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 600

Santa Monica, CA 90401-1085

(Address of principal executive offices) (Zip code)

Jason A. Schwarz

Wilshire Advisors LLC

1299 Ocean Avenue, Suite 600

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, 2023

Date of reporting period: December 31, 2023

Item 1. Reports to Stockholders.

Wilshire Mutual Funds, Inc.

ANNUAL REPORT

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
Wilshire Income Opportunities Fund

December 31, 2023 

http://advisor.wilshire.com

Wilshire Mutual Funds, Inc.
Table of Contents

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 Foreside Fund Services, LLC.

Wilshire Mutual Funds, Inc.
Letter to Shareholders (Unaudited)

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, 2023 to December 31, 2023, 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

Domestic and foreign developed economies generated positive returns during the last quarter of 2023 as the market welcomed continued signs of moderating inflation and stronger than expected economic growth. Evidence of economic resilience and record-low unemployment have increased the likelihood of an economic “soft landing,” however, it might be too early for foreign central banks to declare victory over inflation. The U.S. Federal Reserve held the key interest rate steady in December 2023 but now anticipates three rates cuts in the later part of 2024.

U.S. equities outperformed international equities as the S&P 500^® Index slightly outpaced the MSCI EAFE Index but significantly outpaced the MSCI Emerging Markets Index during the fourth quarter. Fixed income returns were generally positive across U.S. and non-U.S. markets as bond markets quickly priced in the potential rate cuts.

Rolling 12-month inflation within the U.S. decreased to 3.1% at the end of November from the recent peak of 9.1% reached June 2022, however, inflation excluding food and energy stood at 4.0% as the price of shelter and transportation services remained elevated. Recent declines in oil prices may reverse course if demand from both domestic and abroad, namely China, increases and Organization of the Petroleum Exchange Countries increase voluntary cuts.

It has been a pleasant surprise that the U.S. economy has coped so well with higher interest rates and elevated inflation. The unemployment rate, which remained under 4.0% for the past 24 consecutive months continues to demonstrate resiliency amid tightening financial conditions. Signs of moderating economic growth from corporations and a decrease in household savings have been developing for some time and a continued slowdown in economic growth could begin to weigh on corporate profitability and outlook and serve as a headwind to equity market returns.

The European Central Bank (“ECB”) kept the three key interest rates unchanged despite annualized inflation falling to 2.4% in November 2023. The ECB stated that inflation has moderated in recent months and is likely to increase again in the near term. In terms of economic activity, the Eurozone economic growth has fallen faster than its U.S. counterpart as the Eurozone deals with not only the ongoing conflict in Ukraine but also waning consumer confidence.

Wilshire Mutual Funds, Inc.
Letter to Shareholders (Unaudited) - (Continued)

On the emerging markets front, the Chinese economy has not picked up as expected since its COVID-reopening. As the economic activity from manufacturing and service sectors continues to slow and export demands continues to decline, China is unlikely able to produce similar economic growth amidst challenges in the property market, demographics, and deflationary pressure. Recent stimulus implemented in 2023 appears to have had a limited impact to spark economic growth, adding to the possibility of slower growth. With the prospect of central banks easing and a softer dollar in the future, investors are likely to look outside of China for more diverse and attractive opportunities, further hindering the Chinese economy.

Fund Performance Review

The Wilshire Large Company Growth Portfolio - Institutional Class returned 40.24%, underperforming the Russell 1000 Growth Index by -2.44%. The Wilshire Large Company Value Portfolio - Institutional Class returned 16.27%, outperforming the Russell 1000 Value Index by 4.81%. The Wilshire Small Company Growth Portfolio - Institutional Class returned 18.21%, underperforming the Russell 2000 Growth Index by -0.45%. The Wilshire Small Company Value Portfolio - Institutional Class returned 17.62%, outperforming the Russell 2000 Value Index by 2.97%. The Wilshire International Equity Fund - Institutional Class returned 17.34%, outperforming the MSCI All Country World ex USA Investable Market Index by 1.72%. The Wilshire Income Opportunities Fund - Institutional Class returned 6.61%, outperforming the Bloomberg US Universal Index by 0.44%. The Wilshire 5000 Index Fund - Institutional Class returned 25.21%, underperforming the Wilshire 5000 Total Market Index by -0.93%.

We are pleased with the outperformance generated by four out of the six actively managed Funds. We believe that all of the Funds are well-positioned going into 2024 as the market deals with the on-going inflation concerns, macroeconomic and geopolitical issues.

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

Sincerely,

Jason Schwarz

President, Wilshire Mutual Funds

Wilshire Mutual Funds, Inc.
Letter to Shareholders (Unaudited) - (Continued)

DISCLOSURES:

This report must be preceded or accompanied by a prospectus.

Opinions expressed are those of the Funds and are subject to change, are not guaranteed, and should not be considered a recommendation to buy or sell any security.

Sector allocations are subject to change.

Past performance does not guarantee future results. The performance data quoted represents 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. Investments in derivatives, such as swaps, futures contracts and options contracts and currency transactions expose a Fund to risks in addition to and greater than those associated with investing directly in the securities underlying those derivatives and could also result in a loss, which in some cases may be unlimited.

Investing involves risk including loss of principal. This report identifies each Fund’s investments on December 31. 2023. These holdings are subject to change and risk. Not all investments in each Fund 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 All Country World 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 All Country World 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.

Wilshire Mutual Funds, Inc.
Letter to Shareholders (Unaudited) - (Continued)

The MSCI EAFE Index is an equity index which captures large and mid cap representation across 21 Developed Markets countries around the world, excluding the US and Canada. With 825 constituents, the index covers approximately 85% of the free float adjusted market capitalization in each country.

The 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 FT 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.

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.

The Bloomberg 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 passthrough securities, and asset-backed securities.

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

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

The Bloomberg 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.

Wilshire Mutual Funds, Inc.
Letter to Shareholders (Unaudited) - (Continued)

The Bloomberg U.S. TIPS Index measures the performance of the U.S. Treasury Inflation- Protected Securities known as TIPS.

The Bloomberg Long Term Treasury Index measures the U.S. investment grade fixed rate bond market issued by the U.S. government with 10+ years of maturity.

The 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.

The 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.

The 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.

The 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.

The S&P 500 Index includes 500 leading companies and covers approximately 80% of available market capitalization.

Mortgaged-Backed Securities are bonds secured by residential and other real estate loans.

Agency Residential Mortgaged-Backed Securities is residential mortgaged-backed securities for which a U.S. government entity guarantees payment of principal and interest to holders of securities.

Commercial Mortgage-Backed Securities are bonds secreted by commercial and multifamily mortgages.

Asset-Backed Securities are financial securities back by income-generating assets such as loans, leases, credit card balances, or receivables.

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

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.

Credit Spread is the difference in yield between a U.S. Treasury bond and another debt security of the same maturity but different credit quality.

Wilshire Mutual Funds, Inc.
Overall Fund Commentary (Unaudited)

The U.S. stock market, represented by the FT Wilshire 5000 Total Market Index^SM, is up 26.14% for all of 2023. Nearly every sector was also positive for the last quarter. The best performing sectors for the year were Communication Services (+53.12%) and Consumer Discretionary (+40.21%). The worst performing and negative sectors for the year were utilities (-7.05%) and energy (-0.10%). From a size perspective, large cap outperformed small cap stocks by 785 basis points for the 1-year period. The Wilshire US Large-Cap Index was up 27.34% while the Wilshire US Small-Cap Index was up 19.50%. Growth stocks significantly outperformed value-oriented stocks as the Wilshire US Large-Cap Growth Index (+46.1%) outperformed the Wilshire US Large-Cap Value Index (+11.1%) by 35.0% for the year.

Real estate securities were down for the 1-year period in both the United States and abroad. Commodity results were negative for the quarter, with crude oil falling by -21.1% to $71.65 per barrel. This is the lowest price since the summer of 2023 and overall commodity returns are down for the past twelve months. Natural gas prices moved lower during the fourth quarter after six months of significant increases. Prices were down -14.2% and are down a massive -43.8% for the past twelve months. Prices closed December at $2.51 per million BTUs. Gold prices were up during the quarter after six months of declines, 12.1% for the three months, finishing at approximately $2,072 per troy ounce. Gold above the $2,000 mark has not happened often in history.

Performance results within international equity markets were positive for the year, with developed outperforming emerging markets. The MSCI EAFE Index was up 18.24% for the year, while the MSCI Emerging Markets Index was up 9.83%. The eurozone likely fell into a mild recession in 2023 and recent data suggests that conditions are not improving. Business activity declined in December, according to a closely watched survey from the Hamburg Commercial Bank, as new orders fell and job cuts were reported. Germany, the eurozone’s largest economy, continues to suffer due to high energy prices and interest rate hikes. The Bank of France believes that France’s economy will avoid recession due to a growing services sector. Finally, similar conditions exist in England as its economy likely shrank modestly in the third quarter after zero growth during the quarter before. The outlook in China is complicated with recent data showing contraction in the factory and services sectors. A survey of factory managers indicates contraction in December for the third straight month. Recently, the government has raised infrastructure spending, cut interest rates and eased limits on home-buying.

Wilshire Mutual Funds, Inc.
Overall Fund Commentary (Unaudited) - (Continued)

The U.S. Treasury yield curve was down across the maturity spectrum at the end of the year, and to a greater degree in the long end of the curve. The 10-year Treasury yield ended the quarter at 3.88%, down -69 basis points from September. Credit spreads were down, as well, during the quarter with high yield bond spreads down -71 basis points, the lowest level in more than a year. The Federal Open Market Committee (“Fed”) met twice during the fourth quarter, as scheduled, and left the overnight rate unchanged, targeting a range of 5.25% to 5.50%. The Fed’s “dot plot” is messaging that the current expectation is for a decrease in rates in 2024, by -0.75% after the December meeting. During a recent speech, Fed Chair Jerome Powell reiterated the central bank’s intent to be cautious, “Having come so far and so quickly, the Fed is moving carefully forward, as the risks of under- and over-tightening are becoming more balanced.”

Large Company Growth Portfolio
Commentary (Unaudited)

INVESTMENT CLASS SHARES

Average Annual Total Returns

RUSSELL 1000^® GROWTH INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $10,000 Investment
in Shares of Large Company Growth Portfolio, Investment Class
Shares and the Russell 1000^® Growth Index through 12/31/23.

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 4/30/2023 was 1.31% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.30% for Investment Class Shares.

The Advisor has contractually 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 through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Large Company Growth Portfolio
Commentary (Unaudited) - (Continued)

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

RUSSELL 1000^® GROWTH INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $250,000 Investment
in Shares of Large Company Growth Portfolio, Institutional Class
Shares and the Russell 1000^® Growth Index through 12/31/23.

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 4/30/2023 was 1.00% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.00% for Institutional Class Shares.

The Advisor has contractually 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% for Institutional Class Shares through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Large Company Growth Portfolio
Commentary (Unaudited) - (Continued)

The U.S. stock market, represented by the Wilshire 5000 Total Market Index^SM, is up 26.14% for all of 2023. Nearly every sector was also positive for the last quarter. The best performing sectors for the year were Communication Services (+53.12%) and Consumer Discretionary (+40.21%). The worst performing and negative sectors for the year were utilities (-7.05%) and energy (-0.10%). From a size perspective, large cap outperformed small cap stocks by 785 basis points for the 1-year period. The Wilshire US Large-Cap Index was up 27.34% while the Wilshire US Small-Cap Index was up 19.50%. Growth stocks significantly outperformed value-oriented stock as the Wilshire US Large-Cap Growth Index (+46.1%) outperformed the Wilshire US Large-Cap Value Index (+11.1%) by 35.0% for the year.

Real estate securities were down for the 1-year period in both the United States and abroad. Commodity results were negative for the quarter, with crude oil falling by -21.1% to $71.65 per barrel. This is the lowest price since the summer of 2023 and overall commodity returns are down for the past twelve months. Natural gas prices moved lower during the fourth quarter after six months of significant increases. Prices were down -14.2% and are down a massive -43.8% for the past twelve months. Prices closed December at $2.51 per million BTUs. Gold prices were up during the quarter after six months of declines, 12.1% for the three months, finishing at approximately $2,072 per troy ounce. Gold above the $2,000 mark has not happened often in history.

The Wilshire Large Company Growth Portfolio - Institutional Class returned 40.24% in 2023, underperforming the Russell 1000 Growth Index return of 42.68% by -2.44%. Underweight exposure to Healthcare and poor stock selection within Consumer Discretionary were the top two detractors. Conversely, stock selection within Healthcare and Industrials mitigated results.

The Wilshire Large Company Growth Portfolio also uses derivatives for benchmark exposure. Collateral is invested in short term fixed income instruments to cover the costs of the swap. In 2023, returns on these fixed-income investments outperformed the cost of the swap and contributed to the Fund’s performance.

Despite recent relative underperformance, we believe the Fund is well-positioned going into 2024 as the market deals with the ongoing inflation concern, macroeconomic and geopolitical issues.

Large Company Growth Portfolio
Commentary (Unaudited) - (Continued)

PORTFOLIO SECTOR WEIGHTING^†
(As of December 31, 2023)

Common Stocks are composed of:

The industry classifications represented in the Portfolio Sector Weightings and Schedules of Investments are in accordance with Global Industry Classification Standards (GICS^®), which was developed by and/or is the exclusive property of MSCI, Inc. and Standard & Poor’s LLC.

Large Company Value Portfolio
Commentary (Unaudited)

INVESTMENT CLASS SHARES

Average Annual Total Returns

RUSSELL 1000^® VALUE INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

 Comparison of Change in Value of a hypothetical $10,000 Investment
in Shares of Large Company Value Portfolio, Investment Class
Shares and the Russell 1000^® Value Index through 12/31/23.

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 gross expense ratio per the prospectus dated 4/30/2023 was 1.29% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.29% for Investment Class Shares.

Large Company Value Portfolio
Commentary (Unaudited) - (Continued)

The Advisor has contractually 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 through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Large Company Value Portfolio
Commentary (Unaudited) - (Continued)

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

RUSSELL 1000^® VALUE INDEX⁽¹⁾ 

Average Annual Total Returns

COMPARATIVE PERFORMANCE

 Comparison of Change in Value of a hypothetical $250,000 Investment
in Shares of Large Company Value Portfolio, Institutional Class
Shares and the Russell 1000^® Value Index through 12/31/23.

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 gross expense ratio per the prospectus dated 4/30/2023 was 1.02% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.00% for Institutional Class Shares. 

Large Company Value Portfolio
Commentary (Unaudited) - (Continued)

The Advisor has contractually 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% for Institutional Class Shares through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Large Company Value Portfolio
Commentary (Unaudited) - (Continued)

The U.S. stock market, represented by the Wilshire 5000 Total Market Index^SM, is up 26.14% for all of 2023. Nearly every sector was also positive for the last quarter. The best performing sectors for the year were Communication Services (+53.12%) and Consumer Discretionary (+40.21%). The worst performing and negative sectors for the year were utilities (-7.05%) and energy (-0.10%). From a size perspective, large cap outperformed small cap stocks by 785 basis points for the 1-year period. The Wilshire US Large-Cap Index was up 27.34% while the Wilshire US Small-Cap Index was up 19.50%. Growth stocks significantly outperformed value-oriented stock as the Wilshire US Large-Cap Growth Index (+46.1%) outperformed the Wilshire US Large-Cap Value Index (+11.1%) by 35.0% for the year.

Real estate securities were down for the 1-year period in both the United States and abroad. Commodity results were negative for the quarter, with crude oil falling by -21.1% to $71.65 per barrel. This is the lowest price since the summer of 2023 and overall commodity returns are down for the past twelve months. Natural gas prices moved lower during the fourth quarter after six months of significant increases. Prices were down -14.2% and are down a massive -43.8% for the past twelve months. Prices closed December at $2.51 per million BTUs. Gold prices were up during the quarter after six months of declines, 12.1% for the three months, finishing at approximately $2,072 per troy ounce. Gold above the $2,000 mark has not happened often in history

The Wilshire Large Company Value Portfolio - Institutional Class returned 16.27% in 2023, outperforming the Russell 1000 Value Index return of 11.46% by 4.81%. Overweight exposure to Information Technology and stock selection within Industrials and Information Technology were the top three contributors. Conversely, underweight exposure to Communication Services hurt relative results.

The Wilshire Large Company Value Portfolio also uses derivatives for benchmark exposure. Collateral is invested in short-term fixed income instruments to cover the costs of the swap. In 2023, returns on these fixed-income investments outperformed the cost of the swap and contributed to the Fund’s relative performance.

We are pleased with the performance of the Fund and believe the Fund is well-positioned going into 2024 as the market deals with the ongoing inflation concern, macroeconomic and geopolitical issues.

Large Company Value Portfolio
Commentary (Unaudited) - (Continued)

PORTFOLIO SECTOR WEIGHTING*
(As of December 31, 2023)

Common Stocks are composed of:

Small Company Growth Portfolio
Commentary (Unaudited)

INVESTMENT CLASS SHARES

Average Annual Total Returns

RUSSELL 2000^® GROWTH INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $10,000 Investment
in Shares of Small Company Growth Portfolio, Investment Class
Shares and the Russell 2000^® Growth Index through 12/31/23.

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 4/30/2023 was 1.87% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.34% for Investment Class Shares.

The Advisor has contractually 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 through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Small Company Growth Portfolio
Commentary (Unaudited) - (Continued)

INSTITUTIONAL CLASS SHARES

 Average Annual Total Returns

RUSSELL 2000^® GROWTH INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

 Comparison of Change in Value of a hypothetical $250,000 Investment
in Shares of Small Company Growth Portfolio, Institutional Class
Shares and the Russell 2000^® Growth Index through 12/31/23.

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 4/30/2023 was 1.67% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.09% for Institutional Class Shares.

The Advisor has contractually 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% for Institutional Class Shares through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Small Company Growth Portfolio
Commentary (Unaudited) - (Continued)

The U.S. stock market, represented by the Wilshire 5000 Total Market Index^SM, is up 26.14% for all of 2023. Nearly every sector was also positive for the last quarter. The best performing sectors for the year were Communication Services (+53.12%) and Consumer Discretionary (+40.21%). The worst performing and negative sectors for the year were utilities (-7.05%) and energy (-0.10%). From a size perspective, large cap outperformed small cap stocks by 785 basis points for the 1-year period. The Wilshire US Large-Cap Index was up 27.34% while the Wilshire US Small-Cap Index was up 19.50%. Growth stocks significantly outperformed value-oriented stock as the Wilshire US Large-Cap Growth Index (+46.1%) outperformed the Wilshire US Large-Cap Value Index (+11.1%) by 35.0% for the year.

Real estate securities were down for the 1-year period in both the United States and abroad. Commodity results were negative for the quarter, with crude oil falling by -21.1% to $71.65 per barrel. This is the lowest price since the summer of 2023 and overall commodity returns are down for the past twelve months. Natural gas prices moved lower during the fourth quarter after six months of significant increases. Prices were down -14.2% and are down a massive -43.8% for the past twelve months. Prices closed December at $2.51 per million BTUs. Gold prices were up during the quarter after six months of declines, 12.1% for the three months, finishing at approximately $2,072 per troy ounce. Gold above the $2,000 mark has not happened often in its history.

The Wilshire Small Company Growth Portfolio - Institutional Class returned 18.21% in 2023, underperforming the Russell 2000 Growth Index return of 18.66% by -0.45%. Stock selection within Information technology and Industrials detracted from relative performance. Overweight exposure to Health Care also hurt performance. Conversely, stock selection within Consumer Discretionary and Consumer Staples were the top two contributors of performance.

Despite recent relative underperformance, we believe the Fund is well-positioned going into 2024 as the market deals with the ongoing inflation concern, macroeconomic and geopolitical issues.

Small Company Growth Portfolio
Commentary (Unaudited) - (Continued)

PORTFOLIO SECTOR WEIGHTING^†
(As of December 31, 2023)

Small Company Value Portfolio
Commentary (Unaudited)

INVESTMENT CLASS SHARES

Average Annual Total Returns

RUSSELL 2000^® VALUE INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $10,000 Investment
in Shares of Small Company Value Portfolio, Investment Class
Shares and the Russell 2000^® Value Index through 12/31/23.

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 4/30/2023 was 1.89% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.35% for Investment Class Shares.

The Advisor has contractually 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 through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Small Company Value Portfolio
Commentary (Unaudited) - (Continued)

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

RUSSELL 2000^® VALUE INDEX⁽¹⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $250,000 Investment
in Shares of Small Company Value Portfolio, Institutional Class
Shares and the Russell 2000^® Value Index through 12/31/23.

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 4/30/2023 was 1.60% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.10% for Institutional Class Shares.

The Advisor has contractually 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% for Institutional Class Shares, respectively, through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Small Company Value Portfolio
Commentary (Unaudited) - (Continued)

The U.S. stock market, represented by the Wilshire 5000 Total Market Index^SM, is up 26.14% for all of 2023. Nearly every sector was also positive for the last quarter. The best performing sectors for the year were Communication Services (+53.12%) and Consumer Discretionary (+40.21%). The worst performing and negative sectors for the year were utilities (-7.05%) and energy (-0.10%). From a size perspective, large cap outperformed small cap stocks by 785 basis points for the 1-year period. The Wilshire US Large-Cap Index was up 27.34% while the Wilshire US Small-Cap Index was up 19.50%. Growth stocks significantly outperformed value-oriented stock as the Wilshire US Large-Cap Growth Index (+46.1%) outperformed the Wilshire US Large-Cap Value Index (+11.1%) by 35.0% for the year.

Real estate securities were down for the 1-year period in both the United States and abroad. Commodity results were negative for the quarter, with crude oil falling by -21.1% to $71.65 per barrel. This is the lowest price since the summer of 2023 and overall commodity returns are down for the past twelve months. Natural gas prices moved lower during the fourth quarter after six months of significant increases. Prices were down -14.2% and are down a massive -43.8% for the past twelve months. Prices closed December at $2.51 per million BTUs. Gold prices were up during the quarter after six months of declines, 12.1% for the three months, finishing at approximately $2,072 per troy ounce. Gold above the $2,000 mark has not happened often in history.

The Wilshire Small Company Value Portfolio - Institutional Class returned 17.62% in 2023, outperforming the Russell 2000 Value Index return of 14.65% by 2.97%. Stock selection within Financials was the top contributor to performance. Underweight exposure to Real Estate also aided performance. Conversely, stock selection within Information Technology and Materials detracted from relative performance.

We are pleased with the Fund’s relative outperformance for 2023 and believe that the Fund is well-positioned going into 2024 as the market deals with the ongoing inflation concern, macroeconomic and geopolitical issues.

Small Company Value Portfolio
Commentary (Unaudited) - (Continued)

PORTFOLIO SECTOR WEIGHTING^†
(As of December 31, 2023)

Wilshire 5000 Indexsm Fund
Commentary (Unaudited)

INVESTMENT CLASS SHARES

Average Annual Total Returns

WILSHIRE 5000 TOTAL MARKET RETURN INDEX^SM(1)

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $10,000 Investment in Shares
of Wilshire 5000 Index^SM Fund, Investment Class Shares and the
Wilshire 5000 Total Market Return Index^SM through 12/31/23.

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 4/30/2023 was 0.58% for Investment Class Shares.

Wilshire 5000 Indexsm Fund
Commentary (Unaudited) - (Continued)

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

WILSHIRE 5000 TOTAL MARKET RETURN INDEX^SM(1)

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $250,000 Investment in Shares
of Wilshire 5000 Index^SM Fund, Institutional Class Shares and the
Wilshire 5000 Total Market Return Index^SM through 12/31/23.

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 4/30/2023 was 0.36% for Institutional Class Shares.

Wilshire 5000 Indexsm Fund
Commentary (Unaudited) - (Continued)

The U.S. stock market, represented by the Wilshire 5000 Total Market Index^SM, is up 26.14% for all of 2023. Nearly every sector was also positive for the last quarter. The best performing sectors for the year were Communication Services (+53.12%) and Consumer Discretionary (+40.21%). The worst performing and negative sectors for the year were utilities (-7.05%) and energy (-0.10%). From a size perspective, large cap outperformed small cap stocks by 785 basis points for the 1-year period. The Wilshire US Large-Cap Index was up 27.34% while the Wilshire US Small-Cap Index was up 19.50%. Growth stocks significantly outperformed value-oriented stock as the Wilshire US Large-Cap Growth Index (+46.1%) outperformed the Wilshire US Large-Cap Value Index (+11.1%) by 35.0% for the year.

Real estate securities were down for the 1-year period in both the United States and abroad. Commodity results were negative for the quarter, with crude oil falling by -21.1% to $71.65 per barrel. This is the lowest price since the summer of 2023 and overall commodity returns are down for the past twelve months. Natural gas prices moved lower during the fourth quarter after six months of significant increases. Prices were down -14.2% and are down a massive -43.8% for the past twelve months. Prices closed December at $2.51 per million BTUs. Gold prices were up during the quarter after six months of declines, 12.1% for the three months, finishing at approximately $2,072 per troy ounce. Gold above the $2,000 mark has not happened often in history.

The Wilshire 5000 Index Fund - Institutional Class returned 25.21% in 2023, underperforming the Wilshire 5000 Total Market Index return of 26.14% by -0.93%. Relative performance can vary as the Fund is managed using enhanced stratified sampling technique in an attempt to hold stocks representing at least 90 % of the total market value of the Wilshire 5000 Total Market Index. Underperformance can be attributed to Fund expenses and volatility of the stock market. However, the underperformance is in-line with historical trends.

Wilshire 5000 Indexsm Fund
Commentary (Unaudited) - (Continued)

PORTFOLIO SECTOR WEIGHTING^†
(As of December 31, 2023)

Wilshire International Equity Fund
Commentary (Unaudited)

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 a hypothetical $10,000 Investment in
Shares of Wilshire International Equity Fund, Investment Class Shares
and the MSCI All Country World Ex-U.S. Index through 12/31/23.

On 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 4/30/2023 was 1.75% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.50% for Investment Class Shares.

Wilshire International Equity Fund
Commentary (Unaudited) - (Continued)

The Advisor has contractually 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 through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Wilshire International Equity Fund
Commentary (Unaudited) - (Continued)

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 a hypothetical $250,000 Investment in
Shares of Wilshire International Equity Fund, Institutional Class Shares
and the MSCI All Country World Ex-U.S. Index through 12/31/23.

On 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 4/30/2023 was 1.40% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.25% for Institutional Class Shares.

Wilshire International Equity Fund
Commentary (Unaudited) - (Continued)

The Advisor has contractually 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% for Institutional Class Shares through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Wilshire International Equity Fund
Commentary (Unaudited) - (Continued)

Performance results within international equity markets were positive for the year, with developed outperforming emerging markets. The MSCI EAFE Index was up 18.24% for the year, while the MSCI Emerging Markets Index was up 9.83%. The eurozone likely fell into a mild recession in 2023 and recent data suggests that conditions are not improving. Business activity declined in December, according to a closely watched survey from the Hamburg Commercial Bank, as new orders fell and job cuts were reported. Germany, the eurozone’s largest economy, continues to suffer due to high energy prices and interest rate hikes. The Bank of France believes that France’s economy will avoid recession due to a growing services sector. Finally, similar conditions exist in England as its economy likely shrank modestly in the third quarter after zero growth during the quarter before. The outlook in China is complicated with recent data showing contraction in the factory and services sectors. A survey of factory managers indicates contraction in December for the third straight month. Recently, the government has raised infrastructure spending, cut interest rates and eased limits on home-buying.

The Wilshire International Equity Fund - Institutional Class returned 17.34% in 2023, outperforming the MSCI All Country World ex USA Investable Market Index return of 15.62% by 1.72%. Stock selection within Consumer Discretionary and Materials contributed to relative returns. Stock selection in Indian and UK also aided performance. Conversely, overweight exposure to Health Care and underweight exposure to the US hurt relative performance.

The Wilshire International Equity Fund also uses derivatives for benchmark exposure. Collateral is invested in short-term fixed income instruments to cover the costs of the swap. In 2023, returns on these fixed-income investments outperformed the cost of the swap and contributed to the Fund’s relative performance.

We are pleased with the performance of the Fund and believe the Fund is well-positioned going into 2024 as the market deals with the ongoing inflation concern, macroeconomic and geopolitical issues.

Wilshire International Equity Fund
Commentary (Unaudited) - (Continued)

PORTFOLIO SECTOR WEIGHTING^†
(As of December 31, 2023)

Common Stocks are composed of:

Wilshire International Equity Fund
Commentary (Unaudited) - (Continued)

Wilshire Income Opportunities Fund
Commentary (Unaudited)

INVESTMENT CLASS SHARES

Average Annual Total Returns

BLOOMBERG U.S. UNIVERSAL INDEX⁽¹⁾

Average Annual Total Returns

CUSTOM BLENDED INDEX⁽²⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $10,000 Investment
in Shares of Wilshire Income Opportunities Fund, Investment Class
Shares and the Bloomberg U.S. Universal Index through 12/31/23.

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.

Wilshire Income Opportunities Fund
Commentary (Unaudited) - (Continued)

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2023 was 1.33% for Investment Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 1.16% for Investment Class Shares.

The Advisor has contractually 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 through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Wilshire Income Opportunities Fund
Commentary (Unaudited) - (Continued)

INSTITUTIONAL CLASS SHARES

Average Annual Total Returns

BLOOMBERG U.S. UNIVERSAL INDEX⁽¹⁾

Average Annual Total Returns

CUSTOM BLENDED INDEX⁽²⁾

Average Annual Total Returns

COMPARATIVE PERFORMANCE

Comparison of Change in Value of a hypothetical $250,000 Investment
in Shares of Wilshire Income Opportunities Fund, Institutional Class
Shares and the Bloomberg U.S. Universal Index through 12/31/23.

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.

Wilshire Income Opportunities Fund
Commentary (Unaudited) - (Continued)

The Portfolio’s gross expense ratio per the prospectus dated 4/30/2023 was 0.97% for Institutional Class Shares. The Portfolio’s net expense ratio per the prospectus dated 4/30/2023 was 0.91% for Institutional Class Shares.

The Advisor has contractually 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% for Institutional Class Shares through at least April 30, 2024. The net expense ratio is applicable to shareholders.

Wilshire Income Opportunities Fund
Commentary (Unaudited) - (Continued)

The U.S. Treasury yield curve was down across the maturity spectrum at the end of the year, and to a greater degree in the long end of the curve. The 10-year Treasury yield ended the quarter at 3.88%, down -69 basis points from September. Credit spreads were down, as well, during the quarter with high yield bond spreads down -71 basis points, the lowest level in more than a year. The Federal Open Market Committee (“Fed”) met twice during the fourth quarter, as scheduled, and left the overnight rate unchanged, targeting a range of 5.25% to 5.50%. The Fed’s “dot plot” is messaging that the current expectation is for a decrease in rates in 2024, by -0.75% after the December meeting. During a recent speech, Fed Chair Jerome Powell reiterated the central bank’s intent to be cautious, “Having come so far and so quickly, the Fed is moving carefully forward, as the risks of under- and over-tightening are becoming more balanced.”

The Wilshire Income Opportunities Fund - Institutional Class returned 6.61% in 2023, outperforming the Bloomberg US Universal Index return of 6.17% by 0.44%. Exposure to credit such as high yield, bank loans, and emerging market sovereigns significantly outperformed the Bloomberg US Aggregate Bond Index as these sectors generated double-digits return for the year.

We are pleased with the performance of the Fund and believe the Fund is well-positioned going into 2024 as the market deals with the ongoing inflation concern, macroeconomic and geopolitical issues.

Wilshire Income Opportunities Fund
Commentary (Unaudited) - (Continued)

PORTFOLIO SECTOR WEIGHTING^†
(As of December 31, 2023)

Wilshire Mutual Funds, Inc.
Disclosure of Fund Expenses (Unaudited)

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, 2023 to December 31, 2023.

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.

Wilshire Mutual Funds, Inc.
Disclosure of Fund Expenses (Unaudited) - (Continued)
For the Six Months Ended December 31, 2023 (Unaudited)

Wilshire Mutual Funds, Inc.
Disclosure of Fund Expenses (Unaudited) - (Continued)
For the Six Months Ended December 31, 2023 (Unaudited)

Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio	December 31, 2023
Schedule of Investments

See Notes to Financial Statements.

Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio	December 31, 2023
Schedule of Investments - (Continued)

See Notes to Financial Statements.

Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio	December 31, 2023
Schedule of Investments - (Continued)

See Notes to Financial Statements.

Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio	December 31, 2023
Schedule of Investments - (Continued)

See Notes to Financial Statements.

Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio	December 31, 2023
Schedule of Investments - (Continued)

See Notes to Financial Statements.

Wilshire Mutual Funds, Inc.
Large Company Growth Portfolio	December 31, 2023
Schedule of Investments - (Continued)