................... 259,479 1,200 Hydril\^ .................................... 65,220 27,500 KCS Energy, Inc.\^ .......................... 477,675 10,100 Oceaneering International, Inc.\^ ........... 390,365 3,600 Range Resources Corp. ....................... 96,840 13,174 Remington Oil & Gas Corp.\^ ................. 470,312 17,200 Tetra Technologies, Inc.\^ .................. 547,820 12,100 Vintage Petroleum, Inc. ..................... 368,687 ---------- 3,036,722 ----------
Shares Value -------------- --------------- Financials - 3.8% 4,000 Affiliated Managers Group, Inc.\^ ........... $ 273,320 800 Bank of the Ozarks, Inc. .................... 26,272 2,575 Cascade Bancorp ............................. 54,178 15,233 Commercial Capital Bancorp, Inc. ............ 254,543 33,000 E*Trade Financial Corp.\^ ................... 461,670 5,500 Encore Capital Group, Inc.\^ ................ 93,500 1,946 Glacier BanCorp, Inc. ....................... 50,856 3,400 Greenhill & Co., Inc. ....................... 137,734 500 International Securities Exchange, Inc.\^ ...................................... 12,555 1,300 iPayment, Inc.\^ ............................ 47,476 2,700 MortgageIT Holdings, Inc. ................... 49,275 5,900 Northstar Realty Finance Corp. .............. 61,891 700 Redwood Trust, Inc. ......................... 36,120 2,900 Saxon Capital, Inc. ......................... 49,503 1,876 Sterling Financial Corp.\^ .................. 70,162 5,400 SVB Financial Group\^ ....................... 258,660 1,800 United PanAm Financial Corp.\^ .............. 49,338 ---------- 1,987,053 ---------- Health Care - 19.2% 18,700 Accredo Health, Inc.\^ ...................... 848,980 17,000 Advanced Medical Optics, Inc.\^ ............. 675,750 11,000 Alkermes, Inc.\^ ............................ 145,420 7,800 Alliance Imaging, Inc.\^ .................... 81,588 800 Apria Healthcare Group, Inc.\^ .............. 27,712 3,000 Arthrocare Corp.\^ .......................... 104,820 7,400 Bioscrip, Inc.\^ ............................ 44,400 30,300 Bruker Biosciences Corp.\^ .................. 120,897 28,828 Cell Genesys, Inc.\^ ........................ 154,230 13,100 Cephalon, Inc.\^ ............................ 521,511 8,668 Charles River Laboratories International, Inc.\^ ....................... 418,231 12,100 Corixa Corp.\^ .............................. 52,998 59,500 Cryolife, Inc.\^ ............................ 461,720 17,400 Cubist Pharmaceuticals, Inc.\^ .............. 229,158 15,000 Digene Corp.\^ .............................. 415,200 27,700 Digirad Corp.\^ ............................. 148,472 9,700 Exact Sciences Corp.\^ ...................... 22,116 18,400 Guilford Pharmaceuticals, Inc.\^ ............ 41,768 24,600 Hologic, Inc.\^ ............................. 977,850 16,200 Intralase Corp.\^ ........................... 317,844 25,100 Isis Pharmaceuticals, Inc.\^ ................ 98,141 4,400 Ista Pharmaceuticals, Inc.\^ ................ 36,608 9,600 Kosan Biosciences, Inc.\^ ................... 50,688 10,400 Kyphon, Inc.\^ .............................. 361,816 6,100 Langer, Inc.\^ .............................. 39,650 3,400 LifePoint Hospitals, Inc.\^ ................. 171,768 27,600 Medarex, Inc.\^ ............................. 229,908 35,900 Nabi Biopharmaceuticals\^ ................... 546,757 15,100 Neose Technologies, Inc.\^ .................. 47,565 20,900 Noven Pharmaceuticals, Inc.\^ ............... 365,332 10,400 Orasure Technologies, Inc.\^ ................ 103,896 6,100 Pain Therapeutics, Inc.\^ ................... 41,175 7,500 Paincare Holdings, Inc.\^ ................... 32,475
See Notes to Financial Statements. 28 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Shares Value -------------- --------------- Health Care (continued) 5,769 Par Pharmaceutical Cos., Inc.\^ ................ $ 183,512 7,800 Pediatrix Medical Group, Inc.\^ ................ 573,612 14,000 PSS World Medical, Inc.\^ ...................... 174,300 2,800 Salix Pharmaceuticals, Ltd.\^ .................. 49,448 3,100 Taro Pharmaceuticals Industries\^ .............. 90,117 11,100 Telik, Inc.\^ .................................. 180,486 28,200 Third Wave Technologies, Inc.\^ ................ 110,826 25,000 Transgenomic, Inc.\^ ........................... 17,000 11,200 Vasogen, Inc.\^ ................................ 54,992 20,967 Wright Medical Group, Inc.\^ ................... 559,819 --------- 9,930,556 --------- Industrials - 10.5% 8,300 Active Power, Inc.\^ ........................... 26,975 6,600 Actuant Corp., Class A\^ ....................... 316,404 3,000 American Ecology Corp. ......................... 53,700 16,000 CDI Corp. ...................................... 350,720 17,500 Corinthian Colleges, Inc.\^ .................... 223,475 41,200 DiamondCluster International, Inc.\^ ........... 465,560 24,100 Educate, Inc.\^ ................................ 341,015 4,900 Education Management Corp.\^ ................... 165,277 3,100 Euronet Worldwide, Inc.\^ ...................... 90,117 24,000 ExpressJet Holdings, Inc.\^ .................... 204,240 4,300 Forrester Research, Inc.\^ ..................... 76,669 12,800 Hudson Highland Group, Inc.\^ .................. 199,552 8,300 Jacobs Engineering Group, Inc.\^ ............... 466,958 9,000 Knoll, Inc. .................................... 153,990 3,900 Labor Ready, Inc.\^ ............................ 90,909 1,200 Morningstar, Inc.\^ ............................ 33,780 28,800 Navigant Consulting, Inc.\^ .................... 508,608 1,000 Universal Display Corp.\^ ...................... 10,280 14,600 Wabash National Corp. .......................... 353,758 29,500 Watson Wyatt & Co. Holdings .................... 756,085 10,000 Werner Enterprises, Inc. ....................... 196,400 16,900 Wright Express Corp.\^ ......................... 312,143 --------- 5,396,615 --------- Information Technology - 32.5% 27,200 Adtran, Inc. ................................... 674,289 13,600 Altera Corp.\^ ................................. 269,552 800 Altiris, Inc.\^ ................................ 11,744 7,000 Anteon International Corp.\^ ................... 319,340 11,500 Aquantive, Inc.\^ .............................. 203,780 20,400 Atari, Inc.\^ .................................. 56,712 28,015 BISYS Group, Inc.\^ ............................ 418,544 3,100 Blue Nile, Inc.\^ .............................. 101,339 83,500 Borland Software Corp.\^ ....................... 572,810 17,400 Brooks Automation, Inc.\^ ...................... 258,390 5,600 CACI International, Inc., Class A\^ ............ 353,696 24,900 CKX, Inc.\^ .................................... 320,338 1,000 Cognex Corporation ............................. 26,190 25,594 Corillian Corp.\^ .............................. 79,341 29,720 Credence Systems Corp.\^ ....................... 268,966 3,900 Cymer, Inc.\^ .................................. 102,765 23,300 Digimarc Corp.\^ ............................... 127,451
Shares Value -------------- --------------- Information Technology (continued) 83,340 Digitas, Inc.\^ ................................ $ 950,909 1,000 DSW, Inc.\^ .................................... 24,950 8,000 Emulex Corp.\^ ................................. 146,080 900 Epicor Software Corp.\^ ........................ 11,880 10,800 FEI Co.\^ ...................................... 246,348 25,800 Gartner, Inc., Class A\^ ....................... 273,996 13,200 Genesis Microchip, Inc.\^ ...................... 243,672 9,300 Global Payments, Inc. .......................... 630,540 18,400 Harmonic, Inc.\^ ............................... 88,872 41,900 Homestore, Inc.\^ .............................. 85,057 8,900 Hutchinson Technology, Inc.\^ .................. 342,739 10,200 Identix, Inc.\^ ................................ 51,306 34,888 Immersion Corp.\^ .............................. 185,953 28,800 Integrated Circuit Systems, Inc.\^ ............. 594,432 35,500 Interwoven, Inc.\^ ............................. 267,315 21,700 Iomega Corp.\^ ................................. 57,505 8,200 Jack Henry & Associates, Inc. .................. 150,142 8,400 Jupitermedia Corp.\^ ........................... 143,892 4,500 Komag, Inc.\^ .................................. 127,665 75,400 Lattice Semiconductor Corp.\^ .................. 334,776 12,700 Lionbridge Technologies\^ ...................... 86,106 9,900 Liveperson, Inc.\^ ............................. 30,888 6,900 Macrovision Corp.\^ ............................ 155,526 8,700 Marchex, Inc., Class B\^ ....................... 130,848 122,980 McData Corp., Class A\^ ........................ 491,920 12,700 Mentor Graphics Corp.\^ ........................ 130,175 15,900 Micromuse, Inc.\^ .............................. 89,994 18,400 Microsemi Corp.\^ .............................. 345,920 10,100 Motive, Inc.\^ ................................. 100,293 10,700 Mykrolis Corp.\^ ............................... 152,047 1,400 Neustar, Inc.\^ ................................ 35,840 40,000 O2Micro International, Ltd.\^ .................. 562,000 3,100 Online Resources Corp.\^ ....................... 35,061 6,075 Onyx Software Corp.\^ .......................... 21,870 3,300 Open Solutions, Inc.\^ ......................... 67,023 35,900 Pixelworks, Inc.\^ ............................. 308,022 14,900 PLX Technology, Inc.\^ ......................... 151,384 28,500 Polycom, Inc.\^ ................................ 424,935 14,000 Progress Software Corp.\^ ...................... 422,100 2,600 Provide Commerce, Inc.\^ ....................... 56,134 1,000 Quest Software, Inc.\^ ......................... 13,630 9,000 Radisys Corp.\^ ................................ 145,350 12,000 Red Hat, Inc.\^ ................................ 157,200 35,580 Rudolph Technologies, Inc.\^ ................... 509,861 6,800 Secure Co.Mputing Corp.\^ ...................... 73,984 75,982 Skillsoft PLC, ADR\^ ........................... 262,139 26,500 Skyworks Solutions, Inc.\^ ..................... 195,305 123,000 Sonicwall, Inc.\^ .............................. 662,970 12,634 Stats Chippac, Ltd., ADR\^ ..................... 89,954 10,450 Take-Two Interactive Software, Inc.\^ .......... 265,952 16,400 Titan Corp.\^ .................................. 372,936 12,100 Tradestation Group, Inc.\^ ..................... 103,818 53,700 Triquint Semiconductor, Inc.\^ ................. 178,821 10,000 Ultra Clean Holdings\^ ......................... 74,500
See Notes to Financial Statements. 29 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Shares Value ---------- ------------- Information Technology (continued) 24,100 Verifone Holdings, Inc.* ................ $ 391,625 16,000 Verity, Inc.* ........................... 140,320 14,500 Western Digital Corp.* .................. 194,590 1,200 Wind River Systems, Inc.* ............... 18,816 ---------- 16,773,133 ---------- Materials - 4.3% 21,500 Agrium, Inc. ............................ 421,615 33,400 Airgas, Inc. ............................ 823,978 1,100 Cabot Microelectronics Corp.* ........... 31,889 2,400 Headwaters, Inc.* ....................... 82,512 16,700 Massey Energy Co. ....................... 629,924 1,600 Oregon Steel Mills, Inc.* ............... 27,536 7,900 Symyx Technologies, Inc.* ............... 221,042 ---------- 2,238,496 ---------- Telecommunication Services - 0.9% 30,100 Foundry Networks, Inc.* ................. 259,763 1,000 Jamdat Mobile, Inc.* .................... 27,680 13,200 Syniverse Holdings, Inc.* ............... 184,800 ---------- 472,243 ---------- Total Common Stock (Cost $46,482,720) 50,120,466 ----------
Maturity Date Par Value ---------- ----------- ----------- U.S. TREASURY OBLIGATIONS - 1.0% U.S. Treasury Bills 2.87% (Cost $499,203) 07/20/05 $500,000 $499,203 -------- MONEY MARKET FUND - 0.1% TCW Galileo Money Market Fund 2.66% (Cost $35,426) 35,426 35,426 --------
Total Investments - 98.1% (Cost $47,017,349) 50,655,095 Other Assets & 970,320 ---------- Liabilities, Net - 1.9% NET ASSETS - 100.0% $51,625,415 ===========
* Non-income producing security. ADR - American Depository Receipt. See Notes to Financial Statements. 30 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND STATEMENT OF INVESTMENTS June 30, 2005 (Unaudited)
Shares Value -------------- --------------- COMMON STOCK - 99.0% Consumer Discretionary - 10.2% 5,600 American Axle & Manufacturing Holdings, Inc. ............................. $ 141,512 5,700 Autoliv, Inc. .............................. 249,660 6,800 BorgWarner, Inc. ........................... 364,956 26,700 Comcast Corp., Class A\^ ................... 819,690 8,200 Cooper Tire & Rubber Co. ................... 152,274 10,200 Dana Corp. ................................. 153,102 15,700 Eastman Kodak Co. .......................... 421,545 10,400 Federated Department Stores, Inc. .......... 762,112 17,100 Gap, Inc. (The) ............................ 337,725 35,500 Interpublic Group of Companies, Inc.\^...... 432,390 13,500 Jones Apparel Group, Inc. .................. 419,040 9,800 Lear Corp. ................................. 356,524 23,100 Limited Brands, Inc. ....................... 494,802 11,900 Mattel, Inc. ............................... 217,770 32,900 McDonald's Corp. ........................... 912,975 20,600 Newell Rubbermaid, Inc. .................... 491,104 4,600 Nordstrom, Inc. ............................ 312,662 24,700 Office Depot, Inc.\^ ....................... 564,148 7,500 Target Corp. ............................... 408,075 ---------- 8,012,066 ---------- Consumer Staples - 7.5% 3,000 Coca-Cola Co. (The) ........................ 125,250 20,700 ConAgra Foods, Inc. ........................ 479,412 17,500 Del Monte Foods Co.\^ ...................... 188,475 11,800 General Mills, Inc. ........................ 552,122 9,500 Kimberly-Clark Corp. ....................... 594,605 15,300 Kraft Foods, Inc., Class A ................. 486,693 33,300 Kroger Co. (The)\^ ......................... 633,699 15,000 Monsanto Co. ............................... 943,050 9,700 PepsiCo, Inc. .............................. 523,121 20,600 Safeway, Inc.\^ ............................ 465,354 22,000 Sara Lee Corp. ............................. 435,820 13,800 Supervalu, Inc. ............................ 450,018 ---------- 5,877,619 ---------- Energy - 5.1% 3,900 Ashland, Inc. .............................. 280,293 9,600 ConocoPhillips ............................. 551,904 8,600 Diamond Offshore Drilling, Inc. ............ 459,498 62,800 El Paso Corp. .............................. 723,456 10,100 ENSCO International, Inc. .................. 361,075 17,100 Marathon Oil Corp. ......................... 912,627 7,200 Noble Corp. ................................ 442,872 12,200 Rowan Cos., Inc. ........................... 362,462 ---------- 4,094,187 ---------- Financials - 38.4% 4,900 ACE, Ltd. .................................. 219,765 20,200 Allstate Corp. ............................. 1,206,950 14,200 American International Group, Inc. ......... 825,020 65,600 Bank of America Corp. ...................... 2,992,016 6,900 BB&T Corp. ................................. 275,793
Shares Value -------------- --------------- Financials (continued) 7,600 Chubb Corp. ................................ $ 650,636 77,366 Citigroup, Inc. ............................ 3,576,630 9,700 Comerica, Inc. ............................. 560,660 18,100 Countrywide Financial Corp. ................ 698,841 14,800 Fannie Mae ................................. 864,320 14,400 Freddie Mac ................................ 939,312 17,900 Genworth Financial, Inc., Class A .......... 541,117 7,600 Goldman Sachs Group, Inc. .................. 775,352 10,300 Hartford Financial Services Group, Inc. ....................................... 770,234 17,000 Huntington Bancshares, Inc. ................ 410,380 38,100 JPMorgan Chase & Co. ....................... 1,345,692 19,100 KeyCorp .................................... 633,165 8,600 Lehman Brothers Holdings, Inc. ............. 853,808 1,600 MBIA, Inc. ................................. 94,896 17,400 Mellon Financial Corp. ..................... 499,206 13,100 Merrill Lynch & Co., Inc. .................. 720,631 12,850 MetLife, Inc. .............................. 577,479 2,500 MGIC Investment Corp. ...................... 163,050 13,300 Morgan Stanley ............................. 697,851 19,400 National City Corp. ........................ 661,928 900 PartnerRe, Ltd. ............................ 57,978 3,700 PNC Financial Services Group, Inc. ......... 201,502 9,700 Prudential Financial, Inc. ................. 636,902 22,860 St. Paul Travelers Cos., Inc. (The) ........ 903,657 9,800 SunTrust Banks, Inc. ....................... 707,952 10,500 Torchmark Corp. ............................ 548,100 45,600 U.S. Bancorp ............................... 1,331,520 33,943 Wachovia Corp. ............................. 1,683,573 23,000 Washington Mutual, Inc. .................... 935,870 18,700 Wells Fargo & Co. .......................... 1,151,546 5,000 XL Capital, Ltd., Class A .................. 372,100 ---------- 30,085,432 ---------- Health Care - 8.0% 4,200 AmerisourceBergen Corp. .................... 290,430 12,000 Bristol-Myers Squibb Co. ................... 299,760 7,500 Eli Lilly & Co. ............................ 417,825 3,500 HCA, Inc. .................................. 198,345 6,400 Johnson & Johnson .......................... 416,000 5,500 Laboratory Corp. of America Holdings\^ ................................. 274,450 14,400 Medco Health Solutions, Inc.\^ ............. 768,384 24,500 Merck & Co., Inc. .......................... 754,600 82,500 Pfizer, Inc. ............................... 2,275,350 12,200 Wyeth ...................................... 542,900 ---------- 6,238,044 ---------- Industrials - 6.9% 19,100 Burlington Northern Santa Fe Corp. ......... 899,228 6,000 Cooper Industries, Ltd., Class A ........... 383,400 6,800 Crane Co. .................................. 178,840 13,500 CSX Corp. .................................. 575,910 8,600 Eaton Corp. ................................ 515,140 8,600 Hubbell, Inc., Class B ..................... 379,260
See Notes to Financial Statements. 31 [GRAPHIC OMITTED] WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND STATEMENT OF INVESTMENTS - (Continued) June 30, 2005 (Unaudited)
Shares Value -------------- --------------- Industrials (continued) 5,800 Ingersoll-Rand Co., Ltd., Class A .......... $ 413,830 21,900 Ingram Micro, Inc., Class A* ............... 342,954 15,050 Masco Corp. ................................ 477,988 21,000 Norfolk Southern Corp. ..................... 650,160 8,700 SPX Corp. .................................. 400,026 5,700 Tyco International, Ltd. ................... 166,440 ---------- 5,383,176 ---------- Information Technology - 6.4% 14,228 ADC Telecommunications, Inc.* .............. 309,744 7,400 Arrow Electronics, Inc.* ................... 200,983 1,275 Avnet, Inc.* ............................... 28,726 38,550 Corning, Inc.* ............................. 640,701 25,000 Electronic Data Systems Corp. .............. 481,250 63,000 Hewlett-Packard Co. ........................ 1,481,130 15,800 Microsoft Corp. ............................ 392,472 75,700 Nortel Networks Corp.* ..................... 197,577 23,600 Quantum Corp.* ............................. 70,092 58,900 Sanmina-SCI Corp.* ......................... 322,183 70,800 Solectron Corp.* ........................... 268,332 6,200 Tech Data Corp.* ........................... 226,982 42,100 Tellabs, Inc.* ............................. 366,270 ---------- 4,986,442 ---------- Materials - 4.5% 9,200 Eastman Chemical Co. ....................... 507,380 17,300 Georgia-Pacific Corp. ...................... 550,140 13,100 Hercules, Inc.* ............................ 185,365 5,700 Martin Marietta Materials, Inc. ............ 393,984 9,000 PPG Industries, Inc. ....................... 564,840 17,200 Smurfit-Stone Container Corp.* ............. 174,924 14,400 Temple-Inland, Inc. ........................ 534,960 9,000 Vulcan Materials Co. ....................... 584,910 ---------- 3,496,503 ---------- Telecommunication Services - 4.3% 6,000 BellSouth Corp. ............................ 159,419 25,000 SBC Communications, Inc. ................... 593,750 42,350 Sprint Corp. ............................... 1,062,562 45,500 Verizon Communications, Inc. ............... 1,572,025 ---------- 3,387,756 ----------
Shares Value -------------- --------------- Utilities - 7.7% 15,900 Constellation Energy Group, Inc. ........... $ 917,271 20,300 Edison International ....................... 823,165 11,100 Entergy Corp. .............................. 838,605 11,000 Exelon Corp. ............................... 564,630 14,600 FirstEnergy Corp. .......................... 702,406 11,100 PPL Corp. .................................. 659,118 14,500 Sempra Energy .............................. 598,995 17,000 Wisconsin Energy Corp. ..................... 663,000 14,200 Xcel Energy, Inc. .......................... 277,184 ---------- 6,044,374 ---------- Total Common Stock (Cost $66,295,999) 77,605,599 ----------
Total Investments - 99.0% (Cost $66,295,999) 77,605,599 Other Assets & 752,594 ---------- Liabilities, Net - 1.0% NET ASSETS - 100.0% $78,358,193 ===========
* Non-income producing security. See Notes to Financial Statements. 32 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF ASSETS AND LIABILITIES June 30, 2005 (Unaudited)
INTERNATIONAL SHORT-TERM SMALL CAP BALANCED EQUITY INCOME EQUITY INVESTMENT GROWTH FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------- ---------- ------------ ASSETS: Investments, at cost (Note 1)............. $247,765,166 $458,363,805 $136,171,815 $ 34,737,735 $1,609,814 $ 47,017,349 Foreign currency, at cost................. -- -- 883,028 1,062,932 -- -- ============ ============ ============ ============ ========== ============ Investments, at value (Note 1),^ See accompanying schedules............... $260,863,549 $503,140,948 $138,687,871 $ 37,075,862 $1,608,335 $ 50,655,095 Cash...................................... -- 5,229,006 175,259 275,028 1,471,987 661,230 Foreign currency, at value................ -- -- 867,159 1,046,954 -- -- Unrealized appreciation on forward contracts................................ -- -- 280,103 -- -- -- Receivable for Fund shares sold........... -- -- -- -- 71,719 -- Due from Advisor (Note 2)................. 1,250 -- -- -- 5,539 -- Receivable for investment securities sold..................................... -- 2,247,223 4,638,084 9,106 -- 1,123,249 Dividends and interest receivable......... -- 667,875 1,168,651 174,142 8,648 10,747 Prepaid expenses and other assets......... -- 990 12,185 516 -- 43,827 ------------ ------------ ------------ ------------ ---------- ------------ Total Assets............................ 260,864,799 511,286,042 145,829,312 38,581,608 3,166,228 52,494,148 ------------ ------------ ------------ ------------ ---------- ------------ LIABILITIES: Payable for Fund shares redeemed.......... 119,267 31,905 124,998 -- -- 1,793 Payable for investment securities purchased................................ -- 2,641,626 16,288,725 3,191 -- 822,057 Investment advisory fees payable (Note 2)................................. -- 150,036 38,581 24,103 -- 8,064 Distribution and service fees payable (Note 3)................................. -- 168,991 42,551 12,698 1,003 16,968 Due to Custodian.......................... 9,685 92,213 20,332 6,336 1,524 19,851 Accrued expenses and other payables....... 69,470 206,840 51,389 -- 5,815 -- ------------ ------------ ------------ ------------ ---------- ------------ Total Liabilities....................... 198,422 3,291,611 16,566,576 46,328 8,342 868,733 ------------ ------------ ------------ ------------ ---------- ------------ NET ASSETS................................ $260,666,377 $507,994,431 $129,262,736 $ 38,535,280 $3,157,886 $ 51,625,415 ============ ============ ============ ============ ========== ============ NET ASSETS consist of: Undistributed net investment income/(loss)............................ $ (61,443) $ 2,924,615 $ 2,882,263 $ 403,025 $ 46,002 $ (83,245) Accumulated net realized gain/(loss) on investments and foreign currency transactions............................. (12,634,856) (79,898,247) 349,689 (10,456,916) (1,844) (20,415,112) Net unrealized appreciation/(depreciation) of investments and translation of assets and liabilities in foreign currency...... 13,098,383 44,777,143 2,787,345 2,321,750 (1,479) 3,637,746 Par value................................. 2,602,643 54,019,092 1,232,434 -- 31,152 -- Paid-in capital........................... 257,661,650 486,171,828 122,011,005 46,267,421 3,084,055 68,486,026 ------------ ------------ ------------ ------------ ---------- ------------ NET ASSETS................................ $260,666,377 $507,994,431 $129,262,736 $ 38,535,280 $3,157,886 $ 51,625,415 ============ ============ ============ ============ ========== ============ SHARES OUTSTANDING: (50,000,000 shares authorized, per fund).................................... 14,386,184 23,763,150 10,406,144 3,276,654 308,648 4,377,678 ============ ============ ============ ============ ========== ============ NET ASSET VALUE: (Offering and redemption price per share)................................... $ 18.12 $ 21.38 $ 12.42 $ 11.76 $ 10.23 $ 11.79 ============ ============ ============ ============ ========== ============
SOCIALLY RESPONSIBLE FUND ----------- ASSETS: Investments, at cost (Note 1)............. $66,295,999 Foreign currency, at cost................. -- =========== Investments, at value (Note 1),^ See accompanying schedules............... $77,605,599 Cash...................................... 923,283 Foreign currency, at value................ -- Unrealized appreciation on forward contracts................................ -- Receivable for Fund shares sold........... 30,839 Due from Advisor (Note 2)................. -- Receivable for investment securities sold..................................... 1,504,075 Dividends and interest receivable......... 114,980 Prepaid expenses and other assets......... -- ----------- Total Assets............................ 80,178,776 ----------- LIABILITIES: Payable for Fund shares redeemed.......... -- Payable for investment securities purchased................................ 1,742,109 Investment advisory fees payable (Note 2)................................. 30,881 Distribution and service fees payable (Note 3)................................. 25,814 Due to Custodian.......................... 10,253 Accrued expenses and other payables....... 11,526 ----------- Total Liabilities....................... 1,820,583 ----------- NET ASSETS................................ $78,358,193 =========== NET ASSETS consist of: Undistributed net investment income/(loss)............................ $ 499,836 Accumulated net realized gain/(loss) on investments and foreign currency transactions............................. 72,068 Net unrealized appreciation/(depreciation) of investments and translation of assets and liabilities in foreign currency...... 11,309,600 Par value................................. -- Paid-in capital........................... 66,476,689 ----------- NET ASSETS................................ $78,358,193 =========== SHARES OUTSTANDING: (50,000,000 shares authorized, per fund).................................... 5,087,559 =========== NET ASSET VALUE: (Offering and redemption price per share)................................... $ 15.40 ===========
^For Balanced Fund represents value of investments in affiliated funds. See Notes to Financial Statements. 33 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF OPERATIONS For the Six Month Period Ended June 30, 2005 (Unaudited)
INTERNATIONAL SHORT-TERM SMALL CAP BALANCED EQUITY INCOME EQUITY INVESTMENT GROWTH FUND FUND FUND FUND FUND FUND ---------- ------------ ---------- ------------- ---------- ----------- INVESTMENT INCOME: Dividends..................................... $ -- $ 5,068,617 $ 9,965 $ 810,334 $ -- $ 284,570 Interest...................................... -- 43,673 2,874,959 2,499 39,556 17,940 Foreign taxes withheld........................ -- (30,354) (182) (94,884) -- (177) ---------- ------------ ---------- ----------- ------- ----------- Total income................................ -- 5,081,936 2,884,742 717,949 39,556 302,333 ---------- ------------ ---------- ----------- ------- ----------- EXPENSES: Investment advisory fees (Note 2)............. -- 1,407,999 350,151 193,244 4,290 294,297 Administration and Support fees (Note 3)...... -- 384,000 95,496 28,987 2,340 38,387 Transfer agent fees (Note 2).................. 2,917 28,922 2,917 2,917 2,917 2,917 Accounting fees............................... 3,750 56,548 19,454 5,894 -- 7,767 Legal and Audit fees.......................... 30,412 57,234 22,958 12,241 -- 8,950 Printing fees................................. 2,702 26,982 479 1,457 -- 1,701 Custodian fees................................ 2,215 11,431 37,968 38,241 23 53,223 Directors' fees and expenses (Note 2)......... 11,626 21,728 5,566 1,257 225 1,798 Registration and filing fees.................. -- 900 -- -- -- -- Distribution fees (Note 2).................... -- 640,000 159,160 48,313 3,899 64,009 Insurance..................................... 10,752 20,375 5,235 1,303 -- 2,058 Other......................................... -- 7,142 2,403 337 49 575 ---------- ------------ ---------- ----------- ------- ----------- Subtotal.................................... 64,374 2,663,261 701,787 334,191 13,743 475,682 Fees waived and reimbursed by investment advisor (Note 2)............................. (1,250) (480,191) (112,798) (39,939) (7,880) (85,834) Fee waived by Fund's transfer agent (Note 2).. (1,667) (25,303) (1,667) (1,667) (1,667) (1,667) Custody earnings credits (Note 1)............. (14) (446) (6,018) (218) (2,112) (2,603) ---------- ------------ ---------- ----------- ------- ----------- Total net expenses.......................... 61,443 2,157,321 581,304 292,367 2,084 385,578 ---------- ------------ ---------- ----------- ------- ----------- Net Investment Income/(loss).................. (61,443) 2,924,615 2,303,438 425,582 37,472 (83,245) ---------- ------------ ---------- ----------- ------- ----------- NET REALIZED AND UNREALIZED GAIN/ (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS (Notes 1 and 4) Net realized gain/(loss) from: Investments................................. (64,827) 20,319,395 590,540 1,063,063 (1,258) 1,971,719 Foreign currency transactions............... -- 40 (191,085) (59,726) -- -- Net change in unrealized appreciation/ (depreciation) of investments and translation of assets and liabilities in foreign currency 2,493,783 (22,648,130) 69,947 (1,913,438) 85 (4,376,370) ---------- ------------ ---------- ----------- ------- ----------- Net realized and unrealized gain/(loss) on investments and foreign currency Transactions................................. 2,428,956 (2,328,695) 469,402 (910,101) (1,173) (2,404,651) ---------- ------------ ---------- ----------- ------- ----------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $2,367,513 $ 595,920 $2,772,840 $ (484,519) $36,299 $(2,487,896) ========== ============ ========== =========== ======= ===========
SOCIALLY RESPONSIBLE FUND ----------- INVESTMENT INCOME: Dividends..................................... $ 875,157 Interest...................................... 9,936 Foreign taxes withheld........................ -- ----------- Total income................................ 885,093 ----------- EXPENSES: Investment advisory fees (Note 2)............. 328,322 Administration and Support fees (Note 3)...... 57,939 Transfer agent fees (Note 2).................. 2,917 Accounting fees............................... 11,743 Legal and Audit fees.......................... 13,524 Printing fees................................. 2,538 Custodian fees................................ 6,128 Directors' fees and expenses (Note 2)......... 2,693 Registration and filing fees.................. -- Distribution fees (Note 2).................... 96,565 Insurance..................................... 2,769 Other......................................... 789 ----------- Subtotal.................................... 525,927 Fees waived and reimbursed by investment advisor (Note 2)............................. (136,933) Fee waived by Fund's transfer agent (Note 2).. (1,667) Custody earnings credits (Note 1)............. (19) ----------- Total net expenses.......................... 387,308 ----------- Net Investment Income/(loss).................. 497,785 ----------- NET REALIZED AND UNREALIZED GAIN/ (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS (Notes 1 and 4) Net realized gain/(loss) from: Investments................................. 1,532,696 Foreign currency transactions............... -- Net change in unrealized appreciation/ (depreciation) of investments and translation of assets and liabilities in foreign currency (2,165,890) ----------- Net realized and unrealized gain/(loss) on investments and foreign currency Transactions................................. (633,194) ----------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ (135,409) ===========
See Notes to Financial Statements. 34 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF CHANGES IN NET ASSETS For the Six Month Period Ended June 30, 2005 (Unaudited)
INTERNATIONAL SHORT-TERM SMALL CAP BALANCED EQUITY INCOME EQUITY INVESTMENT GROWTH FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------- ----------- ----------- Operations: Net investment income/(loss)............. $ (61,443) $ 2,924,615 $ 2,303,438 $ 425,582 $ 37,472 $ (83,245) Net realized gain/(loss) on investments and foreign currency transactions....... (64,827) 20,319,435 399,455 1,003,337 (1,258) 1,971,719 Net change in unrealized appreciation/ (depreciation) of investments and translation of assets and liabilities in foreign currency........................ 2,493,783 (22,648,130) 69,947 (1,913,438) 85 (4,376,370) ------------ ------------ ------------ ----------- ----------- ----------- Net increase/(decrease) in net assets resulting from operations............... 2,367,513 595,920 2,772,840 (484,519) 36,299 (2,487,896) Capital Stock Transactions: (Dollars) Shares sold............................ 4,536,019 4,771,256 3,333,889 3,620,508 3,436,621 2,851,633 Shares redeemed........................ (15,725,206) (32,400,433) (4,401,202) (3,876,710) (3,496,802) (5,024,383) ------------ ------------ ------------ ----------- ----------- ----------- Net decrease in net assets from capital stock transactions...................... (11,189,187) (27,629,177) (1,067,313) (256,202) (60,181) (2,172,750) ------------ ------------ ------------ ----------- ----------- ----------- Net increase/(decrease) in net assets.... (8,821,674) (27,033,257) 1,705,527 (740,721) (23,882) (4,660,646) ------------ ------------ ------------ ----------- ----------- ----------- NET ASSETS: Beginning of period...................... $269,488,051 $535,027,688 $127,557,209 $39,276,001 $ 3,181,768 $56,286,061 ------------ ------------ ------------ ----------- ----------- ----------- End of period............................ $260,666,377 $507,994,431 $129,262,736 $38,535,280 $ 3,157,886 $51,625,415 ============ ============ ============ =========== =========== =========== Undistributed net investment income/(loss)........................... $ (61,443) $ 2,924,615 $ 2,882,263 $ 403,025 $ 46,002 $ (83,245) ============ ============ ============ =========== =========== =========== Capital Share Transactions: Shares sold............................ 253,886 225,215 273,245 304,252 338,199 243,781 Shares redeemed........................ (880,875) (1,531,645) (359,656) (326,136) (344,143) (431,676) ------------ ------------ ------------ ----------- ----------- ----------- Net decrease in shares outstanding....... (626,989) (1,306,430) (86,411) (21,884) (5,944) (187,895) ============ ============ ============ =========== =========== ===========
SOCIALLY RESPONSIBLE FUND ----------- Operations: Net investment income/(loss)............. $ 497,785 Net realized gain/(loss) on investments and foreign currency transactions....... 1,532,696 Net change in unrealized appreciation/ (depreciation) of investments and translation of assets and liabilities in foreign currency........................ (2,165,890) ----------- Net increase/(decrease) in net assets resulting from operations............... (135,409) Capital Stock Transactions: (Dollars) Shares sold............................ 2,745,133 Shares redeemed........................ (4,587,481) ----------- Net decrease in net assets from capital stock transactions...................... (1,842,348) ----------- Net increase/(decrease) in net assets.... (1,977,757) ----------- NET ASSETS: Beginning of period...................... $80,335,950 ----------- End of period............................ $78,358,193 =========== Undistributed net investment income/(loss)........................... $ 499,836 =========== Capital Share Transactions: Shares sold............................ 181,116 Shares redeemed........................ (303,711) ----------- Net decrease in shares outstanding....... (122,595) ===========
See Notes to Financial Statements. 35 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST STATEMENTS OF CHANGES IN NET ASSETS For the Year Ended December 31, 2004
INTERNATIONAL SHORT-TERM SMALL CAP BALANCED EQUITY INCOME EQUITY INVESTMENT GROWTH FUND FUND FUND FUND FUND FUND ------------ ------------ ------------ ------------- ------------ ------------ Operations: Net investment income/(loss).............. $ 5,861,461 $ 6,770,809 $ 4,160,106 $ 95,146 $ 42,721 $ (759,456) Affiliated mutual fund capital gain distributions............................ 1,863,019 -- -- -- -- -- Net realized gain/(loss) on investments and foreign currency transactions........ (682,490) 17,790,117 2,438,113 4,743,258 (586) 3,907,407 Net change in unrealized appreciation/ (depreciation) of investments and translation of assets and liabilities in foreign currency......................... 13,831,770 26,031,334 (521,133) (1,009,610) (2,116) (1,016,527) ------------ ------------ ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations............................... 20,873,760 50,592,260 6,077,086 3,828,794 40,019 2,131,424 Distributions to Shareholders From: Net investment income..................... (6,788,135) (6,987,974) (4,673,112) (513,331) (35,222) -- Return of capital......................... -- -- (24,759) -- -- -- Net realized capital gains................ -- -- (2,278,801) -- -- -- ------------ ------------ ------------ ------------ ------------ ------------ Total distributions to shareholders....... (6,788,135) (6,987,974) (6,976,672) (513,331) (35,222) -- Capital Stock Transactions: (Dollars) Shares sold............................. 15,931,388 22,957,421 11,838,084 23,461,339 18,075,505 9,697,172 Shares issued as reinvestment of distributions.......................... 6,788,135 6,936,814 6,976,672 513,331 35,222 -- Shares redeemed......................... (37,578,497) (69,981,505) (15,505,772) (23,755,515) (19,776,400) (12,735,664) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) in net assets from capital stock transactions............... (14,858,974) (40,087,270) 3,308,984 219,155 (1,665,673) (3,038,492) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) in net assets..... (773,349) 3,517,016 2,409,398 3,534,618 (1,660,876) (907,068) ------------ ------------ ------------ ------------ ------------ ------------ NET ASSETS: Beginning of period....................... $270,261,400 $531,510,672 $125,147,811 $ 35,741,383 $ 4,842,644 $ 57,193,129 ------------ ------------ ------------ ------------ ------------ ------------ End of period............................. $269,488,051 $535,027,688 $127,557,209 $ 39,276,001 $ 3,181,768 $ 56,286,061 ============ ============ ============ ============ ============ ============ Undistributed net investment income/ (loss)................................... $ -- $ -- $ 578,825 $ (22,557) $ 8,530 $ -- ============ ============ ============ ============ ============ ============ Capital Share Transactions: Shares sold............................. 916,974 1,146,754 952,127 2,103,337 1,785,096 825,410 Shares issued as reinvestment of distributions.......................... 378,380 324,730 575,633 43,029 3,484 -- Shares redeemed......................... (2,162,760) (3,472,168) (1,242,162) (2,124,967) (1,953,498) (1,104,072) ------------ ------------ ------------ ------------ ------------ ------------ Net increase/(decrease) in shares outstanding.............................. (867,406) (2,000,684) 285,598 21,399 (164,918) (278,662) ============ ============ ============ ============ ============ ============
SOCIALLY RESPONSIBLE FUND ------------ Operations: Net investment income/(loss).............. $ 1,017,771 Affiliated mutual fund capital gain distributions............................ -- Net realized gain/(loss) on investments and foreign currency transactions........ 4,017,438 Net change in unrealized appreciation/ (depreciation) of investments and translation of assets and liabilities in foreign currency......................... 4,464,174 ------------ Net increase in net assets resulting from operations............................... 9,499,383 Distributions to Shareholders From: Net investment income..................... (1,048,007) Return of capital......................... -- Net realized capital gains................ -- ------------ Total distributions to shareholders....... (1,048,007) Capital Stock Transactions: (Dollars) Shares sold............................. 8,277,816 Shares issued as reinvestment of distributions.......................... 1,048,007 Shares redeemed......................... (11,406,087) ------------ Net increase/(decrease) in net assets from capital stock transactions............... (2,080,264) ------------ Net increase/(decrease) in net assets..... 6,371,112 ------------ NET ASSETS: Beginning of period....................... $ 73,964,838 ------------ End of period............................. $ 80,335,950 ============ Undistributed net investment income/ (loss)................................... $ 2,051 ============ Capital Share Transactions: Shares sold............................. 578,445 Shares issued as reinvestment of distributions.......................... 67,964 Shares redeemed......................... (798,594) ------------ Net increase/(decrease) in shares outstanding.............................. (152,185) ============
See Notes to Financial Statements. 36 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST BALANCED FUND FINANCIAL HIGHLIGHTS For a Fund Share Outstanding Throughout Each Period.
SIX MONTH PERIOD ENDED YEAR ENDED DECEMBER 31, 6/30/2005 ------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period........................... $ 17.95 $ 17.02 $ 14.52 $ 16.34 $ 16.76 $ 17.27 -------- -------- -------- -------- -------- -------- INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment income***....................................... (0.00)/4/ 0.38 0.33 0.43 0.65 0.58 Net realized and unrealized gain/(loss) on investments......... 0.17 1.01 2.51 (1.79) (0.41) (0.42) -------- -------- -------- -------- -------- -------- Total from investment operations............................... 0.17 1.39 2.84 (1.36) 0.24 0.16 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income........................... -- (0.46) (0.34) (0.46) (0.66) (0.67) Distributions from capital gains............................... -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- Total distributions............................................ -- (0.46) (0.34) (0.46) (0.66) (0.67) -------- -------- -------- -------- -------- -------- Net asset value, end of period................................. $ 18.12 $ 17.95 $ 17.02 $ 14.52 $ 16.34 $ 16.76 ======== ======== ======== ======== ======== ======== Total Return/1, 2/............................................. 0.95%** 8.18% 19.56% (8.27)% 1.39% 0.93% ======== ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:/3/ Net assets, end of period (in 000's)........................... $260,666 $269,488 $270,261 $240,562 $292,176 $314,728 Operating expenses including reimbursement/waiver and excluding earnings credits.............................................. 0.05%* 0.04% 0.05% 0.04% 0.05% 0.06% Operating expenses excluding reimbursement/waiver and earnings credits....................................................... 0.05%* 0.04% 0.05% 0.04% 0.05% 0.07% Net investment income/(loss) including reimbursement/waiver and excluding earnings credits.................................... (0.05)%* 2.20% 2.14% 2.77% 3.79% 3.38% Net investment income/(loss) excluding reimbursement/waiver and earnings credits.............................................. (0.05)%* 2.20% 2.14% 2.77% 3.79% 3.37% Portfolio turnover rate........................................ 0%** 6% 9% 13% 10% 121%
--------------- * Annualized. ** Non-annualized. ***The selected per share data was calculated using the average shares outstanding method for the period. /1/ Total return represents aggregate total return for the period indicated. /2/ If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all years shown. /3/ Effective January 19, 2000, The Balanced Fund began operating under a "fund of funds" structure. The ratio of expenses does not include expenses of the underlying funds in which the Fund invests. /4 /Less than 0.01 per share. See Notes to Financial Statements. 37 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST EQUITY FUND FINANCIAL HIGHLIGHTS - (CONTINUED) For a Fund Share Outstanding Throughout Each Period.
SIX MONTH PERIOD ENDED YEAR ENDED DECEMBER 31, 6/30/2005 -------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period........................... $ 21.34 $ 19.63 $ 15.56 $ 19.57 $ 20.65 $ 21.92 -------- -------- -------- -------- -------- -------- INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment income***....................................... 0.12 0.26 0.21 0.21 0.21 0.21 Net realized and unrealized gain/(loss) on investments......... (0.08) 1.73 4.08 (4.01) (1.08) (1.23) -------- -------- -------- -------- -------- -------- Total from investment operations............................... 0.04 1.99 4.29 (3.80) (0.87) (1.02) -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income........................... -- (0.28) (0.22) (0.21) (0.21) (0.25) Distributions from capital gains............................... -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- Total distributions............................................ -- (0.28) (0.22) (0.21) (0.21) (0.25) -------- -------- -------- -------- -------- -------- Net asset value, end of period................................. $ 21.38 $ 21.34 $ 19.63 $ 15.56 $ 19.57 $ 20.65 ======== ======== ======== ======== ======== ======== Total Return/1, 2/............................................. 0.19%** 10.15% 27.57% (19.43)% (4.21)% (4.64)% ======== ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $507,994 $535,028 $531,511 $449,559 $600,016 $667,731 Operating expenses including reimbursement/waiver and excluding earnings credits.............................................. 0.84%* 0.87% 0.87% 0.82% 0.82% 0.82% Operating expenses excluding reimbursement/waiver and earnings credits....................................................... 1.04%* 0.91% 0.91% 0.86% 0.87% 0.87% Net investment income/(loss) including reimbursement/waiver and excluding earnings credits.................................... 1.14%* 1.30% 1.17% 1.13% 1.04% 1.05% Net investment income/(loss) excluding reimbursement/waiver and earnings credits.............................................. 0.94%* 1.26% 1.13% 1.09% 0.99% 0.98% Portfolio turnover rate........................................ 23%** 35% 43% 36% 38% 117%
--------------- * Annualized. ** Non-annualized. ***The selected per share data was calculated using the average shares outstanding method for the period. /1/ Total return represents aggregate total return for the period indicated. /2/ If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all years shown. See Notes to Financial Statements. 38 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST INCOME FUND FINANCIAL HIGHLIGHTS - (CONTINUED) For a Fund Share Outstanding Throughout Each Period.
SIX MONTH PERIOD ENDED YEAR ENDED DECEMBER 31, 6/30/2005 ------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period........................... $ 12.16 $ 12.26 $ 12.43 $ 12.30 $ 12.39 $ 12.24 -------- -------- -------- -------- -------- -------- INCOME FROM INVESTMENT OPERATIONS: Net investment income***....................................... 0.22 0.41 0.55 0.69 0.78 0.82 Net realized and unrealized gain on investments................ 0.04 0.19 0.35 0.42 0.33 0.27 -------- -------- -------- -------- -------- -------- Total from investment operations............................... 0.26 0.60 0.90 1.11 1.11 1.09 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income........................... -- (0.47) (0.33) (0.57) (0.85) (0.94) Distributions from capital gains............................... -- (0.23) (0.74) (0.41) (0.35) -- -------- -------- -------- -------- -------- -------- Total distributions............................................ -- (0.70) (1.07) (0.98) (1.20) (0.94) -------- -------- -------- -------- -------- -------- Net asset value, end of period................................. $ 12.42 $ 12.16 $ 12.26 $ 12.43 $ 12.30 $ 12.39 ======== ======== ======== ======== ======== ======== Total Return/1, 2/............................................. 2.14%** 4.94% 7.25% 9.20% 8.88% 8.89% ======== ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $129,263 $127,557 $125,148 $114,935 $126,045 $137,184 Operating expenses including reimbursement/waiver and excluding earnings credits.............................................. 0.92%* 0.91% 0.89% 0.85% 0.81% 0.88% Operating expenses excluding reimbursement/waiver and earnings credits....................................................... 1.10%* 0.93% 0.93% 0.90% 0.88% 0.92% Net investment income/(loss) including reimbursement/waiver and excluding earnings credits.................................... 3.61%* 3.25% 4.25% 5.41% 5.96% 7.02% Net investment income/(loss) excluding reimbursement/waiver and earnings credits.............................................. 3.43%* 3.23% 4.21% 5.36% 5.89% 6.98% Portfolio turnover rate........................................ 430%** 595% 482% 316% 348% 422%
--------------- * Annualized. ** Non-annualized. ***The selected per share data was calculated using the average shares outstanding method for the period. /1/ Total return represents aggregate total return for the period indicated. /2/ If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all years shown. See Notes to Financial Statements. 39 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST INTERNATIONAL EQUITY FUND FINANCIAL HIGHLIGHTS - (CONTINUED) For a Fund Share Outstanding Throughout Each Period.
SIX MONTH PERIOD ENDED YEAR ENDED DECEMBER 31, 6/30/2005 -------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period.... $ 11.91 $ 10.91 $ 8.30 $ 10.52 $ 14.27 $ 17.52 -------- -------- -------- -------- -------- -------- INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment income/(loss)***......... 0.13 0.03 0.05 (0.01) 0.00 0.03 Net realized and unrealized gain/(loss) on investments......................... (0.28) 1.13 2.64 (2.21) (3.75) (3.10) -------- -------- -------- -------- -------- -------- Total from investment operations........ (0.15) 1.16 2.69 (2.22) (3.75) (3.07) -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income.... -- (0.16) (0.08) -- -- -- Distributions from capital gains........ -- -- -- -- -- (0.18) -------- -------- -------- -------- -------- -------- Total distributions..................... -- (0.16) (0.08) -- -- (0.18) -------- -------- -------- -------- -------- -------- Net asset value, end of period.......... $ 11.76 $ 11.91 $ 10.91 $ 8.30 $ 10.52 $ 14.27 ======== ======== ======== ======== ======== ======== Total Return/1, 2/...................... (1.26)%** 10.61% 32.49% (20.99)% (26.35)% (17.51)% ======== ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's).... $ 38,535 $ 39,276 $ 35,741 $ 26,286 $ 33,544 $ 42,689 Operating expenses including reimbursement/waiver and excluding earnings credits....................... 1.51%* 1.55% 1.46% 1.58% 1.53% 1.47% Operating expenses excluding reimbursement/waiver and earnings credits................................ 1.73%* 1.60% 1.51% 1.62% 1.54% 1.51% Net investment income/(loss) including reimbursement/waiver and excluding earnings credits....................... 2.20%* 0.26% 0.59% (0.08)% 0.00% 0.18% Net investment income/(loss) excluding reimbursement/waiver and earnings credits................................ 1.98%* 0.21% 0.54% (0.12)% (0.01)% 0.14% Portfolio turnover rate................. 22%** 161% 68% 139% 103% 69%
--------------- * Annualized. ** Non-annualized. ***The selected per share data was calculated using the average shares outstanding method for the period. /1/ Total return represents aggregate total return for the period indicated. /2/ If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all years shown. See Notes to Financial Statements. 40 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST SHORT-TERM INVESTMENT FUND FINANCIAL HIGHLIGHTS - (CONTINUED) For a Fund Share Outstanding Throughout Each Period.
SIX MONTH PERIOD ENDED YEAR ENDED DECEMBER 31, 6/30/2005 ------------------------------------------------ (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period........................... $ 10.11 $ 10.10 $ 10.09 $ 10.08 $ 9.92 $ 9.89 -------- -------- -------- -------- -------- -------- INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment income***....................................... 0.12 0.13 0.12 0.18 0.39 0.57 Net realized and unrealized gain/(loss) on investments......... 0.00/3/ (0.01) (0.02) (0.01) 0.12 0.01 -------- -------- -------- -------- -------- -------- Total from investment operations............................... 0.12 0.12 0.10 0.17 0.51 0.58 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income........................... -- (0.11) (0.09) (0.16) (0.33) (0.55) Distributions from capital gains............................... -- -- -- -- (0.02) -- -------- -------- -------- -------- -------- -------- Total distributions............................................ -- (0.11) (0.09) (0.16) (0.35) (0.55) -------- -------- -------- -------- -------- -------- Net asset value, end of period................................. $ 10.23 $ 10.11 $ 10.10 $ 10.09 $ 10.08 $ 9.92 ======== ======== ======== ======== ======== ======== Total Return/1, 2/............................................. 1.19%** 1.22% 1.03% 1.72% 5.17% 5.81% ======== ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 3,158 $ 3,182 $ 4,843 $ 4,183 $ 2,796 $ 1,982 Operating expenses including reimbursement/waiver and excluding earnings credits.............................................. 0.27%* 0.17% 0.17% 0.33% 0.33% 0.49% Operating expenses excluding reimbursement/waiver and earnings credits....................................................... 0.88%* 1.11% 1.07% 1.16% 1.36% 1.81% Net investment income/(loss) including reimbursement/waiver and excluding earnings credits.................................... 2.27%* 1.19% 1.16% 1.76% 4.20% 5.62% Net investment income/(loss) excluding reimbursement/waiver and earnings credits.............................................. 1.66%* 0.25% 0.18% 0.93% 3.17% 4.30% Portfolio turnover rate........................................ 0%** 0% 0% 0% 0% 0%
--------------- * Annualized. ** Non-annualized. ***The selected per share data was calculated using the average shares outstanding method for the period. /1/ Total return represents aggregate total return for the period indicated. /2/ If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all years shown. /3/ Less than 0.01 per share. See Notes to Financial Statements. 41 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST SMALL CAP GROWTH FUND FINANCIAL HIGHLIGHTS - (CONTINUED) For a Fund Share Outstanding Throughout Each Period.
SIX MONTH PERIOD ENDED YEAR ENDED DECEMBER 31, 6/30/2005 ---------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period.... $ 12.33 $ 11.81 $ 7.43 $ 12.15 $ 17.31 $ 19.76 -------- -------- -------- -------- -------- -------- INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment loss***.................. (0.02) (0.16) (0.14) (0.15) (0.12) (0.12) Net realized and unrealized gain/(loss) on investments......................... (0.52) 0.68 4.52 (4.57) (5.04) (2.03) -------- -------- -------- -------- -------- -------- Total from investment operations........ (0.54) 0.52 4.38 (4.72) (5.16) (2.15) -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income.... -- -- -- -- -- -- Distributions from capital gains........ -- -- -- -- -- (0.30) -------- -------- -------- -------- -------- -------- Total distributions..................... -- -- -- -- -- (0.30) -------- -------- -------- -------- -------- -------- Net asset value, end of period.......... $ 11.79 $ 12.33 $ 11.81 $ 7.43 $ 12.15 $ 17.31 ======== ======== ======== ======== ======== ======== Total Return/1, 2/...................... (4.38)%** 4.40% 58.95% (38.93)% (29.81)% (10.48)% ======== ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's).... $ 51,625 $ 56,286 $ 57,193 $ 34,768 $ 58,437 $ 83,597 Operating expenses including reimbursement/waiver and excluding earnings credits....................... 1.52%* 1.58% 1.66% 1.66% 1.54% 1.50% Operating expenses excluding reimbursement/waiver and earnings credits................................ 1.86%* 1.77% 1.79% 1.82% 1.71% 1.67% Net investment income/(loss) including reimbursement/waiver and excluding earnings credits....................... (0.34)%* (1.38)% (1.52)% (1.61)% 1.14% (0.57)% Net investment income/(loss) excluding reimbursement/waiver and earnings credits................................ (0.68)% (1.57)% (1.65)% (1.77)% 1.31% (0.74)% Portfolio turnover rate................. 110%** 96% 206% 234% 319% 233%
--------------- * Annualized. ** Non-annualized. ***The selected per share data was calculated using the average shares outstanding method for the period. /1/ Total return represents aggregate total return for the period indicated. /2/ If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all years shown. See Notes to Financial Statements. 42 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST SOCIALLY RESPONSIBLE FUND FINANCIAL HIGHLIGHTS - (CONTINUED) For a Fund Share Outstanding Throughout Each Period.
SIX MONTH PERIOD ENDED YEAR ENDED DECEMBER 31, 6/30/2005 -------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 ----------- -------- -------- -------- -------- -------- Net asset value, beginning of period........................... $ 15.42 $ 13.79 $ 10.87 $ 12.75 $ 14.11 $ 13.81 -------- -------- -------- -------- -------- -------- INCOME/(LOSS) FROM INVESTMENT OPERATIONS: Net investment income***....................................... 0.10 0.19 0.17 0.16 0.14 0.13 Net realized and unrealized gain/(loss) on investments......... (0.12) 1.64 2.92 (1.88) (1.17) 1.07 -------- -------- -------- -------- -------- -------- Total from investment operations............................... (0.02) 1.83 3.09 (1.72) (1.03) 1.20 -------- -------- -------- -------- -------- -------- LESS DISTRIBUTIONS: Dividends from net investment income........................... -- (0.20) (0.17) (0.16) (0.14) (0.14) Distributions from capital gains............................... -- -- -- -- (0.19) (0.76) -------- -------- -------- -------- -------- -------- Total distributions............................................ -- (0.20) (0.17) (0.16) (0.33) (0.90) -------- -------- -------- -------- -------- -------- Net asset value, end of period................................. $ 15.40 $ 15.42 $ 13.79 $ 10.87 $ 12.75 $ 14.11 ======== ======== ======== ======== ======== ======== Total Return/1, 2/............................................. (0.13)%** 13.30% 28.45% (13.48)% (7.30)% 8.79% ======== ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's)........................... $ 78,358 $ 80,336 $ 73,965 $ 58,960 $ 71,644 $ 76,011 Operating expenses including reimbursement/waiver and excluding earnings credits.............................................. 1.00%* 1.01% 1.03% 0.99% 1.04% 1.07% Operating expenses excluding reimbursement/waiver and earnings credits....................................................... 1.36%* 1.21% 1.22% 1.19% 1.20% 1.20% Net investment income/(loss) including reimbursement/waiver and excluding earnings credits.................................... 1.29%* 1.35% 1.39% 1.35% 1.05% 0.96% Net investment income/(loss) excluding reimbursement/waiver and earnings credits.............................................. 0.93%* 1.15% 1.20% 1.15% 0.89% 0.83% Portfolio turnover rate........................................ 16%* 32% 37% 27% 142% 99%
--------------- * Annualized. ** Non-annualized. ***The selected per share data was calculated using the average shares outstanding method for the period. /1/ Total return represents aggregate total return for the period indicated. /2/ If you are an annuity contract owner, the total return does not reflect the expenses that apply to the separate account or related policies. The inclusion of these charges would reduce the total return figures for all years shown. See Notes to Financial Statements. 43 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) June 30, 2005 1. Significant Accounting Policies. The Wilshire Variable Insurance Trust (the "Trust") is an open-end, diversified management investment company registered under the Investment Company Act of 1940, which offers units of beneficial ownership (shares) in seven separate investment portfolios: Balanced Fund, Equity Fund, Income Fund, International Equity Fund, Short-Term Investment Fund, Small Cap Growth Fund and Socially Responsible Fund. These funds collectively are referred to as the "Funds." Sponsorship of the Trust (formerly Horace Mann Mutual Funds) transferred from The Horace Mann Companies to Wilshire Associates Incorporated (the "Adviser") on September 30, 2004. Shares 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: Balanced Fund -- realization of high long-term total rate of return consistent with prudent investment risks. Equity Fund -- primary, long-term capital growth; secondary, conservation of principal and production of income. Income Fund -- long-term total rate of return in excess of the U.S. bond market over a full market cycle. International Equity Fund -- long-term growth of capital through diversified holdings of marketable foreign equity investments. Short-Term Investment Fund -- primary, realize maximum current income to the extent consistent with liquidity; secondary, preservation of principal. Small Cap Growth Fund -- long-term capital appreciation through investing primarily in equity securities of small cap companies with earnings growth potential. 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. 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. Security Valuation -- A security listed or traded on U.S. or foreign stock exchanges is valued at its last sales price on the exchange where it is principally traded. In the absence of a current quotation, the security is valued at the mean between the last bid and asked prices on that exchange. Securities quoted on the National Association of Securities Dealers Automatic Quotation (NASDAQ) System, for which there have been sales, are valued at the NASDAQ official closing price. If there are no such sales, the most recent bid quotation is used. Securities traded over-the-counter (other than on NASDAQ) are valued at the last current sale price. Debt securities that have a remaining maturity of 60 days or less are valued at cost, plus or minus any amortized premium or discount. Foreign securities are converted to United States dollars using exchange rates at the close of the New York Stock Exchange. Securities not valued at cost or by the Board of Trustees or its delegate are valued using a quotation from an independent pricing service. In the event market quotations are not readily available, securities are valued at fair value according to procedures established by the Board of Trustees or as determined in good faith by the Pricing Committee, whose members are representatives of Wilshire Associates Incorporated (the Adviser), or the Trust's Valuation Committee. Fair value is defined as the amount the owner of a security might reasonably expect to receive upon a current sale. Additionally, a Fund's investments will be valued at fair value by the Pricing Committee if the Adviser determines that an event impacting the value of an investment occurred between the closing time of a security's primary market or exchange (for example, a foreign exchange or market) and the 44 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (UNAUDITED) June 30, 2005 time the Fund's share price is calculated. Significant events include, but are not limited to the following: significant fluctuations in domestic markets, foreign markets or foreign currencies; occurrences not directly tied to the securities markets such as natural disasters, armed conflicts or significant governmental actions; and major announcements affecting a single issuer or an entire market or market sector. Investments in funds within the Balanced Fund are valued at their net asset value as reported by the underlying funds. Security transactions and investment income -- Security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign dividends, as soon as they become available. Interest income including level yield, premium and discount amortization is accrued daily. Securities gains and losses are determined on the basis of identified cost. The Income 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 Income Fund would generally purchase securities on a when-issued, delayed-delivery or forward commitment basis with the intention of acquiring the securities, the Income Fund may dispose of such securities prior to settlement if its subadviser deems it appropriate to do so. The Income 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 Income Fund will normally realize a capital gain or loss in connection with these transactions. When the Income Fund purchases securities on a when-issued, delayed-delivery or forward commitment basis, the Income Fund's subadvisers will maintain in a segregated account cash or liquid securities having a value (determined daily) at least equal to the amount of the Income Fund's purchase commitments. In the case of a forward commitment to sell portfolio securities, the subadvisers will hold the portfolio securities themselves in a segregated account while the commitment is outstanding. These procedures are designed to ensure that the Income 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 PFPC Trust Company 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. Each Fund will only enter into repurchase agreements with banks and other financial institutions which are deemed by the investment adviser to be creditworthy. Asset Backed Securities -- These securities are secured by installment loans or leases or by revolving lines of credit. They often include credit enhancements that help limit investors' exposure to the underlying credit. These securities are valued on the basis of the timing and certainty of the cash flows compared to investments with similar durations. Collateralized Mortgage Obligations -- Planned Amortization Class (PAC) -- These securities have a predetermined schedule for principal repayment coupled with an enhanced degree of cash-flow certainty. A PAC security is a specific class of mortgages which usually carry the most stable cash flows and the lowest amount of prepayment risk. These securities are valued on the basis of the timing and certainty of the cash flows compared to investments with similar durations. American Depository Receipts (ADR) -- A certificate issued by an American bank to evidence ownership of original foreign shares. The certificate is transferable and can be traded. The original foreign stock certificate is deposited with a foreign branch or correspondent bank of the issuing American bank. Commission Credits -- Bernstein Investment Research and Management Unit of Alliance Capital Management, L.P., Mellon Equity Associates, LLP and Wellington Management Company, LLP, subadvisers for the Equity Fund, seek the best price and execution on each transaction and negotiate commission rates solely on the execution requirements of each 45 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (UNAUDITED) June 30, 2005 trade. Occasionally, they place, under a directed brokerage arrangement, common stock trades with a broker/dealer who credits to the Fund part of the commissions paid. For the six month period ended June 30, 2005, credits paid and disclosed as realized capital gains were $38,146 for the Equity Fund and $11,268 for the International Equity Fund. Earnings Credits on Cash Balances -- During the six month period ended June 30, 2005, the Funds' custody fees were reduced as a result of credits earned on overnight cash balances. 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: . market value of investment securities, other assets and other liabilities at the daily rates of exchange and . 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. Forward Currency Contracts -- The Funds may enter into forward currency contracts in order to reduce their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings and to lock in the U.S. dollar cost of assets and liabilities denominated in foreign currencies. A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the differences between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing of such contract is included in net realized gain or loss from foreign currency transactions. At June 30, 2005 the Income Fund had the following open forward currency contracts:
Unrealized Local Expiration Current Value Appreciation Foreign Currency Currency Date U.S. Dollar (Depreciation) ---------------- --------- ---------- ------------- -------------- Short Contracts: Australian Dollar. 413,358 8/10/2005 $ 313,838 $ 4,035 Canadian Dollar... 214,469 8/10/2005 175,218 (4,643) Euro Currency..... 128,923 7/26/2005 156,157 10,914 Euro Currency..... 2,973,236 8/10/2005 3,541,895 258,889 Mexican Peso...... 2,137,643 7/25/2005 197,977 (7,959) New Zealand Dollar 713,018 7/27/2005 494,777 18,867 -------- $280,103 ========
2. Investment Advisory Fee, Administration 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 Fund's investment programs. The Adviser has entered into agreements with the following subadvisers: Equity Fund -- Bernstein Investment Research and Management Unit of Alliance Capital Management, L.P., Mellon Equity Associates, LLP and Wellington Management Company, LLP; Income Fund -- Western Asset Management Company, Western Asset Management Limited and BlackRock Financial Management, Inc; International Equity Fund -- New Star Institutional Managers Limited and The Boston Company Asset Management, LLC; Short-Term Investment Fund -- Western Asset Management Company; Small Cap Growth Fund -- BlackRock Financial Management, Inc., Mazama Capital Management and Lee Munder Investments Ltd. (Lee Munder Investments Ltd. ceased to advise the Small Cap Growth Fund as of January 20, 2005); Socially Responsible Fund -- Bernstein Investment Research and Management Unit of Alliance Capital Management, L.P. 46 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (UNAUDITED) June 30, 2005 Each subadviser's fees are paid by the Adviser out of the advisory fees that it receives from each of the Funds. Fees paid to a subadviser of a Fund with multiple subadvisers depends upon the fee rate negotiated with the Adviser and upon the percentage of the Fund's assets allocated to that subadviser by the Adviser, which may vary from time to time. Thus, the basis for fees paid to any such subadviser is not constant, and the relative amounts of fees paid to the various subadvisers 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 subadvisers results in excess profit to the Adviser. Because the Adviser will pay each subadviser'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 six month period ended June 30, 2005, the Adviser provided services and assumed expenses pursuant to the amended Investment Advisory Agreement, for which they received a fee based on each Fund's average daily net assets, computed daily and payable monthly, at the following annual rates:
Rate on Aggregate Rate on the First Fund Assets $1 Billion of Aggregate in Excess of Fund Fund Assets $1 Billion ---- ----------------------- ------------ Balanced Fund*.......................... 0.550% 0.450% Equity Fund............................. 0.550 0.450 Income Fund............................. 0.550 0.450 International Equity Fund............... 1.000 0.900 Short-Term Investment Fund.............. 0.275 0.175 Small Cap Growth Fund................... 1.150 1.150 Socially Responsible Fund............... 0.850 0.750
Wilshire has contractually agreed to reimburse each Fund for fees and expenses payable to the Funds' third party administrator, transfer agent and principal underwriter through December 31, 2006. For the six month period ended June 30, 2005, the Adviser waived fees in the amounts listed below.
Fund Fees Waived ---- ----------- Balanced Fund*.............................................. $ 1,250 Equity Fund................................................. 480,191 Income Fund................................................. 112,798 International Equity Fund................................... 39,939 Short-Term Investment Fund.................................. 7,880 Small Cap Growth Fund....................................... 85,834 Socially Responsible Fund................................... 136,933
--------------- * Balanced Fund operates under a "fund of funds" structure, primarily investing in shares of the Equity Fund and the Income Fund. Under the "fund of funds" arrangement, the Adviser receives directly from the Balanced Fund a fee of 0.550% of the average daily net assets of the Balanced Fund that are not invested in another Fund. 47 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (UNAUDITED) June 30, 2005 Affiliated Broker -- For the six month period ended June 30, 2005, brokerage commissions paid on investment transactions in the Equity Fund amounted to $243,449 and in the Socially Responsible Fund, $32,461, of which $46,802 of the Equity Fund and $20,527 of the Socially Responsible Fund were paid to Sanford C. Bernstein Co., an affiliate of the Funds' subadviser. PFPC Inc. ("PFPC") serves as the Fund's administrator, accounting agent and transfer agent pursuant to a services agreement. PFPC has agreed to waive $35,303 in transfer agent fees for the Funds for the period from January 1, 2005 to May 31, 2005. The Trust pays each independent trustee a $5,000 annual retainer, $1,500 per board meeting attended, $2,000 annual committee retainer and $2,000 annual committee chairperson retainer. For the six months ended June 30, 2005, the fees, excluding travel expenses, for independent trustees totaled $35,500. The Trust did not compensate officers or trustees who are officers, directors, employees or holders of 5% or more of the outstanding voting securities of Horace Mann Educators Corporation the former administrator or the Adviser. 3. Distribution and Service Plan. Pursuant to a Support Services Agreement, HMLIC provided certain services to the Funds necessary to coordinate the Funds' activities with those of the Separate Account of HMLIC. The Balanced Fund was not charged and HMLIC did not receive a support fee due to the "fund of funds" structure. For the six months ended June 30, 2005, HMLIC received a fee, accrued daily and paid monthly, based upon the combined assets for the Funds as follows:
Net Assets Rate ---------- ----- On initial $1 billion....................................... 0.150% Over $1 billion............................................. 0.100%
The Funds have adopted a Rule 12b-1 distribution plan (the "Distribution Plan"). Pursuant to the Distribution Plan with the Funds, PFPC Distributors, Inc. (the "Distributor") receives a distribution fee, payable by each Fund. The Distributor uses the fee to pay for distribution-related 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 0.25% of average daily net assets attributable to each Fund. 48 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (UNAUDITED) June 30, 2005 4. Security Transactions. For the six months ended June 30, 2005, aggregate cost of purchases and proceeds from sales of securities, other than short-term investments, were as follows:
Fund Purchases Proceeds from Sales ---- ------------ ------------------- Balanced Fund........................... $ 577,500 $ 12,024,438 Equity Fund............................. 118,597,685 146,505,634 Income Fund............................. 534,595,867 533,138,333 International Equity Fund............... 8,437,522 9,026,585 Short-Term Investment Fund.............. 0 0 Small Cap Growth Fund................... 51,237,848 53,345,411 Socially Responsible Fund............... 11,964,377 13,401,955
Purchases and sales of U.S. Government and U.S. Government sponsored securities during the six month period ended June 30, 2005 were:
Fund Purchases Proceeds from sales ---- ------------ ------------------- Income Fund............................. $582,641,269 $544,652,822
For aggregate gross unrealized appreciation and depreciation, book figures approximate the Federal income tax basis. At June 30, 2005, each Fund's components of unrealized appreciation and depreciation is as follows:
Unrealized Unrealized Net Unrealized Fund Appreciation Depreciation Appreciation ---- ------------ ------------ -------------- Balanced Fund........................... $13,098,383 $ -- $13,098,383 Equity Fund............................. 81,381,552 (36,604,409) $44,777,143 Income Fund............................. 3,436,675 (920,619) $ 2,516,056 International Equity Fund............... 3,234,320 (896,193) $ 2,338,127 Short-Term Investment Fund.............. -- (1,479) $ (1,479) Small Cap Growth Fund................... 6,347,413 (2,709,667) $ 3,637,746 Socially Responsible Fund............... 14,531,741 (3,222,141) $11,309,600
5. Tax Information. No provision for Federal income taxes is required since each Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and distribute to shareholders all of its taxable income and gains. Federal income tax regulations differ from accounting principles generally accepted in the United States of America; therefore, distributions determined in accordance with tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year-end; accordingly, tax-basis balances have not been determined as of June 30, 2005. 49 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) (UNAUDITED) June 30, 2005 The Portfolios intend to retain realized gains to the extent of available capital loss carryforwards. At December 31, 2004, the following Funds had available for Federal income tax purposes unused capital losses as follows:
December 31 --------------------------------------------------- 2008 2009 2010 2011 2012 ----------- ----------- ----------- ---------- ---- Balanced Fund............. $ 6,154,577 $ -- $ -- $ -- $ -- Equity Fund............... 47,514,075 -- 42,546,430 5,637,907 -- International Equity Fund. -- 4,337,950 7,076,246 -- -- Short-Term Investment Fund -- -- -- -- 586 Small Cap Growth Fund..... -- 11,897,109 9,619,277 -- -- Socially Responsible Fund. -- -- -- 1,306,850 --
50 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST OTHER 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 12-month period ended June 30, 2005 is available at no charge, upon request by calling 1-888-200-6796, by e-mailing us at www.wilshirefunds.com, 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 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 1-800-SEC-0330. 51 [GRAPHIC] WILSHIRE VARIABLE INSURANCE TRUST SEMI-ANNUAL REPORT June 30, 2005 Wilshire Variable Insurance Trust Balanced Fund Short-Term Investment Fund Equity Fund Small Cap Growth Fund Income Fund Socially Responsible Fund International Equity Fund Board Of Trustees DeWitt F. Bowman Harriet A. Russell Roger A. Formisano Lawrence E. Davanzo Cynthia A. Hargadon George J. Zock, Chairman Richard A. Holt Officers of the Funds Lawrence E. Davanzo Scott Boroczi President Vice-President and Treasurer Helen Thompson Secretary and Chief Compliance Officer -------------------------------------------------------------------------------- Administrator And Transfer Agent Investment Subadvisers (continued) PFPC Inc. Mazama Capital Management 760 Moore Road One SouthWest Columbia King of Prussia, PA 19406 Suite 1860 Portland, OR 97258 Investment Adviser Wilshire Associates Incorporated Mellon Equity Associates, LLP 1299 Ocean Avenue 500 Grant Street, Suite 4200 Santa Monica, CA 90401-1085 Pittsburgh, PA 15258 Custodian New Star Institutional Mangers PFPC Trust Company Limited The Eastwick Center 1 Knightsbridge Green, London 8800 Tinicum Boulevard England Philadelphia, PA 19153 SW1X7NE Independent Auditors Wellington Management Company, LLP PricewaterhouseCoopers LLP 75 State Street Two Commerce Square Boston, MA 02109 2001 Market Street, Suite 1700 Philadelphia, PA 19103-7042 Western Asset Management Company 117 E. Colorado Blvd., Suite 600 Investment Subadvisers Pasadena, CA 91105 Bernstein Investment Research and Management Unit of Alliance Capital Western Asset Management Limited Management, L.P. 155 Bishopsgate, London England 767 Fifth Avenue EC2M 3XG New York, NY 10153 BlackRock Financial Management, Inc. 345 Park Avenue New York, NY 10154-0010 The Boston Company Asset Management, LLC One Boston Place Boston, Massachusetts 02108 [LOGO] WILSHIRE VARIABLE INSURANCE TRUST c/o PFPC Inc. P.O. Box 9807 Providence, RI 02940 1-888-200-6796 www.wilshirefunds.com WVISAR0605 Item 2. Code of Ethics. Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. 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 Trustees since the Registrant last disclosed such procedures in the definitive proxy statement filed with the SEC on August 13, 2004. 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) Not applicable. (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 9/1/05 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 9/1/05 By (Signature and Title)* /s/ Scott Boroczi --------------------------------------------- Scott Boroczi, Treasurer, (principal financial officer) Date 9/1/05 * Print the name and title of each signing officer under his or her signature.