Mizuho Alternative Investments and Wilshire Funds Management Announce Strategic Alliance to Deliver Factor Based Investment Solutions

NEW YORK & SANTA MONICA, Calif.--()--Mizuho Alternative Investments, LLC (MAI), an affiliate of Mizuho Financial Group, Inc. (Mizuho) and Wilshire Funds Management (WFM), the global investment management business unit of Wilshire Associates Incorporated (Wilshire), today announced that they have entered into a strategic alliance to jointly create, develop, structure and distribute risk premia investment solutions to institutional investors and financial intermediaries.

“Investors are increasingly seeking liquid, transparent and cost-effective alternative exposures, and we believe that the investment and risk monitoring offered by our venture with Mizuho is an integral part of the value proposition offered to investors.”

Mizuho, one of the largest financial institutions in Japan, and Wilshire, a leading global investment consulting, technology and investment management firm, bring to the table a long history of experience servicing some of the world’s largest institutional investors.

“Wilshire Funds Management offers expertise across multiple disciplines, such as customized portfolio management, risk management, infrastructure and operations. We are very excited about the opportunity to work with Wilshire and look forward to a deep and long-standing relationship in the rapidly growing field of factor based investing,” said Masanobu Yamaguchi, President of Mizuho Alternative Investments.

“We are thrilled to work with Mizuho Alternative Investments on this initiative,” said Jason Schwarz, President of Wilshire Funds Management. “MAI’s years of experience managing quantitative investment strategies and developing innovative investment solutions for the global institutional market are invaluable to the initiative.”

Risk premia strategies are rules-based investable strategies that are designed to capture well researched market risk premia (such as carry, momentum, value, volatility, etc.) across asset classes. Through this strategic alliance, the firms will work together to analyze risk premia strategies, construct investment portfolios and customized solutions, and implement those strategies. Wilshire’s analytics and risk infrastructure enable monitoring of risk premia strategy performance and risk down to the underlying position level.

“We believe that risk premia strategies represent an important evolution in alternative investing,” Schwarz said. “Investors are increasingly seeking liquid, transparent and cost-effective alternative exposures, and we believe that the investment and risk monitoring offered by our venture with Mizuho is an integral part of the value proposition offered to investors.”

The two firms have already launched several risk premia portfolios for institutional investors, including a diversified income oriented portfolio comprised solely of strategies developed by some of the world’s largest banks and a defensive portfolio designed to seek outperformance in difficult periods for equity markets.

“Risk premia strategies have flexible and multi-faceted application in client portfolios,” Yamaguchi said. “These strategies can be used as building blocks for investors seeking to generate absolute returns, tilt portfolios toward specific conditions, increase portfolio resiliency, or smooth returns across various economic regimes. It is our hope that our risk premia solutions platform can be a useful tool in helping clients meet their specific investment needs.”

About Mizuho Alternative Investments

Mizuho Alternative Investments, LLC is an investment adviser focusing on developing and managing quantitative investment strategies. MAI was established in April 2007 as a subsidiary of the Mizuho Financial Group, one of the largest financial institutions in Japan. MAI is located in New York and as of October 30, 2015 manages, on a discretionary and non-discretionary basis, approximately $2.8 billion primarily for institutional clients, including MAI’s affiliates. MAI is a CFTC-registered CTA and an SEC-registered investment adviser. For more information, please see MAI’s form ADV.

About Wilshire Associates

Wilshire Associates, a leading global, independent investment consulting and services firm, provides consulting services, analytics solutions and customized investment products to plan sponsors, investment managers and financial intermediaries. Its business units include, Wilshire Analytics, Wilshire Consulting, Wilshire Funds Management and Wilshire Private Markets. Based in Santa Monica, California with ten offices on four continents, today Wilshire Associates employs approximately 300 associates worldwide. As of June 30, 2015, Wilshire Funds Management, the global investment management business unit of Wilshire Associates Incorporated., advises on $150 billion in assets for financial intermediaries. For more information, please visit www.wilshire.com.

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