Wilshire Mutual Funds N-CSRCertified annual shareholder report (management investment company)

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 811-07076

Wilshire Mutual Funds, Inc.
(Exact name of registrant as specified in charter)

Wilshire Mutual Funds, Inc.

1299 Ocean Avenue, Suite 700

Santa Monica, CA 90401-1085
(Address of principal executive offices) (Zip code)

Jason A. Schwarz

Wilshire Associates Incorporated

1299 Ocean Avenue, Suite 700

Santa Monica, CA 90401-1085
(Name and address of agent for service)

(310) 451-3051

Registrant's telephone number, including area code

Date of fiscal year end: December 31, 2020

Date of reporting period: December 31, 2020

Item 1. Reports to Stockholders.

 (a) Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).

This report is for the general information of the shareholders of Large Company Growth Portfolio, Large Company Value Portfolio, Small Company Growth Portfolio, Small Company Value Portfolio, Wilshire 5000 Index^SM Fund, Wilshire International Equity Fund and Wilshire Income Opportunities Fund. Its use in connection with any offering of a Portfolio’s shares is authorized only if accompanied or preceded by the Portfolio’s current prospectus.

Wilshire Mutual Funds, Inc. are distributed by Compass Distributors, LLC.

Dear Wilshire Mutual Fund Shareholder:

We are pleased to present this annual report to all shareholders of the Wilshire Mutual Funds (the “Funds”). This report covers the period from January 1, 2020 to December 31, 2021, for all share classes of the Large Company Growth Portfolio, Large Company Value Portfolio, Small Company Growth Portfolio, Small Company Value Portfolio, Wilshire 5000 Index^SM Fund, Wilshire International Equity Fund and Wilshire Income Opportunities Fund.

Market Environment

U.S. Equity Market

The U.S. stock market, represented by the Wilshire 5000 Total Market Index^SM, was up 14.47% for the fourth quarter of 2020 and 20.82% for the year. Although Coronavirus infections accelerated during the fourth quarter of the year and many cities re-imposed restrictions, both consumer and business surveys were moderating at encouraging levels. However, job growth has slowed dramatically, and initial jobless claims remained at what would normally be historic levels. The big news on the virus front was the commencement of vaccine distribution but that did not mean we were close to any normalization of everyday activities. Equity prices may appear to be elevated but are not necessarily expensive given very low government bond yields. A rebound in economic growth and earnings may be supportive of strong equity returns in 2021.

From both societal and investment perspectives, 2020 will be defined by the Coronavirus and its impact on severe economic restrictions and unprecedented government responses. As the virus spread to the U.S., the market sold-off quickly by -35% from February 19 to March 23. In turn, the Fed slashed its overnight rate from 1.5% to zero and the U.S. federal government passed a $2.2 trillion stimulus bill. In April alone, the economy shed more than 20 million jobs while Q1 real Gross Domestic Product(“GDP”) declined by -5%. The 2020 bear market was historically brief, however, bouncing off the lows on March 23rd and rallied to a new high by August 12. In evidence of its speed, the market’s recovery coincided with the U.S. Bureau of Economic Analysis reporting a -31% real GDP decline during Q2. While equities dipped below their previous high as confirmed cases reaccelerated, the Wilshire 5000 Index ended the year at another all-time high (up 20.82% for the year). Although the Coronavirus pandemic and its consequences will likely continue through much of 2021, images of vaccines being administered globally provide reason for hope.

Seven sectors ended the year in positive territory, with Consumer Discretionary (+46.99%) and Information Technology (+46.29%) representing the best performing sectors. There was significant dispersion among sectors, with the main laggard being Energy, down -32.87%. During 2020, large capitalization stocks outperformed small caps with the Wilshire U.S. Large-Cap Index^SM returning 21.17 % versus 17.42% for the Wilshire U.S. Small-Cap Index^SM. Over the same period, growth again outperformed value, with the Wilshire U.S. Large-Cap Growth Index^SM returning 35.36% versus 7.37% for the Wilshire U.S. Large-Cap Value Index^SM.

1

International Equity Market

Equity markets outside of the U.S. also enjoyed a strong fourth quarter, with emerging markets outperforming all developed markets. During 2020, the MSCI ACWl ex USA Index and MSCI Emerging Markets Index returned 10.65% and 18.31%, respectively. The U.K. was on a path to recovery, with Q3 GDP up a record +16.0%, but concerns about a new variant of the COVID-19 virus have led to renewed restrictions and the withdrawal of social accommodations granted for holiday gatherings. A second wave of infections is hindering other European countries as well, and the European Central Bank responded by expanding its money-printing program by hundreds of billions of euros. Among the largest countries within emerging markets, South Korea (+29%) and Brazil (+26%), in local currency terms, led the gains during the fourth quarter. China is the largest weighted country in the MSCI Emerging Markets Index (at 40%) and was up +11% during the same period. The Chinese economy is poised for growth this coming year, unlike most other countries, but that is driven by the People’s Republic of China’s traditional strengths, such as exports, while domestic demand is still weak.

Bond Market

The U.S. Treasury yield curve was up across most maturities during the fourth quarter after a dramatic drop earlier this year. Although the curve is down meaningfully for the year, the long-end managed to push above 1.50% by year-end. The 10-year Treasury yield ended the quarter at 0.93%, up 24 basis points from September. The Federal Open Market Committee met twice during the fourth quarter, as scheduled, with no change to the overnight rate, which the Committee expects will be near zero through at least 2023. The Committee reiterated its pledge to support the economic recovery, including an increase in its bond-buying activities. Credit spreads continued to tighten during the fourth quarter, boosting investment grade and high yield returns. During 2020, the Bloomberg Barclays U.S Aggregate Bond Index, Bloomberg Barclays U.S. Credit Index and Bloomberg Barclays U.S. Corporate High Yield Index returned 7.51%, 9.35% and 7.11%, respectively.

Fund Performance Review

The Large Company Growth Portfolio - Institutional Class returned 39.25% in 2020, outperforming the Russell 1000 Growth Index return of 38.49% by 0.76%. The Large Company Value Portfolio - Institutional Class returned -0.52% in 2020, underperforming the Russell 1000 Value Index return of 2.80% by -3.32%. The Small Company Growth Portfolio - Institutional Class returned 29.3% in 2020, underperforming the Russell 2000 Growth Index return of 34.63% by -5.33%. The Small Company Value Portfolio - Institutional Class returned 0.73% in 2020, underperforming the Russell 2000 Value Index return of 4.63% by -3.90%. The Wilshire 5000 Index^SM Fund - Institutional Class returned 20.28% in 2020, underperforming the Wilshire 5000 Index^SM return of 20.82% by -0.54%. The Wilshire International Equity Fund - Institutional Class returned 16.82% in 2020, outperforming the MSCI All Country World ex USA Investable Market Index return of 11.12% by 5.70%. The Wilshire Income Opportunities Fund - Institutional Class returned 3.77% in 2020, underperforming the Bloomberg Barclays U.S. Universal Index return of 7.58% by -3.81%.

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Despite mixed performance for the year, we are confident that each Portfolio/Fund is well positioned for future growth.

As always, we sincerely appreciate your continued support and confidence in Wilshire Associates.

Sincerely,

Jason Schwarz
President, Wilshire Mutual Funds

3

Past performance does not guarantee future results. The performance data quoted represent past performance and current returns may be lower or higher. Share prices and investment returns fluctuate and an investor’s shares may be worth more or less than original cost upon redemption. For periods less than one year, performance is cumulative. For performance data current to the most recent month-end please call 1-866-591-1568.

Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transactions costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Bonds and bond funds are subject to interest rate risk and will decline in value as interest rates rise.

In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Investments in smaller companies typically exhibit higher volatility.

Investing involves risk including loss of principal. This report identifies each Portfolio’s investments on June 30, 2020. These holdings are subject to change. Not all investments in each Portfolio performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not occur.

The MSCI ACWI ex USA Index is an equity index which captures large and mid cap representation across 22 of 23 Developed Markets countries (excluding the U.S) and 26 Emerging Markets countries. With 2,370 constituents, the index covers approximately 85% of the global equity opportunity set outside the US.

The MSCI ACWI ex USA Investable Market Index is an equity index which captures large, mid and small cap representation across 22 of 23 Developed Markets countries (excluding the U.S.) and 26 Emerging Markets countries. With 6,434 constituents, the index covers approximately 99% of the global equity opportunity set outside the US.

MSCI Emerging Markets Index is an equity index which captures large and mid-cap representation across 26 Emerging Markets countries. With 1,385 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

The Wilshire 5000 Total Market Index is widely accepted as the definitive benchmark for the U.S. equity market, and measures performance of all U.S. equity securities with readily available price data.

The Wilshire US Large-Cap Index is a benchmark of the large-sized (based on capitalization) companies in the U.S. equity market. The Wilshire US Large-Cap Index is a float-adjusted, market capitalization- weighted index of the issues ranked above 750 market capitalization of the Wilshire 5000 Total Market Index.

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The Wilshire US Small-Cap Index is a benchmark of the small-sized (based on capitalization) companies in the U.S. equity market. The Wilshire US Small-Cap is a float-adjusted, market capitalization-weighted index of the issues ranked between 750 and 2,500 by market capitalization of the Wilshire 5000 Total Market Index.

The Wilshire US Large-Cap Growth Index is a benchmark of the large-sized growth (based on capitalization) companies in the U.S. equity market. The Wilshire US Large-Cap Growth is a float-adjusted, market capitalization-weighted derivative index of the Wilshire US Large-Cap Index and by extension the Wilshire 5000 Total Market Index.

The Wilshire US Large-Cap Value Index is a benchmark of the large-sized value (based on capitalization) companies in the U.S. equity market. The Wilshire US Large-Cap Value is a float-adjusted, market capitalization-weighted derivative index of the Wilshire US Large-Cap Index and by extension the Wilshire 5000 Total Market Index.

Bloomberg Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

Bloomberg Barclays U.S. Credit Index measures the investment grade, US dollar-denominated, fixed-rate, taxable corporate and government related bond markets.

The Bloomberg Barclays U.S. Corporate High Yield Index measures the US dollar-denominated, high yield, fixed-rate, corporate bond market.

Bloomberg Barclays U.S. Universal Index represents the union of the U.S. Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index, and the non-ERISA portion of the CMBS Index.

Russell 1000^® Growth Index: Measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000 Value Index: Measures the performance of the broad value segment of U.S. equity value universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 2000^® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-value ratios and higher forecasted growth values.

Russell 2000^® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

A basis point is one hundredth of a percent or equivalently one percent of one percent.

5

INVESTMENT CLASS SHARES

Average Annual Total Returns

RUSSELL 1000^® GROWTH INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $10,000 Investment in Shares

of Large Company Growth Portfolio, Investment Class Shares

and the Russell 1000^® Growth Index through 12/31/20.

On July 21, 2020, the Large Company Growth Portfolio’s investment strategy was changed. Consequently, prior period performance may have been different if the new investment strategy had been in effect during these periods.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.32% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on, 5/6/2020, 7/21/2020, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.30% for Investment Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.30% of average daily net assets for Investment Class Shares until April 30, 2022.

6

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

RUSSELL 1000^® GROWTH INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $250,000 Investment in Shares

of Large Company Growth Portfolio, Institutional Class Shares

and the Russell 1000^® Growth Index through 12/31/20.

On July 21, 2020, the Large Company Growth Portfolio’s investment strategy was changed. Consequently, prior period performance may have been different if the new investment strategy had been in effect during these periods.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.00% Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 7/21/2020, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.00% for Institutional Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.00% of average daily net assets for Institutional Class Shares until April 30, 2022.

7

The Wilshire 5000 Total Market Index^SM returned 20.82% for the year. US and global equities continued to stage a tremendous rally in the fourth quarter of 2020, benefiting primarily from optimism regarding the development and distribution of a COVID-19 vaccine. Real Gross Domestic Product (“GDP”) was up 33.4% during the third quarter of the year as the economy slowly recovered from COVID-19 restrictions. The largest contributor to growth was personal consumption, up 41.0% for the third quarter, which added 25.4% to the increase in real GDP. Residential investment was particularly strong during the fourth quarter while imports outpaced exports, acting as a drag on growth. The economy still contracted -3.4% from last year, and economic growth is likely to finish in negative territory for the calendar year of 2020.

Sector returns for the Wilshire 5000 Total Market Index were mixed for the year. Consumer Discretionary (+46.99%), and Information Technology (+46.29%) were the best performing sectors while Energy (-32.87%) was the largest detractor. For the year ended 2020, large capitalization stocks outperformed small capitalization stocks with the Wilshire U.S. Large-Cap Index^SM returning 21.17 % versus 17.42% for the Wilshire U.S. Small-Cap Index^SM. Growth stocks led value equities during the year, with Wilshire U.S. Large-Cap Growth Index^SM returning 35.36 % versus 7.37% for the Wilshire U.S. Large-Cap Value Index^SM.

Real estate securities were up during the fourth quarter in both the U.S. and abroad. Real estate sector performance was mixed with Hotel & Resort assets (+47%) and Retail REITs (+33%) leading the market while Industrials lagged. Commodity results were positive for the fourth quarter as crude oil was up 20.6% to $48.52 per barrel. Natural gas prices were up 0.5%, ending the quarter at $2.54 per million British thermal unit, as the U.S. exported a record amount of liquefied natural gas. Midstream energy surged during the fourth quarter while the broader infrastructure segment was also positive. Finally, gold prices were up 0.4% and finished at approximately $1,895 per troy ounce.

The Wilshire Large Company Growth Portfolio - Institutional Class returned 39.25% in 2020, outperforming the Russell 1000 Growth Index return of 38.49% by 0.76%. Sector allocations to Financials and Information Technology were detractive to performance. Stock selection within Consumer Discretionary was the top detractor of relative performance. Conversely, underweight exposure to, and stock selection within, Industrials contributed to relative performance.

We are pleased with the Portfolio’s recent relative outperformance for the year and believe that the Portfolio is well positioned going into 2021 as the market deals with ongoing pandemic, macroeconomic and geopolitical issues.

8

PORTFOLIO SECTOR WEIGHTING^†

(As of December 31, 2020)

Common Stocks are composed of:

9

INVESTMENT CLASS SHARES

Average Annual Total Returns

RUSSELL 1000^® VALUE INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $10,000 Investment in Shares

of Large Company Value Portfolio, Investment Class Shares

and the Russell 1000^® Value Index through 12/31/20.

On July 21, 2020, the Large Company Value Portfolio’s investment strategy was changed. Consequently, prior period performance may have been different if the new investment strategy had been in effect during these periods.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

The Portfolio’s total expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 7/21/2020, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.26% for Investment Class Shares.

10

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

RUSSELL 1000^® VALUE INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $250,000 Investment in Shares

of Large Company Value Portfolio, Institutional Class Shares

and the Russell 1000^® Value Index through 12/31/20.

On July 21, 2020, the Large Company Value Portfolio’s investment strategy was changed. Consequently, prior period performance may have been different if the new investment strategy had been in effect during these periods.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

The Portfolio’s total expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 7/21/2020, 8/5/2020, 10/20/2020 and 1/12/2021 was 0.98% for Institutional Class Shares.

11

The Wilshire 5000 Total Market Index^SM returned 20.82% for the year. US and global equities continued to stage a tremendous rally in the fourth quarter of 2020, benefiting primarily from optimism regarding the development and distribution of a COVID-19 vaccine. Real Gross Domestic Product (“GDP”) was up 33.4% during the third quarter of the year as the economy slowly recovered from COVID-19 restrictions. The largest contributor to growth was personal consumption, up 41.0% for the third quarter, which added 25.4% to the increase in real GDP. Residential investment was particularly strong during the fourth quarter while imports outpaced exports, acting as a drag on growth. The economy still contracted -3.4% from last year, and economic growth is likely to finish in negative territory for the calendar year of 2020.

Sector returns for the Wilshire 5000 Total Market Index were mixed for the year. Consumer Discretionary (+46.99%), and Information Technology (+46.29%) were the best performing sectors while Energy (-32.87%) was the largest detractor. For the year ended 2020, large capitalization stocks outperformed small capitalization stocks with the Wilshire U.S. Large-Cap Index^SM returning 21.17 % versus 17.42% for the Wilshire U.S. Small-Cap Index^SM. Growth stocks led value equities during the year, with Wilshire U.S. Large-Cap Growth Index^SM returning 35.36 % versus 7.37% for the Wilshire U.S. Large-Cap Value Index^SM.

Real estate securities were up during the fourth quarter in both the U.S. and abroad. Real estate sector performance was mixed with Hotel & Resort assets (+47%) and Retail REITs (+33%) leading the market while Industrials lagged. Commodity results were positive for the fourth quarter as crude oil was up 20.6% to $48.52 per barrel. Natural gas prices were up 0.5%, ending the quarter at $2.54 per million British thermal unit, as the U.S. exported a record amount of liquefied natural gas. Midstream energy surged during the fourth quarter while the broader infrastructure segment was also positive. Finally, gold prices were up 0.4% and finished at approximately $1,895 per troy ounce.

The Wilshire Large Company Value Portfolio - Institutional Class returned -0.52% in 2020, underperforming the Russell 1000 Value Index return of 2.80% by -3.32%. Stock selection within Industrials and Financials detracted from performance. Overweight exposure to Energy weighed on relative performance. Conversely, overweight exposure to Consumer Discretionary, along with decent strong stock selection, contributed to relative performance.

Despite recent relative underperformance, we believe the Portfolio is well positioned going into 2021 as the market deals with ongoing pandemic, macroeconomic and geopolitical issues.

12

PORTFOLIO SECTOR WEIGHTING^†

(As of December 31, 2020)

Common Stocks are composed of:

13

INVESTMENT CLASS SHARES

Average Annual Total Returns

RUSSELL 2000^® GROWTH INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $10,000 Investment in Shares

of Small Company Growth Portfolio, Investment Class Shares

and the Russell 2000^® Growth Index through 12/31/20.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 10/20/2020 and 1/12/2021 was 1.54% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on, 5/6/2020, 10/20/2020, and 1/12/2021 was 1.35% for Investment Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.35% of average daily net assets for Investment Class Shares until April 30, 2022.

14

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

RUSSELL 2000^® GROWTH INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $250,000 Investment in Shares

of Small Company Growth Portfolio, Institutional Class Shares

and the Russell 2000^® Growth Index through 12/31/20.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 10/20/2020 and 1/12/2021 was 1.27% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 10/20/2020, and 1/12/2021 was 1.10% for Institutional Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.10% of average daily net assets for Institutional Class Shares until April 30, 2022.

15

The Wilshire 5000 Total Market Index^SM returned 20.82% for the year. US and global equities continued to stage a tremendous rally in the fourth quarter of 2020, benefiting primarily from optimism regarding the development and distribution of a COVID-19 vaccine. Real Gross Domestic Product (“GDP”) was up 33.4% during the third quarter of the year as the economy slowly recovered from COVID-19 restrictions. The largest contributor to growth was personal consumption, up 41.0% for the third quarter, which added 25.4% to the increase in real GDP. Residential investment was particularly strong during the fourth quarter while imports outpaced exports, acting as a drag on growth. The economy still contracted -3.4% from last year, and economic growth is likely to finish in negative territory for the calendar year of 2020.

Sector returns for the Wilshire 5000 Total Market Index were mixed for the year. Consumer Discretionary (+46.99%), and Information Technology (+46.29%) were the best performing sectors while Energy (-32.87%) was the largest detractor. For the year ended 2020, large capitalization stocks outperformed small capitalization stocks with the Wilshire U.S. Large-Cap Index^SM returning 21.17 % versus 17.42% for the Wilshire U.S. Small-Cap Index^SM. Growth stocks led value equities during the year, with Wilshire U.S. Large-Cap Growth Index^SM returning 35.36 % versus 7.37% for the Wilshire U.S. Large-Cap Value Index^SM.

Real estate securities were up during the fourth quarter in both the U.S. and abroad. Real estate sector performance was mixed with Hotel & Resort assets (+47%) and Retail REITs (+33%) leading the market while Industrials lagged. Commodity results were positive for the fourth quarter as crude oil was up 20.6% to $48.52 per barrel. Natural gas prices were up 0.5%, ending the quarter at $2.54 per million British thermal unit, as the U.S. exported a record amount of liquefied natural gas. Midstream energy surged during the fourth quarter while the broader infrastructure segment was also positive. Finally, gold prices were up 0.4% and finished at approximately $1,895 per troy ounce.

The Wilshire Small Company Growth Portfolio - Institutional Class returned 29.30% in 2020, underperforming the Russell 2000 Growth Index return of 34.63% by -5.33%.

Underweight exposure to Health Care and Consumer Discretionary, along with slight overweight exposure to Energy, detracted from performance. Stock selection within Consumer Staples and Health Care meaningfully detracted from relative performance. Conversely, the Portfolio benefited from overweighting Information Technology and underweighting Real Estate. Stock selection within Consumer Discretionary contributed to relative performance.

Despite recent relative underperformance, we believe the Portfolio is well positioned going into 2021 as the market deals with ongoing pandemic, macroeconomic and geopolitical issues.

16

PORTFOLIO SECTOR WEIGHTING^†

(As of December 31, 2020)

17

INVESTMENT CLASS SHARES

Average Annual Total Returns

RUSSELL 2000^® VALUE INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $10,000 Investment in Shares

of Small Company Value Portfolio, Investment Class Shares

and the Russell 2000^® Value Index through 12/31/20.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 10/20/2020 and 1/12/2021 was 1.56% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on, 5/6/2020, 10/20/2020, and 1/12/2021 was 1.35% for Investment Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.35% of average daily net assets for Investment Class Shares until April 30, 2022.

18

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

RUSSELL 2000^® VALUE INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $250,000 Investment in Shares

of Small Company Value Portfolio, Institutional Class Shares

and the Russell 2000^® Value Index through 12/31/20.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 10/20/2020 and 1/12/2021 was 1.28% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 10/20/2020, and 1/12/2021 was 1.10% for Institutional Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.10% of average daily net assets for Institutional Class Shares until April 30, 2022.

19

The Wilshire 5000 Total Market Index^SM returned 20.82% for the year. US and global equities continued to stage a tremendous rally in the fourth quarter of 2020, benefiting primarily from optimism regarding the development and distribution of a COVID-19 vaccine. Real Gross Domestic Product (“GDP”) was up 33.4% during the third quarter of the year as the economy slowly recovered from COVID-19 restrictions. The largest contributor to growth was personal consumption, up 41.0% for the third quarter, which added 25.4% to the increase in real GDP. Residential investment was particularly strong during the fourth quarter while imports outpaced exports, acting as a drag on growth. The economy still contracted -3.4% from last year, and economic growth is likely to finish in negative territory for the calendar year of 2020.

Sector returns for the Wilshire 5000 Total Market Index were mixed for the year. Consumer Discretionary (+46.99%), and Information Technology (+46.29%) were the best performing sectors while Energy (-32.87%) was the largest detractor. For the year ended 2020, large capitalization stocks outperformed small capitalization stocks with the Wilshire U.S. Large-Cap Index^SM returning 21.17 % versus 17.42% for the Wilshire U.S. Small-Cap Index^SM. Growth stocks led value equities during the year, with Wilshire U.S. Large-Cap Growth Index^SM returning 35.36 % versus 7.37% for the Wilshire U.S. Large-Cap Value Index^SM.

Real estate securities were up during the fourth quarter in both the U.S. and abroad. Real estate sector performance was mixed with Hotel & Resort assets (+47%) and Retail REITs (+33%) leading the market while Industrials lagged. Commodity results were positive for the fourth quarter as crude oil was up 20.6% to $48.52 per barrel. Natural gas prices were up 0.5%, ending the quarter at $2.54 per million British thermal unit, as the U.S. exported a record amount of liquefied natural gas. Midstream energy surged during the fourth quarter while the broader infrastructure segment was also positive. Finally, gold prices were up 0.4% and finished at approximately $1,895 per troy ounce.

The Wilshire Small Company Value Portfolio - Institutional Class returned 0.73% in 2020, underperforming the Russell 2000 Value Index return of 4.63% by -3.90%.

A meaningful underweight to Health Care, along with poor stock selection within Health Care and Industrials, weighed on relative performance. Conversely, stock selection within Financials contributed to performance. Additionally, overweight exposure to Consumer Discretionary and underweight exposure to Real Estate were the top two contributors from a sector allocation perspective.

Despite recent relative underperformance, we believe the Portfolio is well positioned going into 2021 as the market deals with ongoing pandemic, macroeconomic and geopolitical issues.

20

PORTFOLIO SECTOR WEIGHTING†

(As of December 31, 2020)

21

INVESTMENT CLASS SHARES

Average Annual Total Returns

WILSHIRE 5000 INDEX^SM(1)

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $10,000 Investment in Shares
of Wilshire 5000 Index^SM Fund, Investment Class Shares

and the Wilshire 5000 Index^SM through 12/31/20.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Portfolio shares.

The Index Fund’s total expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 10/20/2020, and 1/12/2021 was 0.63% for Investment Class Shares.

22

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

WILSHIRE 5000 INDEX^SM(1)

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $250,000 Investment in Shares
of Wilshire 5000 Index^SM Fund, Institutional Class Shares

and the Wilshire 5000 Index^SM through 12/31/20.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Portfolio shares.

The Index Fund’s total expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 10/20/2020, and 1/12/2021 was 0.34% for Institutional Class Shares.

23

The Wilshire 5000 Total Market Index^SM returned 20.82% for the year. US and global equities continued to stage a tremendous rally in the fourth quarter of 2020, benefiting primarily from optimism regarding the development and distribution of a COVID-19 vaccine. Real Gross Domestic Product (“GDP”) was up 33.4% during the third quarter of the year as the economy slowly recovered from COVID-19 restrictions. The largest contributor to growth was personal consumption, up 41.0% for the third quarter, which added 25.4% to the increase in real GDP. Residential investment was particularly strong during the fourth quarter while imports outpaced exports, acting as a drag on growth. The economy still contracted -3.4% from last year, and economic growth is likely to finish in negative territory for the calendar year of 2020.

Sector returns for the Wilshire 5000 Total Market Index were mixed for the year. Consumer Discretionary (+46.99%), and Information Technology (+46.29%) were the best performing sectors while Energy (-32.87%) was the largest detractor. For the year ended 2020, large capitalization stocks outperformed small capitalization stocks with the Wilshire U.S. Large-Cap Index^SM returning 21.17 % versus 17.42% for the Wilshire U.S. Small-Cap Index^SM. Growth stocks led value equities during the year, with Wilshire U.S. Large-Cap Growth Index^SM returning 35.36 % versus 7.37% for the Wilshire U.S. Large-Cap Value Index^SM.

Real estate securities were up during the fourth quarter in both the U.S. and abroad. Real estate sector performance was mixed with Hotel & Resort assets (+47%) and Retail REITs (+33%) leading the market while Industrials lagged. Commodity results were positive for the fourth quarter as crude oil was up 20.6% to $48.52 per barrel. Natural gas prices were up 0.5%, ending the quarter at $2.54 per million British thermal unit, as the U.S. exported a record amount of liquefied natural gas. Midstream energy surged during the fourth quarter while the broader infrastructure segment was also positive. Finally, gold prices were up 0.4% and finished at approximately $1,895 per troy ounce.

The Wilshire 5000 Index Fund - Institutional Class returned 20.28% in 2020, underperforming the Wilshire 5000 Index return of 20.82% by -0.54%. Relative underperformance is attributable to Fund expenses and is well within the historical range.

24

PORTFOLIO SECTOR WEIGHTING†

(As of December 31, 2020)

25

INVESTMENT CLASS SHARES

Average Annual Total Returns

MSCI ALL COUNTRY WORLD EX-U.S. INVESTABLE MARKET INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $10,000 Investment in Shares

of Wilshire International Equity Fund, Investment Class Shares

and the MSCI All Country World Ex-U.S. Index through 12/31/20.

On April 2, 2013 and July 21, 2021, the Wilshire International Equity Fund’s investment strategy was changed. Consequently, prior period performance may have been different if the new investment strategy had been in effect during these periods.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.63% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 7/21/2020, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.50% for Investment Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.50% of average daily net assets for Investment Class Shares until April 30, 2022.

26

27

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

MSCI ALL COUNTRY WORLD EX-U.S. INVESTABLE MARKET INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $250,000 Investment in Shares

of Wilshire International Equity Fund, Institutional Class Shares

and the MSCI All Country World Ex-U.S. Index through 12/31/20.

On April 2, 2013 and July 21, 2020, the Wilshire International Equity Fund’s investment strategy was changed. Consequently, prior period performance may have been different if the new investment strategy had been in effect during these periods.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.29% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on, 5/6/2020, 7/21/2020, 8/5/2020, 10/20/2020 and 1/12/2021 was 1.25% for Institutional Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.25% of average daily net assets for Institutional Class Shares until April 30, 2022.

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Outside of the United States, equity performance lagged its U.S. counterpart, with the MSCI All Country World ex USA Index returning 10.65% and MSCI Emerging Markets Index returning 18.31% for the year. Global equities continued to stage a tremendous rally in the fourth quarter, benefiting from optimism regarding the distribution of a COVID-19 vaccine. The economic recovery was aided by continued accommodative monetary policy including the European Central Bank expanding and extending its bond buying programs.

The Wilshire International Equity Fund - Institutional Class returned 16.82% in 2020, outperforming the MSCI All Country World ex USA Investable Market Index return of 11.12% by 5.70%. Strong stock selection within Information Technology and Industrials materially contributed to positive performance. Overweight exposures to the United States and to the Information Technology sector contributed meaningfully to relative performance. Conversely, stock selection from Financials detracted from performance. An underweight to China and an overweight to the United Kingdom detracted from relative performance.

We are pleased with the Fund’s recent relative outperformance for the year and believe that the Fund is well positioned going into 2021 as the market deals with ongoing pandemic, macroeconomic and geopolitical issues.

30

PORTFOLIO SECTOR WEIGHTING†

(As of December 31, 2020)

Common Stocks are composed of:

31

32

INVESTMENT CLASS SHARES

Average Annual Total Returns

Bloomberg Barclays U.S. Universal Index⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $10,000 Investment in Shares

of Wilshire Income Opportunities Fund, Investment Class Shares

and the Bloomberg Barclays U.S. Universal Index through 12/31/20.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 10/20/2020 and 1/12/2021 was 1.26% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on,5/6/2020, 10/20/2020, and 1/12/2021 was 1.18% for Investment Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 1.15% of average daily net assets for Investment Class Shares until April 30, 2022.

33

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

Bloomberg Barclays U.S. Universal Index⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of $250,000 Investment in Shares

of Wilshire Income Opportunities Fund, Institutional Class Shares

and the Bloomberg Barclays U.S. Universal Index through 12/31/20.

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month end may be obtained at http://advisor.wilshire.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2020, supplemented on, 10/20/2020 and 1/12/2021 was 0.92% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2020, supplemented on, 5/6/2020, 10/20/2020, and 1/12/2021 was 0.92% for Institutional Class Shares.

The Advisor has agreed to waive a portion of its management fee to limit expenses of the Portfolio (excluding taxes, brokerage expenses, dividend expenses on short securities and extraordinary expenses) to 0.90% of average daily net assets for Institutional Class Shares until April 30, 2022.

34

The Bloomberg Barclays US Aggregate Bond Index returned 7.51% for the year. During the fourth quarter, the U.S. 10-year Treasury yield rose approximately 0.30% and touched a near-term high of 1.15%, as nominal yields are only beginning to reflect the upside potential of future growth and inflation. Nevertheless, the U.S. Real 10-year yield remains near record low levels (-0.99%), indicating that nominal bonds are still priced irrationally relative to the expectations currently reflected in breakeven inflation rates. Real yields at these levels continue to signal signs of complacency, as investors appear to ignore the recovery in growth and inflation, particularly given the likelihood of additional government stimulus. In the Federal Open Market Committee’s communication that it intends to maintain its current policy through 2023 is, we believe, supporting a high degree of complacency among many investors.

The Wilshire Income Opportunities Fund - Institutional Class returned 3.77% in 2020, underperforming the Bloomberg Barclay US Universal Index return of 7.58% by -3.81%. During the first quarter of 2020, exposures to emerging market debt, securitized products, investment grade corporate, and high yield issues detracted materially from relative performance. Although many of these sectors have since recovered from the sell-off earlier this year, securitized products such as Commercial Mortgage-backed Securities and Asset-backed Securities contributed negatively for the year, and therefore weighed on performance. Additionally, underweight duration detracted from relative performance.

Despite recent relative underperformance, we believe the Fund is well positioned going into 2021 as the market deals with ongoing pandemic, macroeconomic and geopolitical issues.

35

PORTFOLIO SECTOR WEIGHTING†

(As of December 31, 2020)

36

All mutual funds have operating expenses. As a shareholder of a Portfolio, you incur ongoing costs, which include costs for investment advisory, administrative services, distribution and/or shareholder services and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the Portfolio. A Portfolio’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 the Portfolios 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 and held for the entire period from July 1, 2020 to December 31, 2020.

The table on the next page illustrates the Portfolios’ costs in two ways:

Actual Fund Return: This section helps you to estimate the actual expenses, after any applicable fee reductions, that you paid over the period. The “Ending Account Value” shown is derived from each Portfolio’s actual return for the period. The “Expense Ratio” column shows the period’s annualized expense ratio and the “Expenses Paid During Period” column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Portfolios 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 the Portfolio in the first line under the heading entitled “Expenses Paid During Period.”

Hypothetical 5% Return: This section is intended to help you compare the Portfolios’ costs with those of other mutual funds. The “Ending Account Value” shown is derived from hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and assumed rate of return. It assumes that each Portfolio had an annual return of 5% before expenses, but that the expense ratio is unchanged. In this case, because the return used is not each Portfolio’s actual return, the results do not apply to your investment. This example is useful in making comparisons to other mutual funds because the U.S. Securities and Exchange Commission (“SEC”) requires all mutual funds to calculate expenses based on an assumed 5% annual return. You can assess the Portfolios’ ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight and help you compare your ongoing costs only and do not reflect any transactional costs such as sales charges (loads), redemption fees, or exchange fees. Wilshire Mutual Funds, Inc. has no such charges, but these 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 total costs of owning different funds.

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38

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See Notes to Financial Statements.
40

Percentages are stated as a percent of net assets.

The Condensed Schedule of Investments does not reflect the complete portfolio holdings. It includes the Portfolio’s 50 largest holdings,

See Notes to Financial Statements.
41

each investment of any issue that exceeds 1% of the Portfolio’s net assets, and any investments classified as Level 3. “Other Securities” represent all issues not required to be disclosed under the rules adopted by the U.S. Securities and Exchange Commission (“SEC”). The complete schedule of portfolio holdings is available on the SEC’s website at http://www.sec.gov; and (ii) on our website at http://advisor.wilshire.com.

ADR — American Depository Receipt

See Notes to Financial Statements.
42

LIBOR — London Interbank Offered Rate.

See Notes to Financial Statements.
43

See Notes to Financial Statements.
44