PEP for Windows™ is Callan’s industry-leading performance, risk, and style analysis software application. Designed by Callan from the ground up, PEP is a highly flexible software tool for analyzing investment performance and producing analysis to meet the needs of today’s investment professionals.
Performance and risk can be measured relative to any of Callan’s style groups or databases, or over 450 market indices. PEP’s flexibility allows clients to choose any time period desired. Through the use of a wide variety of chart types such as floating bars, line charts, and scatter charts, PEP presents data in the format that clients feel is most effective. By allowing clients to customize output, PEP can help a plan sponsor identify appropriate levels of risk, help an investment manager show value added, or aid a financial planner in selecting the right mutual funds for a client.
PEP can effectively quantify manager style for domestic, international, and global equity portfolios through the use of both holdings-based and multi-factor regression analysis. This analysis can be displayed in several ways. One option is a style map, which enables clients to compare their style to other managers and indices on either a holdings basis or using regression analysis. A second option is an exposure chart which quantifies levels of exposure to different equity styles.
Managers routinely send their periodic portfolio holdings to Callan for analysis and characteristic computation. These statistical results are then sent back to PEP users in their PEP database for in-house analysis. Choose from over 30 equity and fixed-income characteristics. PEP gives users the ability to use holdings-based portfolio characteristics to compute buy-and-hold performance attribution. Users can see how a manager adds value through skill in sector selection and how this differs from his or her skill in selecting securities within sectors.
Searchbooks, PEP’s newest manager search tool, facilitate the ability to run statistics on many managers or funds at one time. Users can screen portfolios on different return-based statistics as well as holdings-based portfolio characteristics where available. PEP also enables you to combine statistics via the Search Score function. Rank managers and funds based on one or multiple criteria.
PEP provides immediate access to valuable data from Callan’s separate account and mutual fund databases. With over 14,000 products across these two databases, you can access information on virtually every available investment vehicle. PEP also furnishes an appropriate peer group for any investment approach, providing over 200 style and database groups to choose from. PEP’s database architecture also allows you to customize performance groups, portfolios, benchmarks, and composites. Each data series in the PEP database can hold the following types of data on both a quarterly and monthly basis: