N-Q 1 fp0026065_nq.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number
811-07917
  

Wilshire Variable Insurance Trust
(Exact name of registrant as specified in charter)
 
1299 Ocean Avenue, Suite 700     Santa Monica, California
90401-1085
Address of principal executive offices)
(Zip code)

Jason A. Schwarz
 
1299 Ocean Avenue, Suite 700     Santa Monica, California 90401-1085
(Name and address of agent for service)

Registrant's telephone number, including area code:
(310) 451-3051
  

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

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

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
 
Item 1. Schedule of Investments.
 
WILSHIRE 2015 FUND
  
SCHEDULE OF INVESTMENTS
  
March 31, 2017 (Unaudited)
  
   
AFFILIATED REGISTERED INVESTMENT COMPANIES - 83.9%
  
Shares
    
Value
  
Wilshire Income Opportunities Fund - Institutional Class
    
1,083,462
    
$
11,116,320
  
Wilshire International Equity Fund - Institutional Class
    
403,417
      
3,820,361
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
93,319
      
3,657,164
  
Wilshire Large Company Value Portfolio - Institutional Class
    
194,971
      
4,045,652
  
Wilshire Small Company Growth Portfolio - Institutional Class
    
20,681
      
561,479
  
Wilshire Small Company Value Portfolio - Institutional Class
    
22,490
      
543,576
  
Total Affiliated Registered Investment Companies (Cost $22,994,818)
    
$
23,744,552
  
                 
EXCHANGE-TRADED FUNDS - 15.1%
  
Shares
    
Value
  
Vanguard Total Bond Market ETF (Cost $4,305,407)
    
52,625
    
$
4,266,835
  
                 
MONEY MARKET FUNDS - 1.1%
  
Shares
    
Value
  
Northern Trust Institutional Government Select Portfolio –Institutional Class, 0.56% (a) (Cost $303,912)
    
303,912
    
$
303,912
  
                 
Total Investments at Value - 100.1% (Cost $27,604,137)
    
$
28,315,299
  
                 
Liabilities in Excess of Other Assets - (0.1%)
      
(24,207
)
                 
Net Assets - 100.0%
    
$
28,291,092
  
 
(a)
The rate shown is the 7-day effective yield as of March 31, 2017.
 
See accompanying notes to Schedules of Investments.
 
WILSHIRE 2025 FUND
  
SCHEDULE OF INVESTMENTS
  
March 31, 2017 (Unaudited)
  
   
AFFILIATED REGISTERED INVESTMENT COMPANIES – 88.0%
  
Shares
    
Value
  
Wilshire Income Opportunities Fund - Institutional Class
    
1,806,085
    
$
18,530,428
  
Wilshire International Equity Fund - Institutional Class
    
1,420,471
      
13,451,862
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
273,344
      
10,712,352
  
Wilshire Large Company Value Portfolio - Institutional Class
    
585,021
      
12,139,182
  
Wilshire Small Company Growth Portfolio - Institutional Class
    
47,371
      
1,286,119
  
Wilshire Small Company Value Portfolio - Institutional Class
    
51,538
      
1,245,665
  
Total Affiliated Registered Investment Companies (Cost $55,210,029)
    
$
57,365,608
  
                 
EXCHANGE-TRADED FUNDS - 10.9%
  
Shares
    
Value
  
Vanguard Total Bond Market ETF (Cost $7,160,884)
    
87,305
    
$
7,078,689
  
                 
MONEY MARKET FUNDS - 1.1%
  
Shares
    
Value
  
Northern Trust Institutional Government Select Portfolio –Institutional Class, 0.56% (a) (Cost $753,973)
    
753,973
    
$
753,973
  
                 
Total Investments at Value - 100.0% (Cost $63,124,886)
    
$
65,198,270
  
                 
Liabilities in Excess of Other Assets – (0.0%) (b)
      
(10,804
)
                 
Net Assets - 100.0%
    
$
65,187,466
  
 
(a)
The rate shown is the 7-day effective yield as of March 31, 2017.
(b)
Percentage rounds to less than 0.1%.
 
See accompanying notes to Schedules of Investments.
 
WILSHIRE 2035 FUND
  
SCHEDULE OF INVESTMENTS
  
March 31, 2017 (Unaudited)
  
   
AFFILIATED REGISTERED INVESTMENT COMPANIES - 93.3%
  
Shares
    
Value
  
Wilshire Income Opportunities Fund - Institutional Class
    
1,446,188
    
$
14,837,891
  
Wilshire International Equity Fund - Institutional Class
    
2,386,923
      
22,604,159
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
482,471
      
18,908,041
  
Wilshire Large Company Value Portfolio - Institutional Class
    
994,055
      
20,626,641
  
Wilshire Small Company Growth Portfolio - Institutional Class
    
95,645
      
2,596,749
  
Wilshire Small Company Value Portfolio - Institutional Class
    
104,039
      
2,514,629
  
Total Affiliated Registered Investment Companies (Cost $78,578,297)
    
$
82,088,110
  
                 
EXCHANGE-TRADED FUNDS - 5.6%
  
Shares
    
Value
  
Vanguard Total Bond Market ETF (Cost $5,064,923)
    
61,441
    
$
4,981,636
  
                 
MONEY MARKET FUNDS - 1.0%
  
Shares
    
Value
  
Northern Trust Institutional Government Select Portfolio –Institutional Class, 0.56% (a) (Cost $861,432)
    
861,432
    
$
861,432
  
                 
Total Investments at Value - 99.9% (Cost $84,504,652)
    
$
87,931,178
  
                 
Other Assets in Excess of Liabilities - 0.1%
      
83,904
  
                 
Net Assets - 100.0%
    
$
88,015,082
  
 
(a)
The rate shown is the 7-day effective yield as of March 31, 2017.

See accompanying notes to Schedules of Investments.

WILSHIRE VARIABLE INSURANCE TRUST
NOTES TO SCHEDULES OF INVESTMENTS
March 31, 2017 (Unaudited)
 
1. Securities valuation
 
The Wilshire Variable Insurance Trust (the “Trust”) consists of four separate investment portfolios. The portfolios presented in these statements are: 2015 Fund, 2025 Fund and 2035 Fund (collectively the “Funds,” each a “Fund” of the Trust). A security listed or traded on a domestic exchange is valued at its last sales price on the exchange where it is principally traded. Securities traded on National Association of Securities Dealers Automatic Quotation (“NASDAQ”) System are valued at the NASDAQ official closing price. Securities traded over-the-counter (other than on NASDAQ) are valued at the last current sales price. In the absence of a current quotation, the security is valued at the mean between the last bid and asked prices on the respective exchange. Values of debt securities are generally reported at the last sales price if the security is actively traded. If a debt security is not actively traded it is valued at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Third-party valuation providers often utilize proprietary models that are subjective and require the use of judgment and the application of various assumptions including, but not limited to, interest rates, repayment speeds, and default rate assumptions. Debt securities that have a remaining maturity of 60 days or less are valued at prices supplied by the Funds’ pricing agent for such securities, if available, and otherwise are valued at amortized cost if the Pricing Committee concludes it approximates fair value. When market quotations are not readily available, securities are valued according to procedures adopted by the Board of Trustees or are valued at fair value as determined in good faith by the Pricing Committee, whose members include at least two representatives of Wilshire Associates Incorporated (the “Adviser”), one of whom is an officer of the Trust, or the Trust’s Valuation Committee. Securities whose market value using the procedures outlined above do not reflect fair value because a significant valuation event has occurred may be valued at fair value by the Pricing Committee or the Valuation Committee in accordance with the Trust’s valuation procedures. The value of fair valued securities may be different from the last sales price (or the mean between the last bid and asked prices), and there is no guarantee that a fair valued security will be sold at the price at which a Fund is carrying the security.
 
Investments in open-end registered investment companies, including affiliated registered investment funds, are valued at the end of day based on its net asset value (“NAV”) per share as reported by such funds. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
 
A Fund’s investment in an exchange-traded fund (“ETF”) is valued at the ETF’s NAV or is valued at market price, depending upon whether a Fund purchased the ETF directly from the ETF in “creation units” or on an exchange, as applicable. During the period ended March 31, 2017, no creation units were purchased by the Funds.
 
In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. generally accepted accounting principles (“GAAP”), the Funds disclose fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The guidance establishes three levels of the fair value hierarchy as follows:
 
•
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;
 
•
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); and
 
•
Level 3 – Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level of input that is significant to the fair value measurement.
The following is a summary of the inputs used to value the Funds’ investments as of March 31, 2017:

WILSHIRE VARIABLE INSURANCE TRUST
NOTES TO SCHEDULES OF INVESTMENTS (Continued)
 
The following is a summary of the inputs used to value the Funds’ investments as of March 31, 2017:
                         
2015 Fund
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Affiliated Registered Investment Companies
  
$
23,744,552
    
$
-
    
$
-
    
$
23,744,552
  
Exchange-Traded Funds
    
4,266,835
      
-
      
-
      
4,266,835
  
Money Market Funds
    
303,912
      
-
      
-
      
303,912
  
     Total
  
$
28,315,299
    
$
-
    
$
-
    
$
28,315,299
  
                                 
2025 Fund
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Affiliated Registered Investment Companies
  
$
57,365,608
    
$
-
    
$
-
    
$
57,365,608
  
Exchange-Traded Funds
    
7,078,689
      
-
      
-
      
7,078,689
  
Money Market Funds
    
753,973
      
-
      
-
      
753,973
  
     Total
  
$
65,198,270
    
$
-
    
$
-
    
$
65,198,270
  
                                 
2035 Fund
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Affiliated Registered Investment Companies
  
$
82,088,110
    
$
-
    
$
-
    
$
82,088,110
  
Exchange-Traded Funds
    
4,981,636
      
-
      
-
      
4,981,636
  
Money Market Funds
    
861,432
      
-
      
-
      
861,432
  
     Total
  
$
87,931,178
    
$
-
    
$
-
    
$
87,931,178
  

As of March 31, 2017, the Funds did not have any transfers into and out of any Level. In addition, the Funds did not hold derivative instruments or assets or liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2017. It is the Funds’ policy to recognize transfers between levels at the end of the reporting period.

2. Security transactions
 
Security transactions are recorded on a trade date basis. Realized gains and losses on securities sold are determined on the basis of identified cost.

3. Federal income tax
 
The following information is computed on a tax basis for each item as of March 31, 2017:

   
2015 Fund
    
2025 Fund
    
2035 Fund
  
Cost of portfolio investments
  
$
27,613,291
    
$
63,144,292
    
$
84,517,588
  
                         
Gross unrealized appreciation
  
$
775,868
    
$
2,208,443
    
$
3,654,279
  
Gross unrealized depreciation
    
(73,860
)
    
(154,465
)
    
(240,689
)
                         
Net unrealized appreciation
  
$
702,008
    
$
2,053,978
    
$
3,413,590
  
 
WILSHIRE VARIABLE INSURANCE TRUST
NOTES TO SCHEDULES OF INVESTMENTS (Continued)
 
The difference between the federal income tax cost of portfolio investments and the Schedules of Investments cost is due to certain timing differences in recognition of capital gains and losses under income tax regulations and GAAP. These “book/tax” differences are temporary in nature and are due to the tax deferral of losses on wash sales.

4. Affiliated investments
 
The following is a summary of the transactions with affiliates for the period ended March 31, 2017:

Fund
  
Value as of December 31, 2016
  
Purchases
  
Proceeds
from Sales
    
Realized
Gain (Loss)
    
Change in Unrealized Appreciation (Depreciation)
  
Value as of March
31, 2017
  
Income Distributions
  
2015 Fund
                                  
Wilshire Income Opportunities Fund -
Institutional Class
  
$
11,410,270
  
$
251,001
  
$
(722,180
)
  
$
3,425
    
$
173,804
  
$
11,116,320
  
$
-
  
Wilshire International Equity Fund -
Institutional Class
    
3,659,137
    
58,268
    
(167,649
)
    
4,513
      
266,092
    
3,820,361
    
-
  
Wilshire Large Company Growth Portfolio -
Institutional Class
    
3,477,309
    
56,027
    
(161,201
)
    
(3,877
)
    
288,906
    
3,657,164
    
-
  
Wilshire Large Company Value Portfolio -
Institutional Class
    
4,058,237
    
64,991
    
(186,993
)
    
16,319
      
93,098
    
4,045,652
    
-
  
Wilshire Small Company Growth Portfolio -
Institutional Class
    
558,038
    
8,964
    
(25,792
)
    
2,146
      
18,123
    
561,479
    
-
  
Wilshire Small Company Value Portfolio -
Institutional Class
    
559,228
    
8,964
    
(25,792
)
    
2,648
      
(1,472
)
  
543,576
    
-
  
                                                 
2025 Fund
                                                
Wilshire Income Opportunities Fund -
Institutional Class
  
$
18,595,536
  
$
453,432
  
$
(794,459
)
  
$
4,497
    
$
271,422
  
$
18,530,428
  
$
-
  
Wilshire International Equity Fund -
Institutional Class
    
12,682,217
    
213,144
    
(387,541
)
    
10,828
      
933,214
    
13,451,862
    
-
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
10,023,368
    
170,515
    
(310,032
)
    
(5,468
)
    
833,969
    
10,712,352
    
-
  
Wilshire Large Company Value Portfolio -
Institutional Class
    
11,977,912
    
202,487
    
(368,164
)
    
33,899
      
293,048
    
12,139,182
    
-
  
Wilshire Small Company Growth Portfolio -
Institutional Class
    
1,257,294
    
21,314
    
(38,754
)
    
3,293
      
42,972
    
1,286,119
    
-
  
Wilshire Small Company Value Portfolio -
Institutional Class
    
1,261,441
    
21,314
    
(38,754
)
    
4,106
      
(2,442
)
  
1,245,665
    
-
  
                                                 
2035 Fund
                                                
Wilshire Income Opportunities Fund -
Institutional Class
  
$
14,334,657
  
$
496,660
  
$
(223,148
)
  
$
1,574
    
$
228,148
  
$
14,837,891
  
$
-
  
Wilshire International Equity Fund -
Institutional Class
    
20,754,944
    
517,354
    
(232,531
)
    
8,090
      
1,556,302
    
22,604,159
    
-
  
Wilshire Large Company Growth Portfolio -
Institutional Class
    
17,233,007
    
434,619
    
(195,255
)
    
(3,179
)
    
1,438,849
    
18,908,041
    
-
  
Wilshire Large Company Value Portfolio -
Institutional Class
    
19,814,498
    
496,660
    
(223,188
)
    
18,910
      
519,761
    
20,626,641
    
-
  
Wilshire Small Company Growth Portfolio -
Institutional Class
    
2,470,388
    
62,083
    
(27,894
)
    
2,244
      
89,928
    
2,596,749
    
-
  
Wilshire Small Company Value Portfolio -
Institutional Class
    
2,475,457
    
62,083
    
(27,894
)
    
2,643
      
2,340
    
2,514,629
    
-
  

WILSHIRE GLOBAL ALLOCATION FUND
  
SCHEDULE OF INVESTMENTS
  
March 31, 2017 (Unaudited)
  
   
AFFILIATED REGISTERED INVESTMENT COMPANIES - 93.2%
  
Shares
    
Value
  
Wilshire Income Opportunities Fund - Institutional Class
    
12,711,715
    
$
130,422,196
  
Wilshire International Equity Fund - Institutional Class
    
13,459,376
      
127,460,291
  
Wilshire Large Company Growth Portfolio - Institutional Class
    
1,231,998
      
48,281,995
  
Wilshire Large Company Value Portfolio - Institutional Class
    
2,703,264
      
56,092,728
  
Wilshire Small Company Growth Portfolio - Institutional Class
    
400,077
      
10,862,101
  
Wilshire Small Company Value Portfolio - Institutional Class
    
452,653
      
10,940,632
  
Total Affiliated Registered Investment Companies (Cost $388,538,927)
    
$
384,059,943
  
                 
OTHER OPEN-END FUNDS - 6.1%
  
Shares
    
Value
  
Vanguard Total International Bond Index Fund - Admiral Shares (Cost $25,959,473)
    
774,626
    
$
25,121,134
  
                 
MONEY MARKET FUNDS - 0.8%
  
Shares
    
Value
  
Northern Trust Institutional Government Select Portfolio – Institutional Class, 0.56% (a) (Cost $3,506,104)
    
3,506,104
    
$
3,506,104
  
                 
Total Investments at Value - 100.1% (Cost $418,004,504)
    
$
412,687,181
  
                 
Liabilities in Excess of Other Assets - (0.1%)
      
(402,907
)
                 
Net Assets - 100.0%
    
$
412,284,274
  
 
(a)
The rate shown is the 7-day effective yield as of March 31, 2017.

See accompanying notes to Schedule of Investments.
 

WILSHIRE GLOBAL ALLOCATION FUND
NOTES TO SCHEDULE OF INVESTMENTS
March 31, 2017 (Unaudited)

1. Securities valuation
 
A security of Wilshire Global Allocation Fund (the “Fund”) that is listed or traded on a domestic exchange is valued at its last sales price on the exchange where it is principally traded. Securities traded on National Association of Securities Dealers Automatic Quotation (“NASDAQ”) system are valued at the NASDAQ official closing price. Securities traded over-the-counter (other than on NASDAQ) are valued at the last current sales price. In the absence of a current quotation, the security is valued at the mean between the last bid and asked prices on the respective exchange. Values of debt securities are generally reported at the last sales price if the security is actively traded. If a debt security is not actively traded it is valued at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Third-party valuation providers often utilize proprietary models that are subjective and require the use of judgment and the application of various assumptions including, but not limited to, interest rates, prepayment speeds, and default rate assumptions. Debt securities that have a remaining maturity of 60 days or less are valued at prices supplied by the Fund’s pricing agent for such securities, if available, and otherwise are valued at amortized cost if the Pricing Committee concludes it approximates fair value. When market quotations are not readily available, securities are valued according to procedures adopted by the Board of Trustees (the “Board”) or are valued at fair value as determined in good faith by the Pricing Committee, whose members include at least two representatives of Wilshire Associates Incorporated (the “Adviser”), one of whom is an officer of Wilshire Variable Insurance Trust (the “Trust”), or the Trust’s Valuation Committee. Securities whose market value using the procedures outlined above do not reflect fair value because a significant valuation event has occurred may be valued at fair value by the Pricing Committee or the Valuation Committee in accordance with the Trust’s valuation procedures. The value of fair valued securities may be different from the last sales price (or the mean between the last bid and asked prices), and there is no guarantee that a fair valued security will be sold at the price at which the Fund is carrying the security.
 
Investments in open-end registered investment companies, including affiliated registered investment funds, are valued at the end of day based on its net asset value (“NAV”) per share as reported by such funds. Investments in closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.
 
The Fund’s investment in an exchange-traded fund (“ETF”), if any, is valued at the ETF’s NAV or is valued at market price, depending upon whether the Fund purchased the ETF directly from the ETF in “creation units” or on an exchange, as applicable. During the period ended March 31, 2017, no creation units were purchased by the Fund.
 
In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. generally accepted accounting principles (“GAAP”), the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The guidance establishes three levels of the fair value hierarchy as follows:
 
•
Level 1 – Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the fund has the ability to access at the measurement date;
 
•
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, etc.); and
 
•
Level 3 – Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level of input that is significant to the fair value measurement.

WILSHIRE GLOBAL ALLOCATION FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued)
 
The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2017:
 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
                         
Affiliated Registered Investment Companies
  
$
384,059,943
    
$
-
    
$
-
    
$
384,059,943
  
Other Open-End Funds
    
25,121,134
      
-
      
-
      
25,121,134
  
Money Market Funds
    
3,506,104
      
-
      
-
      
3,506,104
  
Total
  
$
412,687,181
    
$
-
    
$
-
    
$
412,687,181
  
 
As of March 31, 2017, the Fund did not have any transfers into and out of any Level. In addition, the Fund did not hold derivative instruments or assets or liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of March 31, 2017. It is the Fund’s policy to recognize transfers between levels at the end of the reporting period.

2. Security transactions
 
Security transactions are recorded on a trade date basis. Realized gains and losses on securities sold are determined on the basis of identified cost.

3. Federal income tax
 
The following information is computed on a tax basis for each item as of March 31, 2017:

Cost of portfolio investments
  
$
418,928,021
  
         
Gross unrealized appreciation
  
$
5,195,443
  
Gross unrealized depreciation
    
(11,436,283
)
         
Net unrealized depreciation
  
$
(6,240,840
)
 
The difference between the federal income tax cost of portfolio investments and the Schedule of Investments cost is due to certain timing differences in recognition of capital gains and losses under income tax regulations and GAAP. These “book/tax” differences are temporary in nature and are due to the tax deferral of losses on wash sales.
 
WILSHIRE GLOBAL ALLOCATION FUND
NOTES TO SCHEDULE OF INVESTMENTS (Continued)
 
4. Affiliated investments
 
The Fund operates under a fund-of-funds structure and invests substantially all of its assets in certain underlying affiliated funds, which are registered investment companies advised by the Adviser. The following is a summary of the transactions in such affiliated investments for the period ended March 31, 2017:
 
Fund
  
Value as of December 31, 2016
  
Purchases
  
Proceeds from Sales
    
Realized Gain (Loss)
    
Change in Unrealized Appreciation (Depreciation)
  
Value as of March
31, 2017
  
Income Distributions
  
Wilshire Income Opportunities Fund -
Institutional Class
  
$
132,933,909
  
$
77,732
  
$
(4,680,108
)
  
$
103,202
    
$
1,987,461
  
$
130,422,196
  
$
-
  
Wilshire International Equity Fund -
Institutional Class
    
119,802,761
    
96,407
    
(1,379,068
)
    
(60,986
)
    
9,001,177
    
127,460,291
    
-
  
Wilshire Large Company Growth Portfolio -
Institutional Class
    
45,047,267
    
36,780
    
(528,707
)
    
(96,810
)
    
3,823,465
    
48,281,995
    
-
  
Wilshire Large Company Value Portfolio -
Institutional Class
    
59,123,645
    
94,970
    
(4,665,474
)
    
(689,255
)
    
2,228,842
    
56,092,728
    
-
  
Wilshire Small Company Growth Portfolio -
Institutional Class
    
11,902,935
    
24,877
    
(1,462,906
)
    
31,647
      
365,548
    
10,862,101
    
-
  
Wilshire Small Company Value Portfolio -
Institutional Class
    
12,365,816
    
24,877
    
(1,462,906
)
    
(43,251
)
    
56,096
    
10,940,632
    
-
  
 

Item 2. Controls and Procedures.

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

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

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)
Wilshire Variable Insurance Trust
    
       
By (Signature and Title)*
/s/ Jason A. Schwarz
  
   
Jason A. Schwarz, President
  
     
Date
May 30, 2017
    
       
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
       
By (Signature and Title)*
/s/ Jason A. Schwarz
  
   
Jason A. Schwarz, President
  
       
Date
May 30, 2017
    
       
By (Signature and Title)*
/s/ Michael Wauters
  
   
Michael Wauters, Treasurer and Principal Accounting Officer
       
Date
May 30, 2017
    

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