FPG Research to disappear

FPG Research has formed a joint venture deal with US research house Morningstar.

Monday, February 22nd 1999, 12:00AM

The FPG Research name is to disappear from the New Zealand and Australian marketplaces on April 1, and is to be replaced by Morningstar.
The company announced, today, that it has formed a joint venture with United States research house Morningstar that will see the business renamed and recapitalised.
FPG managing director Graham Rich says the decision to form the joint venture is a response to the on-going globalisation of the financial services.
By combining forces FPG will be able to provide New Zealand investors with information on United States funds and managers.

Morningstar chief executive Don Phillips says the companies will exchange research methodologies and intellectual capital.
"Morningstar will contribute its US and other international fund and equity information, research and development resources, technology and capital.
"Both companies will benefit form the strength of a global brand," he says.
The flagship products for both companies are their star rating systems, however they are quite different. FPG's is a mix of qualitative and quantitative factors, while Morningstar, (like IPAC in New Zealand) use just past performance data.
Phillips described FPG's approach as "very intriguing".
No decision has been made on the future of the star ratings. Phillips says each market has different nuances and the end decision would be based on what was the most appropriate product for specific markets.
In the joint venture deal FPG will be renamed Morningstar, and it will contribute all of its business activities. Morningstar will subscribe for an undisclosed amount of new shares.
The new company will be chaired by FPG chair Ruth Richardson and Rich will be the managing director. He says all FPG's senior staff will be retained.
Phillips said Morningstar didn't look at doing a deal with IPAC Securities. He says, "it was love at first sight" when he saw FPG.

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