THIS SUPPLEMENT SUPERSEDES ALL PRIOR SUPPLEMENTS
WILSHIRE TARGET FUNDS, INC.
(Investment Class Shares)
(the "Fund")
Supplement dated September 16, 1997
to Prospectus dated October 30, 1996, as revised March 31, 1997
Effective immediately, Investment Class shareholders that
qualify to purchase Institutional Class shares may exchange their
Investment Class shares for Institutional Class shares.
Accordingly, the prospectus is revised as follows:
1. The first sentence of the first paragraph under the
heading "Shareholder Services -- Portfolio Exchanges" is replaced
with the following:
You may purchase, in exchange for shares of a Portfolio,
shares of the same class of one of the other Portfolios offered by
the Fund or shares of another class of the same Portfolio, to the
extent such shares are offered for sale in your state of residence
and you meet the eligibility requirements (including minimum
investment amounts) for the purchase of such shares.
2. The second sentence of the second paragraph under the
heading "Shareholder Services -- Portfolio Exchanges" is replaced
with the following:
The shares being exchanged must have a value of at least the
applicable minimum initial investment, if any, required for the
Portfolio and class into which the exchange is being made.
3. The following is added after the third paragraph under
the heading "General Information:"
Institutional Class shares, which are generally available
only to institutions investing at least $5 million in a Portfolio,
bear no 12b-1 (Shareholder Services Plan) Fee and, consequently,
the investment returns of Institutional Class shares are expected
to exceed those of Investment Class shares. For more information,
including information regarding eligibility to purchase
Institutional Class shares, call 1-888-200-6796 or contact your
investment representative.
Effective June 30, 1997, all references to P. O. Box 9770,
Providence, Rhode Island 02940-9770 will be replaced by the
following:
Wilshire Target Funds, Inc.
P.O. Box 5170
Westborough, Massachusetts 01581-5120
The following is substituted for the caption "Shareholder
Services Plan" at page 12 of the Prospectus and the paragraph
immediately following that caption:
SERVICE AND DISTRIBUTION PLAN
The Directors of the Fund have adopted a separate service
and distribution plan (the "Service and Distribution Plan") with
respect to the Shares of each Portfolio pursuant to Section 12(b)
of the 1940 Act and Rule 12b-1 thereunder. Under the Service and
Distribution Plan, the Fund reimburses First Data Distributors,
Inc. ("FDDI"), distributor of the Fund, at an annual rate of up to
.25 of 1% of the value of the average daily net assets
attributable to the Shares of each Portfolio for certain service
and distribution expenses borne, or paid to others, by FDDI.
Generally, the service fees covered under the Service and
Distribution Plan are fees paid to securities dealers and other
financial intermediaries for personal services to holders of the
Shares of a Portfolio and/or for the maintenance of the accounts
of the holders of the Shares. The services provided may include
personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the Fund and providing
reports and other information, and services related to the
maintenance of shareholder accounts. To the extent that such
service fees do not aggregate .25 of 1% of the value of the
average daily net assets attributable to the Shares of a
Portfolio, the Service and Distribution Plan also permits
reimbursement for distribution expenses borne, or paid to others,
by FDDI for the purpose of financing or assisting in the financing
of any activity which is primarily intended to result in the sale
of the Shares of the Portfolio. The types of distribution
expenses covered include, but are not limited to, the costs and
expenses of direct marketing activities (including related travel,
meals and lodging); the design, preparation, printing and
distribution of promotional materials, advertising and offering
materials, and shareholder materials; the compensation of
securities dealers and other financial intermediaries for sales
activities; and related capital, overhead and interest expenses.
Amounts payable under the Service and Distribution Plan relating
to a Portfolio are charged to, and therefore reduce, income
allocated to the Shares of that Portfolio.
All forward-looking references in the Prospectus to
"shareholder services plan fees" are hereby deemed to refer to
Service and Distribution Plan fees.
THIS SUPPLEMENT SUPERSEDES ALL PRIOR SUPPLEMENTS
wilshire target funds, inc.
(Investment Class Shares)
(the "Fund")
Supplement dated September 16, 1997 to
Statement of Additional Information dated October 30, 1996, as
revised March 31, 1997
Effective immediately, Investment Class shareholders that
qualify to purchase Institutional Class shares may exchange their
Investment Class shares for Institutional Class shares.
Accordingly, the Statement of Additional Information is revised as
follows:
1. The first paragraph under the heading "Shareholder Services
- -- Portfolio Exchanges" is replaced with the following:
You may purchase, in exchange for shares of a Portfolio,
shares of the same class of one of the other Portfolios offered by
the Fund or shares of another class of the same Portfolio, to the
extent such shares are offered for sale in your state of residence
and you meet the eligibility requirements (including minimum
investment amounts) for the purchase of such shares. Shares
purchased by exchange will be purchased on the basis of the
relative net asset value per share.
Effective June 30, 1997, all referenced to P.O. Box 9770,
Providence, Rhode Island 02940-9770 will be replaced by the
following:
Wilshire Target Funds, Inc.
P.O. Box 5170
Westborough, Massachusetts 01581-5120
The following is substituted for the caption "Shareholder
Services Plan" at page 17 of the Statement of Additional
Information and the first six paragraphs set forth under that
caption:
SERVICE AND DISTRIBUTION PLAN
The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus (Investment
Class shares) entitled "Service and Distribution Plan."
The Fund has adopted a Service and Distribution Plan (the
"Service and Distribution Plan") with respect to the Investment
Class shares of each Portfolio pursuant to Section 12(b) of the
1940 Act and Rule 12b-1 thereunder. Under the Service and
Distribution Plan, the Fund reimburses First Data Distributors,
Inc. ("FDDI"), distributor of the Fund, at an annual rate of up to
.25 of 1% of the value of the average daily net assets
attributable to the Shares of each Portfolio for certain service
and distribution expenses borne, or paid to others, by FDDI.
Generally, the service fees covered under the Service and
Distribution Plan are fees paid to securities dealers and other
financial intermediaries for personal services to holders of the
Shares of a Portfolio and/or for the maintenance of the accounts
of the holders of the Shares. The services provided may include
personal services relating to shareholder accounts, such as
answering shareholder inquiries regarding the Fund and providing
reports and other information, and services related to the
maintenance of shareholder accounts. To the extent that such
service fees do not aggregate .25 of 1% of the value of the
average daily net assets attributable to the Shares of a
Portfolio, the Service and Distribution Plan also permits
reimbursement for distribution expenses borne, or paid to others,
by FDDI for the purpose of financing or assisting in the financing
of any activity which is primarily intended to result in the sale
of the Shares of the Portfolio. The types of distribution
expenses covered by the Service and Distribution Plan include, but
are not limited to, the costs and expenses of direct marketing
activities (including related travel, meals and lodging); the
design, preparation, printing and distribution of promotional
materials, advertising and offering materials, and shareholder
materials; the compensation of securities dealers and other
financial intermediaries for sales activities; and related
capital, overhead and interest expenses. Amounts payable under
the Service and Distribution Plan relating to a Portfolio are
charged to, and therefore reduce, income allocated to the Shares
of that Portfolio.
The original Shareholder Services Plan (the "Services Plan")
of the Fund adopted pursuant to Section 12(b) of the 1940 Act and
Rule 12b-1 thereunder was approved (i) by votes of the majority of
both (a) the Directors of the Fund, and (b) those Directors of the
Fund who are not interested persons of the Fund, and have no
direct or indirect financial interest in the operation of the
Service and Distribution Plan or any agreements related to it (the
"Independent Directors"), in each case cast in person at a meeting
called for the purpose of voting on the Services Plan, and (ii) by
vote of a majority of the outstanding Investment Class shares.
Subsequently, an amendment to the Services Plan to include
distribution expenses, as well as service fees, as covered
expenses under the plan, and to rename the plan as the Service and
Distribution Plan, was approved on June 3, 1997 by vote of the
majority of both (a) the Directors of the Fund, and (b) the
Independent Directors of the Fund, cast in person at a meeting
called for the purpose of voting on the Plan. The amendment did
not increase the maximum amount of payments permissible under the
Plan.
Under the Service and Distribution Plan, FDDI is required to
provide to the Directors of the Fund for their review, at least
quarterly, a written report of the amounts so expended and the
purposes for which such expenditures were made.
The Service and Distribution Plan shall continue in effect
for a period of more than one year after July 3, 1996 only so long
as such continuance is specifically approved at least annually by
votes of the majority (or whatever other percentage may, from time
to time, be required by Section 12(b) of the Investment Company
Act of 1940 or the rules and regulations thereunder) of both (a)
the Directors of the Fund, and (b) the Independent Directors of
the Fund, cast in person at a meeting called for the purpose of
voting on the Service and Distribution Plan. The Service and
Distribution Plan may not be amended in any material respect
unless such amendment is approved by votes of the majority (or
whatever other percentage may, from time to time, be required by
Section 12(b) of the Investment Company Act of 1940 or the rules
and regulations thereunder) of both (a) the Directors of the Fund,
and (b) the Independent Directors of the Fund, cast in person at a
meeting called for the purpose of voting on the Service and
Distribution Plan, and may not be amended to increase materially
the amount to be spent thereunder without such approvals and
approval by vote of at least a majority of the outstanding Shares
of the affected Investment Class. The Plan may be terminated at
any time by vote of a majority of the Independent Directors or by
vote of a majority of the outstanding Shares.
For the period from July 15, 1996 through August 31, 1996,
each Portfolio incurred the following amount, utilized for
payments to securities broker-dealers and other financial
intermediaries for shareholder servicing and other recordkeeping
services, pursuant to the Services Plan:
Large Company Growth Portfolio $6,277
Large Company Value Portfolio $5,984
Small Company Growth Portfolio $5,857
Small Company Value Portfolio $9,763
The last two paragraphs under the caption "Shareholder
Services Plan" at page 18 of the Statement of Additional
Information are unchanged. All forward-looking references in the
Statement of Additional Information to "shareholder services plan
fees" are hereby deemed to refer to Service and Distribution Plan
fees.
