Overview
Overview
New York Life Investments has partnered with Wilshire to offer the NYLI Pathway Active/Passive Tax-Aware Portfolios (the “Portfolios”), a suite of seven risk-based, broadly diversified, multi-asset class portfolios which offer targeted fixed income and equity exposure tailored to various investor risk-return profiles in a tax-efficient manner.
The Portfolios provide exposure to a variety of asset classes, investment styles, and investment managers, which are used to enhance diversification and provide access to high conviction investment managers.
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Portfolios are managed by one of the industry’s largest institutional investment consulting firms.
Dynamic Management
Wilshire dynamically tilts the Portfolios toward attractive opportunities and away from under-compensated risks in an effort to enhance returns and reduce risk.
Active/Passive Structure
Portfolios are anchored by actively managed strategies that are well-regarded by Wilshire Manager Research, which are complemented by low-cost, passive ETFs.
Portfolios
Portfolios
For illustrative purposes only. As of 09/12/2024. Asset allocations are subject to change.
Philosophy
Philosophy
A clear investment approach
Wilshire’s institutional approach translates the theoretical into the practical, making use of dynamic asset allocation, institutional research and fund selection, risk-aware portfolio construction and manager structure, and objective ongoing oversight that seeks to deliver attractive risk-adjusted returns. Wilshire uses a sophisticated, disciplined, and risk-focused approach with a repeatable four-step process to monitor the Portfolios.
- Dynamic asset allocation
- Institutional research and fund selection
- Risk-aware portfolio construction and manager structure
- Objective ongoing oversight
Regardless of an investor’s risk tolerance, Wilshire and NYL Investments believe that an ideal portfolio should include active and passive strategies. To meet the needs of outcome-oriented investors, the Portfolios offer seven different underlying portfolios designed to meet different risk tolerances and objectives.
Process
Process
Dynamic asset allocation
Wilshire’s asset allocation process leverages the consensus expectations of large institutional investors. From there, based on short- to medium-term views, Wilshire’s Investment Strategy Committee can dynamically tilt portfolios to take advantage of changing market conditions. This process establishes the mix of asset classes around a given investment objective, risk tolerance and time horizon.
Institutional research and fund selection
Manager research is central to everything Wilshire does. The approximately 70 professionals that contribute to Wilshire’s manager research efforts are tasked with finding strategies across the asset class spectrum and identifying those that have the potential to produce alpha consistently over the long term. Wilshire employs a rigorous and proprietary search and selection process that includes active and passive implementations and alternative strategies.
Risk-aware portfolio construction and manager structure
Building a multi-manager portfolio is not simply a matter of choosing products with the highest alpha potential. Wilshire was an early practitioner of portfolio optimization, taking a variety of factors into consideration to best combine investment manager allocations with the goal to produce attractive returns for a given level of risk.
Wilshire also leverages the primary tenets of modern portfolio theory to build a diversified portfolio not just across asset classes, but within an asset class itself. By pairing high-conviction managers utilizing complementary strategies, Wilshire believes that they can further reduce active risk while maintaining attractive active returns.
Objective ongoing oversight
Wilshire’s responsibility does not end once a portfolio is constructed. Wilshire regularly monitors the asset allocation and underlying managers of each portfolio they manage. Portfolios are rebalanced on an ongoing basis, with adjustments made to allocations and managers as conditions warrant.
Team
Team
Wilshire: A diversified global financial services firm serving 500+ clients across 20 countries
Wilshire provides financial advisors and their clients with sophisticated, institutional-like solutions by adhering to a disciplined and rigorous approach following three key principles:
- Measuring: Identify the target investment return of a risk profile and seek to achieve it with the least amount of risk.
- Managing: Build portfolios that utilize multiple asset classes and combine investment managers whose investment styles complement each other.
- Monitoring: Rebalance portfolios regularly and make adjustments to allocations if market conditions change.
Investors in Wilshire’s asset allocation portfolios can be confident that their portfolios are being managed using the same principles, analytical tools and investment processes as institutional clients worldwide.