for Plan Sponsors, Providers and Participants
Wilshire Associates, a global leader in
investment technology, investment consulting and investment management, announced today that it is launching Wilshire RetirePathsm, which offers plan sponsors, providers and participants institutional quality, cost-effective, technology-driven discretionary retirement managed accounts.
âWilshire RetirePath is based on more than three decades of experience serving the plan sponsor community,â said Dennis A. Tito, founder, chairman and chief executive officer of Wilshire Associates. âDuring this time, we have worked with some of the nationâs largest fund sponsors, providing comprehensive investment consulting as well as innovative investment products to meet each institutional investorâs needs. Our experience and investment judgment, combined with our analytical approach has earned us the reputation as a respected and responsible fiduciary partner,â he added.
Wilshire Associates currently provides services to both plan providers and plan sponsors and will offer Wilshire RetirePathâs discretionary managed accounts services to both markets. Due to the size of current plan sponsor relationships, there will be limited overlap between our provider and sponsor clients.
âWilshire Consulting will work with plan sponsors who prefer Wilshire RetirePathâs
âbest in classâ selection approach to each of the services they provide to their employees,â said Julia A. Bonafede, senior managing director of Wilshire Associates and head of Wilshire Consulting. âIt will offer plan sponsors a unique opportunity to provide institutional quality investment advice at the participant level -- the types of services typically only available to defined benefit plans,â she commented. âOur ability to apply our best thinking from the institutional space to the individual retirement account is a key value proposition that separates Wilshire RetirePath from others.â
Lawrence E. Davanzo, a Wilshire Associates senior managing director and head of
Wilshire Funds Management, noted, âOur experience demonstrates that plan providers seek flexibility when it comes to the technological deployment required for discretionary managed accounts. Based on this, Wilshire Funds Management will offer a Wilshire RetirePath solution which enables the provider to choose their desired integration point.
We will offer solutions as straightforward as the core engines or âblack boxâ used to
generate the recommendations, and as comprehensive as a full turn-key, hosted solution,â Davanzo added.
Wilshire will leverage the best thinking of the institutional consulting business unit in Wilshire RetirePath including the use of its proprietary Asset-Liability Valuation (ALV) approach to portfolio design. For Wilshire RetirePath, the firm has translated the concept of the liability or pension commitment to the individualâs spending needs at retirement.
In short, this âneeds-basedâ optimization (NBO) minimizes the individualâs cost of
retirement and maximizes their likelihood of meeting their desired retirement objectives.
As opposed to optimizing purely on the risk and return characteristics of asset classes, NBO includes an individualâs benefit streams when creating an asset allocation policy.
This part of Wilshire RetirePath can be though of as a âpersonal-asset-liability studyâ designed to create an asset allocation and funding plan to meet the participantâs desired objectives.
Wilshire RetirePath also employs an approach which maximizes a portfolio information ratio consistent with a defined risk budget and allows Wilshire to select managers for the portfolio mix on a risk-adjusted basis. The result is a set of investment managers that confidently meet the intended objective.
The managed account as offered by Wilshire RetirePath provides a more tailored strategy to the individual participant. Wilshire RetirePath includes a savings rate
recommendation, which is critical to a participantâs successful retirement. It also creates a policy designed to meet the specific objectives of an individual participant, using information beyond target retirement date.
The critical elements that are all embedded in Wilshire RetirePath include minimal data entry, managed savings, support for auto-enrollment and support for targeted marketing communications.