wilshire target funds, inc.
(Investment Class Shares)
(the "Fund")
Supplement dated June 11, 1997
to Prospectus dated October 30, 1996, as revised March 31,
1997
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.
wilshire target funds, inc.
(Investment Class Shares)
(the "Fund")
Supplement dated June 11, 1997
to Statement of Additional Information dated October 30,
1996, as revised March 31, 1997
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.
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